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Staff Correspondent
The net profits of private banks increased by 19.55 percent in the first half of the current year when compared to the corresponding period in the previous year.
The provisional data received by the central bank says the banks fetched profits of Tk 2,206 crore in the January-June period of 2018.
During the period, they logged in operating profit of Tk 11,358 crore, from which Tk 3,929 crore was deducted as tax and Tk 5,223 crore as provisioning against bad loans.
In truth, this increase is attributable to the impressive performance of only a few banks, which have managed to bag handsome amounts of profit.
However, the profit made by these limited number of banks has flattered the entire sector’s performance in the first half of 2018, claim BB sources.
As of June, the banking sector’s total default loans stood at Tk 89,340 crore, up 20.23 percent from six months earlier.
Among the private banks, Brac Bank recorded the highest net profit of Tk 643 crore, followed by Standard Chartered at Tk 499 crore, Sonali at Tk 327 crore and Islami at Tk 312 crore. Brac Bank Managing Director Selim RF Hussain, however, disputed the figure put out by the central bank about his bank’s net profit in the first half of the year.
The bank’s financial report showed that its net profit after tax stood at Tk 273 crore.
Among the private lenders, Bank Asia put up a strong showing in the first six months of the year: its net profit shot up 75.71 percent year-on-year to Tk 123 crore, according to data from the central bank.
The bank’s balance sheet has expanded substantially in the recent period, which was reflected on the higher net income, according to Bank Asia officials.
The six state-run banks, however, have registered a collective net loss of Tk 1,234 crore in the first six months of the present year, against Tk 1,047 crore in the previous year.