Bangladesh Bank’s latest report shows that default loans in the banking sector dropped sharply in the last quarter of 2025, mainly due to large-scale loan rescheduling and policy support ahead of the national election. Between October and December, default loans fell by Tk 87,298 crore to Tk 557,217 crore, representing 30.60 percent of total loans. Three months earlier, the figure stood at Tk 644,515 crore or 35.73 percent.

Officials said banks typically intensify recovery efforts at the end of the year to improve financial statements, while the central bank’s policy allowed extensive rescheduling. Under this support, Tk 26,114 crore in default loans were regularized. The interim government’s disclosure of the true loan situation after the previous Awami League administration revealed a higher default rate, prompting new measures to reduce it.

Sector-wise, state-owned banks held Tk 146,108 crore in defaults, private banks Tk 389,579 crore, foreign banks Tk 2,984 crore, and specialized banks Tk 18,546 crore. Provision shortfall also declined to Tk 191,441 crore from Tk 344,231 crore over the same period, indicating improved balance sheet conditions.