Good borrowers can be incentivised

We are not pessimistic about non-performing loans (NPLs) as the country's remittance inflow remains robust proving wrong the speculation that it would slow down amid the pandemic.

It was predicted by various platforms that remittance inflow would not show any growth after June this year but we were optimistic that it would not decline as expatriates have realised the benefits of sending money through official channels.

Similarly, we do not think there will be any disaster in terms of NPLs. We believe the central bank will prepare a prudential guideline to deal with the probable surge in NPLs in coming months.

Borrowers may get a reasonable time to pay their interest accrued during the one year of loan deferment. The grace period of the stimulus package may be extended to two years from one year considering the situation.

Therefore, state-owned banks need not take any early measure to manage NPLs. We are waiting for the central bank's policy.

However, for the unforeseen situation, we have intensified our recovery drive convincing our clients to keep payment regular even amid the installment suspension period.

We are offering a 10% interest rebate to our clients who are paying regularly following the Bangladesh Bank's guideline on incentivising good borrowers.

Mohammad Shams-Ul Islam, managing director at Agrani Bank