Bangladesh's millionaire borrowers, often backed by political influence and powerful networks, accounted for nearly 76 per cent of all bank loans disbursed in 2024, while less than 2 per cent reached small entrepreneurs, according to data from Bangladesh Bank (BB). The remaining loan distribution was split among micro, small, and medium borrowers.
Banks classify borrowers or depositors with transactions below Tk 10 lakh as small entrepreneurs or depositors. Despite their limited access to finance, experts argue that small entrepreneurs play a crucial role in sustaining the country's economic engine.
As per BB's latest data, the number of deposit accounts in the banking sector stood at 16,32,47,532 at the end of December 2024, with a total deposit volume of Tk 18,83,711 crore. This marks an increase from December 2023, when the number of accounts was 15,35,60,937, with deposits totaling Tk 17,49,132 crore - indicating a yearly growth of 6.30 per cent in account numbers and 7.69 per cent in deposit volume.
In terms of loans, banks disbursed Tk 17,82,822 crore to 1,29,27,810 customers in 2024. Notably, this implies that for every borrower, there are about 11 depositors. In comparison, in 2023, the loan disbursement stood at Tk 15,38,342 crore with 1,30,28,278 borrowers. Over the year, total loan disbursement increased by Tk 1,44,480 crore (9.39 per cent), while the number of borrowers slightly decreased.
Bangladesh Bank data reveals that a disproportionate share of these loans went to high-net-worth individuals.
For instance, just 4,268 customers received 29.03 per cent of the total bank loans as of December 2024. In contrast, borrowers with loans below Tk 1 lakh-typically low-income individuals-made up only 1.68 per cent of total loan recipients, with a cumulative loan volume of Tk 46,629 crore.
Borrowers taking loans between Tk 1 lakh and Tk 5 lakh-usually very small entrepreneurs-received a combined total of Tk 73,794 crore, representing 4.39 per cent of the total loan portfolio. New and small businesses that secured loans of up to Tk 5 crore accounted for 12.26 per cent, or Tk 2,06,498 crore, of the total loan amount.
Meanwhile, middle-income individuals and small business owners who took loans up to Tk 1 crore accounted for Tk 94,742 crore in disbursements, or 5.63 per cent of total loans.
In contrast, borrowers who took loans exceeding Tk 5 crore received Tk 11,03,500 crore-62.14 per cent of the total. Those with loans above Tk 2 crore numbered 12,306 and received Tk 7,94,870 crore, or 43.80 per cent. Altogether, 1,61,898 borrowers who took loans above Tk 1 crore accounted for a staggering 76.03 per cent of total loan disbursements, amounting to Tk 13,37,227 crore.
A managing director of a private bank, speaking on condition of anonymity, criticized the sector's continued failure to support rural and small-scale borrowers. "Even after 50 years of independence, banks have not developed the capacity to distribute loans effectively in rural areas. They cite high operational costs as an excuse to withdraw from small lending, pushing rural populations toward microfinance institutions that charge high interest. If banks had stepped in, farmers could access cheaper credit, reducing production costs.
Admittedly, rural lending costs more, but banks must recognize their social responsibility."
A senior official at Bangladesh Bank admitted that large borrowers continue to receive fresh loans despite repeated defaults. "This is a major reason for the high default loan ratio. Many of these loans are also marked as distressed due to frequent rescheduling and restructuring. Institutions beyond government oversight should no longer receive new credit," the official said.
