In a widely expected decision, the BOJ ditched a policy put in place since 2016 that applied a 0.1% charge on some excess reserves financial institutions parked with the central bank
He, however, did not disclose how much money they owe to the banks, while speaking to his colleagues in parliament during a session on Tuesday.
Defaults stood at Tk 734.09 billion until March, accounting for 10.53 percent of the total loans disbursed, according to data from Bangladesh Bank.
Responding to a query from Opposition MP Pir Fazlur Rahman, Muhith said state banks retrieved Tk 301.2 billion in defaults in the first three quarters of fiscal 2017.
Citing data updated to Mar 31, Muhith said that of the 5,134 branches of the commercial and specialised banks run by the government, 952 were not making any profit.