Loans amounting to Tk 4.07 lakh crore in the country’s banking sector remain stuck due to various lawsuits. A Bangladesh Bank report has recommended taking immediate steps to resolve the stay orders issued by the High Court to expedite loan recovery.
According to the report, as of June this year, the total number of cases filed by 61 banks stood at 2.22 lakh. These cases were filed with the Artho Rin Adalot for the purpose of loan recovery and involve loans totalling Tk 4,07,435 crore.
From April to June, around 12,000 cases were disposed of, with Tk 2,910 crore recovered during the period.
At the end of March this year, the number of pending cases was 2.19 lakh, involving loans amounting to Tk 3.20 lakh crore. During the January–March quarter, 10,064 cases were settled, resulting in a recovery of Tk 1,076 crore.
In the April–June quarter, 14,652 new cases were filed for the recovery of Tk 96,904 crore.
Analysis of the available data shows that the rate of case disposal remains extremely low, and the recovery of funds through case settlement is similarly insufficient.
The report recommends advising banks to take measures for faster case disposal. It also proposes arranging prompt hearings to lift stay orders issued in writ petitions filed with the High Court challenging auction notices or orders from the Artho Rin Adalot.
Additionally, it suggests that all banks may file civil miscellaneous petitions in the Appellate Division’s Chamber Court to vacate stay orders.
