B Mirror Report : The scandal-hit BASIC Bank PLC has stepped up its efforts to recover defaulted loans from its top 20 borrowers as part of a broader attempt to revive the struggling state-owned lender.
However, actual recovery remains far below regulatory expectations, raising concerns over the effectiveness of the drive.
An internal bank document reveals that as of December 2025, total recovery from these major defaulters stood at only Tk 48 million against outstanding loans amounting to Tk 25.40 billion. The figures highlight a stark mismatch between recovery efforts and the scale of classified loans.
The report shows that the top 20 defaulters had originally been sanctioned loans exceeding Tk 17.70 billion, but accrued interest and penalties have significantly inflated their total outstanding liabilities. During the third quarter of 2025 (October–December), recovery amounted to just Tk 38.4 million, further widening the gap between targets and actual collections.
New Dhaka City Development leads the list with an outstanding balance of Tk 2.38 billion. It is among the few borrowers that made partial repayments, returning Tk 27 million during 2025. Other major defaulters include Bangladesh Development Company Ltd with Tk 2.23 billion, Amader Bari Limited with Tk 2.05 billion, Crystal Steel and Ship Breaking Ltd with Tk 1.32 billion, and Western Housing Limited with Tk 1.31 billion in unpaid loans.
Alarmingly, 16 out of the top 20 defaulters did not repay a single taka throughout the year. This group includes prominent companies such as Western Housing Limited, The Welltex Limited and Regent Weaving Limited, highlighting the severity of BASIC Bank’s loan recovery challenge.
Branch-level data indicate that the Shantinagar branch alone accounts for seven of the top defaulting accounts, making it the most heavily exposed branch. Significant concentrations of defaulted loans are also found at the Agrabad, Dilkusha and Gulshan branches.
The report, signed by Md Fida Hasan, Deputy General Manager of the bank’s Recovery Division, notes that most of the large loans remain classified as “bad or loss (B/L),” effectively locking up a substantial portion of the bank’s funds.
A source at BASIC Bank said the lender has recently held business review meetings aimed at strengthening legal measures and improving recovery mechanisms. Despite these initiatives, progress remains limited.
Banking analysts warn that without faster court verdicts, stricter enforcement actions or more realistic loan rescheduling options, recovery from major defaulters is likely to remain sluggish, continuing to put pressure on the bank’s liquidity and overall financial condition.
A senior bank official said that in previous years, loans were disbursed in violation of banking rules, sharply increasing classified loans and eroding the value of pledged collateral.
The government appointed Sheikh Abdul Hye Bachchu as chairman of BASIC Bank in September 2009 on a three-year contract, which was later extended by two years in September 2012. Sources said the bank’s performance deteriorated during this period, as Mr Bachchu and other board members allegedly engaged in serious irregularities in loan approvals, breaching existing rules and regulations.
As a result of these irregularities, the bank’s board of directors was dissolved in 2014. Subsequent findings by Bangladesh Bank revealed that nearly Tk 35 billion had allegedly been disbursed irregularly from the Gulshan, Dilkusha and Shantinagar branches between 2009 and 2011.
Currently, the troubled bank is implementing a three-year action plan aimed at bringing its massive default loan portfolio down to a manageable level. To address capital shortfalls, the government provided financial support to BASIC Bank between fiscal years 2013–14 and 2016–17, including Tk 12 billion in 2015 and Tk 10 billion in 2017 as capital injections to help the bank survive its deep financial crisis.
