The New Nation - Internet Edition

NATION BUSINESS REPORT

Default loans in the country's banking system have increased slightly to Tk 25,075 crore during the July-September period this year, led by the sliding loan recovery of private sector banks.

The amount with the country's 49 commercial banks was Tk 25,000 on June 30 2008, Bangladesh Bank data showed.

Banks had 12.34 per cent of their total loans in bad assets on September 30, which was 13.23 per cent in the same period 2007.

Four state-owned banks' classified loan and provision declined by about Tk 1,000 crore in the first quarter of the fiscal year, but private commercial banks saw a rise of the same amount in their bad debts during the period.

Classified loans of four state lenders - Sonali, Janata, Agrani and Rupali banks - stood at Tk 14,343 crore, which was 29.34 per cent of their total outstanding loans, in September this year, down from Tk 15, 289 crore in June.

Bad loans of 30 private banks soared to Tk 6,716 crore, which was 5.40 per cent of their total loans, from Tk 5,752 crore. Specialized state-owned banks had Tk 4,912 crore in bad assets as of September 30 while classified loan of foreign banks stood at Tk 249 crore.