Rupali Bank Auctions Beximco Land to Recover 191 Crore Defaulted Loan
State-owned Rupali Bank has moved to auction 26 acres of prime land mortgaged by Beximco Limited across Gazipur and Narayanganj districts to recover a staggering BDT 191 crore in non-performing loans. The auction notice, published on Friday, marks a significant enforcement action against one of Bangladesh's largest conglomerates amid mounting pressure on banks to clean up bad debts. The mortgaged properties, valued to cover the outstanding principal and accrued interest, include industrial and commercial plots that Beximco had pledged as collateral for credit facilities. Banking sources indicate the decision follows prolonged negotiations and repeated defaults, prompting the lender to invoke the Financial Loan Court Act for asset liquidation. This development underscores the growing resolve among Bangladeshi financial institutions to tackle corporate delinquency through legal asset recovery mechanisms. Analysts suggest the auction could set a precedent for other lenders holding collateral against distressed corporate borrowers. The proceeds will directly reduce Rupali Bank's classified loan portfolio, improving its asset quality ratios. Beximco, meanwhile, faces reputational and operational challenges as its asset base shrinks under creditor pressure.
Key Highlights
- Rupali Bank auctions 26 acres of Beximco's mortgaged land in Gazipur and Narayanganj
- Action aims to recover BDT 191 crore in defaulted loans
- Auction conducted under Financial Loan Court Act after prolonged defaults
- Move reflects banking sector's intensified focus on NPL reduction
Source: Jugantor
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