Capital-strapped state-run banks could get a chance to charge a huge number of no-frills services they provide to the public.

The finance ministry has taken a move to help Sonali, Janata, Agrani, Rupali, BASIC, Bangladesh Krishi Bank, and Rajshahi Krishi Unnayan Bank meet their swelling capital deficit.    

Presently, these banks have capital shortfall of about Tk 20,000 crore.

As per the plan of the banking division, the state banks will charge fees for 43 services it now provides mostly at free of cost.

Yesterday, the seven state lenders discussed the issue with the banking division with its Senior Secretary Eunusur Rahman in the chair. The meeting discussed how the banks could overcome the capital deficit.

A senior official of the division said it would soon send the proposal to the Bangladesh Bank after consulting the finance minister. As of December 31 last year, the capital deficit reached Tk 20,000 crore from Tk 15,914 crore in September 2017.  Sonali Bank witnessed the highest increase in deficit reaching Tk 5,693 crore in December against Tk 3,140 crore a quarter ago.

In the last one decade, the government provided more than Tk 10,000 from the exchequer to the state-run banks to meet their capital deficit. Still, their capital deficit is on the rise.

The government has allocated Tk 2,000 crore to the banks in the budget for the current fiscal year, but the amount seems to be insignificant.

In the meeting, the banking division wanted to know why the state banks could not mobilise the capital they need and the banks cited several reasons.

The lenders said they provide various services such as payment for the pension scheme and social safety net programmes as per the government wish, but they do not get any fees or commissions in return.

According to the banks, if they could get the service charge, they would be able to get rid of the capital deficit effortlessly.

On February 3, Sonali Bank Managing Director Obayed Ullah Al Masud told the bank's annual meeting that the bank had to shell out Tk 200 crore from its coffers every year to provide various services to the government without any charge.

He said the bank provided 37 services to the public for free and 14 services at a low cost.

On behalf of the government, the bank repays the public for the savings certificates, for which the bank has to set aside Tk 4,000 crore, said Masud.

Although the government reimburses the money, sometimes it takes a long time, he added.

Sonali Bank also lends money to state agencies such as Bangladesh Petroleum Corporation and Bangladesh Jute Mills Association and the government repays the sum through bonds at 5 to 7 percent interest rate with a maturity period of 20 to 30 years. \

This results in a loss of Tk 1,000 crore a year, said Masud.

Yesterday's meeting decided that the state-owned banks would send a proposal to the BB as to what amount would be charged for the services. The central bank will assess the proposal and send a recommendation to the government.

The meeting was told if the banks' income rises in this way they would not have to seek money for meeting capital deficit. This would also stop criticism from the media and the civil society organisations when the banks get a budgetary allocation.

Bangladesh Krishi Bank and RAKUB said they give loans to the customers at an interest rate that is lower than their cost of fund.  As a result, they count losses each year. The lenders requested the government to take necessary measures to solve the problem.

The banking division told the meeting that the banks' capital deficit also increases because of the rise in default loans. It asked the state lenders to take steps to reduce bad loans.