The Bangladesh Bank (BB) has allowed National Bank to lease out its under-construction Twin Tower building in Dhaka’s Panthapath area, which was originally planned to become the private lender’s headquarters.

In a notification issued yesterday, the central bank said it has exempted the bank from the relevant provision of the Bank Companies Act until 2031, allowing it to lease the property.
The NBL Twin Tower was intended to become the bank’s head office. As per the law, such a building cannot normally be leased out.However, after years of losses, National Bank received the special facility, which is expected to support the efforts to improve its financial position.The bank has posted losses every year since 2022. Its accumulated losses reached nearly Tk 8,900 crore, driven by a high volume of non-performing loans and financial irregularities.National Bank began construction of the 12-storey Twin Tower in Panthapath nearly a decade ago after the Sikder family, owners of the Sikder Group, took control of the bank in 2009. The family has faced allegations of financial irregularities, including approving loans in breach of rules and regulations.Construction was suspended for several years after a 2015 accident in which the shore pile bracing and retaining wall collapsed.

According to the bank’s financial statements, work resumed in 2020 after the necessary approvals were secured from the relevant authorities.The structural work on both towers has now been completed up to the 12th floor. The bank said the 11kV electricity connection had already been installed.

It added that approval has also been obtained for water and sewerage connections.According to the bank, the floor plans and layouts have been completed, while network installation and internal power connection work are under way. It said the interior decoration of the second floor of one tower has already been completed, and the Card Division and several other divisions would be moved there soon.

National Bank posted a loss of Tk 2,431 crore in the 2025 financial year, up 42 percent from about Tk 1,700 crore a year earlier, according to its financial statements.The Daily Star sought comment from the bank’s Managing Director Adil Chowdhury, but he did not answer phone calls or respond to messages.

Deltaport Footwear Ltd, a joint venture of Italian and Irish investors, will invest $21.60 million to set up a footwear manufacturing plant at the Bepza Economic Zone in Mirsharai, Chattogram, run by the Bangladesh Export Processing Zones Authority (Bepza).

The plant will produce around three million pairs of shoes a year, including injected and cemented footwear, as well as casual, formal, ladies’ and safety shoes, creating jobs for 468 Bangladeshi nationals.

The company expects annual export earnings of about $37.5 million, targeting markets in Italy, Europe, the UK, the US and Colombia. The company signed a land lease agreement with Bepza on June 30 at the Bepza Complex in Dhaka, according to a press release.

Md Tanvir Hossain, executive director for investment promotion at Bepza, and Junaid Iqbal Umerani, chief executive officer of Deltaport Footwear, signed a deal in this regard at a programme attended by Mohammad Moazzem Hossain, executive chairman of Bepza.

Welcoming the investment, Hossain said Bepza was continuously enhancing its infrastructure and services to offer investors a more convenient, modern and business-friendly environment.

Deltaport’s CEO said this was his company’s third investment in Bangladesh, all within Bepza-administered zones, adding that Bangladesh was the most attractive investment destination among the countries considered, including India and Vietnam.

The Bangladesh Securities and Exchange Commission (BSEC) has approved Royal Footwear PLC's proposal to raise Tk12 crore through an Initial Qualified Investor Offer (IQIO) on the SME platform, marking the regulator's first approval for SME fundraising in more than two years.

The approval came at the commission's meeting held at the BSEC headquarters today (14 July).

The 100% export-oriented footwear manufacturer will issue shares under the fixed-price method and use the proceeds to expand its operations, strengthen its business, and meet growing export demand.

According to the approved utilisation plan, Tk8 crore will be used to repay bank loans, Tk2 crore to purchase raw and packing materials, Tk1.67 crore to procure spare parts, and the remaining Tk0.33 crore will cover expenses related to the IQIO.

Royal Footwear exports shoes to several international markets, including supplying products to the renowned US footwear retailer ROSS.

For the issue, Prime Bank Investment PLC has been appointed as the issue manager, while Prime Bank Investment PLC and EC Securities Limited will act as the underwriters.

The approval signals a gradual revival of fundraising through the SME capital market, where new public offerings had stalled for more than two years.

Royal Footwear had initially applied for the same fundraising plan in 2024 but later withdrew its IQIO proposal, citing political uncertainty, a slowing economy, and an unfavourable business environment for expansion.

With the business environment showing signs of improvement, the company has revived the plan to support capacity expansion and capitalise on growing export opportunities.

Royal Footwear shares some common directors with Al-Madina Pharmaceuticals PLC, an SME-listed company that raised Tk5 crore through the SME platform in February 2023. Al-Madina declared a 12% cash dividend for shareholders for FY25.

According to the company, incorporated in 2014, the decision to enter the capital market is aimed at expanding operations while strengthening corporate governance and compliance standards. Management said several international buyers have encouraged the company to become publicly listed, believing it would enhance governance, transparency, and compliance with global standards.

Royal Footwear primarily exports to European and Asian markets, where demand for its products has continued to grow. Management also views capital market financing as a more sustainable long-term funding source than relying heavily on bank borrowing.

According to the company's audited financial statements for the year ended 31 December 2025, the net asset value (NAV) per share, including revaluation, stood at Tk27.54, while the NAV per share without revaluation was Tk15.74. Its earnings per share (EPS) for the half-year stood at Tk0.82.

For FY2024-25, Royal Footwear reported revenue of Tk52.91 crore, slightly higher than Tk52.34 crore in the previous fiscal year. However, profit after tax declined to Tk2.78 crore from Tk3.19 crore a year earlier, while EPS fell to Tk0.82 from Tk0.94. The company's NAV per share, including revaluation, stood at Tk27.54.

The Bangladesh Bank (BB) has allowed Shinepukur Ceramics, a defaulting company of Beximco Group, to open letters of credit (LCs) for raw material imports under a special arrangement.

In a notification issued yesterday, the central bank said the move is meant for keeping production running at the ceramics manufacturer and protecting its workforce.

Under the arrangement, Shinepukur Ceramics can now open import LCs with Sonali Bank PLC by depositing a 100 percent margin, meaning the company will have to pay the full import value in advance.

The facility will remain in place until December next year.

