Sonali Bank has asked the government to intervene over overdue loans extended to Bangladesh Sugar and Food Industries Corporation and nine state-owned sugar mills. The bank fears that nearly Tk 7,000 crore in net outstanding debt could become classified in the September 2026 quarter after government guarantees covering the facilities expired. In a letter to the Finance Division secretary on August 19, Managing Director Shawkat Ali Khan sought repayment arrangements, government bonds against arrears, or renewed state guarantees.

Sonali Bank said it had lent Tk 3,105 crore to BSFIC and its nine mills, while dues on loans issued directly to BSFIC stood at Tk 2,762 crore. Interest and other charges added about Tk 4,086 crore, bringing total claims to Tk 7,192 crore. After Tk 253 crore was repaid, net arrears stood at Tk 6,938 crore. A Tk 1,000 crore government guarantee expired in December last year, along with other guarantees previously extended.

The bank says classification would require substantial provisions under Bangladesh Bank rules, potentially widening its provision shortfall and hurting profits. BSFIC officials said its government receivable for trade gaps and subsidies could reach Tk 8,041 crore by the end of fiscal year 2025-26.