Bangladesh Bank has reported an increase in the number of cases and claims against defaulted loans of banks and non-banking financial institutions (NBFIs) in the Finance Court. As of the end of 2022, financial institutions in the country have defaulted loans of over 11,500 crore taka, with the top five companies alone accounting for 65000 crores of taka.
Several reasons have been cited for the delay in settling these cases, including a lack of judges and courts, lengthy post-warrant processes, and defendants delaying cases in various ways. The long process of settling cases means that the money cannot be recovered from defaulting customers. Measures such as regular supervision of cases, efficient internal recovery teams, and waiving interest for financially damaged customers have been suggested to help settle cases more quickly. Currently, 1 lakh 66 thousand 887 crores of money is stuck in the bank sector against 72 thousand 189 pending cases.