In the country’s bank sector, the defaulted loans decreased by about 14 thousand crores in October-December-3 months of last year. In this, the amount of defaulted loans in the banking sector stands at 1 lakh 20 thousand 657 thousand crores. This is the example of reducing defaulted loans in the banking sector in recent times. Since the corona crisis, the central bank has given concessions to traders in stages to reduce bad loans.
According to the latest report of Bangladesh Bank, the defaulted loans stood at Tk 1 lakh 34 thousand 396 crore in July-September quarter of last year. After 3 months as of December 2022, it stands at 1 lakh 20 thousand 657 thousand crores. In other words, in the last quarter of 2022, defaulted loans in the banking sector have decreased by Tk 13 thousand 740 crores. In the previous year, i.e. October-December quarter of 2021, the total amount of defaulted loans in the banking sector was Tk 1 lakh 3 thousand 274 crores. Accordingly, the amount of defaulted loans in the banking sector has increased by 17 thousand 383 thousand crores in one year. Defaulted loans have only increased in recent years. This time it decreased as of three months.
Last January, the International Monetary Fund (IMF) approved a loan of 4.5 billion dollars to Bangladesh. To give this loan, the IMF stipulated that the amount of defaulted loans in the banking sector should be reduced, so that the country’s banking sector does not face any major risk. In order to prevent an abnormal increase in defaulted loans in the banking sector while taking this reform initiative, the central bank issued a notification last December and gave special concessions to businessmen.
The central bank has set a limit of 50 percent, moving away from the provision of depositing 75 percent of the amount in installment facility for loan repayment. Bangladesh Bank gave this concession citing the increase in production costs in the industrial sector in the country due to the prolongation of the Russia-Ukraine war and the decrease in the real income of the borrowers.
A managing director of a leading bank on the condition of anonymity told Prothom Alo that if defaulted loans actually decrease, it would be good for the banking sector. However, through which calculation or method has the defaulted debt reduced, it is also a matter to be seen. But it is true that the banking sector still has some large customers, who regularly repay their loans, otherwise the banking sector would not have survived.
According to the report of Bangladesh Bank, currently the amount of defaulted loans in state-owned commercial banks is 56 thousand 460 crores. Like the government banks, the private banks are not far behind in this regard, with almost the same amount of defaulted loans of 56 thousand 439 crore rupees. Apart from this, the amount of defaulted loans in foreign banks is now 3 thousand 48 crores. And the defaulted loans in specialized banks are Tk 4 thousand 709 crores.