Non-performing loans in the country’s banking sector decreased by Tk68,000 crore over the past three months. During the same period, the rate of non-performing loans also fell by 2.82 percentage points to 29.92 percent, although overall risk remains at a high level.
According to the CL-1 statements submitted to Bangladesh Bank by 61 scheduled banks, as of 31 December 2025, the total amount of loans and advances stood at Tk18,20,915.44 crore. Of this, classified loans amounted to Tk5,57,216.92 crore, which is 30.6 percent of total loans.
Earlier, at the end of 30 September 2025, classified loans were Tk6,44,515.25 crore or 35.73 percent. This means that in one quarter, classified loans decreased by Tk87,298.33 crore and the rate fell by 5.13 percentage points.
However, the year-on-year picture remains concerning. At the end of December 2024, the gross rate of classified loans was 20.2 percent. Based on that, the rate has increased by 10.4 percentage points in one year.
After adjustments for provisions and suspended interest, the net classified loan rate dropped to 13.93 percent at the end of December 2025, down from 26.40 percent at the end of September 2025. In other words, it decreased by 12.47 percentage points in this case as well.
Within classified loans, the amount of non-performing loans stood at Tk5,44,831.88 crore as of 31 December 2025, which is 29.92 percent of total loans. Three months earlier, at the end of September, non-performing loans were Tk6,12,871.45 crore or 32.74 percent.
As a result, in one quarter, non-performing loans decreased by Tk68,039.57 crore and the rate fell by 2.82 percentage points.
According to the banking analysts, classified loans and non-performing loans are not the same. Classified loans include all troubled loans, ranging from substandard to bad/loss categories. Non-performing loans, on the other hand, represent the worst portion of classified loans, generally referring to bad/loss loans.
Meanwhile, bank-wise analysis shows that state-owned commercial banks face the highest pressure of classified loans. At the end of December 2025, the gross rate of classified loans in such banks stood at 44.44 percent, down from 49.65 percent at the end of September. This means a decrease of 5.22 percentage points in three months.
During the same period, the rate in private commercial banks fell to 28.25 percent, down from 33.75 percent. In foreign banks, the rate dropped to 4.51 percent (previously 4.92 percent), and in specialised banks it fell to 39.74 percent (previously 41.95 percent). Thus, quarter-on-quarter, the classified loan rates in state-owned, private, foreign, and specialised banks decreased by 5.22; 5.51; 0.42; and 2.21 percentage points respectively.
Meanwhile, loan disbursement in the banking sector has continued. At the end of December 2024, total loans stood at Tk17,11,401.91 crore, which rose to Tk18,20,915.44 crore by December 2025. This means loans increased by Tk1,09,513.53 crore or 6.4 percent in one year.
During this time, private commercial banks recorded the highest loan growth. Their disbursed loans rose by Tk96,923 crore or 7.56 percent.
According to industry insiders, although indicators showed some improvement in the recent quarter, the quality of assets in the banking system remains under pressure, especially in state-owned and specialised banks.
