According to Bangladesh Bank data, by the end of December 2024, the top 10 banks in Bangladesh wrote off Tk 41,129 crore in bad loans, nearly half of the total Tk 81,578 crore written off across the banking sector. Sonali Bank topped the list with Tk 8,568 crore, followed by Agrani (Tk 5,627 crore) and Janata (Tk 5,126 crore). Private banks like Southeast, UCB, and Prime Bank each wrote off over Tk 3,000 crore. This surge follows the Bangladesh Bank’s February 2024 policy that relaxed write-off requirements, reducing the default duration from three to two years and increasing the threshold for court filing exemption to Tk 5 lakh. While this accounting move improves bank balance sheets on paper, experts warned it masks asset quality deterioration, weakens recovery efforts, and incentivizes willful default. Non-performing loans hit Tk 3.45 lakh crore by December 2024—nearly 20% of total loans and the highest NPL ratio in South Asia. Distressed assets now exceed Tk 6.75 lakh crore, pressuring profitability and liquidity. Experts urge tightening the policy and boosting recovery efforts to avoid further financial destabilization.
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