Banks struggle with minimum requirement as capital gap widens to Tk1.55 lakh cr
Earlier figures show that at the end of March this year, Agrani reported a capital deficit of Tk5,821 crore.
Bangladesh's banking sector is facing renewed pressure as total capital shortfall climbed to more than Tk1.55 lakh crore in June, with four major state-owned commercial banks among those failing to meet mandatory requirements, according to Bangladesh Bank data.
Bangladesh Bank officials say the overall shortfall has widened sharply from Tk1.10 lakh crore in March, reflecting weak balance sheets, unresolved provisioning gaps and stagnant recovery efforts across several institutions.
According to the central bank, 24 of the country's 61 banks – including four state-owned commercial banks, two specialised banks and 18 private banks – have failed to meet minimum capital requirements.
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Earlier figures show that at the end of March this year, Agrani reported a capital deficit of Tk5,821 crore, Janata Tk12,768 crore and Rupali Tk4,470 crore.
BASIC Bank, which has continued to post consecutive losses, also remains in the deficit group. The situation marks a continuation of the deterioration seen in December 2024, when Janata Bank alone reported a capital shortfall of Tk52,890 crore — the highest in the sector at the time.
The four state-owned commercial banks, all previously asked to submit five-year plans, were already under heightened scrutiny over the credibility of their capital recovery projections.
The central bank has since deemed their proposals "unrealistic" amid persistent losses, high non-performing loans and limited scope for recapitalisation without major structural changes.
Banking analysts warn that unless meaningful reforms take place — including aggressive NPL recovery, better risk management and targeted recapitalisation — the growing capital deficit could further constrain credit growth and strain public finances.
