Top 20 loan defaulters in Bangladesh named

one crore =10 million
one EUR = BDT 94.53

The honourable Finance Minister of Bangladesh Mr. AHM Mustafa Kamal informed the parliament today that there were 266,118 loan defaulters in the country as of December 2018. A High Court order, however, prevented names of some defaulters from being published, noted the finance minister.

The top 20 defaulters, as per the Credit Information Bureau of the central bank of Bangladesh, are Quantum Power System Limited, Samannaz Super Oil Ltd, BR Spinning Mills Limited, Suprov Spinning Limited, Rimex Footwear Ltd, Rising Steel Limited, Computer Source Limited, Benetex Industries Ltd, Max Spinning Mills, SA Oil Refinery Ltd, Rubya Vegetable Industries Ltd, Anowara Spinning Mills, Crescent Leather Products Ltd, Suprov Rotor Spinning Limited, Yasir Enterprise, Chowdhury Knitwears Ltd, Siddique Traders, Rupali Composite Leather Wear Ltd, Alppa Composite Towels Limited and MM Vegetables Products Ltd.

On the March 01, 2018 the Daily Star newspaper reported the amount of loan defaults of Mohammad Ilias Brothers was BDT 889.49 crore, Quantum Power Systems Ltd BDT 558.9 crore, Jashim Vegetable Oil Ltd BDT 547.95 crore, Max Spinning Mills BDT 525.60 crore, Benetex Industries BDT 516.94 crore, Dhaka Trade Housing BDT 485.29 crore,  Anwar Spinning Mills BDT 474.37 crore, Siddique Traders BDT 428.57 crore, Yasir Enterprise BDT 414.80 crore, Alfa Composite Towels Ltd BDT 401.73 crore, Legend Holdings BDT 347.85 crore, Hallmark Fashion Ltd BDT 339.34 crore, Mac International BDT 338.74 crore, Monno Fabrics BDT 338.37 crore, Fair Trade Fabrics BDT 322.4 crore, Saharis Composite Towel BDT 312.96 crore, Nurjahan Super Oil Ltd BDT 304.49 crore, Keya Yarn Ltd BDT 292.53 crore, Saleh Carpet Mills BDT 287.1 crore, Fair Yarn Processing Ltd BDT 273.16 crore, SK Steel BDT 271.48 crore, Chowdhury Knitwear BDT 269.38 crore, Help Line Resources Ltd BDT 258.30 crore, Six Seasons Apartment Ltd BDT 254.57 crore and Bismillah Towels Ltd BDT 243.84 crore.

The amount of non-performing loans (NPL) stood at BDT 93,911 crore or EUR 9.935 billion at the end of 2018, up from BDT 74,303 crore a year ago, according to the central bank data. They accounted for 10.3% of the banking sector’s total loans, up from 9.3% in 2017.

The majority of the total amount of NPLs is still held by the country’s eight state-owned commercial banks, standing at BDT 534,840 crore at the end of 2018, up just over 25% year-on-year.

Yet worryingly the amount of default loans is rising faster at the private commercial banks, having ballooned by 30% year-on-year to end 2018 at BDT 38,140 crore.

Against this background, Mr. Mustafa Kamal also briefed the House on the imminent launch of three new private banks – namely Bengal Bank Limited, People’s Bank Limited and Citizen Bank Limited, after the central bank in a board meeting on February 17 decided to issue their licenses.

Responding to a written question of Mr. Md Nurunnabi Chowdhury MP of Bhola 3, the finance minister said there are currently 41 private commercial banks and nine foreign banks in the country, besides the state-owned commercial banks.