Default loans rise to Tk3.45 trillion in 2024: BB

Non-performing loans (NPLs) in Bangladesh skyrocketed to Tk3.45 trillion by the end of December 2024, accounting for 20.2% of total bank loans, according to data released by Bangladesh Bank on Wednesday (February 26).  

This marks a staggering increase from Tk1.45 trillion at the end of 2023, reflecting deepening financial distress in the banking sector.  

Bangladesh Bank Governor Dr. Ahsan H. Mansur, speaking at a press briefing, revealed that 42% of loans in state-owned banks and 15% in private banks were classified as non-performing as of December 2024.  

The governor attributed the surge in bad loans to a long-standing lack of transparency in reporting and recent policy changes in loan classification. Previously, loans were deemed overdue after 270 days, but the timeframe was shortened to 180 days. From April 2025, loans will be classified as non-performing within just 90 days.  

He further warned that with the new classification rules, NPLs are expected to rise even further in the coming months, posing additional challenges for the banking sector.