By the end of 2024, the amount of non-recoverable (default) loans in Bangladesh’s banking sector has reached Tk 291,537 crore, which is over 17% of the total loans disbursed.
The Managing Director of Janata Bank says this situation arose because loans were not issued following proper rules. A spokesperson from Bangladesh Bank warns that this scenario is putting the banking sector at serious risk.
The banking sector has almost turned into a paradise for looters, with politically motivated loan approvals during the last government’s tenure. A large portion of these loans are now beyond recovery.
According to Bangladesh Bank data, as of December 2024, default loans in the banking sector stood at Tk 291,537 crore, which exceeds 17% of the total disbursed loans.
Among this, the six state-owned banks alone account for over Tk 1 lakh crore in bad loans. Janata Bank tops the list with Tk 62,500 crore, followed by Agrani Bank with Tk 24,000 crore, Sonali Bank with Tk 15,000 crore, and Rupali Bank with Tk 13,500 crore.
Md. Mojibur Rahman, Managing Director of Janata Bank PLC, stated that this situation has arisen due to a lack of adherence to rules and regulations.
Private banks are also struggling, having issued loans without proper scrutiny. The amount of non-recoverable loans in the private sector now stands at around Tk 1.6 lakh crore. Leading the list are National Bank and Union Bank, followed by Islami Bank, Social Islami Bank (SIBL), IFIC, Padma Bank, and a total of 41 private banks.
As of now, the total volume of classified (problematic) loans in the banking sector stands at approximately Tk 3.5 lakh crore.
