The banking sector in Bangladesh is grappling with a sharp rise in non-performing loans (NPLs), reaching alarming levels, according to the latest data from Bangladesh Bank.
By the end of September, total loans disbursed by banks stood at BDT 18,03,840 crore, of which BDT 6,44,515 crore were classified as non-performing, accounting for 35.73% of total loans. This marks a steep increase from last year, when NPLs were BDT 2,85,000 crore, or 16.93% of total loans.
The central bank noted that stricter regulations, enhanced oversight, and the disclosure of long-hidden bad loans contributed to the rapid rise in NPLs. The officials emphasized that while the increase highlights the sector’s challenges, greater transparency could ultimately drive improved governance and strengthen the banking system.
Three months earlier, in June, the NPL ratio was slightly lower at 34.40%, indicating a continuing upward trend over the year.
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