The number of loans defaulted is increasing every three months after the relaxed loan classification policy was withdrawn. It surpassed all prior records and established a new benchmark in the second quarter of the current calendar year.
The Non-Performing Loans (NPL) rose by Tk11,816.71 crore to Tk1,25,257 crore in the second quarter (Q2) of 2022 (April-June).
This amount was Tk1,13,441 crore in the first quarter (Q1).
Data analysis shows that previously the country’s highest-ever defaulted loan was Tk1,16,288 crore, recorded in September 2019.
Economists and bankers think that, earlier, the central bank took several measures, including easing the loan rescheduling and classification rules in order to get rid of NPLs.
But the moves have largely failed to produce the expected results and restore financial discipline in the banking sector.
Zahid Hussain, lead economist consultant for World Bank told Dhaka Tribune: “If you observe closely then you will see that defaulted loans have risen sharply since January after the moratorium facility was withdrawn by the central bank.”
He also added saying that there is not much progress in loan recovery and it is true that small lenders give some money but the big borrowers don't.
According to the latest data, from April to June, only Tk4,099.27 crore has been collected from defaulters.
Default loans in six state-owned banks
At the beginning of 2019, when Finance Minister AHM Mustafa Kamal said that non-performing loans would not even increase by one more taka, the defaulted loans of six state-owned banks (SOBs) stood at Tk46,564 crore.
In the year 2019, when a 2% down payment facility was given for 10 years at 9% simple interest, the defaulted loans of the SOB banks came down to Tk43,255 crore in the following year (2020).
But in 2021, it again increased to Tk50,313 crore.
Now after June this year, it further increased to Tk55,430 crore, meaning, in 3.5 years, defaulted loans in six SOBs increased by about Tk9,000 crore.
According to the data, Janata Bank has the highest number of defaulted loans among the six banks till June 30.
Around 25% of the total loans of this bank are in default, amounting to Tk17,263 crore.
Sonali Bank's defaulted loan is Tk12,126 crore, which is 18% of their total loan.
On the other hand, 17% of Agrani Bank's total loans are in default, amounting to Tk10,558 crore.
Rupali Bank's defaulted loans are 17%, amounting to Tk6,466 crore.
BDBL's defaulted loans have increased by 36%, amounting to Tk768 crore and Basic Bank has the highest default rate among total loans which is Tk8,249 crore.