Bangladesh Bank has dismissed the capital recovery action plans of four state-owned commercial banks — Agrani, Janata, BASIC, and Rupali — considering them unrealistic. According to the central bank, the combined capital deficit of these banks stood at approximately Tk31,000 crore as of December 2024. The banks were required to submit a five-year plan to address this shortfall by 2029.
Sonali Bank and Bangladesh Development Bank Ltd (BDBL) faced a provisioning shortfall of Tk4,763 crore. However, due to provision forbearance, both banks reported a capital surplus of Tk167 crore.
Agrani Bank has proposed to reduce its capital deficit by Tk6,245 crore over five years despite a net loss of Tk937 crore in 2024. Between 2022 and 2024, the bank recorded net profits in only two years totalling just Tk180 crore. Officials note that profit growth, government recapitalisation, or reduction of non-performing loans is essential to tackle the deficit, none of which are currently favourable for Agrani.
Bangladesh Bank has returned Agrani’s plan, requesting a revised version aligned with financial realities. BASIC Bank aims to cut its deficit of Tk8,621 crore to Tk3,257 crore by 2029. Janata Bank, despite a net loss of Tk3,071 crore in 2024, projects a deficit of Tk20,600 crore by 2029. Rupali Bank has submitted a relatively realistic plan.
Sonali Bank reported a surplus of Tk64 crore at the end of 2024, intending to increase it to Tk5,842 crore by 2029. BDBL has similar plans. Economists emphasise that profit growth alone is insufficient; balance-sheet restructuring, risk management, NPL recovery, government recapitalisation, specialised recovery teams, fast-tracking legal cases, and asset sales are necessary.
As per Bangladesh Bank, 24 banks failed to meet the minimum capital requirement. By June 2025, the total capital shortfall of the banking sector exceeded Tk155,000 crore.
AJ