Why state-owned banks lag in loan recovery

A state-owned bank requires 3.5 to nearly 8 years to recover a loan of Tk100 due to various factors such as extended loan tenures and frequent rescheduling and restructuring options, according to a review by the central bank. In contrast, a private bank typically recovers the same amount within 15 months, while a foreign bank achieves loan recovery in 6-9 months.