Under Section 27 Ka Ka (3) of the Banking Companies Act, banks and financial institutions are barred from extending any loan facility to a defaulting borrower. With yesterday’s circular, the BB has exempted Shinepukur Ceramics from this provision for 18 months.

As a condition of the approval, the central bank said all revenue earned by the company must be deposited into a designated bank account. Sonali Bank will recover its outstanding dues from that account on a proportionate basis.

However, the government and the central bank will not assume any responsibility for the loan facility provided to support the opening of the import LCs, according to the notification.

As a result, Sonali Bank will not be able to seek any financial assistance from the government or the BB for those loans in future, the central bank said.

Earlier this month, the BB granted a similar facility to Abdul Monem Sugar Refinery Ltd, another defaulting borrower, allowing it to continue opening import LCs.

Advanced Chemical Industries (ACI) PLC has decided to invest Tk700 crore in its subsidiary, ACI Logistics Limited, which operates under the retail brand Shwapno.

The investment decision was approved at a meeting held today (14 July), according to company sources.

As part of the investment, ACI will subscribe to 70 lakh convertible preference shares of ACI Logistics, each with a face value of Tk1,000. The investment is expected to be completed by 15 October of the current year.
The move is expected to strengthen ACI Logistics' capital base and support the continued expansion of its retail operations under the Shwapno brand, according to the company's statement.

Jenson & Nicholson Packaging Ltd, an affiliate of Berger Paints Bangladesh, will invest $13.7 million in the National Special Economic Zone (NSEZ) under a land lease agreement signed with the Bangladesh Economic Zones Authority (Beza) yesterday.

The company will set up its manufacturing facility on 6.34 acres of land and is expected to create around 600 jobs, according to a press release.

The plant will produce high-quality rigid plastic pails, industrial paint containers, food-grade packaging, metal packaging and other products to strengthen Berger Paints’ backward linkage.

Berger Paints had earlier been allocated 40 acres in the same economic zone, where commercial production is expected to begin within the next two months.

Speaking at the signing ceremony, Saleh Ahmed, executive member for investment development at Beza, said the investment reflects growing confidence among local investors in the country’s economic zones.

He said Beza is working to ensure faster and more investor-friendly services to help industries start operations quickly.

Rupali Chowdhury, director of Jenson & Nicholson Packaging and managing director of Berger Paints Bangladesh, said the investment would enhance the company’s production capacity while supporting environmentally friendly manufacturing, employment generation and the development of the paints industry’s backward linkage.

She also urged Beza to address gaps in utility services and policy issues to make the National Special Economic Zone a more attractive manufacturing hub.

Aamra Technologies Limited has recommended a 0.25% cash dividend for general shareholders for the fiscal year ended 30 June 2025, despite reporting a sharp decline in financial performance.

According to a price-sensitive information (PSI) disclosure filed with the Dhaka Stock Exchange (DSE) today (13 July), .

The payout for general shareholders will amount to around Tk11.32 lakh, the company said.

Aamra Technologies said the date, time and venue of its Annual General Meeting (AGM), along with the record date, will be announced after receiving approval from the High Court.

The dividend recommendation comes amid worsening financial results. For FY25, the IT services company reported earnings per share (EPS) of negative Tk3.17.

Its net asset value (NAV) per share declined to Tk18.46 from Tk21.73, while net operating cash flow per share (NOCFPS) dropped to Tk0.70 from Tk4.21, indicating increased financial pressure and weaker operational performance.

The company was earlier downgraded to the 'Z' category from the 'B' category on 12 February after failing to distribute its approved 1% cash dividend for FY24 within the regulatory deadline of 30 days after its AGM.

Although Aamra submitted a dividend compliance report on 7 July, the DSE has not yet upgraded its category.

A senior company official attributed the financial setback to regulatory challenges. In May 2024, the Bangladesh Telecommunication Regulatory Commission (BTRC) restricted the company's bandwidth capacity as an internet gateway service provider over unresolved government revenue-sharing dues.

The restriction significantly affected the company's core operations, which were brought close to a standstill, the official said.

The company said it is working to resolve the issue with the BTRC, but the matter remains pending, affecting business continuity.

Aamra Technologies has been listed on the capital market since 2012, with an issue price of Tk24 per share.

A private service holder, Rezaul Karim, first accessed the digital nano loan feature around four years ago, shortly after it was introduced, when the initial credit limit was Tk1,000.
TBS Illustration
TBS Illustration

Since then, he has used the service numerous times, with the credit limit gradually increasing to as much as Tk34,000 based on transaction history and repayment behavior.Sharing experience with The Business Standard, Karim said that digital loan services have become an important source of short-term financing for his everyday expenses.He first discovered the loan while making a payment through the bKash app, and after reviewing terms and conditions, he borrowed Tk1,000 to complete the purchase of a shirt.
"The service is particularly useful during emergencies or when immediate cash is needed, such as during Eid holidays when banking services are less accessible," said Karim. "On one such occasion, I borrowed Tk11,000 after running out of cash while away from home."Digital nano loan disbursement crossed Tk10,000 crore in July, marking a significant milestone in Bangladesh's first fully digital and collateral-free loan service introduced jointly by bKash and City Bank in December 2021.Over 35 lakh bKash customers availed the loan from City Bank so far under the digital nano loan platform, reflecting an improvement in democratising access to credit for marginal people.bKash data shows that users availed the loans service over 3 crore times when the platform offered a minimum of Tk500 to a maximum of Tk50,000 based on payment behavior.

Under the digital loan platform, around 1 lakh customers receive an average of Tk3,500 each every day through the bKash app. In contrast, all banks combined lend to only around 20,000-25,000 people or companies.

Over 1.2 crore bKash customers are currently eligible to avail loans based on users' transaction behavior on the bKash app, KYC information, and previous loan repayment history, according to bKash.

The service was initially started with only 2 lakh customers. After the pilot phase, it expanded to 8 lakh and gradually increased to 1.2 crore in 4 years, according to City bank.

Arup Haider, deputy managing director of City Bank, said digital nano loans tell a bigger story of democratising credit and financial inclusion, which was the fundamental idea.

