Power Grid Bangladesh PLC is set to see a significant rise in revenue following a decision by the Bangladesh Energy Regulatory Commission (BERC) to increase electricity transmission tariffs, widely known as wheeling charges.

In a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE) today (4 June), the state-run transmission company said the revised tariff will come into effect from the billing month of June 2026.

The new rates reflect an increase of nearly 23–24% across all voltage levels, marking a substantial upward revision in transmission income. Following the disclosure, its share price rose 1.45% to close at Tk35.10.

Power Grid Bangladesh estimates that the tariff revision could increase its annual transmission revenue by around Tk700 crore, although the final impact will depend on overall electricity generation and demand conditions, the disclosure said.

The company generates the bulk of its revenue by transmitting electricity through the national grid to distribution companies. The revised wheeling charges will therefore have a direct impact on its earnings, as these tariffs are paid by distribution utilities for using the transmission network.

Under the new structure, the wheeling charge for 230 kV lines has been raised from Tk0.3057 per kilowatt-hour to Tk0.3789, while the rate for 132 kV has risen to Tk0.3825 from Tk0.3086. Similarly, the 33 kV rate has been increased to Tk0.3897 from Tk0.3184.

Market observers view the development as a positive signal for the company's financial health, as higher wheeling charges are expected to strengthen cash flows and improve earnings stability.

In the first nine months of the current fiscal year, Power Grid reported revenue of Tk2,386 crore - a slight increase - along with a profit of Tk570 crore.

During the same period of the previous fiscal year, its revenue stood at Tk2,218 crore, and the company incurred a loss of Tk31 crore due to foreign currency fluctuations, as it services its foreign loans in foreign currency.

NCC Bank PLC is targeting diversification, digital transformation and stronger risk management to drive its next phase of growth, said Managing Director and CEO M Shamsul Arefin.

In an interview with The Daily Star on the bank’s 33rd anniversary, he outlined a roadmap centred on expanding SME and retail lending, accelerating digital banking services, strengthening asset quality, embracing artificial intelligence and increasing support for sustainable financing.

The bank began its journey as an investment company in 1985 and operated through 16 branches until 1992. It became a full-fledged private commercial bank in 1993 with a paid-up capital of Tk 39 crore. Today, that figure stands at Tk 1,154 crore. Arefin said the lender’s transformation from a merchant bank into a commercial bank, coupled with its strategic move into larger corporate clients and trade finance, has been instrumental in shaping its growth trajectory.

GROWTH PRIORITIES

“In its early years, the bank focused primarily on SME financing and mid-sized corporate clients, which helped build a loyal customer base and establish a strong customer-centric culture. However, over the last seven to eight years, NCC Bank has strategically repositioned itself by venturing into large-scale corporate clients, export-oriented industries, trade finance, and a broader range of business segments,” he said.

While maintaining its presence in corporate and export-oriented sectors, NCC Bank plans to place greater emphasis on SMEs, retail banking and agriculture to achieve more balanced growth and deepen financial inclusion, he said.

The lender also plans to expand its Islamic banking footprint as demand for shariah-compliant financial services continues to rise.

“The long-term goal is a modern, resilient, customer-focused bank built on strong governance, financial discipline, and sustainable growth,” he said.

DIGITAL TRANSFORMATION

Digitalisation remains central to the bank’s strategy.

“Going forward, NCC Bank will keep investing in digital infrastructure, cybersecurity, data analytics, automation, and customer-facing tech -- enhancing mobile banking, QR payments, virtual services, digital lending, and fintech integrations,” he said.

Artificial intelligence is expected to play a growing role in the bank’s operations.

“As part of its digital roadmap, the bank is exploring gradual integration of AI into areas like customer behaviour analysis, fraud detection, chatbots, predictive analytics, and credit risk monitoring,” he said.

“AI will also strengthen early warning systems and portfolio analysis.”

Meanwhile, the bank is also increasing its focus on green financing, with greater attention to renewable energy projects, energy-efficient industries and environmentally sustainable investments, he said.

STRENGTHENING ASSET QUALITY

Reflecting on the previous year, Arefin said broader economic pressures had affected asset quality across the banking industry.

