Dhaka, May 19 -- Bangladesh's banking sector is facing mounting challenges due to a substantial volume of non-performing loans (NPLs), seriously affecting banks' ability to extend new credit to investors.

According to the latest provisional data from Bangladesh Bank, private sector credit growth declined to 7.57 percent in March 2025, as many businesses struggle to access the loans they require from the banking system.

To gauge the true scale of the problem, the central bank has engaged both international and domestic audit firms to assess the actual asset values and loan defaults at several troubled banks.

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"Once the assessments are complete, the rea...