For the first time in history, Bangladesh’s banking sector has collectively reported a net loss, amounting to Tk 1.36 trillion in 2025. The loss, revealed in Bangladesh Bank’s Financial Stability Report 2025, stemmed from record-high provisions against non-performing loans. Despite generating Tk 134,815 crore in interest income, banks faced higher interest expenses of Tk 147,352 crore, resulting in a negative interest margin. Operating profits before provisions stood at Tk 19,571 crore, but provisioning surged to Tk 143,855 crore, turning overall profits into deep losses.

The report shows that most banks suffered losses, including First Security Islami Bank, Exim Bank, and Social Islami Bank, while a few such as Standard Chartered, BRAC Bank, and City Bank managed to stay profitable. Sector-wide net profit dropped by Tk 148,824 crore compared to 2024, marking a 1,224 percent negative growth. Bank executives attributed the losses to long-accumulated bad loans and stressed assets totaling Tk 11 trillion.

Experts warned that with 60 percent of loans under stress and a 35 percent default rate, the sector’s financial stability remains at risk, and the crisis may deepen in the coming years.