Bangladesh Bank’s latest banking update report reveals a sharp rise in loan defaults, particularly among large borrowers. As of June last year, 48.2 percent of loans exceeding Tk 50 crore were classified as defaulted, compared to 17.1 percent during the same period in 2024. The report indicates that loan classification ratios have increased significantly across all lending categories between the 2023–24 and 2024–25 fiscal years, signaling mounting pressure on the banking sector’s loan portfolio.

The analysis shows that default rates stood at 16 percent for loans up to Tk 1 crore, 26.1 percent for loans between Tk 1 crore and Tk 10 crore, and 45.7 percent for loans between Tk 10 crore and Tk 20 crore. Sector-wise, business and trade loans had the highest default rate at 44.7 percent, followed by industrial loans at 35.9 percent and construction loans at 27 percent. The overall national default rate rose from 34.6 percent in June to 35.73 percent in September.

Bankers noted that the actual scale of defaults is now more accurately reflected, as previous underreporting during the former Awami League government has ceased. They warned that the default rate may continue to rise in the coming months.