Bangladesh Banking Crisis: The banking condition of India’s neighboring country Bangladesh seems to be continuously deteriorating these days. According to recent data, the burden of bad loans (NPA) on the country’s banks has increased rapidly, which has become difficult to recover. In such a situation, about 32.26% of the total loan of banks has now turned into non-performing assets. Now Bangladesh has reached second place in the list of countries with NPA.

Rapidly increasing bad loans and weak monitoring in the banking system have made the situation worse. Its impact is not only on the banks but also on the economic condition of the country. According to experts, if the situation does not improve soon, the consequences for the country’s economy could be very bad.

Bad loan reached to the extent of how many crores of rupees?

According to the report, by March 2026, bad loans in Bangladesh have increased to 5.89 lakh crore Taka (about Rs 4.54 lakh crore). In just three months, about 31,000 crore rupees of loan has turned into NPA. In such a situation, it is being said that about one-third of the total bank loans of the country is now out of recovery.

Meet ‘Bunty-Babli’ of Hyderabad, crores of rupees embezzled in the name of investment, celebrated ‘honeymoon’ in Switzerland

Why did the banking system deteriorate?

Actually, the banks did not properly estimate the danger while giving the loan. He gave huge loans on the basis of political influence and personal relationships rather than the repayment capacity of the borrower, which could not be recovered in time. This is the reason why today the financial condition of banks has become continuously weak. In such a situation, due to less capital with banks, it has become very difficult to give new loans to industries, businesses and common people.

The world’s largest water metro network will be built in Mumbai, it will cost Rs 6066 crore, what will be special?

Bank NPA Rise: Having a bank account is a common thing nowadays, everyone from child to elderly has one or the other account in the bank. Now whether it will be a government bank or a private bank, it completely depends on the consumer and his needs. But do you know whether your bank is safe or not? If you don’t know then after reading this report you are going to be shocked.

Private banks hit by ‘bad loans’
According to the report of rating agency ICRA (Investment Information and Credit Rating Agency of India Limited), the pace of increase in ‘bad loans’ (NPAs) in private banks is more than that in government banks. New bad loans of private banks may reach around 2.0% in FY27 (FY2027), which was 1.8% in FY2026. Whereas in government banks it is estimated to be around 1.2%, which was 0.9% in the financial year 2026. That means government banks are safer than private banks.

What is ‘bad loan’
For those who do not know, let us tell you that ‘Bad Loan’ is also called NPA (Non Performing Asset). This is a loan in which the bank gives the loan to the consumer but is not able to recover it. After giving the loan, the bank fixes a fixed installment, which the consumer has to pay every month. But when the consumer is not able to repay this installment, then this loan comes in the category of ‘bad loan’. However, the customer gets 90 days (three months) time for this.

Private banks give loans without guarantee
Let us tell you that private banks provide unsecured and MSME loans. Because of this, the risk of them turning into ‘bad loans’ increases. Especially when this loan is given to small traders and in the form of personal loan, then the risk of it sinking remains high. If any business sinks or there is any small impact on the business, the traders are not able to repay it.