“In 2024, NCC Bank faced asset quality pressure like the broader industry, with its NPL ratio rising to 7.32 per cent. This was driven mainly by external factors like inflation, energy crisis, forex volatility, liquidity stress, and slower business cash flows,” he said.

“By 2025, however, the bank significantly reduced its NPL to 4.12 percent through stronger recovery drives, improved monitoring, tighter credit underwriting, and better portfolio supervision.”

“The goal is not just to lower the NPL ratio but to build a healthier, more sustainable, and diversified loan portfolio over the medium to long term,” he said.

The lender’s performance remained resilient despite a challenging banking environment. Deposits rose by nearly 17 percent, advances increased by around 10 percent and operating profit grew by almost 18 percent in 2025. Net profit climbed to Tk 476 crore from Tk 437 crore a year earlier.

“Overall, NCC Bank’s 2024-2025 performance underscores strong governance, a customer-centric model, portfolio diversification, and disciplined risk management,” he said.

To keep bad loans under control, the lender is pursuing stricter credit appraisal, enhanced early warning systems, expanded recovery teams and greater use of technology and analytics.

NAVIGATING ECONOMIC HEADWINDS

He noted that many businesses remain cautious amid high inflation, rising interest rates, foreign-exchange volatility, elevated import costs and liquidity pressures.

“Many businesses remain cautious due to some ongoing pressures: high inflation, energy crisis, rising interest rates, forex volatility, import costs, liquidity stress, slower demand, and lower cash flow,” he said. “As a result, business houses are prioritising liquidity and balance sheet stability over expansion.”

Demand has shifted from long-term investment loans towards working-capital and trade-finance facilities, although export-oriented sectors continue to show relatively stable borrowing demand.

On governance, Arefin said the board maintains strategic oversight while management independently handles day-to-day operations.

“The board provides strategic oversight, while management independently handles day-to-day operations within approved risk and compliance frameworks. No undue pressure is exerted on lending or operational decisions -- all credit proposals undergo a rigorous evaluation and multi-level approval process,” he said.

Asked what differentiates NCC Bank from its peers, Arefin highlighted its governance standards, risk management and customer-focused culture.

“NCC Bank stands out for its stability, disciplined banking, customer-centric culture, and over three decades of credibility,” he said.

“It maintains strong governance, compliance, and prudent risk management -- even during sector challenges -- prioritising transparency and accountability over short-term gains.”

Many Bangladeshis know Alibaba Group as a giant Chinese shopping platform similar to Amazon or AliExpress. So, when they learn that Alibaba already has a growing business in Bangladesh and they visit its website to order products, they are surprised – they find they cannot shop here!

Most products – clothes, electronics or household products – on Alibaba.com are sold in bulk for wholesale buyers, importers, and international sourcing companies.

Instead of online shopping for local buyers, Alibaba connects Bangladeshi factories and suppliers with overseas buyers in more than 190 countries through its global B2B platform.

Company officials said Bangladeshi suppliers generated around $10 million in export business through Alibaba.com last year, selling products ranging from garments and home textiles to jute goods, leather items and agro-products.

The platform currently works with more than 300 Bangladeshi suppliers through four local channel partners. Unlike traditional e-commerce marketplaces, Alibaba.com does not operate warehouses, delivery networks or local shopping services in Bangladesh.

"Bangladesh is primarily a strategic global sourcing hub for Alibaba.com," Wang Qiling Vania, senior channel operation specialist at Alibaba International, told The Business Standard.

The company operates through a "platform-plus-local-partner" model. Alibaba.com provides the digital platform and global buyer network, while local partners handle exporter onboarding, training and support.

Company officials said their local partners include Tradeshi, Meidao, Skytech, and Maximo. Through the platform, Bangladeshi exporters can create online storefronts, display products in multiple languages, receive buyer inquiries and bid for international orders using Alibaba's "Request for Quotation (RFQ)" system.

The company also provides training on digital exports, product presentation, buyer communication and online sales strategies.

Despite its growing activities in Bangladesh, Alibaba.com said it has no immediate plans to launch consumer shopping, delivery services or logistics hubs in the country.

Instead, the company is considering a small representative office in Dhaka to strengthen relations with businesses, trade bodies and policymakers.

"Our investment is mainly human and technological, not infrastructure-heavy," Wang said.

