Fifty per cent of the loans issued by 21 non-bank financial institutions (NBFIs) turned non-performing as of September, revealing a dire financial crisis in the sector.
Bangladesh Bank data showed that over 80 per cent of loans in nine NBFIs are now classified, displaying rampant irregularities and mismanagement.
Of the 35 NBFIs operating in the country, more than 70 per cent are on the brink of collapse.
Near the entire loans of FAS Finance, Far East Finance, Bangladesh Industrial Finance, People鈥檚 leasing and International Leasing became defaulted.
The situation is equally grim for other NBFIs. Union Capital has a 94 per cent default rate, Aviva Finance 90 per cent, Phoenix Finance 88.57 per cent, and First Finance 87.82 per cent.
The total defaulted loans in the NBFI sector reached Tk 26,163 crore in September 2024, up from Tk聽24,711 crore in June and Tk 23,900 crore in March.
The total outstanding loan amount in the NBFIs declined slightly to Tk聽73,662 crore in September from Tk 74,533 crore at the end of June.
Therefore, 35.52 per cent of the sector鈥檚 total loans turned sour in September 2024.
The non-performing loan (NPL) in the NBFIs was Tk 23,900 crore in March 2024.
Some other NBFIs are drowning in bad loans. Prime Finance has Tk 542 crore (77.62聽 per cent) in NPLs, Premier Leasing Tk 984.7 crore (75.2聽 per cent), IIDFC Tk 621 crore (66.7聽 per cent), Bay Leasing Tk 550 crore (65.87聽 per cent), National Finance Tk 343 crore (63聽 per cent), and CVCFL Tk 224 crore (60聽 per cent).
Other struggling NBFIs include GSP Finance (58.24聽 per cent NPL), Meridian Finance (57.7聽 per cent NPL), Uttara Finance (56.36聽 per cent NPL), Hajj Finance (55.5聽 per cent NPL), MIDAS Finance (49聽 per cent NPL), and Islamic Finance (49聽 per cent NPL).
Meanwhile, defaulted loans in banks also skyrocketed to Tk 2.85 lakh crore in September, with a staggering Tk 73,586 crore added in just three months.
About 17聽 per cent of total bank loans 鈥� amounting to Tk 16.82 lakh crore 鈥� are classified as non-performing, the highest ratio in South Asia.
The NPL in the sector has continued rising as the NBFIs have kept failing to recover the loans.
Agrani Bank chairman Syed Abu Naser Bukhtear Ahmed told 抖阴精品 that the government should give attention towards the ailing NBFI sector.
While the central bank provides liquidity support to banks, it has extended no such support to ailing NBFIs, he said.
NBFI officials said that due to the current economic situation in the country, some failed to repay their loans in a timely manner.
Besides, the NBFIs suffered a deposit contraction at a time when the country鈥檚 banks posted a growth in deposits.
The sector continues suffering from lack of trust and confidence among customers as the entities are failing to pay depositors鈥� money, NBFI officials said.
Depositors lost confidence due to various irregularities and scams in a number of NBFIs, making it difficult to obtain new deposits, BB officials said.