Default risks in Bangladesh’s banking sector have become highly concentrated, with S Alam Group accounting for 10 of the top 20 loan defaulters. A significant portion of loans tied to current MPs has also turned non-performing, further compounding the issue.
Finance Minister Amir Khosru Mahmud Chowdhury disclosed this information during a parliamentary session on Monday, presided over by Deputy Speaker Kayser Kamal.
In response to a written question, Khosru revealed that the total amount of classified loans in the banking sector stood at Tk5,44,831.88 crore as of 31 December 2025.
Defaulted loans linked to MPs’ entities
Khosru also informed parliament that loans taken by current MPs and their related entities total Tk11,117.31 crore, with Tk3,330.08 crore classified as non-performing. He added that, due to court orders or stays, some of these loans might be recorded as regular.
A substantial portion of these loans is concentrated among a small number of entities. The list of the top 20 defaulters presented in parliament reveals that S Alam Group alone accounts for 10 entities across industries such as edible oil, sugar, steel, and trading.
Other major groups on the list include Beximco, Keya, Deshbandhu, Sikder, Maisha, and Rongdhanu.
This list also carries political implications. Pacific Bangladesh Telecom Limited, owned by former foreign minister Morshed Khan, is among the top defaulters. The Citycell brand, once a leader in the telecom sector, is now defunct.
Morshed Khan, who spent a prolonged period in self-imposed exile during the previous Awami League government, returned to Bangladesh in May 2020, after leaving on a chartered flight alongside Beximco Group Chairman Ahmed Sohail Fasihur Rahman amid an ongoing corruption probe.
Following the fall of the Awami League government during the 2024 July uprising, S Alam Group Chairman Mohammed Saiful Alam has remained abroad with his family. Beximco Group Vice-Chairman Salman F Rahman, former adviser to the deposed prime minister, is currently in jail after attempting to flee the country.
Several members of the Sikder family also left the country after 5 August. Aslamul Haque, founder chairman of Maisha Group and former Awami League lawmaker, died in 2021, leading to the cessation of most of the group’s operations.
The parliamentary list includes S Alam-linked entities such as S Alam Super Edible Oil, S Alam Vegetable Oil, S Alam Refined Sugar Industries, S Alam Cold Rolled Steels, Sonali Traders, Global Trading Corporation, Chemon Ispat, S Alam Trading Company, Infinite CR Strips, and Murad Enterprise.
Other major defaulters include Bangladesh Export Import Company and Beximco Communications of Beximco Group, Keya Cosmetics of Keya Group, Deshbandhu Sugar Mills of Deshbandhu Group, and Sikder Group’s power ventures, including PowerPac Mutiara Keraniganj Power Plant and PowerPac Mutiara Jamalpur Power Plant.
Recovery measures and legal reforms
On recovery efforts, Khosru shared that regular meetings are being held with banks possessing high levels of classified loans to identify challenges and create action plans. Loan recovery progress from major defaulters is reviewed during bankers’ meetings.
He added that guidelines have been developed for resolution strategies for high non-performing loan (NPL) banks, policies have been issued to identify wilful defaulters, and banks have been instructed to strengthen their legal divisions. A target has been set to recover at least 1 per cent of total classified loans in cash by 30 June through alternative dispute resolution mechanisms.
The government is also adopting expected credit loss-based classification and provisioning in line with international standards. Additionally, it is updating credit risk management guidelines and ensuring collateral valuation by independent firms.
Legal reforms are underway to address the default crisis. These reforms include amendments to the Bank Company Act, Negotiable Instruments Act, Artha Rin Adalat Act, and bankruptcy laws.
There are also plans to publish lists of wilful defaulters, set borrowing limits for individual clients, and establish asset management companies to further address the issue.
