The banking sector in Bangladesh experienced a surge in default loans, reaching Tk 131,621 crore in March, as revealed by data from the Bangladesh Bank.

This marked an increase of Tk 10,964 crore within the year’s first quarter and a notable rise of 9% compared to the previous three months. Year-on-year, non-performing loans (NPLs) rose by 16%.

The mounting level of default loans is regarded as a worrisome indicator for the country’s economy, according to a central bank official.

To address this trend, the official emphasized the need for intensified monitoring by the central bank within the banking sector.

As of March, the NPL ratio in the banking sector stood at 8.8% of the total outstanding loans, amounting to Tk 14,96,346 crore.
Comparatively, the percentage of default loans was 8.16% in December and 8.53% in March of the previous year.

The data highlights the urgency of implementing measures to improve corporate governance and mitigate the risks associated with default loans within the banking industry.