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BASIC Bank PLC has been advised to cautiously increase lending as its loan-to-deposit ratio has declined amid rising deposits and signs of improving public confidence in the state-owned bank.
The advice came at the bank’s 37th Annual General Meeting (AGM) held at its head office on Wednesday, where shareholders adopted the financial statements for 2025.
Secretary of the Financial Institutions Division (FID) of the Ministry of Finance Nazma Mobarek, representing the government’s sole shareholding in the bank, said BASIC Bank was gradually improving, with losses declining and deposits increasing.
“Losses cannot be reduced without sustained efforts. The increase in deposits means people’s confidence in the bank is returning,” she said.
Ms Mobarek said public confidence had also improved following the government’s announcement that it would guarantee deposits in state-owned banks.
The decline in the bank’s loan-to-deposit ratio has increased its capacity to extend loans, she said, urging management to ensure that new lending is made carefully.
“We are fully optimistic about BASIC Bank and believe the bank will overcome the challenges,” she said.
She also praised the capability of the bank’s board and its human resources, saying coordinated efforts by the board and management were helping the bank recover.
The FID secretary called for stronger efforts to reduce classified loans and increase non-interest income.
BASIC Bank Chairman Helal Ahmed Chowdhury said recovery of defaulted loans remained the bank’s main priority.
He urged the management to strengthen loan recovery in line with Bangladesh Bank directives and expedite legal proceedings against defaulters. He also stressed compliance with regulatory instructions and stronger corporate governance.
Mr Chowdhury thanked the Ministry of Finance, Bangladesh Bank and other regulatory agencies for their support and guidance.
FID Joint Secretary Sheikh Farid also stressed the need to increase the bank’s non-interest income.
Bangladesh Bank Executive Director Rup Ratan Pine said BASIC Bank’s reputation was improving and expressed confidence that the bank would overcome its challenges.
The AGM was chaired by Mr Chowdhury. Managing Director (Current Charge) Abu Md Mofazzel welcomed the guests and responded to questions raised at the meeting.
Directors of BASIC Bank, Bangladesh Bank officials, FID representatives, senior officials and representatives of the bank’s audit firm Kazi Zahir Khan & Co. attended the meeting.