The default loans of the 11 banks, boards of which were restructured in the first phase after the fall of the Awami League government, have increased abnormally.
According to Bangladesh Bank (BB) data, the default loans of these banks increased almost three-folds or more than Tk 103,550 crore in the six months from July to December 2024.
Of these, the rate of increase in default loans is the highest in the banks controlled by S Alam. Those concerned said the default loans of the banks were hidden during the previous government. After the interim government took office, they started coming to the fore. As a result, default loans are increasing by leaps and bounds.
It is known that Bangladesh Bank Governor Dr Ahasan H. Mansur has dissolved and restructured the boards of directors of 14 banks so far after taking office. Of these 14 banks, 11 banks were restructured in the first phase and three more in the second phase.
Of these, the default loans of the 11 banks restructured in the first phase increased by Tk 103,550 crore or almost three times in a span of six months. And the defaulted loans of one of the three banks restructured in the second phase have increased.
According to the central bank, the default loans of these 14 banks were Tk 49,692 crore at the end of June last year. This increased to Tk 152,884 crore at the end of December last year.
Sources say that some big industrial groups including S Alam and Beximco have withdrawn thousands of crores of taka from these banks in the name of loans. When the Awami League government fell on August 5 due to the student-public uprising, irregularities in these banks began to come to the fore. As a result, customers withdrew money from the banks.
Again, instability began in the banking sector as some banks were unable to pay customers as per their demands. However, after BB's took the initiative to dissolve the boards of these banks and restructure them, some stability has returned to the banking sector.
According to the information received, Islami Bank has the highest default loans among the banks whose boards were dissolved. As of last December, the bank's defaulted loans had increased to Tk 32,816 crore. This is 21.08 per cent of the bank's total loans disbursed. Six months ago, the bank's defaulted loans were Tk 7,724 crore.
As a result, defaults increased by Tk 25,092 crore in six months. Until mid-August, the controversial business group S Alam Group dominated the board of the country's largest Sharia-based bank. The bank suffered losses at its hands. Currently, this bank is suffering from a provision deficit of Tk 13,153 crore.
The second highest defaulted loans are from the private National Bank. As of last December, it stood at Tk 25,846 crore. This is 60.50 per cent of the bank's total loans disbursed. Six months ago, in June, this bank's defaulted loans were Tk 20,929 crore. The country's first private bank has a rich history. But due to widespread irregularities, lack of good governance and conflicts among directors, it has become a loss-making institution.
During the 15-year rule of the Awami League government, the bank was exclusively dominated by the business group Sikder Group. After the recent political change, businessman and BNP Vice Chairman Abdul Awal Mintu became the chairman of the bank. This bank is now suffering from a provision deficit of Tk 18,720 crore. In six months, the defaulted loans of Union Bank increased by Tk 23,789 crore.
As of December, this bank's defaulted loans were Tk 24,835 crore. It was Tk 1,046 crore at the end of last June. Before the political change, this bank was controlled by the controversial business group S Alam Group.
S Alam has removed Tk 23,526 crore from this bank. These loans are now defaulting. The defaults of First Security Islami Bank, which is controlled by the same group, stood at Tk 17,851 crore at the end of December. It was Tk 2,690 crore at the end of June last year. The bank's defaulted loans increased by Tk 15,161 crore in these six months.
In addition, the defaulted loans of Social Islami Bank increased by Tk 11,489 crore in six months. The defaulted loans at the end of last December were Tk 13,267 crore. And at the end of June it was Tk 1,778 crore.
The six-month defaulted loans of private IFIC Bank increased by Tk 13,426 crore. Currently, the amount of non-performing loans is Tk 30,608 crore. As of December, the non-performing loans were Tk 17,182 crore. At the end of June last year, it was Tk 3,756 crore. The provision deficit of this bank is Tk 7,886 crore.
In the space of six months, the non-performing loans (NPL) of UCB Bank increased by Tk 3,535 crore to Tk 6,848 crore. Global Islami Bank increased by Tk 4,115 crore to Tk 4,442 crore. Al-Arafah Islami Bank's non-performing loans increased by Tk 1,684 crore to Tk 4,794 crore.
Bangladesh Commerce Bank's NPL's increased by Tk 100 crore to Tk 1,431 crore at the end of December. In addition, the Sharia-based Exim Bank increased by Tk 129 crore to Tk 1,995 crore at the end of December. In the second phase, three more banks were dissolved and restructured last week. The non-performing loans of one of these banks increased. However, the other two banks decreased.
According to the data, in six months, Meghna Bank's defaulted loans decreased by Tk 19 crore and NRBC Bank's by Tk 339 crore. However, NRB Bank's defaulted loans increased by Tk 113 crore during this period.
