Default loans cross Tk4.20 trillion mark

The volume of defaulted loans in Bangladesh has surged further following the disclosure of previously concealed non-performing loans. According to the latest report from Bangladesh Bank, as of the end of March this year, defaulted loans in the country’s banking sector have risen to Tk 4,20,334 crore—accounting for 24.13% of total loans disbursed.

In comparison, at the end of December last year, the volume of defaulted loans stood at Tk 3,45,765 crore, which was 20.20% of total outstanding loans.

At a recent press conference, Bangladesh Bank Governor Dr. Ahsan H. Mansur stated that no information on defaulted loans will be withheld. He emphasized that strict recovery measures will be implemented once the volume reaches its peak. Additionally, legal reforms are being initiated to prevent newly disbursed loans from turning into defaults.

He further revealed that during the tenure of the Awami League government, several influential groups borrowed large sums under the guise of legitimate loans. Many of these individuals are now absconding, while some have been arrested and imprisoned. Prior to August 5 last year, borrowers were able to show their loans as regular despite non-repayment through various loopholes. However, the current government has eliminated those provisions, resulting in a spike in the number of defaulters.

Among the major corporate groups that have recently defaulted are S. Alam and Beximco, along with several other top business conglomerates in the country.

According to Bangladesh Bank data, as of March 2025, the total amount of loans disbursed by the banking sector stood at Tk 17,41,992 crore, up from Tk 17,11,402 crore at the end of December 2024.