The provision deficit of 10 banks is Tk 31,500 crore

According to the updated information of Bangladesh Bank, at the end of June of this year, the total provision or security reserve deficit of 10 banks, including six private commercial institutions, stood at 31 thousand 549 crores.

The banks are: National Bank, Basic Bank, Agrani Bank, Rupali Bank, Bangladesh Commerce Bank, Dhaka Bank, Standard Bank, Bangladesh Development Bank, IFIC Bank and Southeast Bank.

As per the policy, banks are required to maintain a provision of 0.50% to 5% of their deposits. However, provisioning requirements can range from 20% to 100% depending on the classification of defaulted loans.

Central Bank data shows that the provision deficit in the banking sector increased by Tk 4,963 crore between April and June. By the end of March this year, the provision deficit in this sector stood at 26 thousand 586 crores.

According to the report of Bangladesh Bank, at the end of June, the amount of defaulted loans in the banking sector reached Tk 2,11,391 crore or 12.56 percent of the total loans.

In the June quarter (April-June) classified loans increased from Tk 1 lakh 82 thousand 295 crore to Tk 29 thousand 96 crore till March 30. According to the data of Bangladesh Bank, the largest share of classified loans is from state-owned commercial banks (1 lakh 2 thousand 483 crore taka or 32.77 percent), specialized banks (5 thousand 756 crore taka or 13.11 percent), private commercial banks (99 thousand 921 crores or 7.94 percent) and foreign commercial banks have a loan of 3,229 crores or 4.74 percent. Source: Bass.

Bangladesh /MP