The amount of non-performing loans in Bangladesh’s banking sector has reached a new high. According to the latest data from Bangladesh Bank, the total amount of non-performing loans stood at Tk 6,44,515 crore at the end of September this year, which is 35.73 percent of the total loans disbursed.
In just nine months, defaulted loans have increased by nearly Tk 3 lakh crore. At the end of December last year, the amount was Tk 3 lakh 45 thousand 765 crore.
Bangladesh Bank spokesperson Shahriar Siddiqui confirmed this information on Wednesday.
Policymakers say that in the past few years, government influence, political patronage and loans taken in various names and identities have led to large-scale defaults. The number of defaults has officially increased despite the tightening of the international debt classification system. The central bank has also listed many renewed loans as defaulters as they have not made progress in recovering them.
At the end of September, the total loan amount in the country’s banking sector was Tk 18 lakh 3 thousand 840 crore. Of this, defaulted loans exceeded one-third. Compared to the same period last year, defaulted loans increased by Tk 3 lakh 59 thousand 718 crore.
According to banking sector experts, these recent statistics further highlight the need for the country’s financial stability and restructuring of the banking sector.