Capital adequacy ratios of three state-owned commercial banks are in danger level, according to Bangladesh Bank (BB)'s first quarter statement.

Against the central bank's instruction of attaining at least 10 per cent capital adequacy Sonali Bank attaints only 2.94 per cent, Rupali Bank 7.31 per cent and Basic Bank is at negative level (-10.29 per cent).

Basic bank is in extreme danger level that basically it has no capital and even it is in shortfall of huge amount of money.

A BB senior official in the Department of Off-site Supervision (DOS) said the state owned banks are in high risk of maintaining their capital adequacy.

He said, "We have written letters to the government for taking measures."

He said in the national budget for financial year 2016-17 (FY17) the government has allocated a Tk20 billion for recapitalising to the state owned banks.

He said the government pumps money to its vulnerable commercial banks but where the money goes is the question.

A private think tank research fellow Taufiqul Islam Khan said, "As per Basel II our central bank has instructed to all the commercial banks to maintain at least 10 per cent capital adequacy ratio (CAR) and the government's banks failed to maintain it."

He said the upcoming Basel III rules and requirements are harder than the Basel II and when all the banks would be asked to maintain CAR as per new Basel rules from 2019 the state owned banks will face more trouble in competition with private commercial banks.

Besides three state owned banks, other two specialised banks-Bangladesh Krishi Bank and Rajshahi Krishi Unnayan and tow private commercial banks-Premier Bank, Investment Corporation of Bangla-desh (ICB) and Bangladesh Commercial Bank Limited are attaining bellow 10 percent. All the foreign commercial banks operating in Bangladesh are maintaining adequate capital ratio.
Among the foreign banks, Habib Bank is keeping the highest 86 per cent CAR and Social Islami Bank 72 per cent of its capital adequacy.

Except two, all the local private commercial banks' CAR are in good position as per central bank's requirement.

Another BB official in the Banking Rules and Policy Department requesting anonymity said, "Our government has doubled the salaries of the government employees but it has not assured the skills and performance in its financial institutions."

He said the state owned banks can reduce their non performing loans if they enhance their skills.