BB wants classified loan info within 15 days of every month

The Bangladesh Bank has reduced the deadline for banks to provide information on classified loans and provisions against the loans by 10 days.

From now on, all banks have to fill up the CL Form-1 with relevant information about the classified loan and send it to the central bank within the first 15 days of every month. Earlier the time-frame was 25 days.

The central bank's Banking Regulation and Policy Department (BRPD) issued a circular in this regard on Thursday.

It said the time limit mentioned in section 10 of the master circular issued on 23 September, 2012 on loan classification and provisioning has been reduced to 15 days from 25 days.

Asked about this, Syed Mahbubur Rahman, managing director and CEO of Mutual Trust Bank, told The Business Standard that the reduced deadline would put extra pressure on bankers.

The bank has to settle a lot of accounts especially at the year's end, and also at the end of half year -- that is the end of June. In the meantime, reducing the debt classification time will put extra pressure on them, added the seasoned banker.

Meanwhile, in another circular, BRPD has issued a directive to add three new forms to provide more detailed information in addition to existing information on the appointment or re-appointment of directors to Bank Company.

Inquiry Form-I & II and Undertaking-Ka should be attached with the information, declaration and confidentiality declaration of the nominated candidate for the appointment as a director.

The English description of personal information and the information of the nominated director's own business organisation have to be added to the Inquiry Form-I & II while Undertaking-Ka would incorporate the details of the director's own company and whether s/he has any liability in the bank.

Meanwhile, a circular issued by the Sustainable Finance Department said sustainable finance policy has been formulated keeping in view the impact of eco-friendly banking, climate finance, carbon finance, green bonds and sustainable financing and CSR and implementation of various government action plans.

Besides, sustainable financing rating will be taken into consideration to determine the performance of banks and financial institutions, another circular said.

Sustainable finance indicators, CSR activities, Green Finance and Core Banking Sustainability will determine the rating.

In addition to rewarding the banks and financial institutions in the top rating, the provision of incentives has been included in the new policy.