Default loan increased by Tk2 trillion in 2024: Bangladesh Bank
The Bangladesh Bank governor said the rise in NPLs is largely due to a long-standing lack of transparency in reporting bad loans and changes in loan classification policies
At the end of December 2024, non-performing loans (NPLs) in Bangladesh surged to Tk3.45 trillion, accounting for 20.2% of the total loans in the banking sector, according to Bangladesh Bank data released today (26 February).
Whereas the amount of NPLs was Tk1.45 trillion at the end of 2023.
As of December 2024, at least 42% of total loans in state-owned banks were classified as non-performing and 15% of total loans in private banks were non-performing, revealed Bangladesh Bank Governor Dr Ahsan H Mansur revealed during a press briefing at Bangladesh Bank today.
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The central Bank governor said, the rise in NPLs is largely due to a long-standing lack of transparency in reporting bad loans and changes in loan classification policies.
Previously, loans were classified as overdue after 270 days, but the timeframe has now been reduced to 180 days. Furthermore, starting from April 2025, loans will be classified as non-performing within just 90 days.
The governor warned that with this new policy, NPLs are expected to rise even further in the coming months.
