Abstract
This study focuses on the management of nonperforming loans in Bangladesh's banking industry. A supplementary data set was used to conduct this research project. On a year-to-year basis, the total number of nonperforming loans, gross nonperforming loan ratio, and net nonperforming loan ratio are all considered factors from 2011 to 2018. SCBs, DFIs, PCBs, and FCBs had gross NPLs ratios of 30.0 percent, 19.5 percent, 5.5 percent, and 6.5 percent, respectively, at the end of 2018 according to the research. The NPL ratios of SCBs and DFIs were quite high, as were the ratios of gross NPLs to total loans as well as net NPLs to total loans, although FCBs and PCBs were a high level of NPLs but it was tolerable. As a result of a lack of borrower selection, inadequate monitoring, collateral deficiency, money diversion, CRM absence, Basel III implementation, corruption of bankers and political involvement, Bangladesh has accumulated a large number of nonperforming loans (NPLs) in its banking industry. Management of nonperforming loans in Bangladesh's banking industry comprises credit evaluation, loan monitoring, loss provisioning, regulatory framework, loans transferred to third parties and writing down NPLs in an effort to recoup credit losses, the study found. An intended outcome of this research is a set of rules and suggestions on how to reshape NPLs in Bangladesh's banking industry, improve bank management of NPLs, and ensure responsible lending practices.