He said people frequently face unexpected situations where they urgently need cash, but there was no system to address that need. Nano loans have now filled that gap.

This has improved the lives not only of vegetable sellers but also of corporate employees, journalists, and countless ordinary people, said Haider.

He expects that if today's borrowers continue to grow, the average ticket size may rise from Tk3,500 to Tk10,000, because customers are gradually building credit scores and repayment histories. When ticket size grows, it will be used for the productive sector, he added.

"What we're seeing today is only the tip of the iceberg," said the banker.

Eventually, perhaps by 2030 or 2031, as many as one million people could receive nano-loans every day. When that happens, informal moneylenders will largely disappear. Many local lending associations will also become obsolete," he said. He also believes a significant share of the NGO microfinance market will eventually shift toward nanolending.

How nano-loans are democratising credit

According to bKash data, nearly half of all Tk10,000 crore loans have been disbursed outside large cities like Dhaka and Chattogram, expanding access to formal finance in smaller cities, towns, villages, and underprivileged communities. More than one-quarter of the borrowers are women, strengthening their financial inclusion and economic participation.

Ali Ahmmed, chief commercial officer of bKash, said the milestone has significant economic implications because the loans are reaching people who largely lack access to formal banking, particularly outside major cities. Women, small traders, and micro-entrepreneurs are using the loans for productive purposes, such as purchasing inventory or working capital.

He said customer feedback and internal research indicate that many borrowers use the funds to support income-generating activities.

For instance, someone selling vegetables in the market may borrow Tk5,000 in the morning, purchase vegetables, transport them to Dhaka, and sell them. They may repay the loan within a week or a month, but during that period they could generate business worth Tk30,000. Since vegetables often have margins of 40-50%, they can earn substantial returns. The economic impact of thousands of such cases is difficult to quantify, he said.

The government's vision of a cashless Bangladesh begins with people shifting from cash to digital transactions. Once customers start using mobile financial services digitally, they create a credit history, he said.

The borrowers' list is continuously refreshed. Some customers qualify while others are removed, depending entirely on scoring models. Their loan limits also change over time as new transaction and repayment data becomes available.

Loan eligibility is determined using customers' transaction history in bKash accounts along with City Bank's credit policy. The repayment period is 3 months to 6 months.

The maximum six-month option is mainly for financing purchases of specific products using the Pay Later product, and only a very small percentage of borrowers use that option. About 99% of customers repay within three months, according to the bank.

The service has become a vital financial safety net—helping manage emergency expenses, education costs, household needs, and temporary business cash-flow gaps while reducing dependence on predatory informal lenders.

There is no charge for early settlement of the loan, and interest applies only for the period the loan remains outstanding.

Eligible customers simply tap the Loan icon on the bKash app, enter the desired amount within their approved limit, accept the terms and conditions, enter their bKash PIN, and instantly receive the approved loan amount in their bKash account.

Though the contribution of digital nano-loans to overall business is still negligible, City bank experienced rapid growth in users and strong repayment behavior, which kept the service at break-even.

With a default rate of less than 1%, the digital lending model has demonstrated strong portfolio quality. The bank noted that approximately Tk8,000 crore of the total disbursement occurred within the last 18 months, highlighting the product's rapid growth.

So far, out of the Tk10,000 crore the bank disbursed, around Tk80 crore has not yet been recovered, according to the lender.

How costly are nano-loans?

The bank charges 17% to 19% for digital nano loans, which looks high but is not burdensome, said Arup Haider. "Apparently it looks high, but most people don't find that unreasonable."

Citing an example, he said, "If you borrow Tk10,000, you'll repay around Tk10,400 over three months of the loan period."

He said in traditional banking, issuing a loan requires a large operational process. "That's where digital technology changes everything."

He added, "Also, think about the alternatives. If you cash out Tk10,000 through conventional channels, you might spend around Tk200 in fees. Here, you receive a three-month loan and repay it gradually in installments, paying only less than Tk400 extra in total when this loan solves your immediate problem."

Future of digital nano-loans

Ali Ahmmed sees two major opportunities. First, the number of customers with access to credit can increase substantially given the country's around 126.6 million adults with national identity cards and more than 84 million mobile financial service users.

Second, there are significant opportunities for small and medium enterprises (SMEs). Many small businesses currently have no meaningful access to formal finance. Many already use bKash for cash-in, cash-out, and merchant payments.

"If banks partnered with us to provide working capital loans, the funds could be used much more productively," he said.

"For example, suppose a pharmacy receives a Tk100,000 loan. Instead of receiving cash, the business could directly pay pharmaceutical companies to purchase medicines. The pharmacy would then sell those medicines and repay the loan after one week, 15 days, or a month."

"We often discuss the slow growth of private-sector credit. I believe that if we properly structure digital lending for SMEs, it could become an important driver of future private-sector credit growth," he said.

State-owned and listed Eastern Lubricants Blenders PLC has partnered with the authorised Bangladeshi distributor of US-based Ergon transformer oil as part of its strategy to diversify into higher-value speciality products.

According to a price-sensitive information (PSI) disclosure today (11 July), Eastern Lubricant signed a one-year agreement on 9 July with Premier Petroleum Products & Lubricants Limited (PPPLL), Ergon's authorised distributor in Bangladesh.

Under the agreement, the two companies will jointly market, sell and distribute Ergon-brand transformer oil to government organisations across the country.
The company's share price rose 0.94% to Tk1,889 on the Dhaka Stock Exchange on Saturday.

Transformer oil is a specialised insulating and cooling oil used in electrical transformers to dissipate heat and provide electrical insulation, helping improve the safety, efficiency and lifespan of transformers. It is widely used in power generation, transmission and distribution systems.

The company said the partnership would enable it to supply internationally recognised transformer oil to government institutions, strengthen its position in Bangladesh's specialised lubricant market, and support its broader expansion strategy.

A subsidiary of the Bangladesh Petroleum Corporation (BPC), Eastern Lubricants is the country's only state-owned lubricant manufacturer, producing, blending, marketing and distributing automotive, industrial, marine and specialised lubricants.

