Following recent political shifts in Bangladesh, the nation’s economic environment experienced volatility, leading to slower loan recovery across the banking sector. Particularly after the fall of the Awami League government, private banks encountered significant challenges in recovering loans. During this period, many large and influential borrowers deferred repayments, sought long-term rescheduling, or made only minimal partial payments.
While several banks opted for softer approaches to reduce non-performing loans (NPLs), Bank Asia pursued a more strategic and structured methodology. The bank emphasised realistic cash flow assessments, careful evaluation of debt-to-equity ratios, infusion of fresh capital, and enhancement of collateral. Consequently, NPL levels temporarily surged to 19% by mid-2025 among certain large clients, yet strategic interventions brought the ratio down below 5% by the end of the year.
Key Strategies Implemented by Bank Asia:
Assisting borrowers in repaying loans through the sale of business assets
Enforcing legal measures and travel restrictions against deliberate defaulters
Seizing mortgaged and liened assets
Confiscating land and company shares owned by entrepreneurs
Core Financial Indicators (2023–2025)
| Year | Deposits (BDT crore) | Operating Profit (BDT crore) | NPL Ratio (%) |
|---|---|---|---|
| 2023 | 33,769 | 1,153 | 6.7 |
| 2024 | 41,655 | 1,705 | 11.4 |
| 2025 | 45,648 | 1,913 | <5 |
By 2025, Bank Asia’s capital adequacy reached approximately 16%, and its loan-to-deposit ratio remained below 60%, underscoring strong liquidity and robust risk management.
The bank also played a strategic role in client project sales to facilitate loan repayment. Notable examples include the transfer and capital restructuring of Abdul Monem Sugar Refinery and Robintex Group ownership, alongside share transfers in Spinning Mills, all of which supported debt recovery efforts.
Firm legal action was taken against deliberate defaulters, including asset-backed enforcement against Prime Ship Recycling and Mukka Multilayer Company, ensuring loan security.
Bank Asia Managing Director, Sohel R. K. Hossain, commented, “Rather than relying on a single approach, we adopted a multi-faceted strategy. This has enhanced both loan recovery and asset quality. Our aim is to transform Bank Asia into one of the nation’s leading banks through efficient and professional banking practices.”
In summary, Bank Asia’s innovative approach, cautious financial assessment, and decisive legal measures have successfully reduced NPLs, establishing a new benchmark for the banking sector in Bangladesh.