Default loans in Bangladesh’s banking sector rose sharply during January–March 2026, with 44 of 61 banks reporting increases totaling Tk 31,487 crore. According to Bangladesh Bank data, total non-performing loans reached Tk 588,704 crore by the end of March, representing 32.26% of total loans, up from 30.60% in December. Officials said the rise followed post-inspection adjustments and sluggish business conditions that hindered loan recovery.

Among six state-owned banks, four saw defaults increase, led by Janata Bank, where bad loans rose by Tk 2,458 crore to Tk 74,996 crore. Private banks were hit harder, with 34 of 43 institutions reporting higher defaults. IFIC Bank recorded the largest jump of Tk 4,683 crore, followed by Islami Bank and EXIM Bank. Specialized and foreign banks, including Bangladesh Krishi Bank and HSBC, also reported increases.

City Bank’s managing director attributed the trend to slower overall economic growth. The data indicate widespread stress in both public and private banking segments, despite regulatory efforts to curb defaults.