NBFI default loans rise to Tk27,541cr in June, now 36% of total lending
At the end of December 2024, the total loan portfolio of NBFIs was Tk75,450 crore, of which Tk25,089 crore or 33.25% was classified as non-performing.
Default loans at the country's non-bank financial institutions (NBFIs) reached Tk27,541 crore by the end of June 2025, accounting for 35.72% of their total loans disbursed, according to Bangladesh Bank data.
Just three months earlier, at the end of March, the figure stood at Tk27,189 crore, or 35.32% of total loans. This means default loans grew by Tk352 crore in just one quarter.
At the end of December 2024, the total loan portfolio of NBFIs was Tk75,450 crore, of which Tk25,089 crore or 33.25% was classified as non-performing.
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As per the central bank data, although outstanding loans in the NBFI sector have grown in recent months, defaults are increasing at a much faster pace. This indicates that not only are older loans turning bad, but some of the newly disbursed loans are also falling into default.
On this, a senior official at Uttara Finance told TBS, "The overdue loans that were already in the pipeline are gradually being classified as non-performing. Since new lending is quite limited now, the chance of defaults suddenly spiking from fresh loans is low."
Bangladesh Bank figures for the September 2024 quarter showed that 19 out of 35 NBFIs had default loan ratios exceeding 50%. The central bank's Financial Stability Assessment Report for the same quarter noted that the sector's asset quality and profitability had further deteriorated.
Speaking on condition of anonymity, the managing director of one NBFI said, "Due to various irregularities, the reputation of many institutions has been damaged. As a result, they are failing to mobilise fresh deposits. On top of this, many loans that were rescheduled for the long term are now defaulting."
