BRPD Circular No. 9: Policy on Loan/Investment Write off and Formation of Written off Loan Recovery Unit and its Functions

Bangladesh Bank Chief Executive Office Motijheel, Dhaka-1000 Bangladesh. Ref No: BRPD Banking Regulation and Policy Department 19 November 2025 BRPD Circular No. 09 Date: ------------------- 04 Agrahayan 1432 Managing Director/Chief Executive Officer All Scheduled Banks operating in Bangladesh Dear Sir, Policy on Loan/Investment Write off and Formation of Written off Loan Recovery Unit and its Functions

We would like to draw your attention to BRPD Circular No. 04, dated 18 February 2024 and BRPD Circular No. 08, dated 19 October 2025, issued on the above-mentioned subject.

2. Now, in order to properly implement the instructions mentioned in the aforementioned circulars, Section 2(1) of BRPD Circular No. 04/2024 is hereby replaced as follows:

"2(1) Loan accounts classified as Bad and Loss with low future recovery prospects shall be written off. However, older Bad and Loss classified loans shall be written off on a priority basis. In this regard, it is mandatory to ensure notification of the loan write-off to the borrower by issuing a notice at least 10 (ten) days prior to the write-off of any loan account;"

3. These instructions are issued under the powers conferred by Section 45 of the Bank Company Act, 1991.

4. These instructions shall take effect immediately.

Yours faithfully, (Md. Bayejid Sarker) Director (BRPD) Phone: 9530252