In Q3 of 2023, loan write-offs in Bangladesh reached Tk 68,023 crore, marking a YoY increase of Tk 10,048 crore, as reported by the Bangladesh Bank. This surge in write-offs, up from Tk 57,975 crore in September of the previous year, coincided with the country’s banking sector’s all-time high non-performing loans (NPLs) of Tk 1,56,039 crore in June. NPLs slightly decreased to Tk 1,55,397 crore in September, facilitated by rescheduling two major groups’ loans. Banks typically write off defaulted loans when recovery seems improbable, aiming to improve balance sheets. Some experts emphasize the importance of timely write-offs for a healthier banking sector, while others cite provisioning challenges.
Source for more details:
