Ten of Bangladesh’s 61 banks held more than 72% of the banking sector’s total non-performing loans (NPLs) at the end of June 2026, highlighting the deepening weakness in the country’s banking system.
According to Bangladesh Bank data, total NPLs reached Tk6,06,555 crore in June, up Tk17,851 crore from Tk5,88,704 crore in March. The NPL ratio rose to 32.78%, meaning nearly Tk33 of every Tk100 lent by banks had become non-performing.
The 10 troubled banks accounted for Tk4,39,527 crore of the total NPLs.
Islami Bank recorded the highest volume of NPLs at Tk98,914 crore, equal to 52.15% of its total loans. Janata Bank ranked second with Tk75,728 crore, or 75.05% of its loans classified as non-performing.
Among the banks with the highest NPL ratios, First Security Islami Bank topped the list at 97.08%, followed by Union Bank at 96.78%, Social Islami Bank at 78.15% and Exim Bank at 70.81%.
National Bank, IFIC Bank and AB Bank reported NPL ratios of 65.74%, 63.38% and 56.40%, respectively. State-owned Agrani Bank’s NPL ratio stood at 43.98%.
The deterioration comes despite repeated loan rescheduling and restructuring efforts. Bangladesh Bank has strengthened loan recovery measures, tightened supervision and begun identifying weak banks for reform, merger and restructuring.
The World Bank has also warned that weak corporate governance, regulatory shortcomings and related-party lending are putting significant pressure on Bangladesh’s banking sector. It reported an NPL ratio of 32.6% at the end of March 2026, compared with a South Asian average of 7.9%.
A Bangladesh Bank executive director said the crisis could not be solved simply by repeatedly rescheduling loans. He called for proper assessment of overdue loans, action against those responsible, stronger borrower screening and faster recovery.
He also warned that continued weakness in a handful of banks could eventually create broader risks for the entire banking system and the wider economy.
