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Rupali is owed Tk 8,774 crore by its top 20 defaulters, Janata Tk 58,642 crore, Agrani Tk 13,907 crore, Sonali Tk 6,743 crore, BASIC Tk 2,580 crore and Bangladesh Development Bank Tk 487 crore.

Except for Sonali, the banks’ default loan rate is above 35 percent, with Janata coming in at the top with 70 percent. Sonali’s default rate is 15 percent, Rupali’s 38 percent and Agrani’s 35.52 percent.

Despite the dismal overall picture, the banks’ cash recovery against defaulted loans more than doubled to Tk 4,166 crore in 2025 thanks to special loan rescheduling opportunities provided by the BB.

“Such concentration of loans is a matter of concern,” said Mohammad Muslim Chowdhury, former chairman of Sonali Bank.

One of the main reasons for the huge volume of bad loans is the banks’ tendency to lend for large projects.

Most of the bank officials lack the capacity to properly evaluate and oversee such projects, leading to situations where borrowed funds are diverted rather than invested productively, said Chowdhury, also a former finance secretary.

Besides, many large borrowers accumulate substantial liabilities, including interest, over time, eventually exceeding their repayment capacity.

In addition, legal stay orders allow some borrowers to avoid being formally classified as defaulters, said Chowdhury, who was the 12th Comptroller and Auditor General of Bangladesh.