Defaulted loans climb to Tk 588,704cr by March

Defaulted loans in the banking sector increased to 32.26 percent of total outstanding loans in the first three months of 2026, reversing the decline recorded at the end of last December, amid weak recovery and governance issues.

With the spike, total classified loans rose by Tk 31,487 crore to Tk 588,704 crore at the end of March from Tk 557,217 crore in December, according to Bangladesh Bank data.

Total outstanding loans stood at Tk 1,824,668 crore.

At the end of last year, the ratio of Non-Performing Loans dropped to around 31 percent from 36 percent three months earlier due to large-scale loan rescheduling under a special policy support programme by Bangladesh Bank, the central bank.