AN INCREASE in the gross ratio of non-performing loans to the total loans from 8.8 per cent in March to 10.1 per cent in June, as the central bank says in its April-June quarterly report that was published on October 5, remains a concern, warranting a close oversight on defaulted loans. The Bangladesh Bank — which in its data released on October 1 says that the amount of defaulted loans soared to Tk 1,560.39 billion after June from Tk 1,316.2 billion in March; the figure was Tk 1,206.56 billion after December 2022 — notes that the accumulation of non-performing loans heightens threat to the stability of the financial sector. The ratio of gross non-performing loans to the total loans increased to 25.01 per cent in June from 19.87 per cent in March for state-owned commercial banks and to 6.46 per cent in June from 5.96 per cent in March for private commercial banks. The ratio of gross non-performing loans to the total loans, however, slightly declined to 4.80 per cent in June from 4.90 per cent in March…
