Borrowers are struggling to pay back their borrowing amounts and default loans recovery in Bangladesh stood at Tk 10,140 crore, collapsed to a five-year low of Tk 6,922 crore in the fiscal year of 2019-20.
The severely damaged economy allowed borrowers to defer payments of installments, hitting the recovery of the default loans.
The loan recovery had dropped promptly to Tk 869 crore in April to June of 2020. This was the first time it had fallen below Tk 1,000 crore in a single quarter since at least FY17.
Defaulters paid back Tk 280 crore to six state-run commercial banks in the fourth quarter and they had Tk 43,450 crore in bad loans at the end of the last fiscal year.
Forty-one private commercial banks got back Tk 937 crore, versus Tk 642 crore in the third quarter, leaving them with Tk 45,010 crore in defaulted loans.
Defaulters of nine foreign commercial banks repaid Tk 46 crore in the quarter. Their collective bad loans stood at Tk 2,281 crore at the end of FY21.
At the end of the fiscal year, classified loans in the banking sector stood at Tk 95,243 crore.
Source: The Daily Star