Default loans in the banking sector shot to a historic high at the end of June this year owing to rising non-performing loans (NPLs) at state-owned commercial banks, said Bangladesh Bank (BB) yesterday. The amount of NPLs at the state banks stood at Tk 74,450 crore, up 28.45 percent from
The actual share of NPLs in total loans would have crossed 20 percent had BB not loosened the definition.
Microfinance institutions (MFIs) in Bangladesh witnessed an 85 percent year-on-year jump in non-performing loans in 2021-22 as borrowers struggled to pay back owing to the impacts of the coronavirus pandemic and the economic slowdown, official figures showed.
The banking sector’s total risky loans amounted to Tk 377,922 crore at the end of last year, in a development that makes for a sobering reading of the actual health of this vital sector of the economy.
Appellate Division’s observation on defaulted loans is right on the mark
It seems there exists a nexus among the policymakers, bank directors, and defaulters which facilitates the process of swindling depositors’ money.