Bangladesh Krishi Bank (BKB), a state-owned lender, reported a 78 percent year-on-year increase in losses for the fiscal year that ended on June 30, 2023. 

The bank's net loss was Tk 2,384 crore, up from the previous financial year's loss of Tk 1,336 crore.

Rising interest payments on deposits and loans contributed to the loss, according to the financial statements of the bank.  

The classified loans, which are at risk of defaulting, kept rising. 

The government-owned lender's classified loan was Tk 6,500 crore, which was 21.51 percent of its total debts. 

While the bank's profitability and classified loan situation remain worrying, it did experience growth in deposits. 

Deposits surged to Tk 40,570 crore in FY23 from Tk 38,086 crore in the preceding year. 

BKB has been incurring losses for at least 30 years, as it has to lend at lower interest rates while paying more for deposits, highlighting the structural weakness of the lender. 

The bank suffered a loss of Tk 165 crore in 1994-95. It has been in the red since then except for 2000-01 when it logged a profit of Tk 2.91 crore.

The specialised bank was established under a presidential order in 1973 to support the agriculture sector of the war-torn country.