http://ar.cou.ac.bd:8080/xmlui/handle/123456789/229 2026-05-28T19:04:24Z http://ar.cou.ac.bd:8080/xmlui/handle/123456789/230 Impact of NPL on Bank’s Profitability: A Study on State Owned Commercial Banks in Bangladesh Dina, Tanha Akter A loan that is in default or almost in default is considered non-performing. Non performing loans (NPLs) have a negative impact on both the national economy and the banking industry. The central bank's standards require banks to maintain provisions against non-performing loans, which have a significant impact on the profitability of the bank. The purpose of this study is to examine the effects of non-performing loans over the previous 5 years in order to determine if they have had a notable effect on the profitability of the four banks that were chosen. It also aims to identify the many reasons why non performing loans occur in Bangladesh's banking industry. Return on Assets was chosen as the study's dependent variable. Secondary data for this analysis was gathered from these banks' annual reports during a 5-year period, from 2019 to 2023. Statistical methods are applied to the data analysis. concentrating on determining if the factors employed in this study have any link at all. As expected, the data analysis revealed a considerable influence of NPL on profitability. One of the study's primary conclusions focuses on the fundamental causes of the rising number of categorized loans. There are several important steps that may be made to soften the situation. This study may help in understanding how rising non-performing loans (NPLs) affect bank performance and in taking proactive measures to manage them. According to the report, non-performing loans (NPLs) have been the main issue facing Bangladesh's banking industry over the past few decades. The non-performing loan (NPL) rate is substantially higher in our nation than the 2 percent international guideline. It has been shown that as time goes on, the NPL ratio increases progressively. Therefore, Bangladesh Bank should place more of an emphasis on the NPLs of state owned commercial banks in its capacity as a credit regulating body. 2025-05-26T00:00:00Z