State-owned Banks' Bad Loans Reach $1.88 Trillion Taka: Finance Minister
Finance Minister Amu Khosru Mahmud Chowdhury informed the national parliament that the non-performing loans (NPLs) in nine state-owned banks have reached 188,070.75 crore taka. This information was disclosed on Sunday in response to a question from reserved women's seat MP Sabikunnahar, during a session presided over by Speaker Hafiz Uddin Ahmad. The nine banks include Agrani, Janata, Rupali, Sonali, Basic Bank, Bangladesh Development Bank, Krishi Bank, Rajshahi Krishi Unnayan Bank, and Probashi Kallyan Bank. The figures reflect data submitted to the Credit Information Bureau (CIB) database as of May 31st.
In a separate disclosure, the minister stated that 982.91 crore taka was spent on various programs, sculptures, and commemorative structures during the 'Mujib Year' celebrations. This expenditure, distributed across 43 out of 62 ministries and divisions, was primarily allocated to projects involving bronze, copper, and marble statues, as well as digital countdown boards. The Local Government Ministry incurred the highest cost at 283.15 crore taka, followed by the Ministry of Railways (206.73 crore) and the Cabinet Division (140.45 crore).
Furthermore, the minister revealed that the total government debt stood at 22,06,462 crore taka as of December 31st, comprising 9,59,311 crore taka in foreign debt and 12,47,151 crore taka in domestic debt. Regarding loan repayment, the government is scheduled to repay the equivalent of 4.65 billion US dollars in foreign loans in the fiscal year 2025-26, with 3 billion dollars allocated for principal and 1.65 billion dollars for interest. In the past five years, outstanding customs duties and taxes on imported goods have amounted to 25,504.3 crore taka. The finance minister also reported that the Bangladesh Securities and Exchange Commission (BSEC) has imposed fines totaling 1,497 crore taka on individuals and institutions for stock market manipulation and irregularities, including a 428 crore taka penalty related to Beximco share transactions. Enforcement actions are ongoing against entities involved in market misconduct, and criminal investigations have been initiated against some stockbroker companies for embezzling investor funds.
The disclosed figures on non-performing loans in state-owned banks highlight persistent challenges in financial sector governance and risk management. The significant expenditure on 'Mujib Year' initiatives, while intended for national commemoration, raises questions about fiscal priorities and the transparency of public fund allocation, particularly in light of ongoing government debt. The substantial amount of outstanding customs duties and the imposition of fines for stock market manipulation underscore the need for robust regulatory oversight and enforcement mechanisms to ensure market integrity and prevent financial malfeasance. The government's commitment to pursuing individuals who have siphoned funds abroad, coupled with initiatives to provide easier credit access to young entrepreneurs and farmers, suggests a dual approach of accountability and economic empowerment. However, the long-term efficacy of these measures will depend on sustained implementation and adaptive strategies to address systemic issues within the financial and economic landscape.
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