, June 2 -- Bangladesh's banking sector has hit an unprecedented crisis point as non-performing loans (NPLs) and wider classified assets surged to historic highs in the first quarter (Q1) of 2026, posing a severe structural threat to the macroeconomic stability.

According to the Bangladesh Bank's classified loan and provision report revealed on Tuesday for March 2026, total classified loans-which include NPLs and unclassified distressed assets-skyrocketed by Tk 31,487 crore in just three months, reaching a staggering Tk 5.88 lakh crore.

This brings the ratio of classified loans to an unprecedented 32.26 percent of the country's total banking credit ecosystem, meaning nearly one out of every three Taka disbursed by the banking sector is ...