State of the Bangladesh Economy in FY2023-24 (First Reading)
BILLION BDT
1200
1000
800
600
400
200
0
Independent Review of
RBD
Bangladesh's Development
Shortfall in loan loss
provisioning requirements
☐ On a bank's balance sheet, provisions are assets which are put aside to cover losses that are expected to occur in the
future.
□ As of Q4FY23, required loan loss provisioning was BDT 1010.3 billion whereas the actual loan loss provisioning
maintained was only BDT 795.7 billion.
In Q4FY23, there was a BDT 214.6 billion shortfall in loan loss provisioning in the banking sector,
including BDT 106.2 billion shortfall in SCBs and BDT 112.7 billion shortfall in PCBs.
Figure: Loan loss provisioning,
required Vs. actual (in billion BDT)
Figure: Excess or shortfall in loan loss provisioning (in
billion
BDT)
Q2FY12
Q4 FY12
Q2FY13
Q4FY13
Q2FY14
Q4 FY14
Q2FY15
Q4 FY15
Q2FY16
Q4 FY16
Q2FY17
Q4FY17
Q2 FY18
Q4 FY18
Q2 FY19
Q4 FY19
Q2FY20
Q4 FY20
Q2FY21
Required provision
Provision maintained
CPD (2023): State of the Bangladesh Economy in FY2023-24 (First Reading)
Q4 FY21
Q2FY22
Q4 FY22
Q2FY23
Q4FY23
BILLION BDT
-50
-100
-150
-200
-250
SCBS
100
550
50
Q2FY12
Q4 FY12
Q2FY13
Q4 FY13
Q2FY14
Q4 FY14
Q2FY15
Q4FY15
Q2FY16
Q4 FY16
Q2FY17
Q4 FY17
Q2 FY18
Q4 FY18
Q2 FY19
Q4 FY19
Q2FY20
Q4 FY20
Q2FY21
Q4 FY21
Q2FY22
Q4 FY22
Q2FY23
Q4 FY23
DFIS
PCBs
FCBs
-All banks
46View entire presentation