Dhaka, June 2 -- Bangladesh's banking sector has recorded a further deterioration in asset quality during the first quarter of the year, with the ratio of non-performing loans (NPLs) rising to 32.62 percent by the end of March.

According to Bangladesh Bank data released on Tuesday, total defaulted loans stood at Tk 5.88 trillion at the end of March, up from Tk 5.57 trillion three months earlier.

The NPL ratio was 30.60 percent at the end of December.

Over the quarter, the stock of bad loans increased by Tk 37.53 billion, continuing a long-running upward trend in the sector.

The central bank reported that total outstanding loans in the banking system reached Tk 18.24 trillion in March, compared with Tk 18.20 trillion in December. Durin...