Non-performing loan now amounts Tk 1,01,150 crore
The banking sector has a total loan portfolio of around Tk 12,45,391 crore at the end of September including Tk 1,01150 crore classified loan or non-performing loan (NPL). This is around 8.12 percent of the total loan
During the pandemic the government has provided some facilities to keep the country's financial sector and businesses active but despite all these benefits, bad debts are not diminishing.
Experts say the authorities' lack of willingness to take action against defaulters is not slowing the rise of NPL. If action is not taken against defaulters it will only grow heavier day by day.
Banks did not create pressure on defaulted customers due to outbreak of coronavirus pandemic last year. This year also new facilities have been given to defaulters. Even if a customer pays one-fourth of his loan till December of this year, he can no longer be treated as defaulter. But these have no impact so far.
According to central bank data, state-owned commercial banks disbursed a total of Tk 2,19,292 crore at the end of September this year. Among the disbursed loans, default amount stood at Tk 44,016 crore which is 20.07 per cent of the total debt.
At the end of December 2020, the defaulted loan was 42 thousand 273 crore taka. The amount of loan disbursed at that time was Tk 2,02331 crore.
As of September this year, private banks disbursed Tk 9,26,495 crore loan while defaulted loans stood at Tk 50,743 crore which is 5.47 percent of the total debt. In December 2020, it was 40,361 crore taka or 4.8 percent of the total debt.
During the period under review (till September), disbursement of loans of foreign banks amounted to Tk 65,262 crore. Of this, Tk 2,692 crore was default loan, which is 4.12 per cent of the total disbursed loans.
The three specialized banks have disbursed a total of Tk 32,342 crore. Of this, Tk 3,699 crore has been defaulted which is 11.44 percent of the disbursed loan.
Experts have expressed concern that classified loan is only getting heavier and unless credible actions were taken it would continue to grow.
Former governor of Bangladesh Bank Saleh Uddin Ahmed said the government does not have the political will to take action against the defaulters. As a result, the number of defaulters is constantly increasing.
The central bank should be more strict in recovering defaulted loans, he said.