Premier Bank recovers Tk 1,618 crore default loans in a year

The Premier Bank PLC has recovered about Tk 1,618 crore in cash from defaulted loans between January 2025 and January 2026, marking a significant improvement in its loan recovery performance compared with the previous year.

Due to the loan recovery, its bad loans have come down to 27 percent now from 42 percent, said officials of the bank.

Bank officials said the recovery was achieved through stricter monitoring, coordinated field-level efforts, and increased use of technology in managing distressed assets.

The development comes as banks in Bangladesh face mounting pressure to bring down non-performing loans and restore depositor confidence in the financial sector.

Following the political changeover, the central bank dissolved the board in August last year and formed a new seven-member panel. Arifur Rahman, founder vice-chairman and an entrepreneur shareholder, was appointed chairman.

The chairman said the bank aims to ensure that customers feel secure about keeping their savings and investments with the institution.

“We want Premier Bank to be a safe place where customers can confidently keep their savings and investments,” he said, adding that progress in loan recovery shows that sustainable growth can be achieved through good governance, transparency, and accountability.

Managing Director (Current Charge) Md Monzur Mofiz said the bank has strengthened its monitoring mechanisms to improve recovery outcomes.

He said the lender introduced data-driven tracking systems that allow close coordination between field offices and the head office, enabling regular monitoring of borrowers and their repayment progress.

Alongside recovery efforts, the bank is also expanding customer-focused services, including digital banking, retail and SME financing, agricultural lending, Islamic banking, and remittance services for expatriate Bangladeshis.

The bank said it plans to continue strengthening risk management and technology-based oversight as part of a broader strategy to safeguard depositor funds and reinforce public confidence in the institution.

The lender faced challenges months after HBM Iqbal, the founding chairman of the bank, stepped down from the board, ending his 26-year tenure following the political changeover in August 2024.

Investigations by Bangladesh Bank (BB), the Bangladesh Financial Intelligence Unit (BFIU), and the Anti-Corruption Commission (ACC) have uncovered irregularities at Premier Bank linked to the tenure of former chairman HBM Iqbal.