Khosru says bad loans at nine state-owned commercial banks climbed to nearly Tk 2tn

The finance minister says reducing defaulted loans is crucial to restoring discipline in Bangladesh's banking sector

Defaulted loans at Bangladesh's nine state-owned commercial banks have surged to around Tk 1.89 trillion, Finance Minister Amir Khosru Mahmud Chowdhury has told parliament.

Citing data submitted to the Credit Information Bureau (CIB) through May 31 on Sunday, he said the combined non-performing loans at Agrani, Janata, Rupali, Sonali, BASIC, Bangladesh Development Bank, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank and Probashi Kallyan Bank stood at Tk 1.887 trillion.

Responding to a question from Jamaat-e-Islami lawmaker Sabikun Nahar, Khosru said cutting bad loans was essential to restoring discipline in the banking sector.

He outlined Bangladesh Bank's short-, medium- and long-term plans, including stronger credit risk management, IFRS-9 implementation, legal reforms, an asset management company, the Bank Resolution Act 2026 and the Deposit Protection Act 2026.