NPLs hit historic high of Tk1,82,295cr

Non-performing loans (NPL) in Bangladesh hit historic high of Tk 1,82,295 crore at the end of the first quarter (January-March) of 2024, occupying 11.10 per cent of the banking sector’s outstanding loans of Tk 16,40,855 crore.

Figure indicates that NPL has increased Tk 36,662 crore at the end of March quarter, from the amount — Tk 1,45,633 crore — recorded at the end of December quarter in 2023, occupying 9 per cent of the banking sector’s outstanding loans of Tk 16,17,689 crore.

Confirming the latest data to The Business Post, Bangladesh Bank Executive Director and Spokesperson Mezbaul Haque said that NPL is the highest in the state owned commercial banks (SOCBs), occupying 27 per cent.

In this regard, Centre for Policy Dialogue’s Distinguished Fellow Prof Mustafizur Rahman said, “The banking sector is not well. The central bank gave some groups the chance to reschedule, which is ultimately not beneficial for the country’s economy.

“The banks will have to collect the NPLs. The regulator took many initiatives that are not visible. The regulator should be firm about defaulters.”

While presenting the proposed national budget for FY2024-25 in parliament on Thursday, Finance Minister Abul Hassan Mahmood Ali did not mention how NPL would reduce in the banking sector. In the proposed budget, there is also no mention of the government’s measures to reform the banking sector.