Collection process must be strengthened to recover all bank loans

The amount of non-performing loans in the banking sector has broken all records. According to the latest data, the amount of bad loans has exceeded Tk 667,000 crore or 33 percent of the total loans.

In the space of one year, the amount of this loan has increased by Tk 455,724 crore. And in just three months, defaulted loans have increased by Tk 246,781 crore. As the defaulted loans increase, the liquidity crisis in banks is also increasing and it is becoming difficult to distribute new loans. This is reducing investment and employment, and depositors are also suffering from insecurity.

Media reports say, the amount of defaulted loans in June 2024 was Tk 211,391 crore. The amount of defaults has increased threefold in just one year, which economists say are truly worrying. Despite years of politically influential groups taking out loans worth lakhs of crores of taka from banks, they were not deliberately shown as defaulters. After the fall of fascist Sheikh Hasina government, the true picture of defaulters is now coming out.

As a result, the number of defaulters has increased rapidly. The special facility that was used to provide relief in declaring defaulters on agricultural and SME loans has also been canceled. As a result, many operating factories have closed down after August 5 last year due to fund crunch.

It is known that due to such a terrible level of defaulted loans, many banks are facing a liquidity crisis. They are not in a position to provide new loans to the private sector. This is directly affecting the private sector. Even for urgent needs, businessmen and entrepreneurs are not getting the loans they need. Along with this, the high interest rates on loans are also pushing businessmen into crisis. As a result, new investments and employment are being hampered.

The government is also being deprived of the desired revenue. The economy is not benefiting from this, but rather is being affected by it, which is making the economy worse day by day. The role of the banking sector in this process is very important. Thus the culture of defaulting loans that has developed in Bangladesh and is gradually becoming competitive must be stopped. At any cost, the process of recovering all bank loans, including defaulters, must be strengthened. Legal action must also be taken against willful defaulters.