Published: 01:55 AM, 14 November 2018
Bank revenue fall triggers manpower cut
The actual revenue of banks and financial institutions in the country is on the decline resulting in manpower cut in this sector, it is reliably learnt.
The maximum income of the banking sector comes from investments. But bank investments have drastically fallen in recent times, which has taken a toll on their profits or revenue.
According to the central bank, the growth of revenue in the banking sector was 5.43 percent last year, which was 9.60 percent in the year before. Although the actual revenue has declined, costs of management have increased.
Bankers say that large borrowers don't pay bank loans. But the medium and small traders cannot repay debts due to bad conditions of their businesses. As a result, the amount of default loans is increasing.Bangladesh Bank data showes the current amount of the default loans at Tk 1.26 trillion. Only Tk 4 thousand crores have been recovered, which is only 3.35 percent of the total default loans.
Under these circumstances the banking sector continues to suffer. For this reason, banks are going to cut costs. A banker said that earlier six officers worked in his division now only two peoples are working which creating pressure on them. Due to shortage of manpower the bankers has to work extra time. For extra duty has effected on bankers family life.
An official of the central bank said they are getting complaints against several banks of dismissing or removing employees, which is creating complications in the banking sector.He also said some private banks are terminating officers terming them as 'ineligible'.
Khondkar Ibrahim Khaled, former deputy governor of Bangladesh Bank said country's banking sector is passing through a critical time as the sector has a huge amount of default loans.The banks have disbursed loans but cannot recover the money which has affected their revenue growth. For this reason, the banking sector is trying to cut their regular expenditures, he added.
