Muhith blames some banks for loan defaults

Finance Minister AMA Muhith Saturday blamed some banks for turning their clients into loan defaulters.

"Some banks have a tendency to deliberately turn their clients into defaulters from day one of allocating loans to them", Muhith said at a workshop on the status of state owned banks in the capital.

"They think that if the clients can be made defaulters, they can be brought under the grip of the banks", he added.

Earlier, Banking Division Secretary Md Eunusur Rahman in his presentation lamented the capital inadequacy and the rising amount of classified loans of the state owned banks.

Noting the capital inadequacy as one of the biggest problems of the state-owned banks, Muhith said that the government is putting greater emphasis on addressing this issue. 

State Minister for Finance and Planning M A Mannan, Governor of Bangladesh Bank Fazle Kabir, Senior Secretary of Finance Division Hedayetullah Al Mamun were also present at the event.