Globally, Alibaba.com is one of the world's largest B2B sourcing platforms and competes with wholesale marketplaces such as Amazon Business and IndiaMART.

The company sees Bangladesh as an important sourcing destination because of its strong manufacturing sector and competitive production costs. However, officials believe the country still lags behind regional competitors in digital exports.

Regulations, banking procedures major challenges

Sonobar Maira, domestic channel manager for Bangladesh at Alibaba International, said Bangladesh's B2B e-export penetration remains below 15%, compared to over 30% in Vietnam and India.

She said foreign exchange regulations and banking procedures are major challenges for small exporters in Bangladesh. "Payment confirmation delays and outdated banking systems often create difficulties for SMEs handling smaller export transactions."

To address the issue, Maira said it is piloting localised payment solutions and discussing partnerships with banks and fintech firms, including bKash.

The initiative aims to simplify cross-border settlements and improve transaction efficiency, especially for small export orders below $1,000, she added.

"We are piloting localised payment solutions in Bangladesh to address foreign exchange and settlement delays," she further said. "The initiative is aimed at strengthening its Trade Assurance services and supporting smaller exporters, subject to regulatory approval."

Long-term goal

Sonobar Maira also reiterated Alibaba's long-term goal of helping more than 1,000 Bangladeshi exporters become digitally active in global markets over the next three years.

The company has recently expanded partnerships with several Bangladeshi business associations, including the Bangladesh China Chamber of Commerce and Industry and the Bangladesh Garment Buying House Association, Bangladesh Garments Manufacturers and Exporters Association ETC. The collaborations include exporter training programmes, onboarding support and buyer matchmaking events.

Maira said digital sourcing platforms are becoming increasingly important as global buyers diversify sourcing destinations and rely more heavily on online procurement systems.

She also warned that Bangladesh will need faster foreign exchange approvals, clearer digital trade regulations and more efficient export payment systems to fully benefit from the rapidly growing global digital commerce market.

The Financial Institutions Division has directed Bangladesh Bank representatives and managing directors of all scheduled banks to take necessary steps to enrol their officers and employees in the Pragati Scheme under the Universal Pension System.

The instruction was issued at a discussion meeting chaired by Nazma Mobarek, secretary of the Financial Institutions Division under the Ministry of Finance, at the Secretariat in Dhaka yesterday.

It was noted at the meeting that the National Pension Authority (NPA) has signed memorandums of understanding (MoUs) with 48 banks and financial institutions, while 24 banks are actively involved in collecting and disbursing pension contributions.

Addressing the meeting, the secretary said separate desks should be set up at all bank branches to increase enrolment in the Universal Pension System.

She also directed banks to display banners in accordance with the MoUs and ensure that marketing officials play an active role in promoting the scheme.

Mobarek further stressed the need to bring all officers and employees of private banks under the Pragati Scheme.

Md Suratuzzaman, executive chairman of the NPA, presented a keynote paper highlighting the progress of the Universal Pension System, the features of the Pragati Scheme and its importance for private-sector workers.

He said around 18 million private-sector workers in Bangladesh lack formal retirement security, unlike government employees who are covered by state pension arrangements. The Pragati Scheme was introduced to address this gap under the Universal Pension System launched in 2023.

The meeting also discussed proposals to introduce a shariah-based pension scheme, extend lifelong pension benefits to nominees and bring outsourced workers under the Pragati Scheme. The Pragati Scheme is designed for private-sector employers and employees.

Under the scheme, employees and employers each contribute 50 percent of the monthly contribution. Monthly contributions range from Tk 1,000 to Tk 15,000, and participants receive lifelong monthly pension benefits after retirement.

The scheme also offers tax incentives, as contributions are eligible for income tax rebates while pension income remains fully tax-free. Upon reaching the age of 60, participants receive up to 30 percent of their accumulated corpus as a one-time gratuity payment. The scheme is backed by government-guaranteed investments.

As of May 30, 2026, a total of 3,77,930 people had registered under the four pension schemes, with deposits reaching about Tk 260 crore and investments standing at Tk 286 crore.

BRAC Bank PLC has signed two refinancing agreements with Bangladesh Bank.

The aim is to improve access to affordable finance for cottage, micro, small, and medium enterprises (CMSMEs). This step shows BRAC Bank's commitment to entrepreneurship and financial inclusion.

