No handouts for state banks last fiscal year

State banks did not get a single penny from taxpayers in the just concluded fiscal year to make up their capital deficit, in a clear sign from the government of its intent to stop pampering the errant lenders.

Between fiscal years 2009-10 and 2017-18 the government had injected a total Tk 16,016 crore of taxpayers’ money into the state-run banks -- without any tangible improvement in their governance and lending practices to show for.

The aim of the state-run commercial banks is to provide funds to the government from their profits and the government will spend the money for welfare activities.

But the banks were given money to meet their capital shortfall without any stringent performance improvement conditions, which defeats the purpose of their existence.

“This time, the finance minister gave a message to the state banks that no capital would be injected from the public coffer without any improvement in financial health,” said a finance ministry official requesting anonymity.