Muhith for proper evaluation of projects before giving bank loans
17 Feb 2018, 19:41
Finance Minister Abul Maal Abdul Muhith on Saturday reiterated his suggestion to bankers for properly evaluating any project proposal before allocating loans to help the banking sector flourish further.
‘I’m repeating again. Before giving banking services, you’ll have to keep in mind two things - you have to properly evaluate any project (loan) proposal and you have to know your clients properly,’ he said, addressing the Annual Conference 2018 of Agrani Bank Limited as the chief guest at a hotel in Dhaka, reports the BSS.
State Minister for Finance and Planning MA Mannan, Bangladesh Bank (BB) Governor Fazle Kabir, Bank and Financial Institution Division Secretary Yunusur Rahman, Agrani Bank Limited Chairman Dr Zaid Bakht and Bangladesh Bank Observer M Mizanur Rahman Zoarder spoke on the occasion as special guests while Agrani Bank Managing Director and CEO Mohammad Shams Ul Islam was in the chair.
About scrutinizing project proposals for loans and other services, Muhith said many banks and financial institutions keep consultants to make evaluations and even a certain section of officials within the bank work as experts over this.
‘You’ll have to continue and nurture such ‘expert culture’ in every bank so that you can properly evaluate any project proposal,’ he said, suggesting the bank officials to try to amend the flaws and loopholes, if any, in project proposals.
The finance minister also underscored the need for properly following the ‘know your clients’ formula to have adequate information about individuals or organizations seeking the banking services.
‘Try to build a relationship of soul with the clients because from that both you and your clients can benefit. On the whole, the prosperity of the clients will contribute immensely to your development and prosperity,’ he told the bank officials.
Putting emphasis on further raising the number of branches of banks across the country, he said: ‘The more we’ll be able to involve the larger section of people in the banking system, the more the financial and economic activities will be enhanced and strengthened in the country.’
The veteran minister also suggested for giving due importance to taking more corrective steps on various operations of the banks based on their experiences.
He also suggested the bank high-ups to be more compliant by following the banking rules and regulations properly.
In the function, the elderly finance minister hinted that he might go on retirement in December this year (2018).
State Minister for Finance and Planning MA Mannan asked the Agrani Bank high officials to further improve their services.