Staff Reporter:

More than 72 percent of the country’s total non-performing loans (NPLs) are concentrated in just ten banks, highlighting severe vulnerabilities and systemic risks within Bangladesh’s banking sector.

According to the latest data from Bangladesh Bank, total defaulted loans in the banking sector reached Tk 6,06,555 crore at the end of June this year. Of this amount, Tk 4,39,527 crore belongs to these ten institutions.

The ten banks are Islami Bank Bangladesh, Janata Bank, Agrani Bank, IFIC Bank, National Bank, AB Bank, First Security Islami Bank, EXIM Bank, Social Islami Bank, and Union Bank.

Islami Bank Bangladesh tops the list with the highest volume of non-performing loans. By the end of June, the bank’s defaulted loans stood at approximately Tk 98,914 crore, representing 52.15 percent of its total disbursed loans. At the end of December last year, its NPLs were Tk 92,115 crore (49 percent), reflecting an increase of Tk 6,799 crore in six months.

State-owned Janata Bank ranks second with Tk 75,729 crore in defaulted loans, which accounts for nearly 75 percent of its total loan portfolio. Among its major high-risk exposures, around Tk 25,000 crore is held by Beximco Group, with Crescent Group and Thermax Group also featuring prominently on its list of major defaulters.

Another state-owned institution, Agrani Bank, saw its defaulted loans rise to Tk 32,133 crore, constituting 43.98 percent of its total disbursed loans.

EXIM Bank reported defaulted loans of Tk 38,052.53 crore, representing nearly 71 percent of its total outstanding loans.

Among the banks previously linked to S. Alam Group, First Security Islami Bank’s NPLs reached Tk 60,645 crore—nearly 97 percent of its total disbursed loans. Social Islami Bank’s defaulted loans stood at Tk 29,799 crore (78 percent), while Union Bank recorded Tk 27,134 crore in NPLs (96 percent). Reports indicate that S. Alam Group previously exerted significant influence over the boards of these institutions.

Among other private commercial banks, AB Bank’s defaulted loans reached Tk 20,325 crore, accounting for 56.04 percent of its total disbursements. National Bank recorded Tk 28,276 crore in NPLs, or 65.46 percent of its portfolio.

Meanwhile, IFIC Bank’s defaulted loans rose to Tk 28,520 crore, representing 63.38 percent of its total loans. Reports noted that Salman F. Rahman, former adviser to the prime minister and vice chairman of Beximco Group, previously held substantial influence over the bank.

With total defaulted loans crossing the Tk 6-lakh-crore mark and over 72 percent concentrated in just ten banks, financial analysts have raised fresh concerns over credit risk management, governance, and structural weaknesses in the country’s financial system.