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The volume of non-performing loans (NPLs) in Bangladesh’s banking sector has reached an all-time high. As of March 2025, NPLs stood at BDT 420,335 crore, accounting for 24.13% of total disbursed loans, according to the latest report from Bangladesh Bank.
In March 2024, NPLs amounted to BDT 182,295 crore, representing 11.11% of total loans. Within a year, the volume of NPLs surged by BDT 238,040 crore. The gradual exposure of hidden bad loans from the Awami League government’s tenure has contributed to this record-breaking figure.
In a recent press conference, Bangladesh Bank Governor Dr. Ahsan H. Mansur stated, “We will not conceal any data on NPLs. After reaching its peak, we will reduce it through intensified recovery efforts.” He also emphasized introducing stricter legal measures to prevent new loans from becoming non-performing.
The report highlights that during the Awami League government’s rule, several influential groups siphoned off massive funds under the guise of loans. Many of these defaulters are now fugitives, while some are in custody. Prior to August 5, loopholes allowed defaulters to show loans as regular despite non-repayment. Following the fall of the Sheikh Hasina government, such practices have been curtailed, leading to top borrowers like S Alam and Beximco being classified as defaulters.
Bangladesh Bank is prioritizing stringent measures and transparency to tackle this crisis. However, reducing the massive volume of NPLs remains a significant challenge for the banking sector.
AI/MR