The company has been seeking to diversify beyond conventional lubricants in recent years. Industry observers view the Ergon partnership as a significant step towards that goal.

Market analysts said demand for transformer oil is expected to grow steadily as Bangladesh expands its electricity transmission and distribution network. Major public utilities, including the Bangladesh Power Development Board, Power Grid Bangladesh PLC, Bangladesh Rural Electrification Board and power distribution companies, require transformer oil to operate and maintain electrical equipment. Securing supply contracts with these organisations could support the company's revenue and long-term growth.

The company, however, did not disclose the agreement's financial value, expected sales volume or potential impact on earnings.

Earnings rise, cash flow weakens

Easter Lubricant also reported stronger financial performance for the first nine months of the current fiscal year.Earnings per share (EPS) rose to Tk28.64 in the July 2025-March 2026 period from Tk17.28 (restated) a year earlier. For the January-March quarter alone, EPS increased to Tk15.61 from Tk6.62 (restated).

Net operating cash flow per share (NOCFPS), however, fell to Tk34.77 from Tk57.68, which the company attributed to higher accounts receivable and increased cash payments to suppliers for product purchases.

Meanwhile, net asset value (NAV) per share rose to Tk162.91 as of 31 March 2026 from Tk139.60 (restated) as of 30 June 2025.According to the company, higher base oil sales and increased non-operating income drove the improvement in earnings during the reporting period.

The share price of Emerald Oil Industries surged by the maximum daily limit, jumping 9.62% on the Dhaka Stock Exchange (DSE) following the announcement that it is preparing to resume production at its factory, which has been shuttered for over two years.

Its factory remained shuttered down since 1 January 2024 due unavailability of gas. It also turned non-compliant as it stopped disclosing its quarterly and annual financials in January 2023.

It had published its half-yearly financials for FY23, and since then investors remained in the dark about the company.

In a disclosure today (8 July), in a bid to reverse its fortunes, Emerald Oil said its board authorised management to resume factory operations as well as repair and maintenance to return to operation."

"The company has also informed that as per decision of the management, it has already procured a new boiler machine, new transformer, electric power substation and the installation of these machines are under process."

"Moreover, the company is also repairing the refinery unit. The total amount of procurement and maintenance is worth Tk10 crore approximately," it said.

With the disclosure about resuming operation, driven by investor optimism, the stock jumped 9.62% to close at Tk26.20 apiece on the DSE.

Market data showed massive trading volume, with 7.62 lakh shares changing hands, generating a total turnover of Tk1.99 crore.

The prolonged operational freeze and reporting lapse led the DSE to downgrade Emerald Oil to the Z category on 2 December 2025, after operations had remained halted for over six consecutive months.

According to its financial data, it had made a profit of Tk6.60 crore in FY23, and paid a 10% cash dividend to its shareholders.

After a hiatus of four years, Emerald Oil had returned to full-fledged production thanks to fresh investment in January 2022 under new owners.

The investment, which came from Minori Bangladesh, a subsidiary of Japanese farming company Minori Co Limited, had brought hope among the shareholders, who are now hoping to get good returns from their investments.

With its signature product – the rice bran edible oil, branded as Spondon, Emerald Oil had been a profitable firm until 2016.

The following year, when a loan scam of its founder came to light, the company started losing business and operation was halted due to a shortage of working capital.

Facing corruption charges, the founder fled the country and it was the shareholders who suffered the effects of a share price drop.

The Bangladesh Securities and Exchange Commission (BSEC), as a part of its drive to resurrect the listed sick companies, in January 2021, dissolved the board and reconstructed it by appointing five independent directors.

As per the agreement, Minori Bangladesh owns 30% shares from the company's directors and sponsors.

Emerald Oil, incorporated in 2008, began production of its Spondon-branded rice bran oil in 2011 and entered the bourses in 2014.

The company raised Tk20 crore issuing two crore general shares at a face value of Tk10.

But, in a few years, it melted down both in its business and in the stock market as soon as the founder's loan scams unfolded.

Beximco Pharmaceuticals PLC reported a 13.1 percent year-on-year growth in its revenue in the first nine months of the 2025-26 financial year, outpacing its peers, according to an earnings update released by BRAC EPL Stock Brokerage yesterday.

The company recorded Tk 4,142 crore in net revenue during the July-March period of the 2025-26 financial year, up from Tk 3,662 crore a year earlier.

BRAC EPL Stock Brokerage Ltd said Square Pharma recorded a 12.5 percent year-on-year growth in revenue, while Renata posted more than 6.5 percent year-on-year growth in sales during the period.

"Domestic sales remained the primary growth driver, expanding 14.4 percent year-on-year. Export revenue grew a modest 1.2 percent in this financial year from a year ago," said the firm in the update.

Beximco Pharma was able to contain its cost of goods sold, which increased by 6.5 percent year-on-year.

BRAC EPL Stock Brokerage said this provided significant operating leverage to the company.

Beximco Pharma published its financials after the Bangladesh Securities and Exchange Commission (BSEC) allowed the company to hold a special board meeting to approve and publish its outstanding financial reports.

These included the third-quarter financial statements for the 2024-25 financial year, the audited annual report, and the first-, second- and third-quarter reports for the 2025-26 financial year.

The move cleared the company's reporting backlog of 15 months, allowing the London Stock Exchange to lift the suspension and resume trading of the global depositary receipts from June 26.

The pharmaceuticals maker had been unable to convene board meetings to approve and publish its financial statements due to ongoing legal proceedings before the High Court.

Beximco Pharma recorded a 32.7 percent year-on-year growth in profit after tax to Tk 694 crore in the first nine months of the 2025-26 financial year.

BRAC EPL said the earnings were driven by strong revenue momentum, disciplined direct cost management, and continued deleveraging.

BRAC EPL said Beximco Pharma delivered a solid 10.7 percent year-on-year revenue growth in FY25 despite operating under prolonged legal uncertainties throughout the year.

Dhaka Bank has set out a broad strategy to join the top tier of Bangladesh’s private banks by strengthening digital banking, expanding green finance, improving profitability, and adopting artificial intelligence.

