, Jan. 19 -- Bangladesh's banking sector is facing mounting pressure as non-performing loans (NPLs) have surged to alarming levels, raising concerns over the country's financial stability.

The total volume of NPLs has crossed Tk 6.44 lakh crore which is about 35.7 percent of all outstanding loans in the banking sector, according to the latest editorial published in the October-December 2025 News Bulletin of the International Chamber of Commerce-Bangladesh (ICC Bangladesh).

The figure is far higher than international benchmarks where NPL ratios in stable economies usually remain below 5 percent.

Excessive NPLs weaken bank balance sheets, erode capital adequacy, curtail lending capacity, inflate borrowing costs, deter fresh investment, a...