The BB highlighted the growing concerns in the monetary policy for the Jan-Jun of 2025
Janata Bank’s defaulted loans surged to a record Tk 67,300 crore by the end of last year, as politically exposed persons and business conglomerates became defaulters following the recent political changeover, reflecting the fragile condition of the state-run bank.
Padma Bank, formerly Farmers Bank, has sunk into such a financial abyss that the lender is struggling to pay its employees’ monthly salaries and has sought a Tk 5,000 crore bailout package from Bangladesh Bank to stay afloat.
Once a reputable state-run commercial lender, Agrani Bank saw its financial health deteriorate fast over the past five years, mainly due to massive lending to politically backed businesses, mismanagement by the board and fallouts of Covid-19.
Default loans in the banking sector of Bangladesh hit an all-time high of Tk 182,295 crore, but no reform programme to reduce it has been announced in the budget for the upcoming fiscal year.
Bad loans rose by Tk 36,367 crore in just three months
Action plan has already been taken, the central bank says
The falling foreign exchange reserves and the ever-rising defaulted loans are very concerning for the economy, and the government should respond fast to avoid a looming crisis, eminent economist Prof Rehman Sobhan said yesterday.
The defaulted loans in 10 banks, including four state-run lenders, increased at an alarming rate in fiscal 2022-23, indicating their worsening financial health.
The BB highlighted the growing concerns in the monetary policy for the Jan-Jun of 2025
Janata Bank’s defaulted loans surged to a record Tk 67,300 crore by the end of last year, as politically exposed persons and business conglomerates became defaulters following the recent political changeover, reflecting the fragile condition of the state-run bank.
Padma Bank, formerly Farmers Bank, has sunk into such a financial abyss that the lender is struggling to pay its employees’ monthly salaries and has sought a Tk 5,000 crore bailout package from Bangladesh Bank to stay afloat.
Once a reputable state-run commercial lender, Agrani Bank saw its financial health deteriorate fast over the past five years, mainly due to massive lending to politically backed businesses, mismanagement by the board and fallouts of Covid-19.
Default loans in the banking sector of Bangladesh hit an all-time high of Tk 182,295 crore, but no reform programme to reduce it has been announced in the budget for the upcoming fiscal year.
Bad loans rose by Tk 36,367 crore in just three months
Action plan has already been taken, the central bank says
The falling foreign exchange reserves and the ever-rising defaulted loans are very concerning for the economy, and the government should respond fast to avoid a looming crisis, eminent economist Prof Rehman Sobhan said yesterday.
The defaulted loans in 10 banks, including four state-run lenders, increased at an alarming rate in fiscal 2022-23, indicating their worsening financial health.
The bad loans rose by Tk 24,419 crore in the last three months to June
