Struggling BASIC Bank bid for revival falters with little gains

The scam-stricken BASIC Bank PLC has intensified default-loan-recovery drive against its top 20 defaulters in a struggle for revival, but actual collection stands nowhere near regulatory direction.

According to an internal bank report, the total recovery came to just Tk 48 million against outstanding loans of Tk 25.40 billion as of December 2025.

The report shows the top 20 defaulting borrowers had a sanctioned loan amount of more than Tk 17.70 billion, while accumulated interest and penalties pushed total outstanding liabilities far higher.

During the third quarter of 2025 (October-December), recovery stood at only Tk 38.4 million, leaving a yawning gap between targets and outcomes.

New Dhaka City Development tops the list of defaulters with an outstanding balance of Tk 2.38 billion, though it is among the few borrowers to make some repayments, totaling Tk 27 million in 2025.

Bangladesh Development Company Ltd with Tk 2.23 billion, Amader Bari Limited Tk 2.05billion, Crystal Steel and Ship Breaking Ltd Tk 1.32 billion and Western Housing Limited Tk 1.31 billion follow closely.

Alarmingly, 16 of the top 20 defaulters made no repayment at all throughout 2025. This group includes well-known firms such as Western Housing Limited, The Welltex Limited and Regent Weaving Limited, underscoring the severity of the bank's recovery challenge.

Branch-wise data show that the bank's Shantinagar branch alone accounts for seven of the top defaulters, making it the most exposure-heavy unit. Significant default accounts are also concentrated in Agrabad, Dilkusha and Gulshan branches.

The report is signed by Md Fida Hasan, deputy general manager of the Recovery Division.

A source in the Basic bank has said that the bank has recently held business- review meetings to strengthen legal action and improve recovery processes. However, most of the large loans remain classified as "bad or loss (B/L)", effectively freezing a substantial portion of the bank's funds.

Banking experts say without faster court settlements, tougher enforcement measures or realistic rescheduling mechanisms, recovery from these large defaulters is likely to remain slow, continuing to strain BASIC Bank's liquidity and overall financial health.

"The bank has granted loans bypassing rules in recent years, increasing the volume of classified loans and eroding the value of collateral," says a senior bank official.

The government had appointed Sheikh Abdul Hye Bachchu chairman of BASIC Bank in September 2009 on a contractual basis for three years. Later, his tenure was extended for two more years in September 2012.

Sources have said BASIC's performance started deteriorating as Mr Bachchu and other directors allegedly indulged in "gross irregularities in sanctioning loans in violation of relevant rules and regulations".

The bank's board of directors was dissolved in 2014-as a consequence of such wonton misdealing.

Bangladesh Bank findings showed a staggering Tk 35 billion in loans had allegedly been disbursed irregularly from Gulshan, Dilkusha and Shantinagar branches of the bank between 2009 and 2011.

Presently, the problem-ridden bank has taken a three-year plan of action to reduce its staggering default loans to a tolerable level.

The government provided the bank with funds between fiscal years 2013-2014 and 2016-2017 to meet its capital shortage.

The bailout amounted to Tk 12 billion in 2015 and Tk 10 billion in 2017 for capital replenishment-desperately needed for healing the bank's existential crisis.

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