In an interview with The Daily Star, Dhaka Bank’s Managing Director and CEO Osman Ershad Faiz said, “My objective is straightforward. I want Dhaka Bank to be measured against the best private banks in the country on all key indicators -- return on equity, asset quality, capital efficiency, customer experience, and digital capability -- and I expect us to lead in most of them.”

As the bank marks its 31st anniversary, Faiz said his goals go beyond short-term gains.

“By the end of my tenure, I want to leave behind an institution that is stronger in every way -- financial performance, asset quality, digital strength, talent, and public trust -- than when I took charge.”

DIGITAL BANKING AND AI-LED TRANSFORMATION

Faiz said Dhaka Bank’s digital push is not limited to apps or online platforms.

“Anyone can launch an app and call it transformation. The real test is whether a customer can manage their entire banking needs without ever visiting a branch -- that is the standard I am setting,” he said.

A key example is e-Rin, a live product that enables instant loan approval and disbursement with minimal human involvement. The bank is now expanding this model to more retail and SME lending products.

It is also building a stronger technology workforce.

“A digital bank is built by engineers, data scientists, and product managers -- not just relationship bankers using new software,” Faiz said, adding that recruitment in these roles is underway.

Artificial intelligence and machine learning will play a central role in future operations. AI-based credit scoring is a priority, especially in the absence of a fully developed credit information system for small businesses and self-employed borrowers.

The bank plans to use alternative data such as mobile financial service transactions, payment records and mobile usage patterns to identify creditworthy customers.

AI will also be used for real-time fraud detection and customer analytics, allowing the bank to offer relevant products proactively instead of waiting for customer requests.

SME GROWTH, WOMEN ENTREPRENEURS AND GREEN FINANCE PUSH

The managing director said digital lending has significantly improved the economics of SME financing by reducing the cost of monitoring small loans.

He also highlighted women-led enterprises as a major untapped opportunity. “We are designing dedicated products and alternative credit assessment models for women entrepreneurs -- not because it looks good, but because the commercial opportunity is significant,” he said.

Green finance is being treated as a core business priority rather than a niche area. Faiz said future growth will depend heavily on financing renewable energy, climate-resilient agriculture, and sustainable manufacturing.

“The banks that build this expertise early will finance the country’s next generation of productive investments,” he added.

In 2025, Dhaka Bank disbursed Tk 580 crore in green finance, bringing its total green portfolio to Tk 660 crore, with plans for further expansion.

STRONG RESULTS, TARGETS AND BROADER ECONOMIC OUTLOOK

Despite a challenging sector environment, Dhaka Bank posted a record performance in 2025. Net profit rose 117 percent to Tk 279 crore, while return on equity more than doubled to 11.62 percent from 5.71 percent a year earlier.

“Doing this in one of the toughest years for the sector shows what this franchise can achieve with discipline,” Faiz said. “That is now the floor, not the ceiling.”

However, he acknowledged the bank still trails the country’s top performers and aims to close the gap over the next five years.

Targets include maintaining return on equity above 15 percent, keeping the non-performing loan ratio below 5 percent through the credit cycle, and ensuring most customer services can be completed digitally without branch visits.

Faiz, whose career includes roles at American Express, Standard Chartered across Asia, and AMTD Digital, said his outlook has been shaped by international experience.

“Having built businesses across several Asian markets, I have seen what separates fast-growing economies: a strong focus on skills, stable and consistent policies, and openness to global talent. Bangladesh has all the ingredients. What it lacks is not capability -- it is resolve,” he added.

Beyond banking, he pointed to pharmaceuticals as Bangladesh’s strongest long-term industrial opportunity, noting that it already meets 98 percent of domestic demand, grows at around 12 percent annually, and includes globally approved manufacturers, making it resilient as the country graduates from least-developed status.

Faiz also highlighted strong potential in IT services, driven by skilled labour rather than infrastructure, while calling renewable energy an economic necessity. The ready-made garment sector, he said, must move towards technical textiles, sustainability and higher-value production instead of volume expansion alone.

He added that remittance inflows should be channelled more into productive uses such as MSME financing and housing, rather than mainly into consumption.

On financial sector reforms, Faiz called for faster implementation of IFRS 9 -- the international accounting standard -- for earlier credit loss recognition, greater operational independence for Bangladesh Bank, full interoperability of mobile financial services under the National Payment Switch Bangladesh (NPSB), and the development of a strong corporate bond market.

“A functioning bond market would diversify funding sources, create new investment opportunities for institutional investors, and reduce concentration risk in the banking sector,” he said.

BRAC Bank PLC, founded in 2001 under the leadership of Sir Fazle Hasan Abed to serve the “missing middle” -- small and medium enterprises (SMEs) that had outgrown microfinance but lacked access to formal banking -- has grown into one of Bangladesh’s leading financial institutions.

Over the past 25 years, the bank’s market capitalisation has surpassed $1 billion, and last year it became the first local private commercial bank to earn more than Tk 2,000 crore in annual profit.

It has financed more than 20 lakh SME entrepreneurs, helping create over one crore jobs, according to Tareq Refat Ullah Khan, managing director and CEO of BRAC Bank PLC.

“The numbers show that BRAC Bank has not just provided banking services — it has helped build the economy,” Khan said in an interview with The Daily Star.

Today, the bank operates through more than 2,300 locations across Bangladesh. Its Astha app processes nearly Tk 25,000 crore in monthly transactions and supports a retail portfolio of more than Tk 52,000 crore.

Its subsidiary, bKash, serves around eight crore customers, while the CorpNet platform handles more than Tk 23,000 crore in corporate transactions every month.

The bank has also financed a $96 million standalone Aframax oil tanker, the largest single-bank financing in Bangladesh’s shipping sector.

“BRAC Bank aims to remain one of the country’s best-governed and most trusted banks by providing customer-focused financial services. It also aims to become Bangladesh’s most impactful bank and eventually the country’s first multinational bank with full-scale overseas banking operations,” Khan said.

GOVERNANCE, STABILITY AND DIGITAL TRANSFORMATION STRENGTHEN RESILIENCE

Explaining banking safety, Khan said rising concerns over liquidity, asset quality and governance have made customers more cautious about where they keep their money.

