State-owned Janata Bank is facing a severe financial breakdown as defaulted loans from just 33 large clients have surged to a staggering Tk56,131 crore. Internal documents reveal that a massive portion of this debt is concentrated among two major conglomerates: Beximco Group and S Alam Group, which together account for more than half of the total defaults.
Janata Bank has officially become the worst-performing state-owned commercial bank in Bangladesh. As of September 2025, a shocking 70% of its total loans are classified as non-performing (NPLs).
NPL Growth: Classified loans rose from 18% in 2022 to 71% (Tk72,107 crore) by June 2025.
Capital Deficit: The bank's capital erosion reached Tk65,093 crore in June 2025, up from Tk9,262 crore in 2022.
Profitability: While peers like Sonali and Rupali Bank remained profitable, Janata Bank recorded a loss of Tk3,071 crore at the end of 2024.
The top 11 defaulters alone owe Tk42,820 crore. Major names including Beximco Group: Tk23,000 crore, S Alam Group: Tk9,400 crore, Crescent Group: Tk2,050 crore, Ranka Group: Tk1,720 crore, Ratanpur Group: Tk1,227 crore.
Analysts and former officials point to a "lack of transparency" and "political intervention" during the previous regime. Many loans were hidden under multiple company names until the government change on August 5, 2024. Furthermore, 77% of all loans (Tk76,840 crore) are concentrated in just five branches, making the bank highly vulnerable to misappropriation.
Managing Director Md Mazibur Rahman stated the bank is pursuing legal action and asset auctions to recover funds. While NPL recoveries have reportedly doubled compared to last year, the bank has only met 4% of its recovery target as of June 2025.
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