Despite various facilities extended to borrowers, default loans in the banking sector continue to rise at an alarming rate.
The amount of default loans in the country’s banking sector again crossed Tk 6.0 trillion at the end of June.
Earlier, default loans had crossed the Tk 6.0 trillion mark for the first time in September last year.
According to Bangladesh Bank data, the amount of classified or default loans in the banking sector stood at Tk 6.07 trillion at the end of June 2026.
This accounted for 32.78 per cent of the banks’ total outstanding loans.
At the end of March 2026, default loans stood at Tk 5.89 trillion, accounting for 32.26 per cent of total outstanding loans.
This means default loans increased by Tk 178.51 billion in the three months from March to June.
Meanwhile, default loans in the banking sector increased by Tk 493.38 billion during the first six months of the current year.
At the beginning of the year, default loans stood at Tk 5.57 trillion.
Over the six-month period, the amount rose to Tk 6.07 trillion.
Although various facilities, including loan rescheduling and restructuring, have been provided to reduce default loans in the banking sector, they have failed to produce the desired impact.
Instead, weaknesses in loan recovery and fresh loan defaults have pushed up the overall volume of classified loans.
With nearly one-third of total outstanding loans turning bad by the end of June, fresh concerns have emerged over the quality of bank assets.
Continued growth in default loans could put further pressure on banks’ earnings, capital and overall financial stability.
