Default loans at Agrani Bank declined by about 5 per cent, or Tk 3,387 crore, in 2025 amid extensive rescheduling of stressed loans.

According to bank data, Agrani Bank’s total classified loans stood at Tk 28,616 crore at the end of 2025, down from Tk 32,002 crore a year earlier.

In percentage terms, the default loan ratio fell to 35.52 per cent from 40.49 per cent, reflecting a year-on-year reduction of 4.97 percentage points.

The recovery drive played a key role behind the improvement.

In 2025, the bank recovered Tk 10,234 crore from defaulted loans, a sharp jump from Tk 1,726 crore in 2024.

The recovery included Tk 8,368 crore through rescheduling of default loans, Tk 857 crore through loan write-offs and Tk 1,009 crore recovered in cash, according to officials.

Agrani Bank managing director Anwarul Islam disclosed the information to journalists on Thursday, saying the bank had taken a series of steps over the past year to curb default loans, one of the biggest problems facing state-owned banks.

He said the impact of those measures had already become visible, although further progress was needed.

After assuming office, the management prioritised recovery from classified loans, tighter monitoring of large borrowers and restructuring of long-stalled accounts, he said.

The bank has set a target to bring down its default loan ratio to 20 per cent by 2026.

‘If we can recover defaulted loans more effectively, the overall financial health of the bank will improve significantly,’ he added.

Higher recovery directly boosted the bank’s profitability.

Agrani Bank posted its highest-ever operating profit in 2025, amounting to Tk 2,502 crore, up by Tk 991 crore from Tk 1,511 crore a year earlier.

Bank officials said that the surge in operating profit mainly came from improved loan recovery and better control over costs.

Despite the improvement, Agrani Bank, like other state-owned banks, still carries a heavy burden of legacy bad loans, experts said.

Deposits at the bank also grew strongly.

At the end of December 2024, Agrani Bank’s deposits stood at Tk 99,232 crore. By the end of 2025, deposits rose to Tk 1,13,064 crore, an increase of Tk 13,832 crore within a year.

Loans and advances increased more modestly, rising by Tk 1,536 crore to Tk 80,573 crore during the same period.

Remittance inflows provided another major boost.

Agrani Bank’s inward remittance soared by Tk 12,928 crore in 2025, reaching Tk 33,961 crore, compared with Tk 21,033 crore in 2024.

 Bankers said higher remittance inflows helped strengthen liquidity and supported deposit growth.