BRPD Circular No. 13: Loan Classification

Ref: BRPD-Reg-Pol-01
Banking Regulation and Policy Department
Bangladesh Bank
Head Office
Dhaka.
27 June 2021
BRPD Circular No. 13 Date: ------------------- 13 Asharh 1428 Managing Director/Chief Executive All Scheduled Banks operating in Bangladesh. Dear Sir, Regarding Loan Classification. We draw your attention to BRPD Circular No. 03 issued on 31 January 2021 and BRPD Circular No. 05 issued on 24 March 2021 on the subject matter.
02. Through BRPD Circular No. 05/2021, instructions were issued to address the negative impact of COVID-19 and to gradually normalize the flow of credit in the banking sector. It was instructed that if current, call, and term loans/investments shown as unclassified on 01 January 2021 are paid/adjusted through bank-customer relationships by 30 June 2021, such loans/investments will not be classified as substandard.
03. Now, in order to maintain the momentum of current economic activities due to the resurgence of COVID-19 infection and to normalize the flow of credit/investment in the private sector, thereby maintaining the desired level of investment and enterprises, instructions are issued that if at least 20 (twenty) percent of the total amount of installments due up to June 2021 is paid through bank-customer relationships by 31 August 2021, such loans/investments will not be classified as substandard. In this regard, the remaining balance of the June 2021 installments will be paid along with the final installment as per the instructions of the relevant circulars. Additionally, other installments must be paid on time.
04. Furthermore, other instructions of the said circulars will remain unchanged.
05. These instructions are issued under the powers conferred by Section 45 of the Bank Company Act, 1991.
These instructions will come into force immediately.
Yours faithfully,

(Md. Ali Akbar Farazi)
General Manager
Phone: 9530252