However, various measures have been taken to recover defaulted loans for companies with sufficient mortgage property against their loans.

In recent years, the recovery rate of defaulted loans has increased due to appointing receivers, issuing arrest warrants, banning travel abroad, seizing passports, and multiple arrest warrants. Over the past four years, banks have recovered nearly BDT 50 billion in defaulted loans. At the same time, ownership rights of mortgaged properties worth about BDT 200 billion have been transferred to various banks.

According to the Chattogram Money Loan Court, for the first time in its history, a receiver was appointed in 2022. In a case filed by City Bank against a company named "Hillview Enterprise," the court appointed a receiver for the mortgaged property, a commercial building called "Forum Central Building." The mortgaged company earns BDT 1.8 million monthly from this property. After the receiver's appointment, City Bank recovered over BDT 230 million in defaulted loans from "Hillview Enterprise" and "Hillview Ship Breakers." Another business owned by Ahmed Lal Mia is repaying BDT 400 million in defaulted loans to City Bank.

Another notable incident of receiver appointment was the settlement of BDT 600 million in defaulted loans against the mortgaged property of Mahal Market. In February 2023, businessman Jasim Uddin Ahmed took a loan from Padma Bank (formerly Farmers Bank) but failed to repay it. As a result, the loan defaulted, with interest totaling BDT 867.224 million.

After the bank's request, the court appointed a receiver. Through a settlement, an agreement was made to repay BDT 600 million. According to the latest information, the company has repaid a total of BDT 510 million. Of this amount, BDT 270 million was paid in February alone.

Several top business institutions in Chattogram have also been listed for settling defaulted loans in recent years. Banks filed lawsuits to recover these loans, but delays in the judicial process, manpower shortages in the bank's legal department, and the failure to arrest defaulters despite issuing warrants hindered loan recovery.

Even though these companies did not repay the bank's dues, they continued to profit from the mortgaged properties and commercial operations. As a result, after appointing impartial receivers to link the profitable earnings of the properties with the bank's dues, the defaulters became more interested in settling their debts. In addition to receiver appointments, the recovery rate increased due to measures like issuing arrest warrants and imposing travel bans on directors. SA Group, a consumer goods importing, packaging, and marketing company in Chattogram, repaid BDT 4.4 billion in bank loans over one and a half years. Mustafa Group, once a leading industrial family in Chattogram, repaid 2.95 billion in defaulted loans to several banks within a few years. Western Marine Shipyard authorities repaid BDT 1.1415 billion to Sonali Bank in the second half of 2024, rescheduled the defaulted loan, and resumed business. After the issuance of an arrest warrant from the Money Loan Court, SM Abdul Hai, the owner of Legend Holdings and Legend Textiles, and the son-in-law of Khalilur Rahman, the owner of KDS Group in Chattogram, repaid BDT 1.05 billion to several banks, including National Bank.

Bank sources have reported that several loan recovery incidents occurred recently due to the order to attach property from defaulters' homes. In a case filed by Basic Bank, the court ordered the attachment of the residence of MM Kamal Uddin Chowdhury, the owner of Clifton Group in Chattogram. The total amount owed by the industrial group to Basic Bank is BDT 690 million.

Similarly, through property attachment, BDT 560 million was recovered in a 15-year-old case (Economic Loan Case No-4/2012), 400 million from a 22-year-old defaulted loan case of Messrs Sajid Steel and Messrs Ayash Steel, and BDT 50 million from a 39-year-old case of Sultana Jute Mill. The bank also recovered BDT 400 million from Mona-Vitex.

There were three commercial courts in Chattogram in the past. However, with the growth of business and the banking sector, the three commercial courts were replaced by a single Money Loan Court in 2003.

Sources say that despite having the largest defaulted loan recovery case in the country, banks are not receiving full services because there is only one Money Loan Court. However, despite limited manpower, the recovery rate of defaulted loans has increased due to several strict orders issued in the past few years.

Zahid Hossain, Senior Manager of Agrani Bank, told Bonik Barta, "Recent efforts by the Chattogram Money Loan Court have sped up defaulted loan cases in Chattogram. The recovery rate of loans secured by mortgaged property has increased."

Despite being profitable, many businesses have not repaid loans for a long time due to delays in cases. However, with increased orders like arrest warrants and travel bans, the recovery rate of defaulted loans is expected to rise, Zahid Hossain added.

Money Loan Court and bank officials mentioned that, after the political change on August 5 last year, many businesses are now coming forward to repay their loans. They believe that having failed to obtain administrative benefits like before; business owners are more motivated to repay their debts.

When asked, Zia Habib Ahsan, a senior lawyer from the Chattogram District Court's Money Loan Court, told Bonik Barta, "Despite the high number of defaulted loans in Chattogram as a commercial city, there is only one Money Loan Court here. However, due to various initiatives, the recovery of defaulted loans in the Chattogram region has recently increased. Approval has been given for two more Money Loan Courts in Chattogram, but they have not yet been implemented. If the number of courts and staff increases, it will be easier for banks to recover deposits held by people."

When asked, Musa Khan, General Manager of Sonali Bank, Chattogram North, told Bonik Barta, "Along with the bank's initiatives, the court's firm stance has led defaulting customers to make some progress in repaying their loans. Specifically, due to orders against mortgaged properties and Chattogram businesses wanting to return to operations, they are paying off loans and trying to become regular. If banks remain vigilant in providing new loans and increase efforts to recover old loans, the amount of defaulted loans can be reduced further."