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StocksMedium•7 November 2026•
2 min read

Bangladesh Banks’ Net Interest Income Turns Negative for First Time in at Least 6 Years

Key Facts

1Combined net interest income turned negative for the first time in at least 6 years.
2Net interest income fell at 20 banks, and the number of banks with negative income rose to 10 from 6 a year earlier.
3Net investment income rose 21% to 32,622 crore taka.
4Twenty banks posted combined profits of 9,600 crore taka, while losses at 7 banks exceeded 13,000 crore taka.
5Provisions fell to 6,900 crore taka from 10,000 crore a year earlier, a decline of about one-third.

Combined net interest income at Bangladesh’s 27 listed banks turned negative in the first nine months of 2026, for the first time in at least 6 years, according to a report published by The Daily Star on November 5. Net interest income fell at 20 banks from January to September. The number of banks reporting negative net interest income rose to 10, from 6 in the same period last year. This reflects pressure on core income generated from lending. The report said weak loan growth and non-performing loans that generate no interest contributed to the shift.

By contrast, net investment income at the 27 banks rose 21% to 32,622 crore taka during the same period compared with the corresponding period of 2025. This income includes returns on government bonds, which banks turned to as lending growth weakened. The chief executive of City Bank said private-sector credit growth was close to its recorded lows. He attributed this to global economic uncertainty and the war. He added: "Therefore, banks are generating revenue from their old loans and government securities."

The newspaper’s analysis showed a sharp divergence in banks’ results in the first nine months of 2026. Twenty banks posted combined profits of 9,600 crore taka. By contrast, losses at the other seven banks exceeded 13,000 crore taka. These results came during a period when net interest income declined at most listed banks. The number of banks with negative net interest income also rose compared with the same period last year.

Provisions at the 27 banks fell to 6,900 crore taka in the first nine months of 2026, from 10,000 crore taka a year earlier, a decline of about one-third. The report linked growth in reported profits to higher investment income and lower provisions for non-performing loans. This came alongside greater reliance on returns from government bonds, while private-sector credit growth remained weak. The chief executive of City Bank also said non-performing loans that generate no interest contributed to negative net interest income. The figures, according to the report, highlight a divergence between lending and investment income and between the results of profitable and loss-making banks.