Rupali Bank Sets Recovery Record

At a time when Bangladesh’s banking sector continues to grapple with prolonged global economic headwinds, foreign exchange shortages, liquidity stress and a persistent rise in non-performing loans (NPLs), state-owned Rupali Bank Limited has delivered a notable counter-narrative. Through a combination of strict financial discipline, strengthened accountability and technology-driven management reforms, the bank recorded landmark achievements in loan recovery, deposit mobilisation and remittance inflows during 2025.

Bank officials attribute much of this turnaround to the strategic priorities set after Managing Director Kazi Md Wahidul Islam assumed office. From the outset, the recovery of classified loans and enhanced risk management were elevated to the top of the operational agenda. The results have been striking. In 2025, Rupali Bank recovered approximately BDT 13 billion in cash from classified and written-off loans—the highest such recovery among state-owned commercial banks in that year. In addition, cash recoveries from the top 20 large defaulters alone amounted to BDT 3.61 billion, while a further BDT 19.74 billion was realised through rescheduling arrangements and negotiated settlements. Combined recoveries reached BDT 23.35 billion, marking a historic milestone for the institution.

A key driver behind this performance has been the digitalisation of legal and recovery processes. All loan-related litigation was brought under a centralised digital platform, enabling real-time monitoring from head office and significantly improving transparency and decision-making speed. By December 2025, the number of cases resolved had risen to 823, compared with 571 a year earlier. The appointment of a Chief Legal Adviser further strengthened the bank’s institutional capacity to pursue recoveries effectively.

These measures have had a tangible impact on asset quality. Between December 2024 and December 2025, the volume of classified loans fell by BDT 17.16 billion to BDT 196.41 billion. Over the same period, the NPL ratio declined from 42 per cent to 38 per cent, while provisioning shortfalls were reduced substantially—an important signal of improving balance-sheet resilience.

Beyond recovery efforts, Rupali Bank expanded credit to productive sectors, particularly small and medium enterprises (SMEs). In 2025, new SME loan disbursements reached BDT 14.7 billion, the highest annual figure in the bank’s history. Parallel investments in technology included the launch of the bank’s own mobile banking service and the appointment of a Chief Information Technology Officer to oversee broader digital modernisation.

Deposit growth also remained robust. More than 849,000 new accounts were opened during the year, and total deposits increased by around BDT 35 billion. A special 100-day drive, implemented under board guidance, alone mobilised nearly BDT 65 billion in fresh deposits and added approximately 400,000 new accounts. Remittance inflows through the bank stood at about BDT 150 billion, while regulatory capital rose to nearly BDT 17 billion.

According to Managing Director Kazi Md Wahidul Islam, the objective extends beyond short-term gains towards building a sustainable, transparent and technology-led institution. Analysts note that firm leadership and modern management practices are enabling Rupali Bank to gradually re-establish itself as a symbol of credibility within Bangladesh’s state-owned banking sector.

Key Financial Achievements of Rupali Bank in 2025