The non-performing loan (NPL) crisis in Bangladesh’s banking sector has escalated to critical levels. According to the latest data from Bangladesh Bank for the June 2026 quarter, total default loans in the banking system reached a record BDT 6.06555 trillion, with over 72 percent concentrated in just 10 banks.
Central bank figures indicate that default loans in these top 10 troubled banks stand at BDT 4.39527 trillion. Heading the list are Islami Bank Bangladesh—which recently freed itself from S. Alam Group’s control—with BDT 989.14 billion in defaulted loans, and state-owned Janata Bank, hit hard by the Beximco and AnonTex scandals, with BDT 757.29 billion. Defaulted loans account for 52.15 percent of total disbursements at Islami Bank and nearly 75 percent at Janata Bank.
Driven by irregularities, corruption, and political interference, default rates have soared to staggering levels across several institutions: First Security Islami Bank stands at 97 percent, Union Bank at 96 percent, Social Islami Bank at 78 percent, and EXIM Bank at 71 percent. National Bank, IFIC Bank, Agrani Bank, and AB Bank have also accumulated massive bad debts. Unrestricted borrowing by influential conglomerates such as Narsa Group and Beximco Group during the previous government’s tenure has been identified as the primary catalyst.
Md. Ejazul Islam, Director General of the Bangladesh Institute of Bank Management (BIBM), stated, “Currently, the default loan rate in the banking sector stands at nearly 30 percent, with 20 percentage points driven by willful defaulters, irregularities, and corruption. Banks must urgently reduce over-reliance on a few large borrowers and diversify their credit portfolios.”