The agreements allow BRAC Bank to provide financing to entrepreneurs in different clusters across the country. Through Bangladesh Bank's Financial Sector Fund for MSMEs, the bank can offer low-cost credit support.

Through the Tk3,000 crore Cluster Finance Refinance Scheme, BRAC Bank will provide term loans and working capital. These loans support entrepreneurs in various industrial clusters. Eligible businesses can access financing at concessional rates starting from 7 per cent. This support helps expand businesses, boost productivity, and create jobs.

The second agreement lets BRAC Bank use the Tk1,500 crore Financial Sector Fund for MSMEs. MSMEs in the manufacturing and service sectors can get financing at a 7 per cent interest rate. The facility offers loans of up to Tk1 crore for microenterprises and up to Tk5 crore for small and medium enterprises.

Tareq Refat Ullah Khan and Nawshad Mustafa exchanged agreement documents at a ceremony at the Bangladesh Bank on 18 May 2026. Deputy Governor Nurun Nahar was present.

Husne Ara Shikha, Executive Director of Bangladesh Bank, and Mahbubur Rahman, Head of Cottage, Micro and Small Business and Liability and Cash Management, SME Banking, BRAC Bank, also attended.

BRAC Bank, as the country's leading SME-focused bank, continues to pioneer the expansion of access to finance for grassroots entrepreneurs, leveraging Bangladesh Bank's refinancing schemes. The bank states that these initiatives will foster business growth, job creation, and sustainable economic development across Bangladesh.

Just four years after entering mobile phone manufacturing, RFL is now expanding into local production of telecom service-related equipment, including routers and vehicle tracking devices (VTDs), under its Proton brand.

PRAN-RFL Group, one of the country’s largest conglomerates, has received preliminary approval from the Bangladesh Telecommunication Regulatory Commission (BTRC) to locally manufacture and assemble the products under its electronics arm, RFL Electronics Limited.

According to official documents reviewed by The Daily Star, the regulator has also decided to conduct an on-site inspection of the company’s manufacturing facilities before issuing a temporary enlistment certificate for telecommunication service-related equipment.

On May 3, RFL Electronics presented its manufacturing roadmap to BTRC officials, who found the proposal “primarily satisfactory,” according to meeting documents.

RFL started manufacturing Proton mobile phones in late 2022.

Industry observers say the initiative highlights a transformation within Bangladesh’s industrial sector, where local companies traditionally focused on plastic goods and household appliances are increasingly investing in technology hardware and smart devices.

The telecom equipment segment is seen as particularly promising given rising domestic demand for internet connectivity, digital services and smart monitoring solutions.

Vehicle tracking devices are witnessing increasing demand amid the rapid expansion of logistics, ride-sharing, e-commerce delivery and fleet management services in Bangladesh.

Businesses are increasingly using tracking systems to improve operational efficiency and security.

Demand for routers is also growing steadily as broadband internet penetration expands across urban and semi-urban areas. Industry estimates suggest Bangladesh now has around 1.4 crore Wi-Fi users, creating a sizable market for networking devices.

Market analysts say Bangladesh’s router market is expected to continue growing through the end of the decade, driven by remote work, digitalisation and rising household internet usage.

The market currently includes more than 200 models across different price ranges and consumer segments.

International brands such as TP-Link, Xiaomi and Huawei dominate much of the consumer market, while brands like Tenda remain popular because of affordability and strong signal coverage.

British American Tobacco Bangladesh recorded a 14 percent year-on-year decline in domestic cigarette sales volume in the first quarter of FY2025-26, as tax-driven affordability pressures, downtrading, and competition from illicit cigarettes weighed on sales, according to an earnings update by BRAC EPL Stock Brokerage Ltd.

Domestic gross revenue fell 10.7 percent year-on-year, while net revenue dropped 21 percent as the total tax burden rose to 84.1 percent from 82 percent in the same quarter last year.

A modest 3.8 percent growth in unit revenue failed to offset the combined drag of lower volumes and higher taxes.

The Bangladesh Cigarette Manufacturers’ Association estimates that illicit cigarettes now account for 15 to 18 percent of the total market, posing a structural challenge for compliant manufacturers.

