BB asks Sonali to shutter its US exchange house

Bangladesh Bank has requested that Sonali Bank cut down the blind on its misfortune influencing trade to house in the US, which is yet to hand over any benefits reliably in spite of infusion of an aggregate of $28 million since 1994. 

With a view to encouraging settlement, the state-run loan specialist had set up the Sonali Exchange Company Incorporation (SECI) 24 years back with an underlying capital of $250,000. It was bit by bit raised to $950,000. 

Since its origin, SECI has repatriated benefit of just $100,000. In the vicinity of 1994 and 2016, its total benefit remained at $293,000. 

In the vicinity of 1995 and 2010, Sonali gave long haul advances of $1.85 million to the SECI at 5 percent intrigue. 

The trade house has reimbursed $600,000, which means its general liabilities remain at $1.25 million, according to Sonali. 

In any case, the national bank found that the state-run bank did not tally any enthusiasm on its advances to SECI, which is an infringement of the terms of the advance that the BB had approved. The yearly report of SECI for 2013 demonstrated that the trade house had before issued promissory note against the credits - at zero percent intrigue. 

Be that as it may, the yearly report of 2016 specified that the financing cost was 1 percent against the advances. 

The two yearly reports of the SECI said opposing data over the loan cost, which is again disregarding the national bank's guidelines. 

The trade house's misfortunes will extend essentially if the past due credits alongside the premium are figured, as indicated by the national bank's appraisal paper. 

In addition, settlement course through SECI has been on the decrease as of late. 

For example, in 2005, exile Bangladeshis sent $170 million through SECI. The figure went down to $78.74 million out of 2015 and $77.13 million out of 2016. 

The national bank issued a letter to Sonali Bank on February 18 encouraging it to reexamine whether it needs to work such a misfortune making branch abroad. 

Md Obayed Ullah Al Masud, overseeing executive of Sonali Bank, disclosed to The Daily Star on Wednesday that his bank would screen the trade house entirely this year. 

"We will close down the outlet or take a noteworthy rebuilding program one year from now if the execution of the trade house isn't made strides." 

Inquired as to why the bank covered the loan cost, he said there was no extension for concealing the financing cost. 

The bank will recalculate the financing cost of the advances if required, Masud said.