Bank loans

Defaulters thrive on bank loans but don’t want to repay

Thanks to bank loans, they kept getting stronger – their businesses grew and they bought land, apartments, SUVs and so on. Yet these willful defaulters are unwilling to repay their debts.

Banks have resorted to the courts to recover their money, but lengthy legal proceedings hampered and hampered their efforts, allowing defaulters to lounge around.

Bankers say such a tendency to default on business loans has negatively impacted Chattogram’s banking sector.

Take the Shah Amin Group, engaged in engine parts and refueling businesses, for example – it had withdrawn Tk 125 crore from the Chaktai branch of Islami Bank at various times since 2007 for its three business entities – Shah Aminullah Lubricants and Grease Industries, Shah Amin Ullah Oil Agencies and Shah Amin Ullah gas station.

Ahmed Nabi Chowdhury, owner of the group, has stopped paying the bank in recent years, although his business is doing well. His repayments in the first few years went well.

Failed to get their money back even after a long time, Islami Bank eventually filed a lawsuit with Artha Rin Adalat (Money Lending Tribunal) against Shah Aminullah Lubricants and Grease Industries to recover 67.61 crore of Tk faulty. The group now owes the bank 165 crore Tk more in interest.

Aman Ullah, senior deputy vice president and chaktai branch manager of Islami Bank, said the Shah Amin group has not been repaying the bank for a long time, even though its auto parts and gas station business is booming. Good.

They had previously filed 21 complaints against the Shah Amin group under the negotiable instruments law, he added.

Ahmed Nabi Chowdhury, chairman of the Shah Amin group, said: “We are trying to reschedule our loans through negotiations so that we can repay.

Ahad Trading, another Chattogram-based company, has not repaid its loans for a long time, although the company has expanded its business with bank loans over the years since 2005 – it now imports wheat, edible oil. and spices although she started out with just sugar. .

Company owner Mr Abul Bashar now owes Tk 136 crore to the National Bank and around Tk 74 crore to the Prime Bank.

Bank officials say Abul Bashar, an importer of wheat, sugar, edible oil and spices, has increased the size of his business year on year. He bought land in prime locations in the port city, such as Patia, Anowara and Raozan and also built a community center in the city’s Kalamia Bazar district. But he is slow to repay bank loans.

Abul Bashar said, “I couldn’t repay the loans due to losses in my business. I now communicate regularly with the two banks. I hope the matter will be resolved soon if the relevant bank officials cooperate.

In another example of a willful defaulter, Mabia Steel was established with the help of bank loans by two brothers – Jahangir and Farid from the Sitakunda region, owed around Tk 500 crore to various banks and non-bank financial institutions for a long time. But the company did not pay them back a single penny.

Likewise, GK Steel, which has long been involved in the steel business in Chattogram, defaulted Tk 75 crore which it took two branches of the National Bank to increase its business volume.

Bank officials say GK Steel took out the loans to import raw materials for making SS and MS pipes. He continued to pay the loan installments initially. But it hasn’t stopped repayments in the past four or five years despite registering good companies.

Another failed business entity, S&M Trading Company, a subsidiary of Jainab Trading, has taken out bank loans at various times to import consumer goods since 2008.

Two brothers – Ahmed Abdullah and Mahmud Abdullah – who run the business which officially bears their mother Ruhina Khanam’s name – have yet to pay a single penny even though more than a decade has passed since their birth. took out a loan from Bank Asia. Their liability to the bank now stands at Tk 41 crore.

The group also owes around Tk 85 crore to Al Arafah Islami Bank, Tk 95 crore to Uttara Bank.

Its trade office named Jainab Tower is located in Khatunganj, a consumer goods market. The owners of the company also own 15 to 20 multi-story buildings in different parts of the port city.

Ahmed Abdullah said: “We couldn’t repay the bank loans because we suffered a huge loss in our consumer goods business. We are now trying to reschedule the loans.

Super Six Star Corporation, a shipbreaking company, owes around Tk 144 to five banks.

In 1994, six friends embarked on shipbreaking, but at first three of them retired.

The three remaining partners – Mozahar Hossain, Shamsul Alam, and Yusuf – sued the business that flourished on bank loans over the next two decades, but failed to repay the loans. The business has closed – none of them now want to pay their debts.

The company defaulted on Tk60 crore from Janata Bank Laldighi branch, approximately Tk49 crore from Social Islami Bank, Tk21 crore from Eastern Bank, Tk6 crore from Prime Bank and Tk8 crore from Southeast Bank.

The three owners are now engaged in different businesses – Mozaher runs the Zahid and Brothers auction business, Shamsul has a business named Alam Steel, while Yusuf has an old ship cable business which is currently run by his son.

Syed Mahmud Akther, Senior Executive Vice President and Chief Business Officer (Chattogram) at Mutual Trust Bank, said not repaying bank loans is highly unethical despite the company’s success for a long time. period.

To collect the loans, the banks take legal action against these defaulters, but they manage to get by because of the lengthy legal proceedings, he added.