Farmers Bank Limited (FBL) has planned to cut at least 40 per cent classified loans in 2019 as the bank wants to join the new era with new name for expediting its loan recovery process and ensuring the customer confidence.
“We want to bring our image back by changing the name of the bank. In the new year, we will gear up our recovery process and try to reduce at least 40 per cent classified loans,” FBL Managing Director and Chief Executive Officer (CEO) M Ehsan Khasru told BSS.
According to FBL, the total outstanding loan amount of the bank is around Taka 52.75 billion (5,275 crore) while the amount of the classified loan is about Taka 30 billion (3,000
crore).
The bank has already decided to change its name as ‘Padma Bank’ in January as the bank wants to start its journey in the New Year through the new name.
Terming the recovery of classified loan a priority and challenge in 2019, Ehsan Khasru said the whole amount of classified loans is not loss for the bank as most of the loans are recoverable.
“After taking responsibility from January this year, the new management has been working to bring down the loan to a tolerable level. In 2018, the bank has achieved remarkable success in the field of loan recovery, deposit collection and client dealings,” he added.
Pointing out the huge amount of classified loans, he said the new management is ensuring transparency and accountability in classified loan calculation for accelerating the recovery process.
“Loan classification is a part of our recovery strategy. The rate of recovery is now better than before as we have already recovered around Taka 510 crore loans from January to till now. Out of the recovered loan, we settled about Taka 80 crore loans,” he added.
Ehsan said FBL is going to start its new year through new name and different new products, including agent banking and mobile banking.
“We are focusing on Information and Technology (IT)-based products. We have no plan to open new branch. We want to expand IT-based inclusive banking,” he added.
The FBL managing director said FBL has set a target to receive at least US$10 million remittance from the Bangladeshi expatriates as the bank has already communicated with the remittance sender agencies of the different countries, including Middle East countries ones.
“We don’t want to remember the past. We want to start the 2019 at a new way. We know that we have challenges. We can overcome all the challenges as our new management and officials are commited to taking the bank at a new height,” he added.
The Farmers Bank Limited, a fourth generation bank, commenced its banking operation on June 3, 2013 licensed by Bangladesh Bank. The bank became a hotbed for financial irregularities in less than three years of operation.
-rmc//