Rupali Bank Sets Historic Loan Recovery Milestone

At a time when Bangladesh’s banking sector continues to grapple with prolonged global economic pressures, a persistent foreign exchange shortage, liquidity constraints, and a mounting burden of non-performing loans (NPLs), state-owned Rupali Bank Limited has delivered an unusually strong performance. Through a combination of tighter financial discipline, strengthened accountability, and technology-driven management reforms, the bank achieved notable gains in loan recovery, deposit mobilisation, and remittance inflows during 2025, marking one of the most significant turnarounds in its history.

According to bank officials, loan recovery was elevated to the highest operational priority immediately after Managing Director Kazi Md Wahidul Islam assumed office. Particular emphasis was placed on the recovery of classified and written-off loans, alongside measures to reinforce enterprise-wide risk management. As a result, Rupali Bank recovered approximately Tk 1,300 crore in cash from classified and written-off loans in 2025, the highest figure among state-owned commercial banks for the year. Of this amount, around Tk 361 crore was collected from the top 20 large defaulters alone. In addition, recoveries worth nearly Tk 1,974 crore were secured through rescheduling arrangements and negotiated settlements. Collectively, total recoveries reached about Tk 2,335 crore, an unprecedented milestone for the institution.

A major driver of this achievement was the comprehensive digitalisation of legal and recovery processes. All loan-related litigation was brought under a centralised digital platform, enabling real-time monitoring, enhanced transparency, and faster decision-making from head office. By December 2025, the number of resolved cases rose to 823, compared with 571 a year earlier. The appointment of a chief legal adviser further strengthened the bank’s legal capacity and coordination.

The recovery momentum has had a tangible impact on asset quality. Between December 2024 and December 2025, total classified loans declined by roughly Tk 1,716 crore to around Tk 19,641 crore. Over the same period, the NPL ratio fell from 42 per cent to 38 per cent, while the provisioning shortfall narrowed significantly, easing pressure on the bank’s balance sheet.

Alongside balance sheet repair, Rupali Bank expanded credit to productive sectors, particularly small and medium enterprises. New SME lending reached approximately Tk 1,470 crore in 2025, the highest annual disbursement in the bank’s history. On the technology front, the bank launched its own mobile banking service and appointed a Chief Information Technology Officer to oversee and modernise ICT operations.

Deposit mobilisation also remained robust. More than 849,000 new accounts were opened during the year, while total deposits increased by about Tk 3,500 crore. Under a special 100-day campaign directed by the board, the bank mobilised nearly Tk 6,500 crore in fresh deposits and added around 400,000 new accounts. During the same period, remittance inflows through Rupali Bank amounted to approximately Tk 15,000 crore, and regulatory capital rose to around Tk 1,700 crore.

Managing Director Kazi Md Wahidul Islam has emphasised that the institution’s objective extends beyond short-term gains, focusing instead on building a sustainable, transparent, and technology-enabled bank. Analysts observe that strong leadership and modern management practices are gradually restoring Rupali Bank’s standing as a symbol of renewed confidence within Bangladesh’s state-owned banking sector.

Key Financial Indicators of Rupali Bank in 2025