The banking sector has witnessed a concerning surge in non-performing loans (NPLs), which reached a staggering Tk 156,039 crore as of June 2023. This alarming increase can be primarily attributed to the glaring deficiency in corporate governance within the sector.
According to the latest data from the Bangladesh Bank, at the close of June 2023, NPLs accounted for 10.11 percent of the total disbursed loans, amounting to Tk 156,039 crore. This represents a significant proportion of the financial assets at risk within the banking sector.
The total outstanding loans in the banking sector stood at Tk 1,542,655 crore as of June 2023. The stark contrast between this substantial loan portfolio and the escalating NPLs underscores the critical need for robust reforms and enhanced corporate governance practices to safeguard the stability and integrity of the country’s banking industry. Immediate action is imperative to address this growing issue and restore confidence in the sector.
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