Loans and Advances Portfolio Mix of Public Sector Development Banks in Bangladesh

Authors

  •   S. M. Rabiul Alam Associate Professor of Accounting, Department of Humanities, Khulna University of Engineering & Technology (KUET), Khulna-9203
  •   Syed Zabid Hossain Professor (Former Pro-Vice Chancellor, Khulna University), Dept. of Accounting and Information Systems, Rajshahi University, Rajshahi-6205

Keywords:

Development Bank, Bangladesh Shilpa Bank (BSB), Bangladesh Shilpa Rin Sangstha (BSRS).

Abstract

The portfolio management of public sector development banks in Bangladesh was very inefficient during 1999-2009. The cotton, wool and synthetics textile sector in BSB and jute and allied sector in BSRS occupied a lion's share of the portfolio of loan and advances during the period. All other sectors collectively occupied a very small share of their loan and advance portfolio, and as such, they had measurably failed to diversify their risk in different economic activities. More revealing is that the absolute amount of loans and advances had a declining trend. Contrarily, classified loan and advances dominated the structure of loan and advances during the whole period of review. Bad debt alone was the major contributor of classified loss as against substandard and doubtful debt.

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Published

2012-06-01

How to Cite

Rabiul Alam, S. M., & Hossain, S. Z. (2012). Loans and Advances Portfolio Mix of Public Sector Development Banks in Bangladesh. Indian Journal of Finance, 6(6), 39–45. Retrieved from https://indianjournalofcomputerscience.com/index.php/IJF/article/view/72413

Issue

Volume 6, Issue 6, June 2012

Section

Articles

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