DHAKA, Dec 26, 2018 (BSS) – Farmers Bank Limited (FBL) has planned to cut
at least 40 percent classified loans in 2019 as the bank wants to join the
new era with new name for expediting its loan recovery process and ensuring
the customer confidence.
“We want to bring our image back by changing the name of the bank. In the
new year, we will gear up our recovery process and try to reduce at least 40
percent classified loans,” FBL Managing Director and Chief Executive Officer
(CEO) M Ehsan Khasru told BSS.
According to FBL, the total outstanding loan amount of the bank is around
Taka 5,275 core while the amount of the classified loan is about Taka 3,000
crore.
The bank has already decided to change its name before ‘Padma Bank’ in
January as the bank wants to start its journey in the New Year through the
new name.
Terming the recovery of classified loan a priority and challenge in 2019,
Ehsan Khasru said the whole amount of classified loans is not loss for the
bank as most of the loans are recoverable.
“After taking responsibility from January this year, the new management
has been working to bring down the loan to a tolerable level. In 2018, the
bank has achieved remarkable success in the field of loan recovery, deposit
collection and client dealings,” he added.
Pointing out the huge amount of classified loans, he said the new
management is ensuring transparency and accountability in classified loan
calculation for accelerating the recovery process.
“Loan classification is a part of our recovery strategy. The rate of
recovery is now better than before as we have already recovered around Taka
510 crore loans from January to till now. Out of the recovered loan, we
settled about Taka 80 crore loans,” he added.
Ehsan said FBL is going to start its new year through new name and
different new products, including agent banking and mobile banking.
“We are focusing on Information and Technology (IT) based products. We
have no plan to open new branch. We want to expand IT-based inclusive
banking,” he added.
The FBL managing director said FBL has set a target to receive at least
US$10 million remittance from the Bangladeshi expatriates as the bank has
already communicated with the remittance sender agencies of the different
countries, including Middle East countries ones.
“We don’t want to remember the past. We want to start the 2019 at a new
way. We know that we have challenges. We can overcome all the challenges as
our new management and officials are commited to taking the bank at a new
height,” he added.
The Farmers Bank Limited, a fourth generation bank, commenced its banking
operation on June 3, 2013 licensed by Bangladesh Bank. The bank became a
hotbed for financial irregularities in less than three years of operation.