Sonali Bank develops action plan to reduce loan concentration, says MD

Sonali Bank is implementing a specific branch-wise action plan based on an agreement with Bangladesh Bank to reduce excessive loan concentration or concentrated situation. The institution is implementing this activity through other branches by stopping large loan distribution at its five branches.
Managing Director (MD) and Chief Executive Officer Showkat Ali Khan of the institution gave this information at a meeting with journalists at Sonali Bank's head office in Motijheel, the capital, on Tuesday (January 13). Senior officials including the bank's deputy managing director were present at the time.
Showkat Ali Khan said, "The amount of loan had increased in some of our concentrated branches. As per the instructions of Bangladesh Bank, new loans have been stopped there. The information that loan concentration in five branches is 44 percent is not correct, in fact it is 37 percent. We have an MOU (Memorandum of Understanding) with Bangladesh Bank in this regard and we are working according to a time-bound action plan.'
He said that the decision not to give large loans to those five branches is effective and department-wise loans are being distributed from other branches. He expressed hope that as a result, loan concentration will gradually reduce.
In response to a question from journalists, the MD of Sonali Bank said that about Tk 745 crore has been recovered from the top 20 defaulters so far. The recovery process is ongoing. The details of the total outstanding and defaulted loans will be given to journalists in writing.
He said that the total defaulted loans of these 20 defaulters are about Tk 3,000 crore and are being recovered from there regularly.
In response to a question regarding deposits, Showkat Ali said, 'The trust of the people of the country in Sonali Bank is very high. This is a blessing for depositors. We do not have to take any special initiative to collect deposits. People voluntarily keep money here for security reasons.'
He said, 'However, even though deposits are increasing rapidly, loan disbursement takes time due to scrutiny and caution. Especially after the Hallmark scandal, we are taking extra caution in disbursing large loans.'
The bank's Chief Financial Officer (CFO) said in the meeting that about Tk 750 crore has been rescheduled in the last one year. If court-related loans are rescheduled, cases are also being settled. However, if the customer defaults again, legal measures are being implemented again.
He said that 109 wilful defaulters have been identified as per the Bangladesh Bank circular and the necessary process has been completed.