Regulatory Alerts2023-06-21
Added
BRPD Circular Letter No. 20: Loan Classification
The document inserts a new sub-paragraph 2.2 into BRPD Circular No. 11, stipulating that unclassified demand loans or investments with required provisions paid at least 50% between April 1, 2023, and June 30, 2023, will not be classified as overdue or substandard in the June 2023 quarterly review. The remaining required provision must be paid by customers within September 2023. This directive is issued under Section 49(1)(c) of the Bank Companies Act, 1991, and takes immediate effect.
Bangladesh Bank (Central Bank of Bangladesh) Chief Executive Office Motijheel, Dhaka-1000 Bangladesh. Ref No.: BRPD Circular Letter No. 20 Banking Regulation and Policy Department BRPD Circular Letter No. 20 June 21, 2023 Date: ------------------ 07 Asharh 1430 Managing Director / Chief Executive Officer All Scheduled Banks operating in Bangladesh. Dear Sir, Context of Loan Classification. Reference is drawn to your attention to BRPD Circular No. 11 issued on June 20, 2023, on the subject cited above.
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A new sub-paragraph 2.2 will be inserted after sub-paragraph 2.1 of paragraph 2 of the said circular as follows: 2.2. If the minimum 50 (fifty) percent of the required provision against unclassified demand loans/investments is paid within June 30, 2023, for the period from April 01, 2023, to June 30, 2023, such loans/investments accounts will not be classified as overdue/substandard in the June, 2023 quarterly review. The remaining required provision must be paid by customers within September, 2023.
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Except as stated herein, other instructions contained in BRPD Circular No. 11/2023 shall remain unchanged.
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This instruction is issued under the powers conferred by Section 49(1)(c) of the Bank Companies Act, 1991, and shall take immediate effect.
Yours faithfully, (Md. Ali Akbar Farazi) Director (BRPD) Phone: 9530252