Non-performing loans (NPLs) in Bangladesh’s banking sector have surged to Tk 3,45,764.76 crore, accounting for 20.20 percent of total loans, according to Bangladesh Bank. 

Governor Dr. Ahsan H. Mansur disclosed the figures at a press conference on Wednesday (February 26) while revealing the NPL status for the December quarter.

He said that a significant amount of hidden bad loans emerged after the central bank took the initiative to disclose accurate data, which had been concealed during the previous government’s tenure.

In the September quarter, the NPL ratio was 16.93 percent, with total bad loans amounting to Tk 2,84,978.31 crore. In just three months, NPLs increased by Tk 60,787.55 crore.

State-owned banks reported a non-performing loan ratio of 42.83 percent in December, up from 40.35 percent in September. Private banks’ NPL ratio stood at 15.60 percent, rising from 11.66 percent in the previous quarter.

By the end of December, the total loan portfolio of banks reached Tk 17,11,402 crore. The governor noted that the current NPL trend was expected. He explained that during the previous government’s term, NPL data was suppressed, resulting in an official bad loan ratio of just 9 percent. As the central bank continues to assess the loan situation, the volume of NPLs is increasing.

BDST: 1635 HRS, FEB 26, 2025
MSK/SMS