Bangladesh’s ongoing efforts to clean up its financial sector have gained momentum, with a government-formed loan-recovery committee settling at least 60 non-performing loan (NPL) cases involving over Tk3 billion in borrowings in recent months.

Committee members, speaking on Saturday, said that after 13 meetings over the past five months, they are progressing towards resolving more major cases in the coming sessions.

The committee, formed by the Bangladesh Bank in January, is addressing both small and large defaulters through tailored solutions, including one-time rescheduling options, extended repayment periods, and interest waivers for companies planning to exit their businesses.

Over 1,200 applications for loan settlements have been submitted so far, with more than 150 cases under review. These include unpaid loans ranging from Tk500 million to Tk80 billion, according to officials familiar with the process.

Notably, several of Bangladesh’s major industrial groups, including Beximco Group, Gazi Group, Abdul Monem Group, Aman Feed, Energypack, Desh Bandhu Group, Zahintex Industries, and Amazing Fashion, are among those seeking relief.

The committee reviews each case individually, differentiating between willful and non-willful defaulters. Some businesses have already rescheduled their loans multiple times without success, while others closed operations after sustained financial losses.

Borrowers have been asked to present audited financial statements verifying their revenue and repayment capacity. International audit firms will be engaged to validate these claims before any rescheduling or repayment plans are approved.

Committee members also stated that financial institutions involved with the defaulters must be included in the verification process. Some corporates are seeking five to ten-year repayment plans with a grace period of one year, alongside requests for interest waivers.

The authorities have warned that without verified repayment capabilities, no restructuring or rescheduling will be approved. This approach reflects a shift towards stricter financial discipline after years of lenient lending practices that allowed the accumulation of substantial classified loans in the banking sector.