Outstanding loans and deposits both increased in full-fledged at 10 local Islamic banks in February this year although six of them have been facing severe liquidity crisis for more than a year.
Outstanding loans at 10 banks stood at Tk 455,525 crore, up by Tk 6,452 crore from a month earlier, according to the latest data of Bangladesh Bank (BB).
At the same time, deposits in those banks hit Tk 380,066 crore, up by Tk 4,762 crore from January.
Massive loan irregularities have been taking a huge toll on six Islamic banks such as Islami Bank Bangladesh, Social Islami Bank, First Security Islami Bank, Union Bank, Global Islami Bank and ICB Islamic Bank.
The rest four-Al Arafah Islami Bank, Standard Bank, Exim Bank and Shahjalal Islami Bank-have been doing comparatively well, industry insiders said.
The money being added to bank coffer in the form of interest has also played an important role for the increase in Islamic banks outstanding loans and deposits in February, experts said.
Despite being in a bad shape, most of the six banks are disbursing loans, which is adding to outstanding loans at Islamic banks, they added.
The six have been facing shortfalls in cash reserve ratio and statutory liquidity ratio for a long time along with being hit by a deficit at their current accounts with the central bank.
Some of them continue to take liquidity support from Bangladesh Bank, said a senior official of the Bangladesh Bank seeking anonymity.
Association of Bankers Bangladeshs (ABB) former chairman Mohammed Nurul Amin said; Some Islamic banks are largely involved in loan irregularities, which have deteriorated their corporate governance.
