Dhaka, Bangladesh (BBN) – The amount of non-performing loans (NPLs) in the banking system of Bangladesh increased further in the third quarter (Q3) of this calendar year.
The volume of NPLs rose by 4.17 per cent to BDT 547.08 billion during the July-September period of 2015, from BDT 525.19 billion in the preceding quarter (Q2), according to the central bank latest statistics.
The share of NPLs in the total outstanding loans of the banking system also rose to 9.89 per cent in Q3 of 2015, from 9.67 per cent in Q2.
“We’ve already asked the commercial banks to reduce the amount of NPLs through boosting recovery drives across the country,” S K Sur Chowdhury, deputy governor of Bangladesh Bank (BB), told BBN in Dhaka on Wednesday.
Mr. Sur Chowdhury also hoped that the amount of NPLs will decline to some extent in Q4 of this year.
The classified loans cover substandard, doubtful and bad/loss of total outstanding credits, which stood at BDT 5,530.75 billion as on September 30, the BB data showed.