“In this environment, trust has become banking’s most valuable currency,” he said, adding that trust is built through governance, financial strength, regulatory compliance and consistent performance.

He noted that BRAC, one of the world’s largest development organisations, is the bank’s largest shareholder, while most of its directors are independent financial experts with no shareholder interests, ensuring objective oversight.

The bank is also the only one in Bangladesh with international credit ratings from both S&P Global and Moody’s.

At the end of 2025, Bangladesh’s banking sector non-performing loan (NPL) ratio stood above 30 percent, while BRAC Bank’s fell to 2.27 percent. Its advance-to-deposit ratio was 63 percent, reflecting strong liquidity.

The bank’s capital base crossed Tk 10,000 crore, and net profit after tax reached a record Tk 2,251 crore in 2025.

Customer confidence was reflected in deposit growth as well: while industry deposits rose 11.51 percent, BRAC Bank’s increased by nearly 27.5 percent, or more than Tk 21,000 crore.

Khan acknowledged early challenges in SME banking, saying, “In the beginning, SME banking was our biggest challenge because many of our employees came from the microfinance sector, while SME banking requires a different approach.”

The bank responded by strengthening credit assessment and monitoring systems, reducing SME NPLs to around 2 percent, and working with one of the Big Four consulting firms to further improve operations.

Nearly half of the bank’s 10,600 employees now work in SME banking. Although the segment has a high cost-to-income ratio, BRAC Bank built a strong retail business to support stable funding.

Alongside this, wholesale banking -- including treasury, corporate, commercial and transaction banking -- became a key growth driver after its expansion phase between 2017 and 2020, following entry into the segment in 2010.

Khan said the bank now operates an integrated model where SME, retail and wholesale businesses reinforce each other. “One client relationship creates multiple business opportunities and revenue streams,” he said.

Foreign investors hold 35.89 percent of the bank, while BRAC holds 46.16 percent. The bank has introduced collateral-free CMSME lending, built offshore banking assets worth $1.3 billion, and significantly expanded retail operations.

Around 30–35 percent of income comes from treasury operations. “Even without treasury income, we would invest in other assets,” he said, adding that investment opportunities remain limited due to Bangladesh’s underdeveloped capital market.

Foreign trade has also become a major business driver, rising from about $1.5 billion in 2017 to $7.12 billion last year, enabling financing of around 6 to 7 percent of Bangladesh’s annual trade.

Digital transformation has been central to growth, with the Astha app enabling most routine services without branch visits. The corporate digital platform, launched in 2019, processes Tk 23,000 to Tk 24,000 crore in monthly transactions.

More than 30 projects using artificial intelligence, machine learning, robotics and automation have improved efficiency, while staffing in operations has not increased in line with the balance sheet that expanded from Tk 50,000 crore to Tk 162,000 crore.

Its next focus is expanding financial inclusion by strengthening remote banking services, allowing customers in underserved areas to access banking through digital platforms, websites and call centres without visiting branches.

The bank also runs a strong agricultural lending programme through more than 3,000 service points, directly serving rural borrowers rather than relying heavily on microfinance institutions (MFI).

Khan said its agricultural loans are priced at about 14 percent compared to nearly 24 percent charged by many MFIs.

Sustainability remains central to strategy. BRAC Bank is Bangladesh’s highest-ranked bank in Bloomberg ESG ratings, with about 82 percent of lending supporting sustainable sectors and nearly 10 percent of its corporate portfolio in green finance.

As part of the Global Alliance for Banking on Values, the bank continues to emphasise responsible banking.

“Banking is not a one-year business. It is an institution that must endure for generations,” Khan said.

Looking ahead, BRAC Bank aims to become Bangladesh’s most impactful bank by delivering both financial and social value, targeting more than 10 percent market share while expanding convenient banking services to all economically active citizens, especially in underserved and unbanked communities.

Listed non-bank financial institution (NBFI) First Finance Limited has recommended no dividend for the year ended 31 December 2025 as mounting losses, negative shareholders' equity and a weakening financial position continued to weigh on the company.

The decision was approved at a meeting of the company's board of directors today (29 June), according to a price-sensitive information disclosure filed with the Dhaka Stock Exchange (DSE).

Following the declaration, the company's shares traded without a price limit. Despite this, the NBFI's stock fell 2.44% to Tk4 on the DSE.

According to the financial statements, First Finance reported a loss per share (EPS) of Tk6.66 for 2025, compared with a loss of Tk5.88 a year earlier, reflecting a further deterioration in its financial performance.

Its net asset value (NAV) per share also worsened, falling to negative Tk46.01 at the end of 2025 from negative Tk37.86 a year earlier, indicating a further erosion of shareholders' equity.

Meanwhile, net operating cash flow per share remained under pressure, standing at negative Tk0.74 for 2025 compared with negative Tk0.69 in the previous year.

The company's financial performance remained weak in the first quarter of 2026 as well.

For the January-March period, First Finance posted a loss per share of Tk1.87, compared with a loss of Tk1.27 in the corresponding period of 2025. Its net operating cash flow per share improved marginally to negative Tk0.06 from negative Tk0.09 a year earlier.

However, its net asset value per share deteriorated further to negative Tk47.88 as of 31 March 2026, compared with negative Tk39.13 in the same period of the previous year.

The company's annual general meeting (AGM) will be held on 17 September 2026 at 3pm through a hybrid format, allowing shareholders to participate both virtually and in person.

The physical meeting will take place at the Trading Corporation of Bangladesh (TCB) Auditorium in Karwan Bazar, Dhaka. The record date has been fixed for 22 July 2026.

Listed life insurer Meghna Life Insurance Company Limited has recommended a 15% cash dividend for the year ended December 31, 2025, matching the same payout made to shareholders the previous year.

The recommendation was approved at a meeting of the company's board of directors today (29 June), according to a price-sensitive information (PSI) disclosure filed with the Dhaka Stock Exchange (DSE).

The company's annual general meeting (AGM) will be held virtually on 20 August, 2026, with the record date set for 23 July, 2026. In line with stock exchange regulations, there was no price limit on the trading of the company's shares yesterday.

