The government has turned down the World Bank鈥檚 proposal to conduct a forensic audit of six state-owned banks, a move that has raised concerns over its commitment to full transparency in addressing the sector鈥檚 deep-rooted problems.
The World Bank had recently proposed for conducting asset quality review of Sonali Bank, Janata Bank, Rupali Bank, Agrani Bank, and the two specialised lenders鈥擝angladesh Krishi Bank and Rajshahi Krishi Unnayan Bank by foreign audit firms.
The intention was to determine the true extent of their financial deterioration and guide targeted recovery measures.
However, financial institutions division secretary Najma Mubarak told 抖阴精品 on Tuesday that that the government didn鈥檛 agree with WB proposal as it prefers 鈥榟omegrown鈥� solutions to address problems at these banks鈥攖hough no detailed plan has been disclosed.
According to Bangladesh Bank officials, such an audit could reveal the full scale of loan scams and operational mismanagement, including irregularities tied to politically influenced board appointments and removals.
From the beginning, officials at the finance ministry resisted the proposal, reportedly due to their direct involvement in the management and governance of these state-owned institutions.
As both the owner and regulator of these state-run banks, the FID鈥檚 role in the ongoing irregularities is critical. It was highly unlikely these banks could have continued such massive irregularities without FID鈥檚 knowledge or consent, they said.
They feared the findings could expose damaging details, implicating both political and administrative figures.
The ministry formally informed the World Bank that it cannot comply with the WB proposal regarding the forensic audits of six state-run banks.
Mustafa K Mujeri, Executive Director at the Institute for Inclusive Finance and Development, told 抖阴精品 that a forensic audit would expose the full extent of the financial crises in state-run banks and identify the root causes of their problems.
He suggested that the government might resist such an audit to avoid disclosing the massive default loans and rampant corruption plaguing these banks.
聽If the true scale of financial mismanagement and corruption were revealed, he added, the public might question whether the government should continue operating these banks at all.
Mujeri emphasized that the Financial Institutions Division wouldn鈥檛 have other reason to reject a forensic audit. Instead, he argued, an independent foreign audit was necessary to uncover the depth of the problems and implement effective solutions.
With state-run banks becoming a heavy burden on public funds, he urged the government to make informed decisions based on accurate findings to address the systemic issues.
Two foreign audit firms, backed by the Asian Development Bank, have already completed forensic reviews of six troubled private commercial banks鈥擣irst Security Islami, Exim, Global Islami, Social Islami, ICB Islamic, and Union Bank.
On the basis of those findings, Bangladesh Bank decided to merge five of them into a single entity while planning ICB Islamic Bank towards possible liquidation.
Meanwhile, the World Bank is overseeing forensic audits of another 11 banks as part of an effort to restore transparency and accountability in the financial system.
International lenders had sought similar scrutiny of the six state-run banks, suspecting large-scale fund diversions.
The financial health of these institutions has indeed reached alarming levels.
Janata Bank alone holds Tk 70,845 crore in non-performing loans鈥�75 per cent of its total portfolio.
Major borrowers like Beximco Group and S Alam Group withdrew Tk 24,682 crore and Tk 10,100 crore respectively from the bank, much of which has turned into defaulted loans.
Agrani Bank鈥檚 bad loans reached Tk 29,720 crore in September 2025, amounting to 41.35 per cent of its total loans, with its top 10 defaulters responsible for nearly a third of that amount.
Sonali Bank鈥檚 NPLs stood at Tk 19,091 crore and Rupali Bank鈥檚 at Tk 17,122 crore as of March 2025.
Much of this deterioration is rooted in the Awami League era, when vast sums were siphoned out of the banking sector and allegedly laundered abroad.
Following the change of government in August 2024, the interim government restructured boards in several private banks, removing the influence of the S Alam Group and other politically connected entities.
