Defaulted loans in Bangladesh’s banking sector have skyrocketed to a historic high of Tk 3,45,765 crore by the end of December, accounting for 20.2 per cent of total loans disbursed.
This alarming figure, announced by Bangladesh Bank Governor Dr Ahsan H Mansur at a Wednesday press conference, comes from a loan balance of Tk 17,11,402 crore—unveiling a crisis concealed during the Awami League’s tenure.
The jump marks a Tk 60,788 crore surge in just three months from September’s Tk 2,84,977 crore (16.93% of Tk 16,82,822 crore in loans), which itself was a record at the time.
A year ago, in December 2023, defaults stood at Tk 1,45,633 crore—9% of the Tk 16,17,689 crore loan pool—meaning bad loans have swelled by Tk 2 lakh crore in 12 months.
Governor Mansur attributed the revelation to new transparency efforts, noting, “The more data we uncover, the worse it gets.”
He outlined a rescue plan: “We’ll restructure weak banks—merging some, bringing in new investors for others. Legal reforms are in progress, including a review of the Bank Company Act. Once done, the banking sector will be overhauled.”
The figures paint a stark picture of a financial system teetering on the edge, now thrust into the spotlight.