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Did Bangladesh's T&A sector borrowers contribute to rising NPL?

01 Nov '25
4 min read
 Did Bangladesh's T&A sector borrowers contribute to rising NPL?
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Insights

  • According to reports, the non-performing loan ratios of the flagship RMG and textile sectors, considered key drivers of economic growth, stand at **% and **%, respectively. Only shipbuilding and leather reported higher NPL ratios. The RMG sector nevertheless remains vital for Bangladesh, accounting for more than **% of the total export earnings.

By June ****, the banking sector in Bangladesh was standing on precarious ground: total loans had reportedly climbed to Taka **,**,*** crore, and yet in just three months, defaults ballooned by Taka ***,*** crore, while on a year-on-year basis, the increase in non-performing loans (NPLs) hit Taka ***,*** crore.

According to reports, in June ****, the default loan figure stood at Taka ***,*** crore, indicating that defaults have nearly tripled in a single year.

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