“The amount of defaulted loan has increased due to legal loopholes. It won’t increase any more. Action will be taken against anyone involved in loan default,” he said.

Mustafa Kamal said the amount of defaulted loan will not increase if punitive actions are taken.

He was briefing the media after a meeting with chairmen and managing directors of state-run banks – Sonali, Agrani, Janata and Rupali – at the NEC conference room in the city.

Mustafa Kamal said they adopted a work plan to boost revenue profit because these four banks play important roles in the economy.

The minister said the government will formulate a new law, if necessary, to get rid of default loans.

“Bank branches will be shifted from areas that have multiple branches. We want a healthy competition among the banks. We’ll sit with them every three months to assess the situation,” he said.

The minister said they are liable to the people and vowed to bring back transparency and accountability in the banking sector.

He noted that the current procedure for appointing managing directors ensures that no disqualified persons are appointed.

“We’re identifying and plugging the loopholes,” the minister said. “We’ll form a bank commission, if necessary, to improve the sector.”