Default loans in NBFIs rise over Tk1,000cr in 3 months
Stakeholders said financial institutions have given loans to shell corporations at high interest rates
Non-performing loans of non-banking financial institutions (NBFIs) increased further to Tk4,311 crore, according to sources at the Bangladesh Bank.
At the end of September, the total disbursed loans of the NBFIs stood at Tk70,416 crore. Out of this, the amount of defaulted loans was Tk17,372 crore, or 24.61% of the total loans.
At the end of December 2021, defaulted loans were over Tk13,000 crore.
Stakeholders said financial institutions have given loans to shell corporations at high interest rates. As these have not been repaid on time, the amount of defaults is increasing.
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Due to the outbreak of Covid-19, loan repayment terms were greatly relaxed in 2020-21. Removal of such concessions was identified as another reason for the increase in defaulted loans.
Meanwhile, the total disbursed loans of the NBFIs at the end of June this year was Tk69,313 crore. Out of this, the amount of defaulted loans is Tk15,936, which is about 23% of total loans.
At the end of September, the total disbursement of loans was Tk70,416 crore, meaning default loans increased by over Tk1,000 crore in three months.
Former Bangladesh Bank governor Salehuddin Ahmed said since the birth of these institutions, skilled manpower has not been appointed.
Approvals of new banks and financial institutions have been political and this has contributed to an extent to the irregularities in the financial sector, the former governor said.
He said the financial institutions were not monitored in the same way as banks. The current situation has arisen due to the misappropriation of people's money, which could have been reduced by proper supervision, he said, adding the central bank should monitor the sector.
In a period of economic recovery from the Covid-19 pandemic and threat of a global recession, defaulted loans in Bangladesh continue to soar, rising to a total of Tk31,122 crore in the last nine months, despite numerous facilities being offered.
According to data from the Bangladesh Bank, total disbursed loans in the country stood at Tk14.36 lakh crore in the period till September. Out of this, defaulted loans are Tk1.34 lakh crore.
Between July and September, defaulted loans in the banking sector increased by Tk9,000 crore, or 9.36% of total disbursed loans.
Earlier, the banking sector saw a sharp rise of Tk11,816 crore in default loans in the April-June quarter, taking the rate to 8.96%.
