Defaulted loans at Non-Bank Financial Institutions (NBFIs) in Bangladesh amounted to Tk 27,541 crore, representing 35.72 per cent of total loans as of June 2025.
The figure was an increase of Tk 352 crore from the previous quarter (March 2025), according to Bangladesh Bank data.
Financial experts said that the default loans in NBFIs surged to the current level due mainly to the past irregularities, poor governance, and weakened supervision.
The total defaulted loans in the NBFI sector reached Tk 26,163 crore in September 2024, up from Tk 24,711 crore in June and Tk 23,900 crore in March.
The total outstanding loan amount in the NBFIs declined slightly to Tk 73,662 crore in September from Tk 74,533 crore at the end of June.
Bangladesh Bank has moved to shut down nine non-bank financial institutions (NBFIs) after they failed to return depositors鈥� money, collapsed under massive non-performing loans, and suffered crippling capital shortfalls.
Currently, there are 35 NBFIs operating in the country, according to a BB report.
But many of them have been in deep trouble for years, forcing regulators to finally take drastic measures.
In May this year, the central bank issued show-cause notices to 20 NBFIs that were failing to operate properly, asking why their licences should not be revoked on grounds of high non-performing loans, capital shortfalls, and inability to return depositors鈥� money.
Eleven of these institutions submitted plans to turn around, but nine failed to provide satisfactory responses.
Bangladesh Bank has since decided to close them down and initiate liquidation.
The firms that will be shut are FAS Finance and Investment, Bangladesh Industrial Finance Company, Peoples Leasing and Financial Services,
International Leasing and Financial Services, Aviva Finance, Premier Leasing and Finance, Fareast Finance and Investment, GSP Finance Company and Prime Finance and Investment.
For years, depositors have suffered as their money remained stuck in these institutions.
Many retirees, small traders and families who had placed their life savings with these firms staged repeated protests in front of company offices demanding their money back.
Together, the 20 struggling firms had Tk 25,808 crore in loans against collateral worth only Tk 6,899 crore, of which Tk 21,462 crore 鈥� or 83 per cent 鈥� were defaulted.
Their collateral coverage stood at just 26.7 per cent, far below acceptable levels.
The NBFIs sector continued to struggle under the shadow of scams engineered by Prasanta Kumar (PK) Halder, whose fraudulent activities a decade ago set the entire industry on a downward spiral.
PK Halder, a close associate of controversial S Alam Group, siphoned off massive amounts of loans 鈥� directly and indirectly.
By the end of 2024, the NBFI sector鈥檚 combined losses stood at Tk 3,555 crore, almost double of the Tk 1,803 crore reported in 2023.
Bangladesh Bank鈥檚 Financial Stability Report 2024 painted a bleak picture, showing that only nine of the 35 NBFIs could be considered sound, while 21 were identified as weak.