Banks fail to recover Tk 656 billion from top borrowers in 10 years

Customers who had borrowed over Tk 100 million each in past 10 years still owe banks Tk 656.02 billion in unpaid loans, MPs have heard.

The list of such loan defaulters features 1,956 individuals and organisations, Finance Minister AMA Muhith told parliament on Wednesday.  

In these 10 years, the Awami League has been in power for 9 years.

Two bridges like the one Bangladesh is building on the river Padma could be constructed with this money.

The finance minister also published a list of these loan defaulters in response to a question from Rustum Ali Farazi MP.

Muhith had earlier admitted the bad debts was one of the biggest problems plaguing the banking sector.

The percentage of such loans reaching the two-digit mark has left financial analysts concerned.

Referring to Bangladesh Bank data, Muhith told parliament on Wednesday 8,791 individuals and organisations took loans to the tune of over Tk 100 million each in 10 years until November last year.

The amount of such loans totals over Tk 6.06 trillion, including the Tk 656.02 billion bad debts and Tk 720.5 billion classified loans, which are in danger of being defaulted on, according to the finance minister.

The list of the loan defaulters includes the names of Mohammad Elias Brothers, Marin Vegetable Oil, Quantum Power System, Max Spinning Mills, Benetex Industries, Anwara Spinning Mills, Chowdhury Knitwears, Siddique Traders, Yasir Enterprise, Alpha Composite Towels, Legend Holdings, Hall-Mark Fashions, Monno Fabrics, Max International, Fair Trade Fabrics, Shahrish Composite Towels, Keya Yarn Mills, Saleh Carpet Mills, Fair Yarn Processing, Helping Resource, and Bismillah Towels.

In reply to another query, Muhith said Bangladesh now has 3.1 million taxpayers.

“This is a matter of shame as a country with a population of 160 million should have 16 million taxpayers,” he said and added the government targeted to take the number of taxpayers to 5 million within 2021.