Default loans cross Tk300,000 crore for first time

Non-performing loans (NPLs) in the country’s banking sector reached a record high of Tk345,000 crore by the end of December 2024, highlighting the massive loan scams committed during the Awami League regime.

By the end of last year, default loans represented a fifth of the total bank loans, and rose by Tk200,000 crore in a year, revealed Bangladesh Bank Governor Ahsan H Mansur at a press conference on Wednesday.

NPLs stood at Tk 284,000 crore at the end of September last year, which was 16.93 percent of total outstanding loans at the time, according to central bank data.

This means bad loans surged by Tk 61,000 crore in just three months.

Industry insiders said that during the tenure of the ousted fascist Awami League government, influential individuals were provided large amount of loans from banks, significantly violating regulations.

Additionally, multiple policies were adopted to artificially lower the reported amount of defaulted loans.