It is alleged that a group of politically-connected people took out large loans from state-owned commercial banks (SOCBs) and intentionally defaulted on them.
Thrissur: Congress leader Anil Akkara on Sunday alleged that Satheesh Kumar, who was arrested by ED in the bank scam, had fleeced the money sanctioned.
The Bangladesh Climate Change Trust (BCCT) entrusted Tk 538 crore to the then Farmers Bank Ltd with the expectation that this substantial deposit, coupled with accrued interest, would be returned within a year.
In Bangladesh, the primary reason behind excessive bad loans is a general lack of governance and, in particular, the inability to enforce banking regulations, which breeds corruption and moral hazard.