The trick was unveiled when Bangladesh Bank served a circular to the scheduled commercial banks yesterday asking them to follow certain guidelines in disclosing price-sensitive information as per the regulations of the Securities and Exchange Commission (SEC).

The central bank says the commercial banks have been reporting huge amounts of operating profits and disclosing probable percentage of dividends, without auditing, which are not consistent with their actual financial position.

It also asked the commercial banks to maintain proper provision as specified by the Bangladesh Bank on classified and non-classified loans as well as investment and other assets. "Profits should not be shown keeping provision shortfalls," says the circular.

Bangladesh Bank sources said some 19 banks, including nationalised commercial banks, had been maintaining provision shortfalls, as of December 31, 2003.

As per the circular, the half-yearly or annual financial statements, profits and probable dividends should not be disclosed partially, rather that should be reported along with projection of necessary provisioning, and information on classified loans, advances and investment.

Besides, it added, the commercial banks should also disclose total fixed and supplementary capital, including paid-up capital, and equity capital, including provision for risk-weighted assets.