Bank Asia has raised its loan loss provisions to Tk1,076 crore in 2024—a 58% increase—due to rising non-performing loans (NPLs), which climbed to Tk3,632 crore (14.35% of total loans) by March 2025. As part of recovery efforts, the bank has auctioned mortgaged assets of Partex Coal, a subsidiary of Partex Group, to recover defaulted loans exceeding Tk116 crore. Rubel Aziz, owner of Partex Coal, attributed the default to pandemic-related disruptions, global challenges, and dollar shortages affecting imports. Bank Asia has emphasized legal action while remaining open to negotiation if repayment occurs before the auction, which involves 259.36 decimals of land and factory buildings in Dhaka and Gazipur.
Amid rising non-performing loans, Bank Asia increased its provisions to Tk1,076 crore in 2024, marking a 58% rise compared to the previous year.
As part of an aggressive recovery effort, Bank Asia has auctioned the mortgaged assets of Partex Coal, a subsidiary of Partex Group, to recover defaulted loans exceeding Tk100 crore.
Rubel Aziz, owner of Partex Coal and a director at a prominent private commercial bank, is facing loan recovery action by Bank Asia.
Bank Asia, a publicly listed bank, saw its default loans rise sharply to 14.35% of total disbursed loans by March 2025, up from 10% in 2024, according to Bangladesh Bank data. Its non-performing loans (NPL) increased to Tk3,632 crore from Tk2,919 crore the previous year.
The growing NPL forced Bank Asia to raise its loan loss provisions to Tk1,076 crore in 2024, a 58% increase over the prior year.
Bank Asia’s Managing Director, Sohail RK Hussain, told TBS, “The company failed to repay loan installments on time, leading to loan classification as defaulted. As per legal procedures, we have called for an auction of the company’s mortgaged assets to recover the dues.”
He added, “While we pursue legal actions, we prefer negotiation. If the company repays before the auction, the sale will be halted. Defaulting owners will face consequences, so it is in their interest to repay on time.”
Rubel Aziz commented, “We have struggled since the Covid-19 pandemic, compounded by ongoing global challenges and a tough domestic economic environment, preventing normal business operations.”
He further explained, “Despite a Tk350 crore loan limit, dollar shortages hindered LC openings, disrupting imports and business.”
Rubel also emphasized, “None of our businesses have defaulted before, and we intend to repay this loan within the stipulated period.”
Following the Money Loan Court Act, 2003, Bank Asia’s Mohakhali branch in Dhaka issued an auction notice for Partex Coal’s mortgaged assets. Tenders are open until 3 August.
As of 9 July, Partex Coal owed Tk116.45 crore. Despite repeated demands, the loans became classified due to non-payment. The auction involves 259.36 decimals of land, including factory buildings in Dhaka and Gazipur.
The auction notice names Rubel Aziz, late Partex Group founder MA Hashem, and five others as mortgagors.
Partex Coal, incorporated in December 2014 and operational from March 2015, imports coal from Indonesia and South Africa. The company sells coal mainly to brick brokers through seven sales points nationwide, according to its website. Initially, the coal import business started under MA Hashem and Company in 2014 before shifting to Partex Coal in 2015.
