Only eight local banks are in good condition, according a Bangladesh Bank report.
The BB’s financial stability department has recently prepared banks’ health index and HEAT map on the basis of June 2023 ending half-yearly financial performance.
According to the BB report, 16 banks, including eight local and eight foreign banks, are in good condition.
These banks are Prime Bank, Eastern Bank, NCC Bank, Midland Bank, Bank Asia, Shimanto Bank, Jamuna Bank, Shahjalal Islami Bank, Bank Alfalah, Woori Bank, HSBC, Commercial Bank of Ceylon, City Bank NA, Habib Bank, Standard Chartered Bank and State Bank of India.
The BB report said 16 banks were in the green zone, meaning their financial health was good, whereas 29 banks were in the yellow zone, meaning their health was something in between good and fragile.
Nine banks, including four state-run ones, were in the red zone, meaning their financial health was fragile.
The nine banks are Bangladesh Commerce Bank, Padma Bank, BASIC Bank, National Bank of Pakistan, National Bank, Janata Bank, Agrani Bank, Rupali Bank and AB Bank.
The yellow zone contains two state-owned commercial banks, Bangladesh Development Bank and Sonali Bank, 19 conventional private commercial banks and eight Shariah-based islamic Banks.
The 19 conventional banks are IFIC Bank, Meghna Bank, One Bank, United commercial bank, NRB Bank, NRB commercial bank, Mercantile Bank, Mutual Trust bank, Dutch-Bangla bank, Premier Bank, BRAC Bank, Southeast Bank, The City Bank, Trust Bank, SBAC Bank, Modhumoti Bank, Dhaka Bank, Uttara Bank and Pubali Bank.
The eight Sharia-based banks are First Security Islami Bank, Islami Bank Bangladesh, Social Islami Bank, Al Arafah Islami Bank, Standard Bank, Union Bank, Exim Bank and Global Islami Bank.
The BB report said that the yellow zone banks needed supervisory attention due to relative deterioration of their health in comparison to the industry average.
It also said that special attention was required for the banks falling in the red zone.
