REJAUL KARIM BYRON

Financial authorities are focusing on the country’s top 20 loan defaulters, who account for more than half of the toxic assets in six state-owned banks, as recovery efforts slow and capital shortfalls deepen.

As of December 2024, the top 20 borrowers owed Tk 85,444 crore, representing more than 57 percent of all non-performing loans (NPLs) in state-owned banks. Yet by mid-2025, the banks had clawed back just Tk 128 crore -- barely 1.6 percent of the annual recovery target of Tk 8,077 crore, according to a finance ministry report.

The exposure is dangerously concentrated. Janata Bank alone holds 63 percent of loans to these top defaulters, leaving it reliant on a handful of distressed conglomerates.

The dismal recovery record comes as state-owned banks grapple with widening capital shortfalls and deepening losses. Janata Bank’s capital deficit has soared from Tk 12,400 crore in June 2023 to Tk 57,330 crore by June 2025, while its capital adequacy ratio has plunged to –84 percent, which the finance ministry marked as “critically insolvent”. The government has placed Janata Bank under special attention, with the Financial Institutions Division holding monthly meetings with the lender to review its condition.

Rupali Bank has seen its capital deficit nearly triple in two years. Over the same period, its capital adequacy ratio collapsed from –1.08 percent to –20.21 percent, reflecting the sharp deterioration in its performance.

Agrani Bank slipped back into heavy losses after a fleeting rebound in early 2025. By contrast, Sonali Bank, the largest state-owned lender, has staged a modest recovery, posting a net profit of Tk 591 crore in June 2025. Bangladesh Development Bank Limited stands out as the only state-owned lender to remain consistently well-capitalised, maintaining capital adequacy ratios above 20 percent.

Meanwhile, BASIC Bank continues to haemorrhage, with mounting losses and one of the worst NPL ratios in the sector.

LOAN RECOVERY STRATEGYY

Faced with rising risks, the Financial Institutions Division has unveiled a sweeping recovery strategy aimed at targeting the largest and most wilful borrowers.

Nazma Mobarek, secretary of the Financial Institutions Division, said, “We have identified a group of major defaulters across all six state-owned banks, representing a significant portion of the total Non-Performing Loans.

“All banks have been instructed to form dedicated recovery teams to address these accounts with urgency.”

Officials plan to publish the names of the 20 biggest defaulters and closely monitor them, while setting up dedicated task forces to focus exclusively on these accounts. For wilful defaulters, tougher measures

SEE PAGE 2 COL 1