Four state-run banks in Bangladesh are struggling to recover loans from their top 20 defaulters, impacting their financial health and lending capacity. Sonali, Janata, Agrani, and Rupali banks have repeatedly failed to meet loan recovery targets set by Bangladesh Bank, despite efforts under their memorandum of understanding. The government aims to reduce bad loans at these banks to 10% by 2026, as per IMF requirements linked to a loan program.
Sonali Bank, for instance, managed to recover only 12% of its targeted amount from top defaulters in 2023, facing challenges like legal complexities and fraudulent practices. Janata Bank, with the highest volume of default loans, struggles with recovery from entities like AnonTex Group. Agrani Bank’s recovery efforts yielded only 3% of its target, while Rupali Bank saw better performance, recovering 20% of its goal through intensified legal actions and communication with defaulters.
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