Non-core revenue offered little relief. Cigarette exports remained zero for the third consecutive quarter, while leaf export revenue fell 22.5 percent year-on-year due to a 27.1 percent decline in volume, partly offset by a 6.3 percent rise in unit price.

Revenue from third-party contract manufacturing -- now in its second quarter -- plunged 68 percent quarter-on-quarter, while no revenue was generated from semi-finished goods.

Gross profit fell 12 percent year-on-year to Tk 802 crore, although gross margin expanded by 707 basis points to 56 percent as cost of sales dropped 33.8 percent year-on-year, outpacing the 23.1 percent decline in total net revenue.

BATBC did not explain the margin improvement, which likely reflected price-mix benefits, input cost normalisation, and efficiency gains from consolidated production.

Operating expenses surged 40.7 percent year-on-year despite the revenue contraction, with no explanation offered. Salaries, IT costs, and technical assistance fees are the principal expense heads, according to the company’s 2025 annual report.

Net finance expenses eased to Tk 49.2 crore from Tk 53.9 crore a year earlier, mainly due to lower lease costs.

Total interest-bearing debt rose sharply to Tk 2,381 crore at the end of March from Tk 1,489 crore in December.

Operating cash outflow widened to Tk 1,226 crore from Tk 952 crore a year earlier, driven by lower profitability and inventory build-up.

Inventories climbed to Tk 5,386 crore from Tk 3,829 crore at year-end, prompting the company to increase short-term borrowing to manage operations.

Royal Footwear Limited, a footwear manufacturing and export-oriented company, is planning to raise Tk12 crore from the capital market through the SME platform to support its business expansion and meet rising export demand.

The company has recently re-submitted its application to the Bangladesh Securities and Exchange Commission (BSEC) to issue 1.2 crore shares under the fixed-price method through an Initial Qualified Investor Offer (IQIO).

Earlier, in 2024, Royal Footwear had applied for the same fundraising plan. However, the company later withdrew its Initial Qualified Investor Offer (QIO) proposal, citing political uncertainty, the ongoing economic slowdown, and an overall unstable business environment that was not favourable for expansion at that time.

As the business climate has improved now, the company has decided to revive its fundraising plan and move forward with the application again to support its expansion and take advantage of growing export opportunities.

As a synthetic shoe manufacturer, Royal Footwear intends to utilise the funds for business expansion, working capital, and loan repayment.

Specifically, the allocation includes, Tk2 crore for purchasing raw materials and packing materials, Tk1.67 crore for the purchase of spare parts, Tk8 crore for loan repayment, and Tk0.33 crore for IQIO expenses.

Royal Footwear Limited shares some common directors with Al-Madina Pharmaceuticals, a publicly listed company on the SME platform. In February 2023, Al-Madina Pharmaceuticals raised Tk5 crore through the SME platform to support business expansion. In FY25, the company declared a 12% cash dividend for its shareholders.

According to Royal Footwear, the company—incorporated in 2014—plans to enter the capital market to expand its operations and strengthen compliance standards. The management says that some of its international buyers have encouraged listing in the capital market, believing it would improve governance, compliance practices, and alignment with global standards.

The company mainly exports to European and Asian markets, where demand for its products continues to grow steadily. In addition, the management views capital market financing as a more sustainable long-term growth option compared to relying heavily on bank borrowing.

In FY25, Royal Footwear Limited reported revenue of Tk52.91 crore, up from Tk52.34 crore in the previous fiscal year. Its profit after tax stood at Tk2.78 crore, which was Tk3.19 crore a year ago.

Earnings per share (EPS) reached Tk0.82, which was Tk0.94 a year ago. Its net asset value (NAV) per share, after revaluation, was Tk27.54.

Prime Bank Investment Limited is acting as the issue manager for the IQIO.

According to the company prospectus, the footwear industry in Bangladesh is growing rapidly due to increasing domestic and international demand, competitive production costs and favourable government policies.

Opportunities lie in export expansion, modern technologies, and sustainable practices. However, challenges such as quality control, compliance with international standards, and workforce development persist.

Major competitors of Royal Footwear include Apex Footwear, Bata Shoe Company (Bangladesh), Bay Emporium, Lotto BD, Jenny's Shoes, Craftsman Footwear and Accessories, and MK Footwear PLC.