Despite the dividend announcement, the company's share price fell 2.30% to Tk59.50 on the Dhaka Stock Exchange today (29 June).

According to the disclosure, Meghna Life reported a negative net operating cash flow per share of Tk4.19 for the year ended 31 December 2025, compared with a negative Tk13.71 in the previous year. Although the figure remained negative, it marked a significant improvement in the company's operating cash flow.

The insurer also released its unaudited financial results for the first quarter of 2026, which showed that while the company remained in deficit, the shortfall narrowed substantially from a year earlier.

According to the consolidated life revenue account for the January-March 2026 period, the excess of total expenses, including claims, over total income stood at Tk45.91 crore, compared with Tk78.10 crore in the corresponding period of 2025.

The quarterly deficit thus declined by nearly Tk32.19 crore year-on-year, indicating an improvement in the company's operating performance, although expenses continued to exceed income.

Meanwhile, the company's Life Insurance Fund remained largely stable. As of 31 March 2026, the fund stood at Tk1,527.60 crore, compared with Tk1,527.30 crore a year earlier, reflecting a net increase of approximately Tk29.8 lakh.

However, operating cash flow weakened during the first quarter. Meghna Life reported a negative NOCFPS of Tk12.78 as of 31 March 2026, compared with a negative Tk10.39 in the corresponding period of the previous year.

For life insurers, the Life Insurance Fund is a key indicator of financial strength as it reflects the resources available to meet future policyholder obligations. While Meghna Life's fund remained stable, its continued operating deficit and negative operating cash flow suggest that the company is still facing financial pressures.

Nevertheless, the improvement in annual operating cash flow and the significant reduction in the first-quarter deficit indicate signs of a gradual recovery in the company's financial performance. The proposed 15% cash dividend will be subject to shareholders' approval at the AGM in August.

Veon, the parent company of Banglalink, has proposed a $1 billion investment initiative in Bangladesh, with an immediate commitment of $250 million, as the global digital operator seeks to expand its presence in the country’s digital economy.

The proposal was discussed during a meeting between Prime Minister Tarique Rahman and Veon Chairman Augie Fabela at the Prime Minister’s Office in Jatiya Sangsad Bhaban yesterday morning.

Called “Invest in Bangladesh NOW!”, the initiative is a joint public-private proposal with the Ministry of Post, Telecommunications and ICT aimed at attracting more foreign direct investment into the country’s digital sector.

According to a public official familiar with the discussions, the initiative will focus on next-generation digital infrastructure, digital services, digital banking, artificial intelligence and mobile financial services.

In general, the goal is to position Bangladesh as a leading destination for global digital investment, according to the official.

In a statement issued in the evening, Banglalink said that, beyond its own investment, Veon plans to use its global network to encourage other international investors to explore opportunities in Bangladesh’s rapidly growing digital economy.

Augie K Fabela II, founder and chairman of the Board of Veon Group, said, “We are a long-term partner in Bangladesh’s journey toward becoming a trillion-dollar economy. Through the ‘Invest in Bangladesh NOW’ initiative, Veon is prepared to serve as the anchor investor in an ambitious programme designed to help attract $1 billion in foreign direct investment.”

“Alongside our own investment, we will actively engage international partners to unlock Bangladesh’s tremendous potential. We are fully aligned with the government’s vision for digital and financial transformation and stand ready to support that vision through long-term investment, innovation, and partnership,” added the Veon board chairman.

During the meeting, Prime Minister Tarique Rahman urged Banglalink to make smartphones more affordable and consider further reducing internet prices so digital services become accessible to people from all walks of life.

According to a media release from the Prime Minister’s Press Wing, the PM stressed the need to expand digital inclusion by ensuring that people from all socioeconomic backgrounds can own smartphones and access affordable internet services.

Post, Telecommunications, Information Technology and Science and Technology Minister Faqir Mahbub Anam, Prime Minister’s Adviser on ICT Rehan Asif Asad, Veon Board Member Michiel Soeting and Banglalink Chief Executive Officer Johan Buse also attended the meeting.

The investment proposal comes as Veon seeks to expand its presence in Bangladesh through strategic partnerships and acquisitions.

In a recent letter to the prime minister, the Dubai-headquartered company expressed interest in a strategic combination with state-owned mobile operator Teletalk as part of its broader expansion plans. It also said it was prepared to significantly increase its investment in Bangladesh and requested discussions on potential collaborations involving strategic public assets.

The proposal also includes a possible acquisition of Nagad from the Bangladesh Post Office.

According to sources, Veon is among several foreign companies that have expressed interest in investing in or acquiring a stake in Nagad.

Veon said it has already applied for a digital bank licence and received a no-objection certificate from the Bangladesh Bank to operate as a payment service provider.

The company said it has invested more than $2.5 billion in Bangladesh over the past two decades through Banglalink and contributed more than $4 billion to the national exchequer during that period.

Shoeniverse Footwear Ltd, an export-oriented footwear manufacturer under the National Polymer Group, has signed an issue management agreement with LankaBangla Investments for its proposed initial public offering (IPO).

The agreement was signed by Riad Mahmud, managing director of Shoeniverse Footwear, and Iftekhar Alam, chief executive officer of LankaBangla Investments. The signing ceremony was attended by Syed Ahmed, chief financial officer of National Polymer Group, Estiuque Uddin, head of primary market services at LankaBangla Investments, along with senior officials from both organisations.

Established in 2017, Shoeniverse operates a green manufacturing facility in Mymensingh with a production area of around 231,718 square feet and a workforce of more than 2,700 employees. The company manufactures synthetic footwear for export markets, focusing on quality, innovation and sustainable production.

Riad Mahmud also serves as president of the Bangladesh Association of Publicly Listed Companies (BAPLC).Financial Planning Tools

The company is undertaking a major capacity expansion programme to increase production and strengthen its competitiveness in the global footwear market amid rising export demand.

Subject to approval from the Bangladesh Securities and Exchange Commission (BSEC), the proposed IPO is expected to support Shoeniverse’s expansion plans, enhance its production capacity and reinforce its position in Bangladesh’s growing footwear export industry.

