Around 70 per cent of default loans in the banking sector in Bangladesh is concentrated in nine sectors, namely ship-building and ship-breaking, small and medium enterprises, leather, trade, textile, readymade garment, transport, credit card, and non-bank financial institutions (NBFIs) as many borrowers are finding it difficult to pay installments owing to the dragging economic slowdown even if wilful defaulters are also a contributor in this.
Media reports claimed this while adding that as per the Financial Stability Report released by the Bangladesh Bank, the non-performing loans in the sectors stood at Taka 71,030 crore in December out of a total default loan of Taka 101,935 crore while also adding the business slowdown stemming from the Covid-19 pandemic along with the ongoing economic crisis has hurt the borrowers in the nine sectors.
In addition, banks also gave out loans without following corporate governance, pushing up NPLs, they underlined further.
