Rupali Bank PLC, a state-owned commercial bank in Bangladesh, reported a net loss of Tk396 crore for the first quarter of 2026, according to its unaudited financial statements released on May 18, 2026. The loss is primarily attributed to a sharp rise in loan defaults and the resulting increase in provisioning requirements.
The bank's non-performing loans (NPLs) surged to Tk5,200 crore as of March 31, 2026, representing 18.5% of its total loan portfolio. This compares to Tk4,100 crore in NPLs at the end of 2025. The deterioration in asset quality forced the bank to set aside Tk280 crore in provisions during the quarter, up from Tk150 crore in the same period last year.
Net interest income fell 12% year-on-year to Tk180 crore, as interest income from performing loans declined while interest expenses on deposits remained elevated. Operating expenses also rose 8% to Tk95 crore, driven by higher staff costs and branch maintenance expenses.
The bank's management has attributed the rising defaults to the ongoing economic slowdown in Bangladesh, which has affected key sectors such as textiles, ready-made garments, and small and medium enterprises (SMEs). The central bank has urged state-owned banks to strengthen their credit risk management and recovery efforts.
Rupali Bank's capital adequacy ratio (CAR) stood at 10.2% as of March 31, 2026, just above the regulatory minimum of 10%. The bank is exploring options to raise additional capital, including a possible rights issue or government infusion, to shore up its balance sheet.
