Banks which are failing to recover defaulted debts are performing poorly
The net profit of Southeast Bank increased by 32 percent in the first nine months of the current accounting year and that of Dutch-Bangla Bank rose by 27 percent. However, the net profit of ONE Bank fell by four percent during the period.
According to bankers, the private loan flow in the banking sector has decreased in recent times. Because of this the banks which are failing to recover defaulted debts are performing poorly.
Southeast Bank made a net profit of Tk328 crore in the first nine months (January to September) of the current accounting year and its Earnings Per Share (EPS) was Tk2.82. During the same period in the previous year the bank's net profit was Tk247 crore and its EPS was Tk2.13.
Rashedul Islam, Southeast Bank's chief financial officer told The Business Standard, "Highest attention has been given to realising defaulted loans rather than granting fresh loans. As a result, it has been possible for the bank to recover maximum loans in this quarter, which has resulted in a rise in its profit."
Dutch-Bangla Bank made a net profit of Tk336 crore in the first nine months of the current year and its EPS was Tk6.73. During the same period in the previous year the net profit of the bank was Tk266 crore and the EPS was Tk5.32.
The profit of ONE Bank in the first three quarters decreased. During the period, the Bank's net profit was Tk57 crore and EPS was Tk0.68. During the same period in the previous year ONE Bank's net profit was Tk60 crore and the EPS was Tk0.71.