At least Tk 4.95 billion (495 crore) of six state-owned banks (SoBs) remained stuck against 157,273 cases filed to recover the money from farm loan borrowers, statistics show.
Between January 1991 and June 2019, about 11,708 farmers could not be traced even after warrants in certificate cases were served. As a result, over Tk 405 million remained unrealised against their names.
Banking sources said the number of certificate cases against missing borrowers is high in river erosion-prone areas.
"Borrowers leave areas losing their land and homes causing huge financial loss to the banks," a central bank source told the FE.
The BB statistics show that in June last about 1,853 certificate cases were settled recovering only Tk 65.23 million while 470 fresh cases involving over Tk 34.60 million were filed.
Until June last the Bangladesh Krishi Bank (BKB) had the highest 76,205 cases pending, involving over Tk 2.55 billion. In the same month, about 1,310 cases involving over Tk 46.39 million were settled. The bank could not trace 4,518 borrowers after issuance of warrants involving Tk 137.93 million in loans at the end of June last.
The Rajshahi Krishi Unnayan Bank (RAKUB) had 24,825 pending cases involving over Tk 1.30 billion during the month under review. The bank had issued some 2,582 warrants involving Tk 145.84 million until June last. But the borrowers could not be traced.
The Agrani Bank Ltd had 22,327 pending cases under which over Tk 214.40 million remained unrealised until June last. The bank settled 200 cases and filed 13 fresh ones in the same month. It had issued 1,583 warrants involving over Tk 43.71 million but the borrowers could not be traced.
The Janata Bank Ltd. had 16,029 pending cases with Tk 380.20 million remaining unrealised until June last. It settled 73 cases and filed 42 fresh ones in the same month. It had served 1,696 warrants in certificate cases involving Tk 32.8 million. Here too, the borrowers could not be found.
Until June last, the Sonali Bank Ltd had 14,240 pending cases involving over Tk 425.92 million. It settled only 76 cases in the same month and filed 49 fresh ones. The bank had issued 960 warrants at the end of the same month to borrowers who could not be traced.
Until June, 2019, the Rupali Bank Ltd had 3,647 pending cases involving over Tk 66.17 million. The bank settled only 34 cases in the same month and filed six fresh cases. The bank had issued 369 warrants at the end of the month to borrowers who could not be traced
Both the BB and the government authorities concerned put thrust on reducing the number of certificate cases and recover the money involved, a senior official of the BB said.
"We are constantly asking the bank authorities to bring down the number of cases and to be cautious while granting new loans," he cited.
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