Bangladesh Bank’s Financial Stability Report 2025 reveals that due to High Court stay orders, banks cannot classify Tk 182,419 crore in loans as defaults. These stays stem from 845 writ petitions filed by 1,379 borrowers, allowing them to appear as regular clients and access new loans and rescheduling facilities. The report shows that the volume of loans under court protection rose by nearly 80 percent in 2025 compared to the previous year.

The central bank notes that this legal tactic hides the true scale of non-performing loans and strains liquidity across the banking sector. Some borrowers have used these stays to qualify for national elections despite outstanding debts. Former Bangladesh Bank governor Ahsan H. Mansur criticized the widespread issuance of such stays, calling them harmful to financial stability. The central bank has directed banks to strengthen their legal teams to expedite loan recovery cases.

According to Bangladesh Bank data, total non-performing loans, including those under litigation, now amount to Tk 771,123 crore, with the sector posting a combined net loss of Tk 136,666 crore last year.