Twenty-three banks in the nation had a capital deficiency at the end of March this year. These banks’ aggregate deficit was Tk 1,10,260 crore, the second-highest in the history of the nation. This information was revealed in Bangladesh Bank’s most recent report.
The 19 banks’ deficit at the end of last December was Tk 1,71,687 crore.

The number of banks in deficit rose to 23 even though the deficit shrank during the March quarter. The primary cause of this is that, as of December, 28 banks were granted deferral (delay in loan repayment) facilities; hence, the deficit seemed to be little on paper, but in practice, the banks’ circumstances have not significantly improved.

As per the report, the Capital to Risk Weighted Asset Ratio (CRAR) for the banking sector was recorded at 6.74 percent at the close of March, which falls short of the international minimum requirement of 10 percent. In the absence of the deferral facility, this ratio would have plummeted to negative 10.97 percent. At the conclusion of the previous year, this ratio was merely 3.08 percent.

At the end of March, six state-owned banks reported a capital deficit. The most significant deficit was observed in Bangladesh Krishi Bank (BKB), amounting to Tk 18,945 crore. Janata Bank’s deficit is reported at Tk 12,768 crore, a decrease from Tk 52,890 crore in December. Agrani Bank’s deficit has risen to Tk 5,822 crore, while Rupali Bank’s deficit has decreased to Tk 4,470 crore. Additionally, Basic Bank’s deficit has increased to Tk 3,506 crore, and Rakab’s deficit remains at Tk 2,511 crore.

Among Islamic banks, Union Bank has the largest deficit, totaling Tk 17,492 crore. First Security Islami Bank’s deficit stands at Tk 7,790 crore, while Islami Bank Bangladesh has a deficit of Tk 6,454 crore. Global Islami Bank’s deficit is Tk 3,981 crore, Social Islami Bank’s deficit is Tk 1,980 crore, and ICB Islamic Bank’s deficit is Tk 1,499 crore. Furthermore, Exim Bank’s deficit amounts to Tk 521 crore.

In the private banking sector, IFIC Bank’s deficit has reduced to Tk 2,698 crore from Tk 9,290 crore previously. National Bank’s deficit has also decreased to Tk 6,939 crore. Conversely, Bangladesh Commerce Bank and AB Bank have seen their deficits rise to Tk 1,782 crore and Tk 3,693 crore, respectively. Padma Bank’s deficit has increased to Tk 5,171 crore.

Despite utilizing the deferral facility, Premier Bank (Tk 1,171 crore), Shimanto Bank (Tk 26 crore), and UCB Bank (Tk 954 crore) have encountered new deficits in the March quarter.

According to this study, Habib Bank, a foreign sector company, has likewise had a capital shortfall. At the end of March, the bank’s deficit was Tk 3.6 million.
As of the end of March, non-performing loans in the banking industry were Tk 4,20,334 crore, according to Bangladesh Bank’s figures. 23 banks have had a capital deficit as a result of the pressure from non-performing loans, even after utilizing the deferral option.