Non-performing loans (NPLs) in the country’s banking sector soared to a historic high of Tk4,20,335 crore in the first quarter (January-March) of 2025, according to Bangladesh Bank latest data.

This sharp rise has been attributed to years of weak regulatory oversight, indiscriminate loan approvals under political influence, and systemic corruption in the banking sector.

As of March, total loans stood at Tk17,41,992 crore, of which Tk4,20,335 crore or 24.13% of the disbursed loans became defaulted.

Defaulted loans stood at Tk3,45,765 crore at the end of 2024.