Tk 2.06 Trillion Stuck in 138,686 Cases at 20 Bangladesh State-Run Banks

💰 Dhaka, Bangladesh — State-run banks and financial institutions in Bangladesh are grappling with thousands of long-pending cases trapping over Tk 2.06 trillion — with Janata Bank leading the list with Tk 1.11 trillion sucked out of vaults into a labyrinth of litigation.

📊 Until May 2026, 20 banks and financial institutions had 138,686 loan-related cases pending with courts, with some Tk 2.06 trillion stuck in legal proceedings, sources confirmed to The Financial Express.

📋 Bank-by-Bank Breakdown of Trapped Funds

📊 Data shows the distribution of pending cases and trapped funds across major state-run banks:

• 🏦 Janata Bank: 13,000+ cases involving Tk 1.11 trillion (highest)
• 🏦 Sonali Bank: 12,747 cases, Tk 315 billion stuck
• 🏦 Agrani Bank: 22,131 cases involving Tk 192.44 billion
• 🏦 Basic Bank: 1,260 cases involving Tk 164 billion
• 🏦 Rupali Bank: 6,641 cases involving Tk 145.11 billion
• 🏦 Bangladesh Krishi Bank: Tk 52.31 billion involving 48,606 cases
• 🏦 Bangladesh Development Bank Ltd (BDBL): 2,614 cases pending, Tk 25.95 billion stuck
• 🏦 Investment Corporation of Bangladesh (ICB): Tk 28.22 billion stuck in 312 cases

🤝 FID Pushes for Quicker Resolution of Top 100 Cases

📊 Officials at the Financial Institutions Division (FID) said they were holding series of meetings with the managements of those institutions for quicker resolution of top 100 cases having the highest financial involvement to recover the funds.

💬 “We are asking them to take proper measures for recovering the trapped money by resolving the cases,” said one official at the FID.

🏛 The Division recently held meetings with the authorities of the state-run banks for the stocktaking of their overall financial and operational situation, recent progress, existing problems and prospects, and ongoing banking-sector reforms. One of the main focuses of the meetings was recovering the non-performing loans and quicker resolution of the pending cases to retrieve the funds.

⚠ Bank Managements “Not Serious” About Recovery

💬 A senior FID official told The Financial Express the management of the state-run banks and financial institutions were found not serious about recovery of the money by resolving cases. He said in many cases it was found that lawyers concerned of the banks did not stay present at the court timely to deal with the matter.

📋 “The bank-appointed officers must be present at court during case hearings, and the engaged lawyers must properly monitor the hearing proceedings,” the FID instructed the management bosses of the banks and FIs at a recent meeting.

📊 The FID also asked them to make sure timely filing of execution case (artha jari) after receiving order issued by the Money Loan Court (artha rin adalat).

💬 FID Secretary Mobarek: “Alarming” Situation

📊 FID Secretary Nazma Mobarek in a recent meeting with the board and management of Janata Bank pointed out that a large portion of the bank’s loans remained tied-up in litigations.

💬 “Merely filing lawsuits should not be considered a recovery action. The status, decrees, execution stages, collateral positions, and recovery probabilities of major lawsuits must be reviewed regularly,” she instructed.

📊 Ms Mobarek in a meeting with Agrani Bank termed attachment of a large amount of money in litigation as “alarming.” She instructed that high-value cases must be prioritised for resolution. “At the same time, the performance of the panel lawyers and the respective recovery teams needs to be linked to the actual cash outcome.”

🌏 Strategic Context: Bangladesh Banking Sector Recovery Challenge

📊 The Tk 2.06 trillion stuck in litigation represents a massive drag on Bangladesh’s banking sector. To put the figure in perspective:

• 💰 Equivalent to over 5% of Bangladesh’s GDP
• 💰 Comparable to about 30% of the country’s annual national budget
• 💰 Sufficient to finance multiple Padma Bridge-scale infrastructure projects
• 💰 Equivalent to several years of total foreign direct investment inflows

🤝 For the affected banks, the trapped funds translate into:

• 💲 Capital impairment — funds locked in litigation cannot be deployed productively
• 📉 Reduced lending capacity — banks cannot extend fresh credit with trapped capital
• 💪 Provisioning pressure — aging cases require higher provisioning, squeezing profits
• 🛡 Capital adequacy stress — recapitalisation needs grow as cases age

📈 Path Forward: Faster Resolution Needed

✅ For Bangladesh’s banking sector reform agenda, the FID’s focus on the top 100 cases offers a pragmatic path forward. By concentrating recovery efforts on the highest-value cases, the government can achieve meaningful progress without being overwhelmed by the volume of 138,686 pending cases.

📊 Key reforms needed to accelerate resolution include:

• 🗓 Specialised tribunals — dedicated Money Loan Court benches for high-value cases
• 👩 Panel lawyer accountability — linking fees to recovery outcomes, not just filings
• 📋 Case management technology — digital tracking of case status, hearings and decrees
• 🤝 Collateral monetisation — faster auction of mortgaged assets through legal reform
• 💰 Asset Management Company — transfer of legacy NPLs to a dedicated recovery vehicle

🌏 For Bangladesh’s broader economy, unlocking even a portion of the Tk 2.06 trillion trapped in litigation would be transformational. The recovered funds could be redeployed as fresh credit to productive sectors — supporting SMEs, agriculture, export industries and infrastructure — while reducing the need for taxpayer-funded recapitalisation of state banks. With FID Secretary Mobarek’s direct engagement and focus on outcomes rather than process, there is cautious optimism that the coming months may see meaningful progress on resolving at least the highest-value cases that have long trapped Bangladesh’s banking sector capital in legal limbo.