United News of Bangladesh

Defaulted loans in Bangladesh’s banking sector stood at Tk 5.45 lakh crore at the end of 2025, Finance Minister Amir Khosru Mahmud Chowdhury told Parliament on Monday. “As of December 31, 2025, the total amount of defaulted loans in the banking sector is Tk 5,44,831 crore,” he said replying to a tabled question from NCP lawmaker Md Abul Hasnat who is popularly known as Hasnat Abdulla (Cumilla-4). The parliament session resumed at 3:30 pm with Deputy Speaker Barrister Kayser Kamal in the chair. The Minister also placed the list of top 20 loan defaulters in the House.   The 20 top loan defaulters are S. Alam Super Edible Oil Limited, S. Alam Vegetable Oil Limited, S. Alam Refined Suger Industries Limited, S. Alam Cold Rolled Steels Limited, Sonali Traders, Bangladesh Export Import Company Ltd, Global Trading Corporation Limited, Chemon Ispat Limited, S. Alam Trading Company Private Ltd, Infinite CR Strips Industries Limited, Keya Cosmetics Limited, Deshbandhu Sugar Mills Limited, Power Pac Mutiara Keranigonj Power Plant Ltd, Power Pac Mutiara Jamalpur Power Plant Ltd, Pacific Bangladesh Telecom Limited, Karnafuly Foods (Pvt.) Limited, Murad Enterprise, CLC Power Company Limited, Beximco Communications Limited, and Rongdhanu Builders (Pvt) Ltd. Highlighting government efforts to recover defaulted loans, the finance minister said banks with more than 10 percent classified loans will be reviewed quarterly and action plans will be adopted to identify and address obstacles to loan recovery. He said progress in recovering dues from the top 20 defaulters will be monitored at each bankers’ meeting organised by Bangladesh Bank and guidelines will be formulated for banks with high levels of classified loans. “Banks have been instructed to strengthen the existing legal team/law department of the bank,” said the minister. He said banks have been instructed to set a target of cash recovery of at least 1% of the defaulted loan balance of each bank by June 30, 2026 following Alternative Dispute Resolution (ADR). The finance minister said an action plan has also been adopted to resolve the problem of non-performing loans.  According to the action plan, Bangladesh Bank is currently working to amend the existing laws including Bank Company Act, Negotiable Instrument Act, Orthro Rin Adalat Ain and Bankruptcy Act to resolve the problem of non-performing loans. Other proposed measures include reviewing agricultural loan rescheduling policies, publishing lists of defaulters and wilful defaulters, strengthening incentives for regular borrowers, identifying good borrowers to promote a stronger credit culture, and setting borrowing limits across the banking sector, said the minister. Further steps include legal reforms to deal with wilful defaulters involving experienced bankers in money loan courts, preventing misuse of writ petitions to delay recovery, and enacting laws to establish private-sector Asset Management Companies (AMCs), he added. The minister also informed the House that loans taken from banks and financial institutions by members of parliament and their related entities amount to Tk 11,117.31 crore.  

Finance Minister Amir Khosru Mahmud Chowdhury on his first day in office on Wednesday laid out an ambitious reform agenda centred on institutional recovery, deregulation and broad-based economic participation. “Government’s ability to deliver depends fundamentally on the strength and efficiency of its institutions,” he said while speaking to reporters after assuming charge at the ministry. He said that state institutions are currently in a poor condition and require urgent attention. “Our primary problem (right now) is that the state institutions are in a very bad shape. We have to address this first. The institutions must be improved.” Amir Khosru stressed that restoring professionalism, transparency and efficiency within public institutions would be the first priority. According to him, without these core elements, even the most ambitious economic programmes would fail to produce meaningful results. “We have to bring professionalism into the institutions. We have to ensure transparency. We have to ensure efficiency. This is the most important issue,” he said, adding that in the absence of these qualities, no major initiative would work effectively. The finance minister described institutional reform as the ‘number one’ task before the ministry, underscoring that rebuilding governance structures is a prerequisite for sustainable economic management. Turning to broader economic policy, he said the country must move away from what he described as a patronage-driven economic model and instead democratise the economy. “The economy of Bangladesh must be for all people,” Amir Khosru said, emphasising the need for ensuring a level-playing field. Amir Khosru said every citizen should have an opportunity to participate in economic activity and to benefit from its outcomes, reiterating that wider participation in the economy is essential for inclusive growth. Ensuring that the benefits of economic growth reach every segment of society would be a key benchmark of success under his leadership. On regulatory reforms, the finance minister renewed his call for serious deregulation and liberalisation, arguing that Bangladesh has become an over-regulated country over time. Amir Khosru attributed this trend to years of patronage-based politics, which, in his view, resulted in layers of regulations that have increased the cost of doing business and limited fair competition. “Bangladesh has become over-regulated,” he said. “To make this successful, we must undertake serious deregulation. We have to liberalise and create a level playing field so that everyone has equal rights to participate in the economy and its benefits reach all.” Economy suffering from ‘overregulation’, says Amir Khosru The minister argued that excessive regulation often creates opportunities for corruption and rent-seeking, adding that rationalising the regulatory framework would reduce barriers, improve competitiveness and enhance investor confidence. When asked to summarise his priorities, he responded succinctly that the economy would remain his central focus, with institutional reform, deregulation and inclusive participation forming the core pillars of his agenda.