Record defaulted loans

Non-performing loans as a poison for the financial sector. Due to the indifference of the central bank, the non-performing loans in the banks are increasing uncontrollably. The situation is so fast that in the first 6 months of this year, the amount of this debt has increased by about 66 thousand crores and for the first time it has exceeded 2 lakh crores.

This information was obtained from the updated statement of defaulted loans of Bangladesh Bank on Tuesday (September 3).

According to the information of the report, the amount of loans in the total disbursement of the banking sector at the end of June 2024 stood at 16 lakh 83 thousand 396 crores. Out of this, 2 lakh 11 thousand 391 crore rupees have become defaults, which is 12.56 percent of the total disbursed loans.

Three months ago, the total disbursed credit of the banking sector in the March quarter was Tk 16 lakh 40 thousand 855 crore. Out of this default was Tk 1 lakh 82 thousand 295 crore, which is 11.11 percent of the total disbursed loans of that time. In the three months of April-June, defaulted loans increased by Tk 29 thousand 96 crores. And at the end of last December, defaulted loans were Tk 1 lakh 45 thousand 633 crores. That is, in the first three months of the year, defaulted loans increased by 36 thousand 662 crores.

On the other hand, those concerned say that the opportunity to reduce the defaulted debt has decreased since last March by complying with the conditions of the IMF before the fall of the government. Due to lax supervision, loans disbursed through fraud and irregularities are not coming back. After the fall of the government, many of the Awami League businessmen have already fled. Due to this, defaulted loans may increase further in the future, bankers said.

The organization has given various conditions for the IMF loan of 4.7 billion dollars. By 2026, the non-performing loans of private banks should be reduced below 5 percent and the non-performing loans of government banks below 10 percent by 2026. However, the organization has informed that the current policy support cannot be kept to reduce defaulted loans.