The default loans of the banking sector have increased by Tk 21,984 crore in just six months, with 75 percent of the amout held by only 20 banks, official sources said. The remaining 25 percent are held by 41 banks.
At the end of June 2022, default loans in the banking sector stood at Tk 125,258 crore, which was 8.96 percent of the total loans. Out of this, the default loans of 20 banks is Tk 93501 crore, according to the latest data of Bangladesh Bank.
Among the 20 banks, state-owned Janata Bank has seen the largest increase in default loans. In six months, the default loans of the bank increased by 5,126 crore. At the end of December, the amount of defaulted loans of the bank was 12,137 crore.
The private National Bank has been second largest holder of default loans with Tk 9,394 crore, up by Tk 3,438 from 5,956 crore at the end of December.
The state-owned Agrani Bank is the third largest holder of default loans, with Tk 10,558 crore, up by Tk 2,802 crore in six months. The state-owned Rupali Bank followed with default loans worth Tk 6,466 crore, up by Tk 1,920 crore in the same period. The other top default loan holders include Sonali Bank with Tk 12,126 crore, up by Tk 893 crore, One Bank Tk 2,793 crore, up by Tk 883 crore, Islami Bank with Tk 4,511crore, up by Tk 572 crore, IFIC Bank with Tk 2,327 crore, up by Tk 514, Pubali Bank with Tk 1,572 crore, up Tk 479, and BASIC Bank with Th Tk 8,249, up by Tk 400 crore in six months to June.
Besides, the default loans of United Commercial Bank (UCB) increased by Tk 397, NRBC Bank by Tk 346 crore, Al-Arafah Islami Bank by Tk 331 crore, AB Bank by Tk 315 crore, Uttara Bank by Tk 292 crore, Padma Bank by Tk 285 crore, Dhaka Bank by Tk 279 crore, NCC Bank by Tk 277 crore, Shahjalal Islami Bank by Tk 263 crore and Trust Bank’s by Tk 244 crore during the same period.
The total amount of loans disbursed by the banking sector stood at Tk 1,398,592crore at the end of June, 2022. Out of this, Tk 125,257 crore, or 8.96 percent, were defaulted. The amount of default loans was Tk 113,440crore at the end of March, according to BB statistics.
Saleh Uddin Ahmed, former BB governor, said, if the central bank does not take the right steps at the right time, default loans will increase.
He said BB has to play a strong role in fixing the default loan problem. If good governance is not restored in the banking sector, the financial situation may worsen, he added.