State banks worry over fund withdrawal


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State banks worry over fund withdrawal

Managing Directors and CEO’s expressed grave concern over pullout money from government banks by state-owned and autonomous institutions.
More than Tk 1,000 crore has been withdraw by different state-owned and autonomous organizations including Bangladesh Petroleum Corporation, Titas, Petrobangla, Wasa, Power Grid Company, Power Development Board and many more.
They said, such wholesale withdrawal of fund may force government banks a liquidity crisis in near future.
“Different state-owned and autonomous organizations have withdrawn about Tk 2600 crore from Janata Bank along during last 20 days. It is alarming, how could we continue business if all low cost fund is to be taken back,” Md. Abdus Salam Azad, CEO and Managing Director of Janata bank told in a meeting with Financial Institution Division Senior Secretary Asadul Islam.
He said, state owned banks have to incur huge loss due to upheaval salary and wages during the non operation moths of April and May and incentive announced by the government.
Agrani Bank MD Mohammad Shams-Ul Islam said it is a bad trend by the state agencies as they pull out money from state owned banks when banks need adequate fund to continue business operation of industries.
Meanwhile, a draft law on the cards to use the surplus ay the government for development purposes; 68 organisations now have over Tk 2 lakh crore in banks

The cabinet recently approved a draft law that would allow the government to use “idle funds” of state-owned organisations for development work.

There are 68 state-owned autonomous organisation which have Tk 2,12,100 crore deposited in banks.
Among the 68 organisations, Bangladesh Petroleum Corporation (BPC) has the highest Tk 21,580 crore of idle money deposited in banks followed by Petrobangla Tk 18,204 crore, Dhaka Power Distribution Authority Tk 13,454 crore, Chattogram Port Authority Tk 9,913 crore, and Rajuk Tk 4,030 crore.



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