In the first nine months of 2024, Bangladesh’s rescheduled defaulted loans rose by Tk1,922 crore, reaching Tk20,732 crore, up from Tk18,810 crore in the same period of 2023. Despite rescheduling, non-performing loans surged to Tk2.85 lakh crore, nearly 17% of total outstanding loans (Tk16.83 lakh crore) as of September 2024. Private banks accounted for the highest rescheduling (Tk17,936 crore), followed by state-owned banks (Tk1,650 crore) and specialized banks (Tk1,120 crore), while foreign banks rescheduled none. The surge was attributed to easier rescheduling policies, including a reduced down payment (2-4%) introduced in 2022. Rising interest rates, increased utility costs, and limited loan availability pressured traders to reschedule defaults. Experts predict further increases, as the central bank continues uncovering hidden banking sector issues, with the governor warning defaulted loans may exceed 30%.
Source for more details:
