By our reporter
A bad loan is a loan where repayments are not being made as originally agreed between the borrower and the lender, and which may never be repaid.
In case of loan default for reasons beyond a borrower’s control, banks restructure loans and give more time to the borrower to pay back. They give some interest concessions from their profit. There is no capital erosion here. Banks do not lose depositors money over a period of time.
But the real concern is that when somebody has the means but intentionally diverts bank loan for unauthorized purposes and does not pay back the loan.
It is a real loss situation. If loans become bad, banks will fail to make profit and cannot serve interest to depositors and meet their expenses. Ultimately they will incur loss and there will be bank failures.
Today we avail you with the list of Banks with the worst bad loans by year 2017 (not in order);
1.Stanbic Bank
2.Standard Chartered with shs17 billion
3.Centenary Bank with shs18 billion
4.Diamond Trust Bank with shs35 billion
5.Barclays with shs14.9 billion
6.Baroda with shs23.4 billion
7.Equity with shs4.9 billion
8.DFCU with shs27.2 billion
9.KCB with 22.3 billion
10.CITI
11.Bank of Africa with shs2.5 billion
12.Housing Finance with shs5.3 billion
13.CBA
14.UBA with shs76 million
15.Eco Bank with shs393.9 million
16.Guarantee Trust with shs724.9 million
17.Bank of India with shs 13.6 million
18.Orient with shs3.5 billion
19.Tropical Bank with shs12 billion
20.NC Bank with shs5.3 billion
21.Cairo International Bank with shs450 million
22.Finance Trust with shs3.7 billion
23.Exim Bank shs14.6 billion
24.ABC Bank with shs244.3 million
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