BASIC Bank plans to cut NPL by 30pc in 3 years
BASIC Bank Limited is planning to cut its Non-Performing Loan (NPL) by 30 per cent in the next three years as the rate of NPL is now 50 per cent of the bank's total outstanding loans.
"We are working to set a plan to cut at least 10 per cent NPL each year. We will finalize the plan in December," newly appointed BASIC Bank Managing Director Muhammad Awal Khan told BSS here on Tuesday.
The total outstanding loan amount of the bank is around Taka 14,000 crore while the amount of NPL is over Taka 7,000 crore. If the bank can achieve the target of reducing the amount by 30 per cent in the next three years, the NPL will come down to Taka 5,000 crore.
Terming the recovery of NPL as his main priority and challenge, Awal Khan said the bank is working to bring down the NPL to a tolerable level by taking necessary steps.
"We are getting cordial support and guidance from the government, Bangladesh Bank and board of directors (of BASIC) in this regard," he added.
He said "We will begin implementation of the plan from January. If we can attain the target, it will be a huge achievement."
Mentioning that the former managing director of the bank worked hard to recover the huge amount of NPL in his tenure, Awal Khan said the rate of recovery is now better than before as the officials of the bank are working to speed up the recovery process.
Awal Khan said BASIC Bank rescheduled Taka 4,000 crore loans earlier, so that the borrowers can back their money easily, but loans of around Taka 2000 crore have become classified again.
"After completing all process for the recovery of the loans, we will go to court for legal actions, if needed," he added. -BSS