The amount of loans on which the borrowers defaulted has reached around Tk 1.32 trillion in the country’s financial sector. Finance Minister AMA Muhith revealed the figure in Parliament on Wednesday.
He also disclosed the names of 100 top loan defaulters, individual and institutional, in response to a question of reserved seat lawmaker Pinu KhanCiting the data compiled by Credit Information Bureau of Bangladesh Bank up to June 2018, the finance minister said a total of 230,658 loan defaulters owe the financial institutions Tk 131,666.16 crore (around 1.32 billion).
The top 100 loan defaulters include Mohammad Elias Brothers (PVT) Ltd, Quantum Power System Ltd, Remiex Footwear Ltd, Rubya Vegetable Oil Industries Ltd, Rising Steel Ltd, Dhaka Trading House, Benetex Industries Ltd, Anowara Spinning Mills, Crescent Leather Products Ltd, Yasir Enterprise, Chowdhury Knitwear Ltd, Siddique Traders, Rupali Composite Leather Ware Ltd, Alppa Composite Towels Ltd, Hall Mark Fashion Ltd, Monno Fabrics Ltd, Fair Yarn Processing Ltd, Fair Trade Fabrics Ltd, Sahrish Composite Towel Ltd, Mak International, Suruj Miah Jute Spinning Mills Ltd, Pacific Bangladesh Telecom Ltd, Saleh Carpet Mills Ltd, Padma Poly Cotton Knit Fabrics Ltd, SK Steel, Helpline Resources Ltd, H Steel Rerolling Ltd, Otobi Ltd, Bismillah Towels Ltd, Taipei Bangla Fabrics Ltd, Dhaka North Power Utility Ltd, T & Brothers Knit Composite Ltd, Tania Enterprise Unit-2, Six Seasons Apartment Ltd, Islam Trading Consortium Ltd, Rahman Spinning Mills Ltd, Japan BD SEC. Printing and Papers Ltd, Bangladesh Industrial Finance Company Ltd, Sematcity General Trading Ltd, MK Ship Builders and Steels Ltd, Cotton Corporation, National Steel, MBA garments and Textile Ltd, Sonali Jute Mills Ltd, Exper Take Ltd, Wallmart Fashion Ltd, Saad Musa fabrics Ltd, Chittagong Ispat, Agro Industries (PVT) Ltd, Himalaya Paper and Board Mills Ltd, Amder Bari Ltd, Emdadul Haque Bhuiyan, Chowdhury Towel Industries (PVT) Ltd, Chowdhury Leather and Company Ltd, Earth Agro Firms Ltd, Northern Power Solution Ltd, MAK Ship Builders Ltd, The Arab Contractors BD Ltd, One Denim Mills Ltd, Liberty Fashion Wares Ltd, Biswas Garments Ltd, Mustard Trading, Hindul Wali Textile Ltd, Sagir and Brothers, Globe Metals Complex Ltd, Ornet Service Ltd, Jalal and Sons, Corolla Corporation BD Ltd, Sayeed Foods Ltd, Apex Knit Composite Ltd, SA Oil Refinery Ltd, Ali Paper Mill Ltd, Dredge Bangla Pvt Ltd, Galaxy Sweater and Yarn Dyeing Ltd, Arjan Carpet and Jute Weaving Ltd, Intraco CNG Ltd, Fortune Steel, Fiber Shine Ltd, Doel Apparels Ltd, Zahid Enterprise Ltd, Mozibor Rahman Khan, Care Specialised Hospital and Research Centre Ltd, Zaynab Trading Company Ltd, Tabassum Enterprise, Apex Weaving and Finishing Mills Ltd, Resource Development Foundation, The Well Tex Ltd, Delta System Ltd, Telebarta Ltd, MR Sweater Ltd, REPHCO Pharmaceutical Ltd, Mabiya Ship Breakers, Diabetic Association of Bangladesh, Northern Industrial Ltd, New Rakhi Textile Ltd, Alltex Industries Limited, Shafique Steel, Zarjis Composite Knit Industries Pvt Ltd and Hilful Fuzul Samajkalyan Sangstha.
According to the Credit Information Bureau, state-run commercial banks are the worst sufferers of default loans.
Sonali Bank is bearing the burden of highest default loans of Tk 188.4 billion and is followed by Janata Bank (Tk 148.4 billion), Agrani Bank (Tk 92.8 billion) and Basic Bank (Tk 85.7 billion).
National Bank tops the list of private commercial banks with highest default loans. Its default loans amount to Tk 50.76 billion followed by South East Bank (Tk 39.9 billion) and Prime Bank (Tk 34.5 billion).
Economists and banking sector experts consider non-performing loan a big challenge for the sector.According to Bangladesh Institute of Bank Management, the NPL ratio has been hovering above the 10-percent between 2014 and 2018.
The state-run banking sector think tank found in March this year that NPL ratio in Bangladesh was higher than neighbouring Nepal (less than 2 percent) and India (7 percent.)
NPL is a sum of borrowed money upon which the debtor has not made the scheduled payments for a period of usually at least 90 days for commercial banking loans and 180 days for consumer loans.