Relaxed rescheduling policy, one off exit scheme start paying off
Banks’ non-performing loans (NPLs) declined by Tk21,957.31 crore in three months till December last year thanks to relaxed rescheduling policy of Bangladesh Bank that brought down the sour loan to 9.32% in the sector.
At the end of September last year, the amount of NPLs in the banking system were to the tune of Tk1,16,288.31 crore, or 11.99% of the total disbursed loans, according to the latest Bangladesh Bank (BB) data.
However, NPLs rose by Tk420 crore in 2019 over last year.
Bankers said the large scale loan rescheduling took place in the final quarter of last year that helped reduce the high amount of NPLs in the banking sector.
Last year, NPLs amounting to Tk50,434 crore were rescheduled, up 117.29% from a year earlier, according to BB data.
Banks rescheduled Tk23,210 crore in 2018.