Non-performing loans in Bangladesh’s banking sector have surged to Tk 6.67 trillion, or 33 percent of total loans, according to recent data from Bangladesh Bank. Officials attribute the rise to three main factors: hidden loans issued during Sheikh Hasina’s tenure are now being revealed, the timeline to declare a loan non-performing was shortened from six months to three months to meet IMF conditions, and special exemptions for agricultural and SME loans were removed. For the first time, the central bank disclosed 3,483 deliberate defaulters. Experts warn urgent legal action is necessary to prevent further banking sector collapse. Former officials emphasize that many of these funds have been transferred abroad and demand the creation of special tribunals or dedicated High Court benches to expedite justice.