Experts said that some of the banks faced provision shortfall because they lent beyond limits set in banking regulations
A dozen banks faced a combined provision shortfall of Tk10,797.87 crore in the fourth quarter of 2019, exposing their faltering financial health.
The banks are Sonali Bank, Agrani Bank, Rupali Bank, BASIC Bank, AB Bank, Bangladesh Commerce Bank, Dhaka Bank, Mutual Trust Bank, National Bank, Standard Bank, Social Islami Bank and Trust Bank.
Experts said that some of the banks faced provision shortfall because they lent beyond limits set in banking regulations.
Talking to Dhaka Tribune, former governor of the Bangladesh Bank Salehuddin Ahmed said, “Provision shortfall is a bad sign for a bank, which indicates its weakness caused by fall in depositors’ funds.”
The capital base of those banks would erode significantly as they must keep provisioning as per the central bank rules, he added.