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State-owned Janata Bank has asked the finance ministry to help recover Tk 18.38 billion in overdue loans from the Bangladesh Sugar and Food Industries Corporation (BSFIC) and several sugar mills, saying the unpaid debts are eroding its profit, capital and credit rating.

In a recent letter, Managing Director Md Mazibur Rahman sought intervention to settle long-pending loans — including Tk 5.73b from BSFIC; Tk 6.05b from North Bengal Sugar Mills; Tk 3.36b from Carew & Co; Tk 3b from Pabna Sugar Mills; and Tk 255m from Shyampur Sugar Mills.

The loans, along with accrued interest, expired in December 2018 but were kept unclassified due to state guarantees and tripartite deals, officials said. With the guarantees now lapsed, Janata cannot book interest as income under Bangladesh Bank rules, which has hurt earnings, capital buffers and its CAMELS rating, the bank warned.

Rahman urged the government to either extend the guarantee or issue bonds to clear the dues, adding that repayment would boost the bank’s reputation and stability.

A finance ministry official confirmed receipt of the letter, saying it is “under scrutiny” and no decision has yet been made.