S Alam Group firms claim 11 spots as top 20 defaulters named in parliament
Finance minister outlines steps taken steps to address defaults
The country's top 20 loan defaulters were unveiled in parliament today (6 April), with 11 of them linked to the controversial S Alam Group, long accused of systematic loan fraud.
A list was unveiled as part of the government's efforts to enhance transparency and address rising concerns over defaulted loans, which stood at Tk5,44,831.88 crore as of the end of December 2025.
Finance Minister Amir Khosru Mahmud Chowdhury placed the list and measures to recover the money in a written answer given in response to a question from Cumilla-4 MP Md Abul Hasnat, the National Citizen Party leader commonly known as Hasnat Abdullah.
The minister also outlined the government's measures to recover defaulted loans, according to the transcript of the minister's answer – a copy of which TBS has obtained.
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The 11 S Alam companies are S Alam Super Edible Oil, S Alam Vegetable Oil, S Alam Refined Sugar Industries, S Alam Cold Rolled Steels, Sonali Traders, Global Trading Corporation, Chemon Ispat, S Alam Trading Company, Infinite CR Strips Industries, Murad Enterprise, and Karnafuly Food Products.
The development comes in the face of S Alam Group facing intense scrutiny for alleged financial irregularities. The group's chairman Saiful Alam also faces various charges related to multiple embezzlement and money laundering cases.
Other companies among the 20 include Bangladesh Export Import Company, Beximco Communications, Keya Cosmetics, Deshbandhu Sugar Mills, Power Pac Mutiara Keraniganj Power Plant, PowerPac Mutiara Jamalpur Power Plant, Pacific Bangladesh Telecom, CLC Power Company, and Rongdhanu Builders.
Steps to recovery
The finance minister also told parliament that the government has taken several steps to address the issue. These include holding quarterly meetings with banks that have more than 10% classified loans to review recovery progress and identify obstacles.
Progress in recovering loans from the top defaulters is also reviewed regularly in bankers' meetings organised by Bangladesh Bank, he said. Besides, the central bank has introduced guidelines on resolving classified loans for banks with high default rates, said the finance minister.
Khosru added that policies have been issued to identify wilful defaulters and take action against them, while banks have been directed to strengthen their legal teams. Banks have also been instructed to aim for at least 1% cash recovery of defaulted loans by 30 June through alternative dispute resolution mechanisms.
The government has updated credit risk management guidelines and is working to ensure better governance in loan management by implementing international standards, including expected credit loss-based provisioning, the minister added.
He mentioned that measures have also been taken to improve collateral evaluation by involving enlisted valuation firms alongside banks' own assessments. In addition, several action plans are underway to address the default loan problem, Khosru told the House.
Bangladesh Bank is working to amend relevant laws, including the Bank Company Act, 1991, Negotiable Instrument Act, 1881, Artha Rin Adalat Act, 2003, and Bankruptcy Act, 1997.
Amir Khosru added that the authorities are also reviewing policies on rescheduling agricultural loans and considering publishing lists of defaulted and wilful defaulters.
Other initiatives include reviewing incentives for regular borrowers, setting limits on borrowing by a single entity, and introducing legal reforms to prevent misuse of court processes that delay loan recovery, the finance minister noted.
The government is also considering establishing private sector asset management companies to help resolve non-performing loans.
Current MPs owe banks Tk11,117cr
Minister Khosru also told the parliament that current MPs and their affiliated entities have taken loans totaling Tk11,117.31 crore from banks and financial institutions.
"There are defaulted loans amounting to Tk3,330 crore in the names of MPs and their related entities, which have not been classified as defaults in line with court directives," he said.