To remain competitive, companies are adopting advanced technologies such as CAD/CAM systems and automated machinery to enhance efficiency and quality. Many firms are also obtaining global certifications, such as the Leather Working Group (LWG) certification, to boost credibility.

Despite obstacles like limited access to finance, infrastructure gaps, and labour shortages, the industry is making strides in environmental sustainability.

Investments in eco-friendly production methods and effluent treatment plants are helping to address environmental concerns and align with international standards, further strengthening the industry's growth potential.

The government has approved a Nationwide Telecommunication Transmission Network (NTTN) licence for Bangla Phone, marking the first major telecom infrastructure licence approval since the formation of the new government. The company’s earlier bid was rejected by the interim government.

This makes Bangla Phone the seventh company in the country to receive this licence.

According to official documents, the approval was granted on May 13 after the Bangladesh Telecommunication Regulatory Commission (BTRC) sought government clearance on May 10.

Under existing guidelines, the licence allows operators to build, maintain and manage nationwide fibre-optic transmission networks and share infrastructure with telecom operators and internet service providers.

BTRC requires prior approval from the Ministry of Posts, Telecommunications and Information Technology before issuing such licences. In May last year, the regulator sought approval, but the interim government rejected the proposal.

After the new government took office, BTRC again sought approval from the ministry.

It remains unclear under which guideline the licence was approved, as there is no separate NTTN category in the telecom licensing policy.

The policy, approved by the BTRC and later endorsed by the interim government, is now under review by the current administration.

Under the licensing policy, NTTN falls under the category of National Infrastructure and Connectivity Service Provider (NICSP).

Major General (retd) Md Emdad Ul Bari, chairman of the BTRC, said the licence was issued under the legacy framework.

“When the licensing regime changes, the licence will be migrated accordingly,” he said.

Explaining why the BTRC recommended the licence for Bangla Phone, Bari said an inspection team found that the company, which has been operating in Bangladesh since 2004, already has a fibre-optic transmission network spanning more than 13,000 kilometres.

“As the country needs more transmission network infrastructure and the operator already has an extensive fibre network, the regulator recommended issuing the licence following its application and investigation,” a BTRC official said.

Bangla Phone first applied for the licence in June 2011, but the ministry rejected it in July 2014. After the company filed a writ petition, the High Court directed a review, although the ministry upheld its decision in June 2016.

The company reapplied in September 2024, prompting the BTRC to form a committee in January 2025 to assess the request.

The committee cited the need to expand affordable transmission networks nationwide, particularly in remote areas.

Considering the limitations of the country’s existing transmission network and Bangla Phone’s previously permitted infrastructure, the committee recommended issuing a new NTTN licence, according to the documents.

As per BTRC documents, the country’s other six NTTN operators currently manage a combined 148,000 kilometres of optical fibre network.

The country’s first NTTN licence was awarded to Fibre@Home in 2008, and the company now operates around 50,000 kilometres of network infrastructure.

Summit Communications operates approximately 40,000 kilometres of network, while Bahon Limited has 7,817 kilometres. Bangladesh Telecommunications Company Limited manages around 40,000 kilometres, and Power Grid Company of Bangladesh operates roughly 8,500 kilometres. Bangladesh Railway, meanwhile, has about 3,800 kilometres of optical fibre infrastructure.

In addition, the government has laid nearly 35,000 kilometres of optical fibre under projects such as Info-Sarker 3 and Connected Bangladesh, while mobile operators collectively operate around 8,200 kilometres of fibre infrastructure

Last year, Amjad H Khan, chairman of Bangla Phone, told The Daily Star that the company’s four licences, including an International Internet Gateway (IIG) licence, were cancelled during the previous government’s tenure.

He said the country still lacks adequate telecom infrastructure, creating opportunities for more players to contribute.

Techno Drugs Limited has decided to issue a coupon-bearing bond worth Tk50 crore to restructure its high-cost bank loans, as the pharmaceutical company faces declining profits alongside a sharp rise in long-term debt.

The decision was approved at the company's board meeting held on Thursday.

According to a price-sensitive disclosure, the proposed five-year bond will be structured as 25% redeemable and 75% convertible. The initiative is subject to approval from shareholders at an extraordinary general meeting (EGM) scheduled for 24 June, as well as clearance from the Bangladesh Securities and Exchange Commission (BSEC). MTB Capital Limited has been appointed as issue manager and arranger.

