Bangladesh Bank’s latest report shows that by the end of September last year, 23 banks in the country faced a combined capital shortfall of Tk 2.82 trillion, up from Tk 1.56 trillion in June. The increase is attributed to a surge in non-performing loans, which reached Tk 6.44 trillion. The report also notes that the banks failed to maintain the required loan-loss provisions, resulting in a provision deficit of Tk 3.44 trillion and pushing the sector’s capital adequacy ratio (CRAR) to a negative 2.90 percent, below the international minimum of 10 percent.

Among the affected institutions, four state-owned banks accounted for Tk 37,698 crore of the deficit, nine private banks for Tk 36,607 crore, eight Islamic banks for Tk 175,822 crore, and two specialized banks for Tk 32,477 crore. The largest individual shortfall was recorded at First Security Islami Bank with Tk 65,090 crore. Bangladesh Bank’s assistant spokesperson Shahriar Siddiqui explained that rising defaults have increased provisioning needs, while limited profits have prevented banks from meeting those requirements.

The report indicates that banks outside these 23 institutions remain adequately capitalized, suggesting that the broader sector’s stability depends on addressing the weaknesses of the deficit banks.