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Banks'operating profits up despite excess liquidity

Published : Monday, 1 January, 2018 at 12:00 AM  Count : 387
Shamsul Huda

Most of the private commercial banks continued their profit-making trend on the last closing day on December 31 in 2017, despite financial scams, higher non performing loans and excess liquidity.
As per data available on the closing day, the banks made hefty operating profits during the last calendar year. Mutual Trust Bank (MTB)'s operating profit as on December 31 was Tk 4.17 billion, which is Tk 560 million higher than last year's Tk 3.61 billion. Pubali Bank's operating profit reached Tk 9.2 billion from last year's 7.2 billion, Trust Bank's operating profit was Tk 6.30 billion from last year's Tk 5.01 billion, DBBL earned Tk 7.5 billion operating profit from last year's Tk 6.3 billion, and Jamuna Bank achieved Tk 4.85 billion, which is Tk 430 million higher than last year's Tk 4.42 billion.

A senior banker of a leading private commercial bank said most private commercial banks have made profits in the last calendar year due to the government's new policies on credit disbursement, infrastructure development, power sector development, stable political situation, quality bank advance and loan recovery under the central bank's monitoring.
During the year, a good number of changes were made in the banking sector, including dissolution of governing bodies in Islami Bank Bangladesh Limited, BASIC Bank Limited, Social Islami Bank  Limited, Farmers Bank, NRB Commercial Bank, and Meghna Bank, and reshuffle in the top executive levels. These banks later formed new governing bodies.
Anis A Khan, former president of the Association of Bankers Bangladesh (ABB), said despite excess liquidity, low rates on bank loans and deposits and slow growth in credit disbursement, most of the banks earned hefty operating profits last year.
He said except the rising non-performing loans, mainly in the state owned banks, and lending facilities given to some clients by private commercial banks, the overall health of the banks remained good. A senior BB official said, "Though our banks are in the higher operating profits, we need to wait for the net profits after keeping provisions against loans."

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