BB Reaches Initial Decision on Defaulted Loans

By the Editorial Team · Monday, October 5, 2026

Padma Bank reported a slight decrease in defaulted loans to Tk 4,933 crore as of June 2026, representing about 90 percent of its total loans, amid efforts like loan rescheduling and exit schemes. Despite this improvement, the high level of non-performing loans and challenges in accessing significant government-linked deposits continue to strain the bank's financial stability and investor confidence.

Padma Bank reported a slight decline in its defaulted loans as of June 2026, according to recent data released by the institution. The bank's total assets stood at approximately Tk 6,347 crore during this period, with defaulted loans amounting to Tk 4,933 crore, representing about 90 percent of total loans. This marks a small improvement compared to June 2025, when defaulted loans were recorded at Tk 5,131 crore or approximately 91.66 percent of total loans.

The bank has managed to recover some funds primarily through loan rescheduling initiatives and exit schemes aimed at reducing the volume of non-performing loans. Despite these efforts, the high proportion of defaulted loans remains a significant concern.

A substantial share of Padma Bank’s assets is associated with various state-owned entities, highlighting the bank’s extensive exposure to government institutions. Approximately Tk 3,000 crore in deposits from 43 government agencies and organizations are held by Padma Bank. These include major state-owned banks such as Sonali Bank, Janata Bank, Agrani Bank, and Rupali Bank, as well as state entities like the Investment Corporation of Bangladesh (ICB), Jiban Bima Corporation, Sadharan Bima Corporation, Bangladesh Power Development Board, Titas Gas, Bangladesh Telecommunication Regulatory Commission (BTRC), Mongla Port Authority, and Chattogram Port Authority.

Additionally, the bank holds around Tk 760 crore on behalf of the Climate Change Trust Fund and related entities. These funds have reportedly remained inaccessible for several years, complicating Padma Bank’s liquidity management and asset recovery efforts.

At an event addressing the bank's financial situation, Chairman Mominul Islam emphasized that reviving investor confidence within the capital market remains one of the greatest challenges ahead, despite ongoing reforms aimed at restructuring and stabilization.

The gathering also included Finance Ministry Financial Institutions Division Secretary Nazma Mubarek and Insurance Development and Regulatory Authority (IDRA) Chairman Mir Nadia Nivin, underscoring the government’s continued oversight and interest in addressing systemic challenges faced by state-linked financial institutions.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.