e_Paper, Monday, July 03, 2017

8
MONDAY, JULY 3, 2017
DT
News
Banks’ operating profits rise
despite excess liquidity, NPLs
• Shariful Islam
BUSINESS
Despite the pressure of excess liquidity
and non-performing loans
(NPLs), most public and private
banks have seen an increase in their
operating profits in the first six
months of the calendar year compared
to the same period a year ago.
As there is an embargo from
Bangladesh Securities and Exchange
Commission (BSEC) and
Bangladesh Bank on disclosing
information about the operating
profits, the Dhaka Tribune collected
a total of 45 banks’ profit data by
contacting them respectively.
The authorities concerned
marked down the information
about profit data as “sensitive”.
The data shows that at least 22
banks have made significant profit
at the end of June while only three
of them have seen profit downturn.
Though the fiscal year is counted
from July to June period, banks
maintain January to December period
as their fiscal year. For this,
every year banks settle accounts by
June 30 and enjoy holiday known
as bank holiday on July 1, thus
making a half-yearly calculation.
But this year has been an exception
because July 1 fell on Saturday.
Moreover, settling accounts was
easier than previous years as most
banks automate their business process,
said sources in the banks.
According to the banks calculation,
Islami banks have made more
profits than others in the first half
of the current year.
HALF YEARLY OPERATING PROFITS OF BANKS
(January-June) Amount in Taka, crore
Name of Bank 2017 2016
Sonali Bank 240 -500
Agrani Bank 300 102
Rupali Bank 35 260
IBBL 1050 854
Jamuna Bank 200 201
Modhumoti Bank 73 32
SIBL 267 225
NRB Bank 37 36.9
BASIC Bank 19.81 -46
Pubali Bank 460 297
Bank Asia 307 297
Mercantile Bank 325 229
National Bank 408 585
Southeast Bank 411 420
Dutch-Bangla Bank 350 324
Al-Arafah Islami bank 360 350
EXIM Bank 320 255
NCC Bank 243 197
Meghna Bank 67 58
Shahjalal Islami Bank 173 159
SBAC Bank 65 70
Premier Bank 250 200
First Security Islami Bank 222 167
Mutual Trust Bank 209 200
Farmers Bank 42 30
Source: Compiled by Dhaka Tribune
The operating profits of the
banks are, however, not the final
profit. It is the unaudited profits. In
the final count, the amount may be
a little higher or lower as the banks
have to set aside funds for provisioning
bad debts and taxes payable
to the government from their
operating profits, according to the
bankers.
Pressure of excess liquidity, NPLs
Though the operating profits have
been on an upward trajectory,
banks face huge pressure from excess
liquidity and non-performing
loans, which are affecting performance,
according to sector people.
The state banks’
default loans
expanded from
Tk4,691 crore to
Tk35,716 crore during
the Q1 of the year
The latest central bank data released
on March this year showed
that the excess liquidity in the
banks stood at Tk1,22,073 crore
at the end of 2016 while it was
Tk1,20,679 crore in 2015.
The non-performing loans in
the banking sector increased by
Tk11,237 crore in the first three
months of the current year.
At the end of March, the total
NPL stood at Tk73,409 crore which
is 10.53% of total outstanding loans.
The default loan of private banks
stood at Tk29,727 crore in the first
quarter of the year, up 28.93% from
the last three months of 2016.
The state banks’ default loans
expanded from Tk4,691 crore to
Tk35,716 crore during the first
quarter of the year.
The foreign banks’ default loans
declined from Tk2,405 crore to
Tk2,282 crore.
The NPL was Tk62,172 crore at
the end of December, 2016. •
Bangladeshis
among 1,035
detained in
Malaysia
• Tribune Desk
WORLD
Malaysian Immigration Department
has rounded up 1,035 illegal
immigrants and 16 employers
throughout the country on the
first day of a nationwide Op Mega
after the deadline for registration
of temporary Enforcement Card
(E-Card) expired Friday midnight.
During Op Mega led by its director-general
Datuk Seri Mustafar Ali,
3,393 foreigners were screened at
155 premises with Johor registering
the highest number detained 414
illegal immigrants and three employers,
reports Bernama.
“In Kelantan, 147 illegal immigrants
were nabbed while in Sabah
(69 illegal immigrants) and four
employers were nabbed,” he said.
The E-Card is a temporary document
that allows foreign workers
without a valid travel document or
work permit to carry on working in
the country pending the approval of
a permanent document or work permit
because the temporary E-Card
expires on February 15, 2018.
The Immigration Department
had said when the deadline for
E-Card registration ended on June
30, only 23 percent or 161,056 illegal
immigrants had registered, although
the registration for E-Card
was launched on Feb 15, this year.
For the number which involved
28,375 employers, 145,571 E-Cards
were issued but the figure was way
off the initial target of 600,000,
said Mustafar. •
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