State-owned Sonali Bank has urged the government to issue bonds against unpaid loans to the Bangladesh Sugar and Food Industries Corporation (BSFIC) to address the lender’s capital shortfall.

A record 15 banks, including seven state-run lenders, faced capital shortfall in the second quarter of 2023, in yet another indication of the worrying state of the financial sector.

If media reports are followed closely, it can then be concluded that our banking industry is battling a persisting malady: capital shortfall.