State-owned Agrani Bank has successfully excised Tk3,584 crore (approximately £225 million) from its volume of defaulted loans over the course of 2025. This significant reduction is a cornerstone of a wider, aggressive strategy by Bangladesh’s public sector banks to clean up balance sheets and mitigate the systemic risks posed by non-performing assets (NPAs).
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A Turning Point for Asset Quality
According to the bank’s Managing Director, Md Anwarul Islam, these concerted efforts have resulted in a substantial improvement in the bank’s health. By the close of 2025, the defaulted loan ratio plummeted by nearly five percentage points. At the end of 2024, the bank was burdened with Tk32,002 crore in defaults, representing a staggering 40.49% of its total portfolio. By December 2025, this figure was pared down to Tk28,616 crore, or 35.52%.
“Upon assuming the role of Managing Director, we implemented a suite of rigorous initiatives aimed specifically at debt recovery and credit discipline,” Mr Islam stated. “While these results are encouraging, we are far from finished. Our mandate is to bring the default ratio below 20% by 2026.”
Financial Performance Overview: 2024 vs. 2025
| Key Performance Indicator | 2024 (Tk Crore) | 2025 (Tk Crore) | Year-on-Year Change |
| Defaulted Loans | 32,002 | 28,616 | -3,584 (11.2% reduction) |
| Operating Profit | 1,511 | 2,502 | +991 (65.6% increase) |
| Total Deposits | 99,232 | 113,064 | +13,832 (13.9% increase) |
| Remittance Inflows | 21,033 | 33,961 | +12,928 (61.5% increase) |
| Total Loan Portfolio | 79,037 | 80,573 | +1,536 (1.9% increase) |
Record Profits and Strategic Recovery
The aggressive recovery of bad debt has served as a primary engine for profitability. Agrani Bank reported its highest operating profit in history last year, reaching Tk2,502 crore. This surge was underpinned by a massive recovery of Tk10,234 crore from defaulters—a nearly sixfold increase compared to the Tk1,726 crore recovered in 2024.
Breaking down the recovery mechanics, Mr Islam revealed that:
Tk8,368 crore was recovered through strategic rescheduling of debt.
Tk1,009 crore was reclaimed in direct cash payments.
Tk936 crore was recouped from previously written-off accounts.
For the current year, the bank has upped the ante, setting a combined recovery target of Tk12,200 crore.
Remittance and Trade Dynamics
Beyond its internal restructuring, the bank saw a phenomenal 61.5% spike in remittance inflows, as expatriate Bangladeshis increasingly utilised formal channels. However, the trade outlook remained mixed; while import handling rose to Tk54,367 crore, exports facilitated by the bank saw a slight contraction, dipping to Tk13,252 crore.
Despite the dip in export figures, the bank’s overall trajectory suggests a pivot toward stability and fiscal responsibility, marking a vital chapter in the reform of the nation’s state-owned banking sector.