Rupali Bank Slashes Defaults, Sets Records

At a time when Bangladesh’s banking sector is grappling with persistent headwinds—including a prolonged global economic slowdown, foreign currency shortages, liquidity stress and a steady rise in non-performing loans (NPLs)—state-owned Rupali Bank Limited has emerged as a notable exception. Through a combination of stringent financial discipline, enhanced accountability, and technology-driven decision-making, the bank delivered a series of record-breaking achievements in 2025, particularly in default loan recovery, deposit mobilisation and foreign remittance inflows.

According to bank officials, these outcomes are closely linked to the strategic priorities set by Managing Director Kazi Md Wahidul Islam following his assumption of office. From the outset, the new management placed default loan recovery and risk management at the core of its reform agenda. As a result, Rupali Bank recovered approximately BDT 1,300 crore in cash from classified and written-off loans in 2025—the highest recovery figure among state-owned commercial banks for the year. In addition, cash recoveries of BDT 361 crore were secured from the top 20 large defaulters, while a further BDT 1,974 crore was realised through rescheduling and settlement arrangements. Taken together, total recoveries reached BDT 2,335 crore, marking a historic milestone for the institution.

A major contributor to this success was the digital transformation of case and litigation management. By bringing loan recovery lawsuits under a dedicated digital platform, the bank enabled real-time monitoring from its head office, significantly improving transparency and execution speed. By December 2025, a total of 823 cases had been resolved, compared with 571 cases in the previous year. To further streamline legal decision-making, the bank also appointed a Chief Legal Adviser, strengthening institutional capacity in this critical area.

These measures have had a visible impact on the bank’s overall asset quality. Between December 2024 and December 2025, the volume of classified loans declined by BDT 1,716 crore to BDT 19,641 crore. Over the same period, the NPL ratio fell from 42 per cent to 38 per cent, while the provision shortfall was reduced substantially—an important indicator of improving balance-sheet resilience.

Beyond recovery efforts, Rupali Bank also expanded lending to productive sectors, particularly small and medium enterprises (SMEs). In 2025 alone, new SME loans amounting to BDT 1,470 crore were disbursed, the highest annual figure in the bank’s history. On the technology front, Rupali Bank became the first state-owned bank to launch an in-house mobile banking service, branded “Rupali Cash”, alongside the appointment of a Chief Information Technology Officer to oversee digital modernisation.

Deposit mobilisation showed equally strong momentum. More than 849,000 new accounts were opened during the year, while total deposits increased by around BDT 3,500 crore. Notably, a board-directed 100-day special drive resulted in the collection of nearly BDT 6,500 crore in fresh deposits and the opening of approximately 400,000 new accounts. During the same year, remittance inflows through the bank reached about BDT 15,000 crore, and regulatory capital rose to nearly BDT 1,700 crore.

Managing Director Kazi Md Wahidul Islam emphasised that the bank’s ambition extends beyond short-term gains, aiming instead for a sustainable, transparent and technology-enabled transformation. Analysts observe that, under decisive leadership and modern management practices, Rupali Bank is steadily re-establishing itself as a symbol of confidence within the state-owned banking sector.

Key Financial Achievements of Rupali Bank in 2025