Dhaka, June 19 -- The alarming escalation of the provision shortfall in Bangladesh's banking sector has laid bare the structural weaknesses that have long been concealed beneath a veneer of regulatory leniency and political patronage. According to Bangladesh Bank, the combined provision deficit surged over sixfold in just a year, reaching Tk 170,655 crore in March 2025 - a stark rise from Tk 26,585 crore a year earlier.
This deficit, which represents the gap between required provisions and what banks have set aside to cushion against loan defaults, reflects not only poor financial discipline but also systemic mismanagement. Banks were required to hold Tk 275,103 crore in provisions by March 2025, but had managed to allocate just Tk 104,448...