The default loan ratio in the banking sector of Bangladesh rose to 9 percent in 2023 from 8.16 percent a year ago
13 have NPL below 3%, much lower than the sectoral ratio of 8%
Relaxing loan repayment is unlikely to work if habitual defaulters continue to be tolerated
While a number of banks and non-bank financial institutions (NBFIs) are struggling to rein in their non-performing loans (NPL), DBH Finance PLC has continued to maintain the lowest NPL to loan ratio in the industry for years.
The business sector in Bangladesh has been going through severe challenges for the past four years, which, for many, have been the toughest period in decades, with the coronavirus pandemic being the dominant factor in the early part before the Russia-Ukraine war broke out. Today, we are running the second report of a series to present how various sectors fared in the face of the two unprecedented shocks.
The pace of recovery of banks' nonperforming loans (NPL) was much lower than the rate at which their NPL increased last year -- an ominous development for the sector.