Loan defaults increased by Tk 244.19 billion between April and June, totaling Tk 1.56 trillion (156,039 crores) by the end of June.
Of the disbursed loans in the banking industry, these defaulted loans account for 10.11%.
At the end of March just three months prior, defaulting loans totaled Tk 1.31 trillion (131,620 crore).
Loans that had already defaulted totaled Tk 224.81 billion when the Awami League took office in 2009. This has now risen dramatically to more above Tk 1.5 trillion. In essence, delinquent loans have increased by over seven times in the last 14 years. Evidently, defaulters benefited from this window of time.
In the meanwhile, despite repeated concessions, Bangladesh Bank’s efforts to lower defaulted debts have been ineffective.
According to Mezbaul Haque, a spokesman for the central bank, the number of defaulted loans has climbed. The increase in defaulted loans among 31 banks, which is now reflected in the aggregate defaulted loan numbers, is one contributing factor.
According to him, some banks had trouble rescheduling loans, and others defaulted again after the initial rescheduling.
For instance, Mezbaul said a bank had rescheduled a loan amounting to Tk 7 billion, only to default again due to the inability to meet installment payments. This highlights that certain sizable loans defaulted even after the rescheduling process. It’s crucial to analyse additional factors that have played a role in this regard.