Defaulted loans in the banking sector had crossed 12 per cent during the tenure of the ousted Awami League government. In June last year, during the Awami League government’s time, the amount of defaulted loans in the banking sector stood at Tk 2.11 trillion (2,11,391 crore), which was 12.56 per cent of the total loans disbursed by the banking sector. Even that figure lacks credibility.

After the change of government in August last year, defaulted loans began to rise sharply. This happened because the real picture of many defaulted loans—previously concealed during the Awami League era through various measures and facilities—started to come to light. As a result, defaulted loans increased rapidly. According to Bangladesh Bank data, as of the end of last September, defaulted loans in the banking sector have exceeded Tk 6.5 trillion (6.5 lakh crore). This means nearly 36 per cent of the loans disbursed by the banking sector are now defaulted.

However, one-third of the banks are performing relatively well. Out of the country’s 52 banks, 30 have defaulted loans below 20 per cent. Six banks have defaulted loans between 21 and 49 per cent. Sixteen banks have seen between 50 and 99 per cent of their total loans become defaulted, which has created pressure on the entire sector. These figures have been obtained from Bangladesh Bank’s September-based statistics.