Dhaka, Bangladesh (BBN) - Classified or non-performing loans (NPLs) in Bangladesh's banking sector hit an all-time high at Tk 2.11 trillion in the first half of the current calendar year.
The first half (H1) volume of non-performing loans (NPLs) jumped by more than 45 per cent or Tk 657.58 billion to Tk 2113.91 billion as on June 30 from Tk 1456.33 billion six months before, according Bangladesh Bank's latest statistics, released on Tuesday.
The actual amount of defaulted loans in banks is significantly higher than reported, the central bankers said, adding that some banks themselves had kept this information concealed, but it is now starting to come to light.
“The volume of NPLs may rise further in the third quarters (Q3) of 2024,” a senior BB official said without elaboration.
The volume of NPLs grew by nearly 16 per cent or Tk 290.96 billion to Tk 2113.91 billion during the period under review from Tk 1822.95 billion three months before, the BB data show.
The share of classified loans also rose to 12.57 per cent of the total outstanding loans in the H1 of 2024 from 9.00 per cent as on December 31, 2023 - as per consolidated statement of classified loans covering both domestic and offshore banking units. It was 11.10 per cent as on March 31, 2024.
Classified loans cover substandard, doubtful and bad/lost portions of the total outstanding credits, which reached Tk 16833.96 billion as on June 30 on a consolidated basis. It was Tk 16176.89 billion six months before.
During H1 of 2024, the total amount of NPLs with six state-owned commercial banks (SoCBs) rose to Tk 1024.83 billion from Tk 657.81 billion as on December 31 last. It was Tk 842.21 billion in Q1 of 2024.
On the other hand, the total amount of classified loans with 43 private commercial banks (PCBs) ballooned to Tk 999.21 billion as on June 30 last from Tk 709.82 billion in the final quarter of last year. It was Tk 889.00 billion as on March 31 last.
The NPLs from nine foreign commercial banks (FCBs) rose to Tk 32.29 billion during the period under review from Tk 32.01.85 billion in the Q4 of 2021. It was Tk 34.52 billion of the Q1 of this calendar year.
The classified loans with three development-finance institutions (DFIs) also rose, to Tk 57.56 billion as on June 30 last, from Tk 56.69 billion six months before. It was Tk 57.00 in the Q1 of 2022.
BBN/SSR/AD