Agrani Bank most generous in waiving interest
It has waived a total of Tk4,291 crore in interest since 2009–which was also the highest among all state-owned banks
Despite having a huge capital shortfall, Agrani Bank has waived the highest amount of interest among all state-owned banks in the first two months of this year.
The bank waived a total of Tk625 crore in interest in January and February.
Its waiver amount was also the highest last year, reaching Tk1,322 crore.
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The bank has been giving a waiver to its customers at a time when it has capital shortfall of Tk1,294 crore, as of December last year, according to the Bangladesh Bank's data.
It waived a total of Tk4,291 crore in interest since 2009, which was also the highest among all state-owned banks, according to a statement placed in the parliament on Sunday by Finance Minister AHM Mustafa Kamal.
When contacted, Mohammad Shams-Ul Islam, managing director of Agrani Bank, described the interest waiver as a re-investment.
He said the bank gives value on time and waived the interest to recover, even if minimally, instead of waste a long time.
"There is nothing wrong with an interest waiver as it was done according to the government's interest waiver policy," he added.
Though the bank has a shortfall of capital, it will be recovered by next year as loan recovery increased due to interest waivers, he added.
The bank made a net profit of around Tk100 crore after taking provisional forbearance from the Bangladesh Bank.
Not only Agrani, but other banks also seemed generous with interest waivers last year even after massive loan rescheduling.
All the state-owned banks rescheduled a total of Tk15,306 crore last year when their total interest waiver was Tk14,560 crore.
Janata Bank, which incurred a loss of Tk2,492 crore last year, waived Tk193 crore in interest that year.
In the first two months of the current year, it waived Tk62 crore in interest, according to a statement placed in the parliament.
The bank has waived a total of Tk3,743 crore in interest since 2009.
Janata Bank has capital shortfall of Tk2,489 crore as of December last year.
Sonali Bank, the largest state-owned bank in the country, waived the second highest amount of interest, Tk824 crore, last year.
In the first two months of this year, it waived Tk101 crore in interest.
The bank has waived a total of Tk3,389 crore in interest since 2009.
