BAB to sit with Bangladesh Bank for minimum salary of entry-level bankers

The Bangladesh Association of Banks (BAB), an organisation of directors of private banks, has decided to request the central bank to reconsider its latest decision on minimum salaries for entry-level bank officials.

The association will meet with the Bangladesh Bank governor and urge him to revise its latest notice related to the single borrower exposure limit.

The organistaion has taken the decision today at a virtual meeting, said a chairman of a private bank requesting anonymity.

The meeting between BB Governor Fazle Kabir and the leaders of the BAB will be held at 12.30pm tomorrow at the central bank headquarters in the capital.

 The BB issued a notice on January 20 with a stipulation of the entry-level salary of assistant officer, trainee assistant officer, trainee assistant cash officer or equivalent officials to be a minimum Tk 28,000 during the probation period.

The total salary of an entry-level official, including basic pay, will have to be at least Tk 39,000 a month after the end of the probation period, it added.

The central bank also mentioned that the opening salary of support staff, messengers, cleaners, security guards, or equivalent positions, should be at least Tk 24,000.

As per the latest central bank notice, no bank will be allowed to sack or ask any employee to resign or postpone promotions over failures to attain deposit mobilisation targets.

On January 16, the central bank also squeezed the limit of loan given out by a bank to an individual or a company to 25 per cent of its capital against the previous ceiling of 35 per cent.

As per the BB instruction, no lender is permitted to disburse more than 15 per cent funded and 10 per cent non-funded loans to a person or a business entity.

The BAB will urge the central bank to reinstate the previous level of the single borrower exposure limit.