Dhaka, April 7 -- Sixteen banks in Bangladesh-both state-owned and private-are grappling with a growing financial crisis triggered by months of aggressive loan disbursement far beyond regulatory limits.

According to Bangladesh Bank, all 16 institutions exceeded the Advance Deposit Ratio (ADR) limit at the end of December, with one bank reportedly issuing loans worth 140 percent of its deposits.

Seven banks lent more than 100 percent of their total deposits, effectively outstripping their capacity to recover the funds.

Of these seven, six were controlled by the S Alam Group, a conglomerate closely tied to the previous Awami League government.

The seventh bank's board was led by a top figure in the Bangladesh Association of Banks (BAB) ...