Bangladesh Bank’s latest report shows that default loans in the banking sector dropped by Tk 872.98 billion during October–December 2025, bringing the total to Tk 5.57 trillion, or 30.60 percent of total loans. At the end of September, defaults stood at Tk 6.44 trillion, or 35.73 percent. The decline followed large-scale loan rescheduling and policy support introduced ahead of the national election.

Officials said banks typically reduce defaults in the final quarter of the year through intensified recovery efforts and by taking advantage of central bank rescheduling facilities. Under these measures, Tk 26,114 crore in defaulted loans were regularized. The interim government, after taking office, revealed the true scale of defaults previously understated under the former Awami League administration and later introduced initiatives to reduce them.

Sector-wise, state-owned banks held Tk 1.46 trillion in defaults, private banks Tk 3.89 trillion, foreign banks Tk 29.84 billion, and specialized banks Tk 185.46 billion. Provision shortfalls also fell sharply to Tk 1.91 trillion in December from Tk 3.44 trillion three months earlier, indicating improved balance sheet conditions across the sector.