Ten commercial banks collectively had Tk聽2.57 lakh crore in defaulted loans as of December 2024, accounting for nearly 75 per cent of the total non-performing loans in the country鈥檚 banking sector.
The alarming concentration of bad loans underscores vulnerabilities of the financial sector, experts said.
According to Bangladesh Bank data, four state-run banks held Tk 1,26,062 crore in NPLs, while six private commercial banks had Tk 1,31,797 crore in NPLs at the end of December 2024.
The total volume of defaulted loans in the country鈥檚 banking sector surged by Tk 2 lakh crore in just one year, reaching Tk 3.45 lakh crore by the end of 2024.
About 20 per cent of the total bank loans amounting to Tk 17.11 lakh crore was classified as non-performing, the highest rate in South Asia.
This sharp rise came after the exposure of a massive amount of toxic loans which were previously concealed through data manipulation during the Awami League regime ousted on August 5, 2024, in a mass uprising, experts said.
Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue, told 抖阴精品 that the staggering volume of defaulted loans was the result of years of accumulated corruption and unchecked irregularities.
He warned that the surging NPLs posed a severe risk to the country鈥檚 economy, driving up borrowing costs and eroding banks鈥� lending capacity.
Mustafizur observed that the Bangladesh Bank had recently taken steps such as bank board restructuring, asset recovery plans and efforts to hold defaulters accountable, but these measures would take time to yield meaningful results.
Among the worst-hit banks, state-run Janata Bank recorded the highest volume of defaulted loans at Tk聽67,147 crore, more than 67 per cent of its total outstanding loans.
The bank鈥檚 biggest defaulter, Beximco Group, owed Tk聽25,000 crore, nearly all of which turned into bad debts.
The other major defaulters include Anontex, S Alam Group, Crescent Group and Thermex Group.
Syed Mahbubur Rahman, managing director and chief executive officer of Mutual Trust Bank, said that the banks with high default loans might struggle to function smoothly.
鈥楾hese banks must mobilise deposits and recover bad loans instead of relying on the Bangladesh Bank鈥檚 liquidity support to survive,鈥� he said.
He also noted that the central bank鈥檚 initiatives would take time to yield results.
鈥榃e need to wait for some time to assess their effectiveness,鈥� he added.
Islami Bank held the second-highest amount of defaulted loans, standing at Tk聽32,816 crore at the end of December.
Previously controlled by controversial S Alam Group, the bank got most of its NPLs from loans issued to entities linked to the group.
State-run Agrani Bank ranked third with Tk 27,931 crore in defaulted loans, accounting for 38.46 per cent of its total outstanding credit.
Sonali Bank and Rupali Bank reported Tk 15,905 crore and Tk 15,079 crore in NPLs respectively, accounting for 18.61 per cent and 31.71 per cent of their loan portfolios.
Several private banks which were previously under the S Alam Group鈥檚 influence also reported high levels of NPLs.
Union Bank held Tk 24,833 crore in bad loans, representing 87.98 per cent of its total disbursed credit.
First Security Islami Bank had NPLs of Tk 17,851 crore (29.33 per cent of its total loans), while Social Islami Bank鈥檚 bad loans stood at Tk聽13,267 crore (34.79 per cent of its total loans).
National Bank and IFIC Bank also reported significant amounts of defaulted loans at Tk聽25,846 crore and Tk聽17,851 crore, respectively.
Their NPL rates were 60.5 per cent and 38.5 per cent of their total disbursed loans.
According to the Bangladesh Bank data, S Alam Group alone withdrew nearly Tk 2.25 lakh crore from 10 banks, previously were under the group鈥檚 direct or indirect control.
The reckless lending and financial irregularities have put depositors at severe risks, with many banks struggling to repay customer funds.
In response to the crisis, the central bank has recently intervened by restructuring the boards of failing banks and appointing new directors.
It has also injected about Tk 30,000 crore into crisis-hit banks, including National Bank, Union Bank, Social Islami Bank and First Security Islami Bank in an effort to stabilise their operations.
Beyond the top 10 defaulters, several other banks also reported high NPLs.
BASIC Bank recorded Tk 8,601 crore in bad loans, followed by AB Bank Tk 8,572 crore, United Commercial Bank Tk 6,848 crore, Padma Bank Tk 4,870 crore, Global Islami Bank Tk 4,442 crore and Al-Arafah Islami Bank Tk聽4,794 crore.
In total, the central bank has so far restructured the boards of 14 private commercial banks.
Since the Awami League-led government assumed power in 2009, banks鈥� NPLs have skyrocketed.
From Tk 22,240 crore in June 2009, defaulted loans soared to Tk 2,11,391 crore by June 2024 鈥� a nearly tenfold increase in 15 years.
Under the leadership of Bangladesh Bank governor Ahsan H Mansur, the true scale of the crisis is being exposed.
For years, banks, borrowers and regulators had colluded with each other to mask the extent of bad loans through loan rescheduling and data manipulation, experts said.
