During Q1 2024, six state-owned commercial banks in Bangladesh made minimal progress in recovering written-off loans, with figures far below government targets, according to Bangladesh Bank data. Sonali Bank, BDBL, Basic Bank, Agrani Bank, and Janata Bank recovered only 0.8%, 0.15%, 1.89%, 3.50%, and 4.57% of their targets respectively, while Rupali Bank recovered 53.86%. Ex-Bangladesh Bank Governor Salehuddin Ahmed criticized the banks’ lack of seriousness in loan recovery, noting that influential borrowers often escape repayment, leading to high non-performing loans (NPLs). The total written-off loans stood at Tk 181.17 billion in March 2024. NPLs for these banks totaled Tk 858.70 billion, indicating a deepening financial crisis. The central bank has urged stricter loan recovery and revised policies to reduce bad loans, emphasizing the adverse impact of written-off loans on bank capital and profitability.
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