Financial institutions' woes

Published:  09:10 AM, 03 December 2019

Govt banks pay the price


Five financial institutions have been undergoing woes for last five years. Allegedly the owners of these organizations have siphoned away money from these companies under cover of loans. Five state-run banks deposited around 1 thousand crore taka in these financial institutions. There is very little hope about the recovery of this money.

These five organizations are People's Leasing and Financial Services Limited, Bangladesh Industrial Finance Company, Inter-national Leasing, First Finance and FAS Finance. Five state-owned banks deposited money in these organizations. Funds were deposited in these organizations through call money too. Now banks are not being able to show this money as defaulted loans.

Sonali Bank Limited deposited 100 crore taka in these financial institutions. Sonali Bank Limited sent a request to the central bank seeking assistance to get back the money.

Sonali Bank Limited deposited 45 crore taka in People's Leasing and Financial Services, 20 crore taka in Bangladesh Industrial Finance Company, 17 crore taka in International Leasing, 12 crore taka in First Finance and 7 crore taka in FAS Finance. Now Sonali Bank is not getting back these funds.

Janata Bank deposited 55 crore taka in People's Leasing and Financial Services, 47 crore taka in International Leasing, 28 crore taka in First Finance and 10 crore taka in FAS Finance.

Rupali Bank Limited deposited 143 crore taka in People's Leasing and Financial Services, 62 crore taka in Bangladesh Industrial Finance Company, 119 crore taka in International Leasing, 112 crore taka in FAS Finance, 51 crore taka in First Finance, 43 crore taka in Bangladesh Finance and Investment, 42 crore taka in Fareast Finance, 229 crore taka in Reliance Finance, 22 crore taka in Phoenix Finance and 22 crore taka in Union Capital.

Agrani Bank Limited's 216 crore taka has got stuck in different financial institutions. 100 crore taka of Bangladesh Development Bank Limited (BDBL) was deposited in these companies which cannot be retrieved either.


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