Bangladesh Krishi Bank has surged ahead of its state-owned peers with strong growth in both loan recovery and remittance inflows, securing second place among all banks in expatriate income during the first eight months of 2025.
According to the bank’s latest figures, total classified loans stood at Tk 17,546 crore as of 30 June 2025. During FY2024–25, the bank recovered Tk 1,100 crore, while between July and 26 September 2025 alone, collections accelerated to Tk 1,400 crore.
The bank has projected loan recovery of Tk 6,000 crore for FY 2025–26, underscoring its ambitious growth target.
Remittances have been a key driver of Krishi Bank’s recent success. The bank mobilised Tk 25,500 crore ($2.16 billion) in FY 2024-25, with projections indicating $3 billion in remittance inflows during the calendar year 2025.
Islami Bank led the sector with Tk44,652 crore in remittance income during January-August 2025, followed by Krishi Bank with Tk 25,714 crore, Agrani Bank with Tk 24,400 crore, Janata Bank with Tk 18,056 crore, and BRAC Bank with Tk 16,958 crore.
Krishi Bank’s rapid rise is notable, having moved from 15th position in 2023 to 7th in 2024 before reaching second place this year.
While Krishi Bank shows momentum, the wider state-owned banking system remains constrained by capital inadequacy, weak provisioning, and recurring audit objections.
Analysts warn that delays in legal proceedings and the concentration of defaulted loans among a small group of borrowers continue to weigh heavily on public banks’ balance sheets.
In response, Krishi Bank has prioritised digital transformation and policy reforms. It has expanded digital services across 1,038 branches, while its mobile platform, the “My BKB App” was recognised as the best innovative initiative in the Ministry of Finance’s 2024–25 Innovation Showcasing programme.
Officials said the bank has also revised staff benefits and promotion policies to address long-standing disparities and boost employee morale.
Deputy Managing Director Md Abdur Rahim, who oversees loan recovery, said, “Our officers and employees are working with full dedication and are regularly motivated through conferences and online meetings. They are even working on holidays to recover defaulted loans.”
“This has accelerated collections, and we expect BKB to emerge as a profit-making bank by the end of this fiscal year,” he added.
Managing Director Sanchia Binte Ali added that their recent achievements in loan recovery and remittance growth reflect the dedication of our employees and the confidence of our customers.
“We remain committed to expanding digital services, strengthening governance, and maintaining financial discipline so that Bangladesh Krishi Bank can continue to support the agriculture sector as well as the national economy,” she said.
Krishi Bank’s trajectory highlights resilience within a troubled public banking sector, though questions remain over whether it can sustain the pace of recovery and remittance growth amid rising operating costs.
The contrast with its peers underscores both the progress achieved and the systemic challenges that still define Bangladesh’s state-owned banks.
