Beximco seeks loan rescheduling: Banks trying to find out ways
Kazi Zahidul Hasan :
Several banks are trying to find a way to salvage Beximco Group, a local conglomerate, now facing financial difficulties in repaying bank loans due to persisting losses incurred from unfavorable business climate in the recent past.
On August 5 this year, Beximco Group sent a proposal to the central bank for restructuring its Tk 5,269 crore default loans lying with seven commercial banks.
Upon the Group’s plea, Bangladesh Bank (BB) on August 17, sought opinions from the concerned banks namely Sonali Bank, Rupali Bank, Agrani Bank, Janata Bank, National Bank, Exim Bank and AB Bank.
“The Group has made the request to reschedule loans lying with our bank saying that it has failed to repay their loans timely sustaining losses in the past due to adverse business environment,” Shamsul Huda Khan, Managing Director (Current Charge) of National Bank Ltd (NBL) told The New Nation on Sunday.
He said the Group has near about Tk 200 crore as outstanding loan at NBL.
“We are working on the issue and trying to find out a way how it can be rehabilitated,” he said.
He also said that they had already examined their proposal and discussed the matter
with the board members. The final decision in this regard would be given by the board.
When asked, he said, his bank would not offer the facility to the Group outside the law. Once the board agreed to provide the facility, we would approach BB for its approval, he added.
The textile and garment division of Beximco Group also owed Tk 982 crore from Sonali Bank. The bank’s board has extended the facility in favour of the group setting the loan repayment period until 2026, a senior Sonali Bank official said.
“As per the board’s decision, the group will have to start paying instalments after two years, and the decision will be effective after getting approval from the central bank,” he added.
“We will extend the facility if Beximco Group comes forward to reimburse down-payment while getting the rescheduling facility against its defaulted loans,” said Farid Uddin, Managing Director of Rupali Bank.
Otherwise, his bank will be in trouble and their profits will be affected, he said. He, however, declined to disclose the amount that the Beximco Group owed from his bank.
“BB has already sought opinions from the concerned bank regarding the issue. Banks have been asked to assess the Group’s proposal thoroughly prior extending such a facility,” a senior central bank official told The New Nation on Sunday on condition of anonymity.
“We will not dictate the banks for extending the facility. They must follow the Banking Company Act while providing the facility. If any bank tries to favour it outside the law, it will face BB’s music,’ he said.
According to the latest figures of BB, the group owes Tk 4,944 crore to the four-state owned banks, Sonali, Rupali, Agrani and Janata.
Admitting the matter, Salman F Rahman, Vice-Chairman of Beximco Group, said, “We have made the appeal to the central bank as our Group is now facing financial crisis sustaining losses from adverse business environment in the past, especially during the caretaker regime.
“We did not seek any undue facility. We only seek loan reschedule facility but not fresh loan from the banks”, Salman said, adding, “Our Group has already repaid Tk 300 crore loan which it owed to differed bank”.
He said the Group will be able to pay back all of its previous loans after recovering the present crisis.
“We are putting our best efforts to overcome the crisis and we will repay the loans as soon as possible”, he added.
Several banks are trying to find a way to salvage Beximco Group, a local conglomerate, now facing financial difficulties in repaying bank loans due to persisting losses incurred from unfavorable business climate in the recent past.
On August 5 this year, Beximco Group sent a proposal to the central bank for restructuring its Tk 5,269 crore default loans lying with seven commercial banks.
Upon the Group’s plea, Bangladesh Bank (BB) on August 17, sought opinions from the concerned banks namely Sonali Bank, Rupali Bank, Agrani Bank, Janata Bank, National Bank, Exim Bank and AB Bank.
“The Group has made the request to reschedule loans lying with our bank saying that it has failed to repay their loans timely sustaining losses in the past due to adverse business environment,” Shamsul Huda Khan, Managing Director (Current Charge) of National Bank Ltd (NBL) told The New Nation on Sunday.
He said the Group has near about Tk 200 crore as outstanding loan at NBL.
“We are working on the issue and trying to find out a way how it can be rehabilitated,” he said.
He also said that they had already examined their proposal and discussed the matter
with the board members. The final decision in this regard would be given by the board.
When asked, he said, his bank would not offer the facility to the Group outside the law. Once the board agreed to provide the facility, we would approach BB for its approval, he added.
The textile and garment division of Beximco Group also owed Tk 982 crore from Sonali Bank. The bank’s board has extended the facility in favour of the group setting the loan repayment period until 2026, a senior Sonali Bank official said.
“As per the board’s decision, the group will have to start paying instalments after two years, and the decision will be effective after getting approval from the central bank,” he added.
“We will extend the facility if Beximco Group comes forward to reimburse down-payment while getting the rescheduling facility against its defaulted loans,” said Farid Uddin, Managing Director of Rupali Bank.
Otherwise, his bank will be in trouble and their profits will be affected, he said. He, however, declined to disclose the amount that the Beximco Group owed from his bank.
“BB has already sought opinions from the concerned bank regarding the issue. Banks have been asked to assess the Group’s proposal thoroughly prior extending such a facility,” a senior central bank official told The New Nation on Sunday on condition of anonymity.
“We will not dictate the banks for extending the facility. They must follow the Banking Company Act while providing the facility. If any bank tries to favour it outside the law, it will face BB’s music,’ he said.
According to the latest figures of BB, the group owes Tk 4,944 crore to the four-state owned banks, Sonali, Rupali, Agrani and Janata.
Admitting the matter, Salman F Rahman, Vice-Chairman of Beximco Group, said, “We have made the appeal to the central bank as our Group is now facing financial crisis sustaining losses from adverse business environment in the past, especially during the caretaker regime.
“We did not seek any undue facility. We only seek loan reschedule facility but not fresh loan from the banks”, Salman said, adding, “Our Group has already repaid Tk 300 crore loan which it owed to differed bank”.
He said the Group will be able to pay back all of its previous loans after recovering the present crisis.
“We are putting our best efforts to overcome the crisis and we will repay the loans as soon as possible”, he added.