Of the top 20, nine belong to the controversial S Alam Group

TDS Desk:

A list of the top 20 loan defaulters of the country was unveiled in parliament today (6 April), as part of the government’s efforts to enhance transparency and address rising concerns over defaulted loans, which stood at Tk5,44,831.88 crore as of the end of December 2025.

Finance Minister Amir Khosru Mahmud Chowdhury placed the list and measures to recover the money in the House in a written answer given in response to a question from Cumilla-4 MP Md Abul Hasnat, the National Citizen Party leader commonly known as Hasnat Abdullah.

The minister also outlined the government’s measures to recover defaulted loans, according to the transcript of the minister’s answer – a copy of which this correspondent has obtained.

The list of the top 20 loan defaulters includes S Alam Super Edible Oil Limited, S Alam Vegetable Oil Mills Limited, S Alam Refined Sugar Industries Limited, S Alam Cold Rolled Steels Limited, Sonali Traders, Bangladesh Export-Import Company Ltd, Global Trading Corporation Limited, Chemon Ispat Limited, S Alam Trading Company (Pvt) Ltd, and Infinite CR Strips Industries Limited.

9 out of Bangladesh’s top 20 loan defaulters belong to S Alam Group

Keya Cosmetics Limited, Deshbandhu Sugar Mills Limited, Power Pac Mutiara Keraniganj Power Plant Ltd, PowerPac Mutiara Jamalpur Power Plant Ltd, Pacific Bangladesh Telecom Limited, Karnafuly Food Products Ltd, Murad Enterprise, CLC Power Company Limited, Beximco Communications Limited, and Rongdhanu Builders (Pvt) Ltd are also in the list.

The finance minister also told parliament that the government has taken several steps to address the issue. These include holding quarterly meetings with banks that have more than 10% classified loans to review recovery progress and identify obstacles.

Progress in recovering loans from the top defaulters is also reviewed regularly in bankers’ meetings organised by Bangladesh Bank.

The central bank has introduced guidelines on resolving classified loans for banks with high default rates, said the finance minister.

Policies have been issued to identify wilful defaulters and take action against them, while banks have been directed to strengthen their legal teams.

Banks have also been instructed to aim for at least 1% cash recovery of defaulted loans by 30 June through alternative dispute resolution mechanisms.

The government has updated credit risk management guidelines and is working to ensure better governance in loan management by implementing international standards, including expected credit loss-based provisioning, the minister added.

Measures have also been taken to improve collateral evaluation by involving enlisted valuation firms alongside banks’ own assessments.

In addition, several action plans are underway to address the default loan problem, Khosru told the House.

Bangladesh Bank is working to amend relevant laws, including the Bank Company Act, 1991, Negotiable Instrument Act, 1881, Artha Rin Adalat Act, 2003, and Bankruptcy Act, 1997.

The authorities are also reviewing policies on rescheduling agricultural loans and considering publishing lists of defaulted and wilful defaulters.

Other initiatives include reviewing incentives for regular borrowers, setting limits on borrowing by a single entity, and introducing legal reforms to prevent misuse of court processes that delay loan recovery, the finance minister noted.

The government is also considering establishing private sector asset management companies to help resolve non-performing loans.