Highlights:
- Rupali Bank recovered just Tk4.03 crore from its top 20 defaulters
- Top 20 borrowers owe Tk9,859 crore in outstanding loans
- Non-performing loans reached Tk19,804 crore, nearly 38% of total loans
- Beximco Group topped the defaulter list with Tk994 crore
- Bank faces Tk18,026 crore capital shortfall and mounting losses
- 2,596 court cases involving Tk12,664 crore hamper loan recovery
State-owned Rupali Bank recovered just Tk4.03 crore from its top 20 loan defaulters in the first half of 2026, despite having Tk9,859 crore in outstanding loans to them, equivalent to nearly half of its total non-performing loans (NPLs).
The bank’s total NPLs stood at Tk19,804.59 crore in June, accounting for 37.98% of its total outstanding loans of Tk47,906 crore, while its actual capital shortfall reached Tk18,026 crore, according to a report prepared by Bangladesh Bank’s Supervisory Data Management and Analytics Department.
The figures highlight the bank’s persistent struggle to recover large defaulted loans, with weak collection, loan write-offs and prolonged litigation putting further pressure on its financial position.
Recovery from the top 20 defaulters has fluctuated sharply in recent years. Rupali Bank collected Tk45.70 crore from them in 2024, rising to Tk361 crore in 2025, before plunging to just Tk4.03 crore in January-June 2026.
Overall recovery from NPLs stood at Tk381 crore in 2024 and Tk1,274 crore in 2025. The bank recovered Tk330 crore in the first six months of 2026, against a full-year target of Tk2,300 crore.
Beximco tops defaulter list
Beximco Group topped the list of the bank’s 20 largest defaulters, with Tk994 crore in outstanding loans, followed by state-owned Bangladesh Sugar and Food Industries Corporation with Tk908 crore.
Narayanganj-based Crony Group owed Tk872 crore, while Khulna-based Jute Textile Mills had Tk724 crore in outstanding loans. Chattogram-based Noorjahan Group and HS Composite owed Tk630 crore and Tk620 crore, respectively.
Madaripur Spinning Mills owed Tk618 crore, while Badar Spinning Mills of Blue Planet Group had Tk604 crore outstanding. Dolly Construction and Sattar Group owed Tk506 crore and Tk403 crore, respectively.
Other major defaulters included Benitex Industries with Tk371 crore, Crescent Jute Mill of Khulna with Tk325 crore, and Global Trading Corporation and Sonali Traders of S Alam Group with Tk316 crore.
Bashundhara Group’s Bashundhara Multi Paper Industries and Bashundhara Paper Mill Limited owed Tk309 crore, while five companies under Thermex Group had Tk302 crore in outstanding loans.
The remaining borrowers on the list were Galco Steel (Bangladesh) Limited with Tk287 crore, Universal Medical College Hospital Limited with Tk285 crore, Bengal Leather with Tk275 crore, Japan Bangladesh Securities Paper Limited with Tk270 crore, and Vargo Media with Tk240 crore.
However, Rupali Bank informed Bangladesh Bank that Bashundhara Paper Mill Limited and Universal Medical College Hospital Limited exited default status through rescheduling in April, while Benitex Industries and Jute Textile Mills did so in May.
Write-offs and court cases constrain recovery
Despite weak recovery, the bank continued to write off substantial amounts of defaulted loans. It wrote off Tk490 crore in the first half of 2026, following Tk518 crore in 2024 and Tk494 crore in 2025.
Loan write-offs remove defaulted loans from a bank’s main balance sheet, but do not extinguish borrowers’ repayment obligations. Recovery from written-off loans has also remained weak. Rupali Bank collected just Tk4.14 crore from this category in January-June 2026, compared with Tk44.25 crore in 2024 and Tk25.18 crore in 2025.
Prolonged litigation has further delayed loan recovery. As of June, the bank had 2,596 cases pending with Artha Rin Adalats, involving Tk12,664 crore.
Capital shortfall and losses deepen crisis
Alongside its high NPL ratio, Rupali Bank is facing a severe capital shortage. Its actual capital shortfall stood at Tk18,026 crore in June, falling to Tk5,232 crore after regulatory forbearance.
The bank also reported an operating loss of Tk233 crore and a net loss of Tk397 crore up to June.
At the end of June, its deposits stood at Tk72,636 crore against loans of Tk47,906 crore, resulting in a reported loan-to-deposit ratio of 70.43%.
Banking analysts say persistent long-term defaults are creating serious problems for banks, particularly by constraining liquidity. Funds become tied up in provisioning against defaulted loans, reducing banks’ capacity to extend fresh loans to productive and profitable sectors. The resulting capital shortages also pose risks to the broader financial system.
NPLs, now exceeding 32% of total loans in Bangladesh’s banking sector, are disrupting the normal cycle of loan recovery and reinvestment, putting pressure on bank profitability, capital adequacy, fresh lending and overall economic activity, National Professor Mahbub Ullah said at a programme in Dhaka on Saturday.
As Rupali Bank is listed on the Dhaka Stock Exchange, its recurring losses and capital shortfall are also weighing on investor confidence and putting downward pressure on its share price, market participants say.
Agricultural lending exceeds targets
Despite its financial difficulties, Rupali Bank exceeded its agricultural lending targets in both of the past two fiscal years. It disbursed Tk400 crore in agricultural loans in the fiscal 2024-25 and Tk505 crore in FY26, surpassing the targets in both years.
Bangladesh Bank steps up oversight
The Bangladesh Bank has introduced several measures to curb NPLs and restore governance in state-owned banks. These include implementing the Prompt Corrective Action framework to strengthen institutional oversight of banks facing capital shortfalls and high levels of defaulted loans.
The central bank has also updated its loan write-off policy and urged faster disposal of cases pending with Artha Rin Adalats. It has restricted restructuring and rescheduling opportunities while setting monthly and quarterly cash recovery targets for the top 20 defaulters.
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