Profits of listed banks decrease by Tk 383 crore in first half

Compared to the same period last year net profit of  listed banks in the country's stock markets decreased by 383 crore taka in the first half of 2020 (January-June) which was 700 crore taka plus in the previous year.

The paid up capital of the listed banks in August 2019 was 30,096.98 crore taka. Due to bonus shares announced this year, it has now risen to 30,896.49 crore taka. As a result, the capital has increased by 799.51 crore taka or 2.66 percent. However, due to coronavirus pandemic, some banks are yet to disburse bonus shares.

On the other hand, despite the increase in capital of banks, the net profit in the first half of the current year has decreased by 383.45 crore taka or 10.84 percent compared to the same period last year due to coronavirus. Banks have made a net profit of 3,155.19 crore in the first half of this year. The amount in the first half of 2019 was 3 thousand 538 crore 64 lakh taka.

It has been seen that the net profit of 12 banks or 40 percent banks has increased in the first half of 2020 as compared to the same period of the previous year. And the profit of 17 banks or 56.67 percent banks has decreased. The losses of the remaining 1 or 3.33 percent banks have increased.

Among the listed banks, Islami Bank has made the highest profit of 312.35 crore taka followed by Dutch-Bangla Bank.

In the first half of the current year, ICB Islamic Bank is at the bottom with losses. The bank has incurred a loss of 21 crore 7 lakh taka.

Standard Bank has made the lowest profit among the banks which is 5 crore 72 lakh taka followed by AB Bank and Rupali Bank.

AB Mirza Azizul Islam, an adviser to the former caretaker government, told The Business Post that the overall performance of the banks was not bad despite fears of worse scenario due to the ongoing pandemic. However, it is time to make the internal management of these banks more transparent and effective, he opined.

Of the listed 30 banks, National Bank has the highest paid-up capital of 2,920.40 crore taka followed by IFIC Bank and Islami Bank.

At present, the paid up capital of 13 banks is over 1,000 crore taka. The banks are: National Bank, IFIC Bank, Islami Bank, BRAC Bank, United Commercial Bank, Citi Bank, Southeast Bank, Al-ArafahIslami Bank, Exim Bank, Pubali Bank, Bank Asia, Prime Bank, Standard Bank.

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