At the end of December 2024, non-performing loans (NPLs) in Bangladesh rose to Tk 3.45 trillion, accounting for 20.2% of the total loans in the banking sector, according to data released by Bangladesh Bank on February 26. This was Tk 1.45 trillion at the end of December 2023. By December 2024 at least 42% of the total loans in state owned banks were classified as non performing, while 15% of the total loans in private banks were default as stated by Bangladesh Bank Governor Dr. Ahsan H Mansur during a press briefing at Bangladesh Bank today (February 26).
The governor of the central bank stated that “Changes in loan classification policies and a longstanding lack of transparency in reporting bad loans are the main causes of the increase in non performing loans.” Previously debts were considered past due after 270 days; however, this period has been shortened to 180 days. Additionally the loans that are not repaid within 90 days will be categorized as non-performing beginning in April 2025. The governor cautioned that NPLs are anticipated to increase considerably more in the upcoming months as a result of this new strategy.
Source: The Business Standard
