Ten commercial banks collectively had over Tk 3 lakh crore in defaulted loans as of March 2025, accounting for nearly 71.4 per cent of the total Tk 4.2 lakh crore non-performing loans in the country鈥檚 banking sector.
According to Bangladesh Bank data, four state-run banks held Tk 1,36,780 crore in NPLs, while six private commercial banks had Tk 1,63,220 crore in NPLs at the end of March.
The alarming concentration of toxic loans underscores vulnerabilities of the financial sector, experts said.
The total amount of non-performing loans in the country鈥檚 banking system jumped by Tk 74,570 crore in just three months, reaching a record Tk 4.20 lakh crore by March 2025.
About 24.13 per cent of total disbursed loans 鈥� Tk 17.41 lakh crore 鈥� are now classified as non-performing, the highest ratio in South Asia.
For years, banks, influential borrowers and regulators have allegedly colluded to hide the true scale of bad loans through repeated rescheduling and data manipulation, experts said.
However, a massive amount of NPLs surfaced after the central bank had begun revealing the actual financial condition of the banks following the ouster of authoritarian Awami League regime in August 2024 under which politically connected large bank borrowers had enjoyed undue privileges and regulatory leniency.
Among the worst-hit banks, Janata Bank reported the highest volume of defaulted loans 鈥� Tk 70,846 crore 鈥� amounting to nearly 75 per cent of its total outstanding credit.
The bank鈥檚 biggest defaulter, Beximco Group, owed about Tk 25,000 crore, nearly all of which turned into bad debts.
Other top defaulters of the bank include Anontex, Crescent Group, Thermex Group and S Alam Group.
Islami Bank held the second-highest amount of defaulted loans, standing at Tk 47,618 crore at the end of March.
Previously controlled by controversial S Alam Group, the bank got most of its NPLs from loans issued to the said group of companies.
The third-largest NPL holder, Agrani Bank, reported Tk 29,721 crore in defaulted loans, which is 41.35 per cent of its total lending.
State-run Sonali Bank and Rupali Bank reported Tk 19,091 crore and Tk 17,122 crore in NPLs respectively, accounting for 21.11 per cent and 35.62 per cent of their loan portfolios.
Several private banks, which were previously under the S Alam Group鈥檚 influence, also reported high levels of NPLs.
Union Bank held Tk 25,303 crore in bad loans, representing about 90 per cent of its total disbursed credit.
First Security Islami Bank had NPLs worth Tk 22,646 crore, 36.63 per cent of its total loans, while Social Islami Bank鈥檚 toxic loans stood at Tk 14,360 crore, 37.58 per cent of its total loans.
National Bank and IFIC Bank also reported massive defaults of Tk 27,351 crore and Tk 25,971 crore, respectively 鈥� equivalent to 64 per cent and 58.39 per cent of their total lending.
According to the Bangladesh Bank data, S Alam Group alone withdrew nearly Tk 2.25 lakh crore from 10 banks that previously were under the group鈥檚 direct or indirect control.
The reckless lending and financial irregularities have put depositors at severe risks, with many of these banks struggling to repay customer funds.
The Bangladesh Bank has already injected about Tk 35,000 crore in emergency liquidity support to stabilise operations at several troubled institutions, including National Bank, Union Bank, Social Islami Bank and First Security Islami Bank.
Beyond the top 10 banks, others also reported high levels of defaults. Premier Bank had Tk 9,817 crore in NPLs 鈥� 29 per cent of its total loans, AB Bank Tk 8,841 crore 鈥� 26.32 per cent of its total loans, UCBL Tk 8,628 crore 鈥� 14.67 per cent of its total loans, Bank Asia Tk 4,055 crore 鈥� 14.35 per cent of its total loans and Padma Bank Tk 4,849 crore 鈥� 86.66 per cent of its total loans.
Global Islami Bank and Al-Arafah Islami Bank, previously controlled by S Alam, reported NPLs of Tk 7,942 crore, 54.36 per cent of its total loans, and Tk 7,798 crore, 15.57 per cent of its total loans, respectively.
The Bangladesh Bank has so far restructured boards of 14 private commercial banks. It has also initiated the process of merging five Shariah-based banks 鈥� First Security Islami, Global Islami, Union Bank, Social Islami, and EXIM Bank 鈥� in an effort to address rampant irregularities and the accumulation of toxic assets.
