Bangladesh Bank has formally rejected the capital recovery plans submitted by four state-owned banks — Agrani, Janata, BASIC, and Rupali — citing concerns over their feasibility. The central bank highlighted that the combined deficit of these institutions stood at approximately Tk31,000 crore as of December 2024. Each bank had been instructed to develop a five-year plan to eliminate the shortfall by 2029, but officials determined that most proposals were overly optimistic.
Agrani Bank, for instance, proposed reducing its capital deficit by Tk6,245 crore over five years, despite reporting a net loss of Tk937 crore in 2024. Observers note that the likelihood of generating sufficient profit growth, receiving additional government recapitalisation, or substantially lowering non-performing loans (NPLs) remains low, rendering the plan unrealistic. Consequently, Bangladesh Bank returned Agrani’s submission for revision.
BASIC Bank submitted a plan to reduce its deficit from Tk8,621 crore to Tk3,257 crore by 2029, while Janata Bank projected a remaining deficit of Tk20,600 crore within the same timeframe. Rupali Bank, by contrast, submitted a relatively credible plan deemed acceptable by regulators.
In the case of Sonali Bank and Bangladesh Development Bank Limited (BDBL), both institutions faced provisioning shortfalls of Tk4,763 crore. Despite this, they reported capital surpluses at the close of 2024, thanks to temporary provision forbearance measures. Sonali Bank recorded a modest Tk64 crore surplus and aims to expand this to Tk5,842 crore by 2029. BDBL is pursuing a similar trajectory of surplus growth.
Economists emphasise that profit growth alone will not suffice to restore financial stability. Comprehensive strategies are required, including full balance-sheet restructuring, rigorous risk management, accelerated recovery of NPLs, government recapitalisation, deployment of specialised recovery teams, and expedited legal proceedings against defaulters.
According to Bangladesh Bank, 24 banks have yet to satisfy the minimum capital requirement. By June 2025, the total shortfall across the banking sector had surpassed Tk155,000 crore, underscoring the urgent need for systemic reform.
Table: State-Owned Banks’ Capital Deficits and Plans (2024–2029)
| Bank Name | 2024 Deficit (Tk crore) | 2024 Net Profit/Loss (Tk crore) | Proposed 2029 Deficit/Surplus (Tk crore) | Bangladesh Bank Assessment |
|---|---|---|---|---|
| Agrani Bank | 6,245 | -937 | 0 (plan unrealistic) | Rejected |
| BASIC Bank | 8,621 | N/A | 3,257 | Rejected |
| Janata Bank | 20,600 | N/A | 20,600 | Rejected |
| Rupali Bank | N/A | N/A | Reduced (realistic plan) | Accepted |
| Sonali Bank | 4,763 (provisioning) | Surplus 64 | 5,842 (surplus target) | Acceptable |
| BDBL | 4,763 (provisioning) | N/A | Increased surplus | Acceptable |
The central bank continues to monitor these banks closely and is expected to enforce stricter corrective measures for those failing to present credible recovery strategies.