3.5.8 Legal actions taken for Loan Recovery Bangladesh Development Bank initiated legal actions against those loans where the borrower do not paid their installment that means who are defaulter. Legal Actions Taken: Position of projects under 2008-09 2007-08 litigation. No. of Projects No. of Projects Legal Notice Issued 15 10 Filing of Suit 288 304 Cases Settled Outside the Court 19 9 Sold through Auction 110 72 In FY 2009-10, legal notices were issued against 10 defaulting companies for recovery of Banks dues while law suits were filed against 304 companies. Besides, 72 sale notices were published in the national dailies for action. At the same time efforts were made for settlement of disputes outside the court through negotiation. As a result, 9 litigated companies settled the disputes outside the court and assets of 4 projects were sold through auction during the year. Apart from this, during the year under review, sales of assets of 62 projects is under process and 5 projects with the loan amount of Tk. 0.92 million have been liquidated. 4 Problems Findings Problems regarding smooth performance of BDBL Introduction: In this section the focus will be on problems regarding smooth performance of BDBL on the basis of my ninety days Internship program in BDBL. 4.1 Summary of the Problems • Lack of accountability of the • Management conflict appraisal team • Working environment is not • Slow information flow modernized • Inappropriate feasibility study • Insufficient equipment in banking service • Lengthy procedure • Improper cost estimation • Ineffective Departmental coordination • Improper schedule of projected work • Inadequate risk analysis procedures • Lack of market research institution • Weak monitoring system • Political biasness in sanctioning loan • Insufficient control on project • Improper physical verification implementation • Inefficient resource allocation • Over estimation and over paid • Lack of financial commitment on the • Lack of support from govt. monitoring part of the borrower body. • Lack of incentives to employees. • Dissatisfied employees 4.2 Problems regarding Loan Sanction During my Internship period, by observing and analyzing the Loan sanction procedure of Bangladesh Development Bank following problems have been noted out:
Bangladsh Development Bank
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