Banks in Bangladesh witnessed an accumulation of default loans by Tk 10,964 crore in the first three months of 2023, highlighting the worsening financial health of the banking sector, official figures showed.

While a number of banks and non-bank financial institutions (NBFIs) are struggling to rein in their non-performing loans (NPL), DBH Finance PLC has continued to maintain the lowest NPL to loan ratio in the industry for years. 

The government is yet to take any comprehensive corrective measures to tackle macroeconomic challenges as it has not properly assessed the gravity of the situation in the current fiscal year, an economist said.  

NPLs held by banks in Asia totaled $794 billion at the end of 2021, up from $766 billion in 2020 and $692 billion in 2019

Misgovernance, corruption, nepotism and subsequent bad debts keep plaguing our banking landscape.

Interventions must involve fiscal policy to address our fundamental economic issues

Interventions must involve fiscal policy to address our fundamental economic issues

Rescheduling of default loans fell to a seven-year low in 2021, riding on a moratorium extended by the Bangladesh Bank to protect borrowers from the economic shocks arising from the coronavirus pandemic.