Finance Minister Amir Khosru Mahmud Chowdhury notified Parliament on Sunday that the total volume of defaulted loans in nine state-owned banks has reached approximately Tk1,88,701.75 crore.
Khosru placed the latest data before the House during a question-and-answer session presided over by Speaker Hafiz Uddin Ahmad.
The figures, confirmed as of 31 May, are based on information sent to the CIB database by Agrani Bank PLC, Janata Bank PLC, Rupali Bank PLC, Sonali Bank PLC, BASIC Bank PLC, Bangladesh Development Bank PLC, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, and Probashi Kallyan Bank.
The disclosure was made in response to a query from Sabikunnahar, a lawmaker from a reserved seat.
Khosru emphasised that reducing the high rate of defaulted loans is a priority in the current government’s election manifesto to restore discipline in the banking sector. To this end, Bangladesh Bank has adopted various short, medium, and long-term recovery plans.
Short-term measures include the formulation of a Classified Loan Resolution Strategy and updating Credit Risk Management Guidelines. Medium-term plans involve the implementation of International Financial Reporting Standards (IFRS)-9 and the valuation of collateral through listed assessment firms.
Moreover, the government is updating policies for rescheduling short-term agricultural credit and providing incentives for “good borrowers.” Long-term reforms include setting loan limits for single borrowers, legal reforms targeting “willful defaulters,” and establishing private sector Asset Management Companies.
The Bank Resolution Act, 2026 and the Deposit Protection Act, 2026 have also been introduced to manage risky banks and safeguard depositors. Additionally, amendments to the laws governing Bangladesh Bank, the Insurance Development and Regulatory Authority (IDRA), and the Bangladesh Securities and Exchange Commission (BSEC) aim to ensure skilled leadership at regulatory bodies.
Tk983 crore spent on Mujib Borsho celebrations
In a separate response to a query from Md. Mahbubur Rahman (Belal), MP for Rangpur-3, Khosru revealed that all ministries and divisions spent a combined total of Tk 982 crore 91 lakh 74 thousand on “Mujib Borsho” celebrations.
The expenditure covered district and upazila-level programmes, the creation of images and altars of Sheikh Mujibur Rahman, and the construction of statues made of bronze, copper, and marble in government offices. The funds also included the installation of national digital boards for time counting.
Financial sector ‘cleaning process’ underway
Khosru declared that restoring financial discipline is the government’s “top priority”, describing an ongoing “cleaning process” across the entire sector.
Responding to MP Salauddin, he confirmed that investigations are active regarding looting and irregularities at Probashi Kallyan Bank, where approximately 61 per cent of loans have become defaulted due to previous “syndicates” and bribery.
Khosru further stated that the government would not compromise with those who looted the country’s wealth and fled abroad. In response to MP Rumin Farhana, he noted that cases have been filed and asset seizures are beginning for major defaulters, including those linked to SRM, Beximco, Alon Tex Group, and Bismillah Group, who reportedly account for a significant portion of defaults at state banks like Janata Bank.
Addressing MP Atikur Rahman Mujahid, Khosru issued a stern warning that no political appointments or “bank grabbing” by any group would be tolerated under the current administration.
To ensure food security and rural employment, the government has increased the fund for establishing agricultural product processing industries from Tk 1,400 crore to Tk 2,000 crore. Under this fund, entrepreneurs can access loans up to Tk 100 crore at a 7 per cent interest rate.
For the 2025-26 financial year, a credit distribution target of Tk 39,000 crore has been set for the agricultural sector, with a 4 per cent concessional interest rate applied to loans for import-substitute crops. Khosru clarified that these facilities are applicable nationwide, negating the need for separate schemes for specific upazilas.
Strict measures against corporate tax evasion
Addressing revenue shortfalls, Khosru told MP Md. Fazle Huda that the government is prioritising the recovery of taxes from large corporate houses and the wealthy rather than burdening the general public.
A major expansion of e-returns for corporate taxpayers is planned to ensure transparency. The government is also integrating its database with other agencies via API and using industry-specific indices for risk-based audits to identify those intentionally evading taxes.
Regarding the economic outlook, Khosru noted that point-to-point headline inflation, which had dropped to 8.17 per cent in October 2025, rose again to 9.42 per cent by May 2026 due to domestic and international shocks.
To combat this, Bangladesh Bank has maintained a high repo rate of 10 per cent for the first half of the 2026-27 financial year. Furthermore, a Tk 60,000 crore incentive package has been launched to boost internal production and supply. Of this, Tk 41,000 crore will be sourced from commercial banks’ excess liquidity, and Tk 19,000 crore from central bank resources, ensuring the move does not devalue the Taka.
