Non-performing loans in Bangladesh exceed 6.5 trillion Taka

Nov 27, 2025
Business

Symbolic image: Non-performing loans (collected)

Staff Report: PNN

More than one-third of total loans distributed in Bangladesh’s banking sector are now non-performing. According to the latest Bangladesh Bank data, as of September 2025, total loans in the banking sector amounted to 18,03,840 crore Taka, with 35.73%, approximately 6.5 trillion Taka, classified as non-performing.

Bankers say the ousted Awami League government tended to underreport non-performing loans, often concealing the actual picture. This practice has now stopped, revealing the true extent of bad loans. Experts warn the ratio could reach 40% soon.

Moinul Islam, former faculty at Chittagong University’s Economics Department, told First Bangladesh, “Each bank should form a separate tribunal for its top 10 defaulters; otherwise, this problem cannot be solved.”

According to central bank data, non-performing loans were 6,08,346 crore Taka in June. In three months, it increased by 36,169 crore Taka. Provision shortfall—the amount banks lack in reserves—stood at 3,44,231 crore Taka in September.

Experts attribute the rise to disorganized lending by large groups and irregularities in state-owned banks. Banks like Janata, Agrani, National, and IFIC have comparatively higher bad loans. Integrated bad loans in First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and Exim Bank total about 1.5 trillion Taka.

Agrani Bank Chairman Syed Abu Naser Bakhtiar Ahmed said, “For years, banks concealed information about non-performing loans. Now, even though loans have increased, the actual situation is visible.”

Bangladesh Bank is following international standards for calculating non-performing loans, recognizing loans as bad three months after default, increasing the actual NPL ratio. The long-term irregularities, data distortion, and large defaulters are driving the growth of non-performing loans.