BASIC Bank Intensifies Loan Recovery Efforts Amidst Financial Struggles
BASIC Bank PLC is ramping up its efforts to recover defaulted loans from its top 20 borrowers as part of a broader strategy to revive its financial health. However, the bank’s recovery results remain significantly below regulatory expectations. An internal report reveals that as of December 2025, BASIC Bank managed to recover only Tk 48 million against a staggering Tk 25.40 billion in outstanding loans. This stark contrast highlights the challenges the bank faces in its recovery initiatives.
The report indicates that the top 20 defaulters collectively hold sanctioned loans exceeding Tk 17.70 billion. When factoring in accumulated interest and penalties, the total outstanding liabilities are even more alarming. During the third quarter of 2025, from October to December, the bank’s recovery efforts yielded a mere Tk 38.4 million, underscoring a substantial gap between the bank’s targets and actual outcomes.
Top Defaulters and Recovery Challenges
New Dhaka City Development leads the list of defaulters with an outstanding balance of Tk 2.38 billion, although it has made some repayments totaling Tk 27 million in 2025. Following closely are Bangladesh Development Company Ltd with Tk 2.23 billion, Amader Bari Limited at Tk 2.05 billion, Crystal Steel and Ship Breaking Ltd with Tk 1.32 billion, and Western Housing Limited at Tk 1.31 billion. Alarmingly, 16 of the top 20 defaulters have not made any repayments throughout 2025, including notable firms such as Western Housing Limited, The Welltex Limited, and Regent Weaving Limited. This situation highlights the severity of BASIC Bank’s recovery challenges.
Branch-specific data reveals that the Shantinagar branch is particularly burdened, accounting for seven of the top defaulters. Other branches, including Agrabad, Dilkusha, and Gulshan, also show significant default accounts. The report, signed by Md Fida Hasan, deputy general manager of the Recovery Division, indicates that the bank is taking steps to enhance its recovery processes through business-review meetings aimed at strengthening legal actions. However, many large loans remain classified as “bad or loss (B/L),” effectively freezing a significant portion of the bank’s funds.
Banking experts warn that without expedited court settlements, stricter enforcement measures, or realistic rescheduling options, recovery from these major defaulters is likely to remain sluggish. This ongoing situation continues to strain BASIC Bank’s liquidity and overall financial stability.
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Historical Context and Future Plans
The challenges facing BASIC Bank are rooted in a history of irregularities in loan sanctioning. The government appointed Sheikh Abdul Hye Bachchu as chairman in September 2009, with his tenure extended in 2012. However, the bank’s performance began to decline as allegations of gross irregularities emerged under his leadership. The board of directors was dissolved in 2014 due to these issues, and investigations by Bangladesh Bank revealed that Tk 35 billion in loans had been disbursed irregularly from various branches between 2009 and 2011.
In response to its ongoing financial crisis, BASIC Bank has implemented a three-year action plan aimed at reducing its default loans to a manageable level. The government has previously intervened, providing financial support to address the bank’s capital shortages, including bailouts of Tk 12 billion in 2015 and Tk 10 billion in 2017. As BASIC Bank continues its recovery efforts, the focus remains on overcoming its historical challenges and stabilizing its financial position.
