Bangladesh Bank (BB) has urged banks to actively participate in the trials of loan-related cases with thorough preparation, citing significant delays caused by petitioner banks’ negligence. The central bank’s directive follows its review of Money Loan Court verdicts, revealing an unexpected backlog in loan cases, adversely affecting both depositors and banks. With approximately 72,500 cases involving Tk 178,277 crore pending at the money loan court and a rising pile of defaulted loans.
The Central Bank emphasized the need for banks to efficiently engage with lawyers and ensure readiness. Nonperforming loans in the country’s banking sector reached Tk 156,039 crore by June, reflecting a 10.11% increase from three months prior, attributed to corporate governance issues. The BB’s directive aims to address the challenges arising from the backlog and promote timely resolution of loan-related cases.
Source for more details:
