Bad loans hit record Tk 420,335 crore

Bad loans in Bangladesh's banking sector reached a record Tk 420,335 crore for the first time at the end of March this year.

The amount posted a 131 percent year-on-year rise, up from Tk 182,295 crore in the same period last year.

As of March, total loans in the sector stood at Tk 1,741,992 crore, of which Tk 420,335 crore became defaulted—24.13 percent of the disbursed loans—according to the latest data from the central bank.

Defaulted loans stood at Tk 345,765 crore at the end of 2024.

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Reduce bad loans to boost economy

However, distressed assets—which include written-off loans, rescheduled loans, and loans tied up in the money loan court—are likely to surpass Tk 700,000 crore, according to BB officials.

Defaulted loans have increased sharply since the political changeover in August 2024, when a student uprising toppled the then Awami League-led government.