Rupali Bank PLC posted a markedly improved performance in 2025, even as Bangladesh’s banking sector struggles amid a prolonged global economic slowdown, US dollar shortages and elevated non-performing loans (NPLs).
The bank notched gains in loan recovery, deposit collection, SME loans and digital banking through tighter financial discipline, stronger risk management and focused leadership, said officials of the state-owned lender.
Rupali Bank’s financial data shows that it recovered Tk1,300 crore in cash from classified and written-off loans last year, which was the highest among state-owned commercial banks in the country.
Officials said the improvement followed a decision by the managing director, taken immediately after assuming office, to prioritise default loan recovery, risk management and governance.
In 2025, Rupali Bank recovered about Tk361 crore in cash from its top 20 defaulters.
Hailing it as major milestone, they added that some Tk1,974 crore was realised through loan adjustments, taking the total amount recovered to about Tk2,335 crore.
To speed up recovery and improve transparency, Rupali Bank brought its case management system under a digital platform that uses a specialised software to monitor cases from across the country directly from its head office.
As a result, 823 cases were settled by December, up from 571 cases a year earlier, according to bank documents.
These efforts were reflected in an improved classified loan position, with NPLs at the bank falling by Tk1,716 crore to Tk19,641 crore over the year.
As such, the bank’s classified loan ratio declined to 38 per cent from 42 per cent. The provisioning shortfall also narrowed, indicating its stronger financial position.
Alongside controlling defaults, Rupali Bank expanded lending to productive sectors, particularly small and medium enterprises (SMEs).
In 2025, Rupali Bank disbursed Tk1,470 crore in new SME loans, the highest annual amount in its history.
The bank also increased its focus on digital services. Rupali launched its own mobile banking app, called Rupali Cash, which is operated on an in-house platform.
This service, which is the first of its kind among state-owned banks, aims to make transactions easier and more secure.
Rupali Bank’s deposit mobilisation and customer outreach also improved. More than 8.49 lakh new accounts were opened in 2025, including around 4 lakh under a special 100-day campaign. In comparison, 5.99 lakh new accounts were opened in 2024.
Total deposits rose by about Tk3,500 crore, of which nearly Tk2,000 crore came from non-interest-bearing or low-cost deposits.
Officials also informed that the 100-day campaign was launched by Managing Director Kazi Wahidul Islam following guidance from the board.
Rupali Bank also reported higher remittance inflows. About Tk15,000 crore in foreign remittances were channelled through the bank in 2025.
Officials attributed the increase to stronger exchange house operations, special services for expatriates and wider use of digital channels.
Furthermore, the bank’s regulatory capital increased to Tk1,700 crore in 2025, up by about Tk53 crore from the previous year.
Its capital to risk-weighted asset ratio stood at 3.04 per cent, while the provisioning shortfall decreased by around Tk2,000 crore.
Also, the bank issued more than 1.5 lakh debit cards last year.
Reviewing the year’s performance, Islam said their aim was not just short-term results.
“Our goal is to transform the bank into a sustainable, transparent and technology-driven institution,” he said, adding that efforts to recover default loans would continue as part of efforts to strengthen financial governance.
Officials said the bank’s classified loans had risen in early 2025 due to several factors, with the default ratio peaking at 48 per cent in October.
But through targeted measures and management, the ratio was reduced by 10 percentage points to 38 per cent by the year-end, they added.
