Alongside large clients, the number of small borrowers defaulting on loans is also steadily increasing in the banking sector, particularly CMSME and agricultural entrepreneurs, as well as housing and personal loan clients.

The number of defaulting borrowers with loans below Tk10 million has more than doubled over the past year, raising concerns over the deteriorating quality of retail lending.

According to Bangladesh Bank data, as of the end of March, the number of defaulted borrowers with loans under Tk 10 million rose to 4.543 million. This number was 2.163 million in March of last year. The figures were disclosed in the central bank's latest report.