Bangladesh Banks Report Negative Net Interest Income for First Time in Six Years

Combined net interest income for listed commercial banks in Bangladesh turned negative in the first nine months of 2026, marking the first time this has occurred in at least six years. During this period, 27 listed lenders reported a negative net interest income of Tk 5,624 crore, compared to a positive Tk 3,016 crore in the same period last year. This decline was driven by weak private-sector credit demand and a large volume of non-performing loans.

Interest income is the primary source of revenue for banks, but the negative trend indicates a strain on the financial health of many lenders. Banks are increasingly shifting capital into government bonds because lending has become less profitable, according to experts.