Company Secretary SM Abu Talha Siddik told The Business Standard that the primary objective of the bond is to manage the company's high-cost bank liabilities more efficiently.

The move comes at a sensitive time for the drugmaker, as One Bank PLC has recently filed a case in the Money Loan Court against the company and its directors to recover defaulted loans worth around Tk150 crore. The court has already issued a public notice summoning the directors in connection with the case.

Responding to the legal dispute, Siddik said the company is in discussions with the bank and hopes for a swift resolution.

The latest financing plan comes even after Techno Drugs raised Tk100 crore through an initial public offering (IPO) under the book-building method in 2024.

Audit reports show that Tk31.47 crore from the IPO proceeds was spent on machinery acquisition and construction at its Narsingdi and Gazipur facilities, while Tk30 crore was used to partially repay bank loans, including Tk25 crore to One Bank and smaller amounts to LankaBangla Finance, Alliance Finance, and IDLC Finance.

However, the company's financial position has weakened further in FY26. For the July–March period, revenue declined 11% year-on-year to Tk232 crore, while net profit fell 16% to Tk15.54 crore.

Meanwhile, long-term loans surged to Tk239.56 crore by the end of March 2026, marking a 54% increase compared to the same period last year.

bKash Limited, the country's largest mobile financial services (MFS) provider, has reported a 40% increase in net profit, reaching Tk184 crore, as revenue continued to grow strongly across successive quarters.

According to the unaudited financial statement of bKash, a subsidiary of BRAC Bank, the company's net revenue rose by 10% to Tk1,802 crore in the first quarter of 2026.

Speaking to TBS, bKash Chief Financial Officer (CFO) Moinuddin Mohammed Rahgir said, "bKash has consistently demonstrated the sustainability of its business model while continuing to support a more inclusive financial ecosystem for millions of Bangladeshis."

The company's persistent investments in technology, regulatory compliance and cyber security have helped strengthen customer trust and increase engagement across its platform. With an increasing proportion of its customer base now transacting regularly, reflecting growing confidence in digital financial services, said CFO.

This higher level of usage has contributed to growth in both revenue and profitability. Looking ahead, bKash will continue investing in a stronger financial ecosystem, digital commerce and payment solutions as Bangladesh moves toward a more cashless and digitally empowered economy, he further added.

Founded in 2010 as a joint venture between BRAC Bank and US-based Money in Motion LLC, bKash began commercial operations in 2011. It remained profitable until 2018 before facing significant losses between 2019 and 2021.

The company returned to profit in the July-September quarter of 2022 and has maintained consistent profitability since then, according to officials.

From the beginning, the company's investors have followed a "patient-capital" approach. Instead of taking dividends, they have continuously reinvested profits back into the business. This strategy has enabled bKash to build a strong technological foundation and scale its services effectively.

BRAC Bank currently holds a 51% stake in bKash, while other major shareholders include Money in Motion LLC (16.45%), Alipay Singapore E-Commerce (14.87%), International Finance Corporation (10.36%), and SVF II BEAM (DE) LLC (7.32%).

According to bKash, it currently has over eight crore customers, along with 3.50 lakh agents.

As of now, bKash charges Tk18.50 per thousand for cash out while Tk5 for each fund transfer to another account.

In a stark revelation of the deep-rooted financial distress within the country's largest private sector lender, Islami Bank Bangladesh PLC has reported that its classified loans skyrocketed by 44% to reach a staggering Tk94,322 crore at the end of 2025.

The figure, disclosed in the bank's latest audited financial statements, marks the highest volume of bad loans ever recorded by a single bank in Bangladesh's banking history.

The escalation of non-performing loans (NPLs) means that bad debt now accounts for a massive 51% of the bank's total loan portfolio, a sharp increase from the 42.36% recorded just a year earlier in 2024.

The magnitude of Islami Bank's crisis is further evidenced by its share of the national burden.

According to data from Bangladesh Bank, total classified loans across the sector stood at Tk5.57 lakh crore at the end of 2025, meaning Islami Bank alone accounts for 17% of the banking sector's total defaulted debt.

To provide context, