State-run Janata Bank has requested government intervention to recover Tk 18.38 billion in outstanding loans from the Bangladesh Sugar and Food Industries Corporation (BSFIC) and several state-owned sugar mills.

In a recent letter to the finance ministry, Janata Bank Managing Director Md Mazibur Rahman said the loans—along with accumulated interest—have long remained unpaid, creating significant pressure on the bank’s financial health.

As of 30 June 2025, BSFIC alone owed Tk 5.73 billion. Carew & Co, North Bengal Sugar Mills Ltd, Shyampur Sugar Mills Ltd, and Pabna Sugar Mills owed Tk 3.36 billion, Tk 6.05 billion, Tk 255 million, and Tk 3.0 billion respectively, according to the bank’s report.

The loans, which expired in December 2018, have been classified as unclassified due to government guarantees and tripartite agreements. However, with the guarantees no longer valid, Janata Bank stated that it could not recognize interest income on the loans as per Bangladesh Bank instructions, which would hurt its profitability, capital base, and international credit ratings.

“The situation is tarnishing the bank’s reputation both at home and abroad,” the MD wrote, adding that recovery of the dues would improve Janata’s performance and strengthen its CAMELS rating.

The bank has urged the government to either extend the tenure of its guarantees or issue bonds to settle the debts.

A finance ministry official confirmed receipt of the letter and stated that it is under scrutiny, although no decision has been made yet.