Written by The Banking Post
Default loans in Bangladesh’s non-bank financial institutions (NBFIs) have surged to a staggering Tk 27,189 crore as of March 2025, accounting for 35.31% of total disbursed loans in the sector — the highest in recent memory.
According to the latest data from Bangladesh Bank, default loans rose by Tk 2,100 crore in just three months and by Tk 3,300 crore over the year. At the end of December 2024, NBFIs reported defaulted loans of Tk 25,089 crore, while in March 2024, the figure stood at Tk 23,889 crore.
Industry insiders claim that the true extent of loan defaults had long been masked by loan write-offs, repeated rescheduling, and undue political influence. However, following recent political changes, the central bank has intensified oversight, bringing the real situation to light.
As of March 2025, the total outstanding loans in the NBFI sector amounted to Tk 76,987 crore. In comparison, the outstanding loans were Tk 75,450 crore in December 2024 and Tk 74,389 crore in March 2024.
Some of the worst-affected NBFIs include People’s Leasing, BIFC, International Leasing, and FAS Finance. The growing volume of defaulted loans in these institutions is seriously undermining liquidity and investor confidence in the sector.
Simultaneously, the situation is dire in the banking sector as well. As of March 2025, defaulted loans in banks reached Tk 4,20,335 crore — roughly 24% of the total disbursed loans.
Economists warn that without stringent measures from Bangladesh Bank, the escalating default crisis could trigger a broader financial instability.
“The time for cosmetic fixes is over. Bangladesh Bank must now enforce strict regulatory actions to restore confidence in the financial sector,” said a senior economist.
