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Bad loans hit Tk1,31,620cr

Mehedi Hasan
28 May 2023 17:04:44 | Update: 28 May 2023 19:37:21
Bad loans hit Tk1,31,620cr

The defaulted loans in the banking sector climbed by about Tk 10,954 crore to Tk1,31,620 crore in the January-March quarter.

According to Bangladesh Bank (BB), the defaulted loans increased by 9 per cent from three months ago and 16 per cent from a year earlier.

Despite different initiatives of the central bank, defaulted loans are on a rising trend, which is becoming challenging and a headache, the BB governor said recently in a conference organised by the Association of Bankers Bangladesh (ABB). 

In comparison, the default loan figure stood at Tk 1,20,656 crore in December 2022.

The defaulted loan volume surged in post Covid-19 period while the businesses abstained from repaying loan instalments citing poor business.

During the pandemic, the central bank announced a moratorium on regular repayment of loans that helped a large number of borrowers from becoming defaulters.

After the withdrawal of the moratorium facility, the defaulted loan volume increased by over Tk 1.20 lakh crore in December last year.

Former governor of BB Dr Salehuddin Ahmed told UNB that a group of businesses is becoming defaulters willfully and the central bank has to be strict with such people.

He said for lack of good governance, some organised groups have taken more money as loans than their ability, which is a reason behind the surge in defaulted loans.

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