The default loan ratio in the banking sector of Bangladesh rose to 9 percent in 2023 from 8.16 percent a year ago owing to a slow recovery amid persisting economic stress.

As of December last year, non-performing loans (NPLs) at banks stood at Tk 145,633 crore, accounting for 9 percent of their total outstanding credits, as per the latest data from the Bangladesh Bank.

The NPLs totalled Tk 1,20,656 crore, or 8.16 percent of the loans, at the end of 2022.

In volume, bad loans rose by Tk 24,977 crore, or 20.70 percent, last year compared to 2022.

However, NPLs decreased by Tk 9,765 crore in the October to December quarter of the year from a quarter ago when it amounted to Tk 155,398 crore.

NPLs have become a major concern for the economy and the central bank last week unveiled a roadmap to bring it down to a reasonable level and restore good governance in the banking sector.

The BB wants to reduce NPLs to less than 8 percent by June 30, 2026.