22 of 61 Banks in Accumulated Losses Totalling Tk 254,000 Crore; Deposit Protection Capped at Tk 200,000

Twenty-two of the country's 61 banks are in accumulated losses. Their combined losses amount to Tk 254,000 crore. They include four state-owned banks, two specialised banks, one foreign bank and 15 private banks. The picture has renewed depositors' concern that money kept in a bank is not automatically fully safe.

According to a Bangladesh Bank report placed before the parliamentary standing committee on the finance ministry, these 22 banks were in accumulated losses as of last March, with combined losses of Tk 254,000 crore.

The four state-owned banks in loss are Janata, Agrani, Rupali and BASIC Bank. The two specialised banks are Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank. The National Bank of Pakistan is also in loss among foreign banks.

The private banks include AB, Bangladesh Commerce, EXIM, First Security Islami, ICB Islamic, IFIC, Islami Bank Bangladesh, Meghna, National, Global Islami, Padma, Shimanto, Social Islami, Premier and Union Bank.

According to the central bank report, the banking sector's operating profit up to March 2026 was Tk 789 crore. But after all expenses and necessary adjustments, the net loss stood at Tk 8,417 crore.

The central bank report said high defaulted loans, shortfalls in provisioning against loans, capital crises and weak asset quality have reduced banks' ability to earn. As a result, many banks end up counting losses even when they have operating profits.

Amid this crisis, Islami Bank Bangladesh has taken a big hit. In the first nine months of this year, from January to September, the bank's after-tax net loss was Tk 3,303 crore. In the same period a year earlier, its profit was about Tk 79 crore. The information was released after the bank's 414th board meeting approved the unaudited financial statements for the third quarter.

In the July-September quarter of the current fiscal year alone, the bank lost Tk 1,976 crore, whereas it had made a profit in the same period a year earlier. On a solo basis, its loss per share in the first nine months was Tk 20.51; earnings per share in the same period a year earlier were Tk 0.49.

Its net asset value also fell in the same period. On a solo basis, net asset value stood at Tk 3,584 crore on 30 September, down from Tk 6,963 crore a year earlier — a fall of about Tk 3,379 crore in a year. The bank's financial statements cited falling investment income, a high rate of defaulted loans and rising profit expenses against deposits as reasons for the loss.

The material also said that after the S Alam Group took control in 2017, allegations arose that huge sums were taken out of Islami Bank in various names, and various reports put the group's alleged diversion at about Tk 100,000 crore. A large part of those loans has defaulted. The group lost control of the bank after the fall of the Awami League government on 5 August 2024; independent directors were later appointed and the bank now operates under Bangladesh Bank's supervision.

According to the report placed before the parliamentary committee, 12 banks had taken about Tk 85,000 crore in emergency liquidity support from the central bank as of 27 September. Islami Bank Bangladesh received Tk 17,000 crore, First Security Islami Bank Tk 15,810 crore, EXIM Bank Tk 12,010 crore, Social Islami Bank Tk 10,843 crore and National Bank Tk 10,568 crore. Union, Global Islami, AB, Bangladesh Commerce, ICB Islamic, Padma and Premier banks also received liquidity support. The material explained that liquidity support means borrowing emergency money from the central bank when a bank faces a cash shortage to return depositors' money or run daily transactions; a liquidity crisis does not by itself mean a bank has gone bankrupt.

A new deposit protection law has been enacted to protect depositors. Under the Deposit Protection Act 2026, if a bank or financial institution falls into a liquidation-like situation, a depositor will receive protection of up to Tk 200,000. The limit was previously Tk 100,000 and has been doubled in the new law. However, multiple accounts held by one person in different branches of the same bank will be considered together — so even if Tk 500,000 or Tk 1,000,000 is deposited in one bank, protection from the fund will be up to Tk 200,000 only, and recovery of the rest will depend on the bank's asset recovery and liquidation process.

To understand one's own bank's condition, the material advised looking at several indicators: defaulted loans, profit, capital adequacy and provisioning shortfalls in the annual financial report; whether the bank has enough liquidity to return money on depositors' demand; its credit rating; and Bangladesh Bank directions, special supervision, administrator appointments or bank merger decisions.

To reduce risk, the material also advised not concentrating a large amount of savings in one bank, but spreading it across several banks as needed. It said a bank should not be chosen only for a higher interest or profit offer; financial capacity, reputation, the defaulted-loan situation and regulator directions should be considered, and some money should be kept in an easily withdrawable account for emergencies.