Risky loans in banking sector amount to Tk 11 trillion

Bangladesh Bank says risky loans account for 59.73 percent of total loans disbursed, as of December 2025

Bangladesh Bank says nearly Tk 11 trillion in loans from the banking sector are at risk or face some form of difficulty.

In its “Financial Stability Report 2025” report on loan data up to last December, the central bank says risky loans account for 59.73 percent of total loans disbursed.

The amount of non-performing loans has increased since last December, now amounting to Tk 5.88 trillion.

The amount of non-performing loans has gone up by Tk 314.87 billion in the span of three months, the report said, further increasing the amount of risky loans in the sector.

According to the report, by the end of 2025, risky loans in the banking sector had increased by Tk 3.31 trillion year-on-year. In 2024, the amount of risky loans had stood at approximately Tk 7.57 trillion, an increase of around Tk 2.6 trillion year-on-year.

Bangladesh Bank considers defaulted, written off, and rescheduled loans as risky.

The loan balance in the banking sector as of last December was around Tk 18.2 trillion. Of this, corporate loans accounted for 45.85 percent, the report said. Of total loans, 31.16 percent are large loans.

As a result of the increase in risky loans, the capital adequacy ratio and risky asset ratio have dropped year-on-year in December from 3 percent to 2.64 percent.

According to the 2025 estimate, the amount of risky loans in all scheduled banks in Bangladesh has increased by about 60 percent compared to the previous year to around Tk 10.88 trillion, higher than the proposed budget for the upcoming fiscal year.

Of this, the amount of defaulted loans is Tk 5.57 trillion, the amount of written-off loans is Tk 834.79 billion, and the amount of refinanced loans is Tk 4.47 trillion.

In 2025 alone, a record amount of loans – Tk 1.71 trillion – was refinanced. In the previous year, Tk 850 billion was refinanced.

Loans of Tk 1.82 trillion, which are under bans by the High Court, cannot be shown as non-performing.

During this period, the banking sector has been able to maintain only Tk 2.49 trillion of the required reserves for loan security, also known as loan provisioning, of Tk 4.41 trillion. This means the loan provisioning deficit is Tk 1.91 trillion.