The amount of default loan of the non-bank financial institutions (NBFIs) has reached the tune of Tk11,757 crore after September in a gap of three months, which is Tk1429 crore higher than the April-June quarter.
At the end of the June quarter, the amount of default loan was Tk10,328 crore, which was 15.39% of the total credit. The amount increased to Tk11,757, up by 17.62% compared to the previous quarter.
Random bank loans provided to companies, which exist in papers only, without proper scrutiny by the NBFIs was blamed for the situation.
The information was disclosed in the Quarterly Financial Stability Assessment Report of the Bangladesh Bank.
In March last year, the amount of default loan of the NBFIs was Tk10,354 crore which fell by Tk25 crore in June.
A BB official told The Business Standard that negligence to scrutinize while giving loans to any company has increased the number of default loans in the whole NBFI sector. In many NBFIs, the default loan rate would be as high as 50% to 90%.
Many credit recipients who got benefits from the NBFIs during the Covid pandemic are now willingly becoming defaulters.
As the BB cancelled the loan moratorium facility last December, it would increase the number of default loans in the next quarter, the official warned.
Meanwhile, the court has formed boards for People's Leasing and International Leasing as they are not submitting any report on their disbursed credit. The number of default loans would have increased if there was information on the credits of People's Leasing.
There are 34 NBFIs in the country of which six are on the verge of collapse with excessive default loan, provision and principal amount deficit.
After the June quarter, the total amount of default loan of these six NBFIs stood at Tk6,916.62 crore which is 66.96% of the total default credit.
Meanwhile, the BB instructed presenting of inspection reports at the board meeting of the banking financial institutions and NBFIs in a bid to check irregularities.
The Financial Institutions Inspection Department will present the findings at the directors meeting although the financial institutions concerned will arrange the meeting.
Seeking anonymity, a managing director of an NBFI told TBS that many loan recipients were not interested in repaying the loan as the BB instructed repayment of 50% of the loan which was huge for them. But the advantage to pay only 15% of the total loan was announced at the end of the year for which they could not pay on time.