Online Report
Bangladesh’s defaulted loans have surged to an all-time high of Tk 4,20,334 crore by the end of March, as previously undisclosed non-performing loans have now been brought to light under a stricter regulatory regime.
According to the latest data released by Bangladesh Bank, the volume of defaulted loans now accounts for 24.13% of the total outstanding loans in the banking sector — a significant rise from Tk 3,45,765 crore (20.20%) reported in December last year.
At a recent press briefing, Bangladesh Bank Governor Dr Ahsan H Mansur said, “There will be no concealment of default data going forward. We’ve decided to show the actual picture. Now that the real figure is out, we will intensify recovery efforts.”
He also announced legal reforms aimed at preventing fresh loan defaults, adding, “New lending will be closely monitored. Borrowers must be held accountable.”
The central bank’s disclosure comes in the wake of the fall of the Awami League government, during which time several powerful business groups reportedly defaulted on loans through regulatory leniency. With policy loopholes now closed, many of those loans are officially being categorized as non-performing.
Top borrowers, including groups such as S. Alam and Beximco, have reportedly defaulted on large loan amounts, banking sources confirmed.
Bangladesh Bank data shows that total disbursed loans stood at Tk 17,41,992 crore as of March 2025, compared to Tk 17,11,402 crore in December 2024.
Financial analysts warn that unless recovery measures are immediately enforced and structural reforms introduced, the rising default rate could further destabilize the country’s banking sector.