The BB highlighted the growing concerns in the monetary policy for the Jan-Jun of 2025

Janata Bank’s defaulted loans surged to a record Tk 67,300 crore by the end of last year, as politically exposed persons and business conglomerates became defaulters following the recent political changeover, reflecting the fragile condition of the state-run bank.

Padma Bank, formerly Farmers Bank, has sunk into such a financial abyss that the lender is struggling to pay its employees’ monthly salaries and has sought a Tk 5,000 crore bailout package from Bangladesh Bank to stay afloat.

Once a reputable state-run commercial lender, Agrani Bank saw its financial health deteriorate fast over the past five years, mainly due to massive lending to politically backed businesses, mismanagement by the board and fallouts of Covid-19.

Default loans in the banking sector of Bangladesh hit an all-time high of Tk 182,295 crore, but no reform programme to reduce it has been announced in the budget for the upcoming fiscal year.

Bad loans rose by Tk 36,367 crore in just three months

Action plan has already been taken, the central bank says

The falling foreign exchange reserves and the ever-rising defaulted loans are very concerning for the economy, and the government should respond fast to avoid a looming crisis, eminent economist Prof Rehman Sobhan said yesterday. 

The defaulted loans in 10 banks, including four state-run lenders, increased at an alarming rate in fiscal 2022-23, indicating their worsening financial health.

The bad loans rose by Tk 24,419 crore in the last three months to June

How long till Farmers Bank pays back what’s due?

Banks in Bangladesh witnessed an accumulation of default loans by Tk 10,964 crore in the first three months of 2023, highlighting the worsening financial health of the banking sector, official figures showed.

It is quite intriguing how the RPA amendment can be so accommodating to defaulters who are desperate to gain political power.

The news of Bangladesh occupying the second-highest position in South Asia in terms of a bad loan ratio is no surprise.

We are told that taka is available, and then it’s not there anymore.

The core problems of our economy are rooted in the very nature of the country’s governance, which has long been neglected. 

While the government is distracted by elections, the financial economy will suffer

Why is the amount of default loans increasing day by day?

The default-loan narrative has smeared our otherwise powerful story of graduation from the Least Developed Country (LDC) status.

Around 70 per cent of default loans in the banking sector is concentrated in nine sectors of the economy as many borrowers are finding it difficult to pay instalments for the dragging economic slowdown while willful defaulters are also a major factor.