Jibon-Islam | Daily Observer

Big loan defaults nearly 3 times higher than small loans

Jibon Islam

Large loans are defaulting more than small and medium loan in the country's banking sector. A report by the central bank shows default rate of small loans within Tk 1 crore is 16 per cent; large loans above Tk 50 crore has risen to 48 per cent and it is almost three times higher than ...

IMF flags surge in bad loans, presses BB for tough action

Jibon Islam

The International Monetary Fund (IMF) has expressed deep concern over the sharp rise in non-performing loans (NPLs) in Bangladesh's banking sector and has urged Bangladesh Bank to take concrete and effective measures to curb the growing default culture. The concern was raised during a recent meeting between the visiting IMF delegation and the central bank.Following ...

Defaulted loans soar, doubling in RMG and textile sectors

Jibon Islam

Non-performing loans have jumped sharply across several major sectors of the economy, with the steepest rise recorded in the ready-made garment (RMG) and textile industries, where defaults have more than doubled in just one year. Although the shipbuilding sector continues to have the highest overall default rate, the leather, commercial and construction sectors have also ...

Pvt investment stalls as bank lending hits 22yr low

Jibon Islam

* Lending slowed across almost all production sectors* Term loans dropped from Tk 3,85,900 crore in March to Tk 3,81,300 crore in June* Construction loans fell for three straight quarters* Defaulted loans rose to Tk 5,30,428 crore (27.09pc) year-on-year* About 25 banks have halted new business lending due to liquidity ...

LC opening hits $17.96b in 3 months, registers 11pc growth

Dollar flow eases

Jibon Islam

LC opening hits $17.96b in 3 months, registers 11pc growth

Bangladesh's long-stalled import engine is finally revving up as dollar supply improves across the banking system, lifting overall Letter of Credit (LC) openings by nearly 11 per cent in the first quarter of the current fiscal year. Bangladesh Bank data show LC openings totalled $17.96 billion between July and September, up from $16.77 billion a year ...

Rate cuts on T-bills, bonds fail to pull down interest on bank loan

Jibon Islam

Interest rates on government treasury bills and bonds have been falling steadily in recent months but interest rates on bank loan remain stubbornly high-leaving private entrepreneurs burdened with expensive credit and stifling new investment.Business leaders say as long as lending rates remain at current levels, production, imports, and job creation will continue to suffer. They ...

Elevate Governor To Ministerial Rank

BB proposal sparks debate among experts

Jibon Islam

Experts in the economic sector, including Finance Adviser Salehuddin Ahmed, have expressed mixed reactions to Bangladesh Bank's proposal to upgrade the Governor's status to the rank of a minister.Recently, Bangladesh Bank forwarded the proposal to the secretaries of the Finance Division and Financial Institutions Division. The draft of the 'Bangladesh Bank (Amendment) Ordinance, 2025' also ...

Janata Bank officials to face action over Hanjala loan scam

Jibon Islam

The Dhaka Money Laundering Court-5 has ordered disciplinary action against Janata Bank officials involved in disbursing a Tk 156 crore loan to Hanjala Textile Park Limited, which has repaid less than 2 per cent of the amount in the past 11 years.According to bank sources, Judge Mujahidur Rahman issued the order on Thursday, noting that ...

5 merging Islami banks see spree of splitting funds by depositors

BB alarmed over surge in new small accounts

Jibon Islam

5 merging Islami banks see spree of splitting funds by depositors

As the much-talked-about merger of five Shariah-based banks gathers pace, a new wave of deposit-splitting is sweeping through the sector. Large depositors-fearing losses and eager to qualify for deposit insurance-are breaking up their balances into smaller chunks, setting off a sudden spike in account numbers across the troubled banks.A depositor, Abul Kalam (pseudonym), had Tk ...

Big guns missing from defaulters' list

Jibon Islam

The much-awaited list of wilful defaulters released by banks has triggered controversy, as it excludes the country's top business conglomerates-S Alam Group and Beximco among them-despite their massive unpaid loans running into thousands of crores.According to Bangladesh Bank data compiled from June 2025, 3,483 borrowers have been marked as wilful defaulters, collectively holding back Tk ...