Bad NBFI loans rise 9pc post-Q3 of 2023
Business Report :
Bad loans at the 35 non-banking financial institutions (NBFIs) in the country was Tk21,658 crore at the end of September last year, up 9% from June the same year and 25% a year ago.
The latest amount of bad loans accounted for 29.75% of total outstanding loans of NBFIs at the end of September 2023.
The ratio was 27.6% at the end of June the same year, according to the latest data from the Bangladesh Bank.
The banking regulator recently intervened in the board and management of some NBFIs such as Uttara Finance and Phoenix Finance due to loan irregularities and a lack of corporate governance.
However, bad loans jumped after the central bank last year withdrew the deferral facility extended during the Covid-19 pandemic for repaying loans.
Of the total Tk21,658 crore bad loans in the sector, 10 NBFIs accounted for 67.48% or Tk14,616 crore, the central bank data also showed.
Bad loans of People’s Leasing and Financial Services, which faced widespread loan irregularities and scams, stood at Tk1,097 crore or 99.02% of its total disbursed loans.
The non-performing loans (NPLs) of International Leasing and Financial Services, another scam-hit NBFI, stood at Tk3,917 crore or 95% of its outstanding loans.
The provision shortfall of ten NBFIs stood at Tk2,020 crore till September last year due to high amount of bad loans.