LankaBangla Investments is one of the country’s leading investment banks and has been actively involved in managing IPOs and other capital market transactions.

Bangladeshi agritech startup iFarmer has won a $250,000 award from the OPEC Fund for International Development for helping smallholder farmers gain access to finance, agricultural inputs, advisory services, weather information and markets.

The company received the "Innovation for Development Award" at the OPEC Fund Development Forum, held at Vienna's historic Hofburg Palace on June 23 as part of the organisation's 50th anniversary celebrations, according to a press release issued today.
With the award, iFarmer became the first private-sector organisation and startup from Bangladesh to receive the honour.Since its inception, iFarmer has supported more than 300,000 farmers across Bangladesh through its integrated digital platform, improving access to essential agricultural services.The OPEC Fund for International Development is a development finance institution that provides financial assistance to developing non-OPEC countries.Its annual development award recognises organisations making significant contributions to development."This recognition reflects the immense potential of Bangladeshi innovation to solve global development challenges," said Tahmid Hasan, vice president of revenue at iFarmer."We are honoured to represent Bangladesh on this global platform and remain committed to building resilient food systems by empowering smallholder farmers through technology," he added.iFarmer was the only Bangladeshi organisation among this year's award recipients. The recognition is expected to enhance the company's global visibility and create new opportunities for international partnerships and to scale its impact in sustainable agriculture.

Beximco Pharmaceuticals, one of the country's leading drug makers, reported a robust net profit of Tk704 crore for the first nine months of fiscal 2025-2026, representing a 34% year-on-year surge driven by robust revenue growth, lower financing costs, and higher interest income.

According to the latest financial statements released today (24 June) with special approval from the Bangladesh Securities and Exchange Commission, revenue for the July-March period increased by 13% to Tk4,142 crore. This nine-month profit figure has already exceeded the company's total earnings for the entire previous fiscal year.

According to the financial statements, while Beximco Pharma, a concern of Beximco Group, maintained strong cash flow, Beximco Ltd, another group concern, has been grappling with a cash flow crisis that has halted its operations and impaired its ability to service debt.

As a result, the company is on the verge of defaulting on its outstanding Sukuk obligations and bank loans.

Regarding its business growth, Beximco Pharma, in its financial report, said the increase in net revenue compared with the corresponding prior period, together with improved gross margin, contributed positively to overall performance.

It said, "Finance costs declined due to stronger cash inflows, while other income increased, primarily due to interest income generated from the short-term investment of surplus cash. As a result, earnings per share (EPS) recorded a notable improvement during the reporting period.

"Additionally, reduced cash outflows associated with working capital supported an improvement in net operating cash flows per share."

Beximco Pharma's special approval from the BSEC helped it avert potential delisting from the London Stock Exchange.

In addition to its current fiscal year's financial statements, the company also published its annual financial statements for FY25 and the third-quarter financials for that year.

In a board of directors meeting held on Tuesday, Beximco Pharma published its last five quarters or 15-month overdue financials.

The regulator has permitted the Beximco Group to hold the meeting, mitigating the looming risk of a delisting from the London Stock Exchange.

Following the ousting of the Awami League-led government in August 2024, Salman F Rahman, the vice chairman of Beximco Pharmaceuticals, was arrested in connection with several cases.

Later, amidst leadership changes at the regulatory body during the interim government, the BSEC appointed nine independent directors to the board of Beximco Pharma, as well as to two other listed group entities- Beximco Ltd and Shinepukur Ceramics.

Beximco Pharma legally challenged the regulator's decision by filing a writ petition, which remains pending in court.

Citing the matter as sub-judice, the company has not allowed the BSEC-appointed independent directors to take their seats on the board.

Beximco Pharma recommended a 47.5% cash dividend to its shareholders for FY25.

During the fiscal year, its consolidated net profit stood at Tk699.88 crore, which was Tk586.67 crore a year ago.

To approve the audited financial statement and the dividend, the company will set the annual general meeting time and venue following the High Court order. It also set the record date for 2 August.

National Housing Finance PLC has recommended a 10% cash dividend for the year ended 31 December 2025, maintaining the same payout as the previous year despite ongoing challenges in Bangladesh's non-bank financial institution (NBFI) sector.

The decision was approved at a board meeting held today (24 June), according to a price-sensitive information (PSI) disclosure filed with the stock exchanges.

The company's annual general meeting (AGM) will be held virtually on 15 September at 12pm to seek shareholder approval for the dividend, while the record date has been fixed for 23 July.

Shares of the company rose 1.08% to Tk28.10 on the Dhaka Stock Exchange yesterday.

National Housing reported a significant improvement in profitability in 2025. Earnings per share (EPS) increased to Tk0.74 from Tk0.02 (restated) a year earlier.

Its financial position also strengthened, with net asset value (NAV) per share rising to Tk17.06 from Tk16.32 (restated). Net operating cash flow per share (NOCFPS) turned positive at Tk6.89, compared with a negative Tk19.70 (restated) in 2024.

Analysts said the turnaround in earnings and cash flow reflects an improvement in the company's core operations and financial health at a time when many NBFIs continue to face liquidity pressures, higher funding costs and slower credit growth.

The company also disclosed its first-quarter results for 2026. During the January-March period, EPS stood at Tk0.23, slightly higher than Tk0.22 (restated) in the corresponding quarter of the previous year.

However, NOCFPS declined to Tk4.77 from Tk8.61 (restated) over the same period. The company attributed the drop to lower customer deposits, which reduced operating cash inflows.

Despite the decline in cash flow, NAV per share increased further to Tk17.29 as of 31 March 2026, up from Tk17.06 at the end of December 2025.

Established in 1998, National Housing Finance is a specialised housing finance institution that provides loans for houses, apartments and residential plots. The company has also diversified into deposit mobilisation, SME financing, lease financing and project financing, helping broaden its revenue base beyond traditional mortgage lending.

The latest financial results show improvements in the company's profitability, asset base and cash flow position, while it maintained a stable cash dividend for shareholders. Sustaining earnings growth and strengthening deposit mobilisation are expected to remain important factors for the company's future performance.