ADR process sees 60pc settlement rate in bank loan cases


DHAKA, July 10, 2018 (BSS) – In view of around 60 percent settlement rate under the Alternative Dispute Regulation (ADR) process in six months from July to December 2017, the experts say banks should accelerate the ADR process for reducing the huge amount of is Non-Performing Loan (NPL).

Under the ADR process, there were 6,227 cases involving Taka 4,429.63 crore during July to December 2017. Out of those, 3,725 cases involving Taka 1,260.97 crore were settled.

During the period, the recovery rate under the process is also good as around Taka 515.84 crore was recovered.

Talking to BSS, Additional Managing Director and Chief Operating Officer of Mutual Trust Bank (MTB) M Hashem Chowdhury said ADR is that mechanism which resolves disputes more efficiently and amiably by finding the self-made process best suited to the parties.

He said ADR is gradually becoming a popular process to settle the huge number of cases in the banking sector and to bring NPL to a tolerable level.

According to the BB’s latest data, out of the total outstanding loans of Taka 7,981.96 billion, the amount of NPL was Taka 743.03 billion till December 2017. The percentage share of classified loan in total outstanding was 9.31 percent.

To reduce the huge amount of NPL, Hashem Chowdhury said, the authorities concerned will have to take immediate steps to accelerate the ADR process.

“It is the method where disputants can participate in the solution finding process, so ADR can’t be substitute of formal judicial system but can complement and support it,” he added.

In Bangladesh, he said, the ADR process can not only support the legal objective, but also support other development objectives, such as economic and social objectives, by facilitating the disputes that are impeding the progress of these objectives.

Bangladesh Malaysia Chamber of Commerce and Industry (BMCCI) President Syed Moazzam Hossain said as the huge amount of NPL has become a matter of concern for the banking sector, the authorities concerned will have to take more immediate steps to settle the cases.

“The authorities of the banks should take more effective measures before giving loans. If any loan becomes bad, they should take immediate steps. The authorities can settle the case through ADR,” he added.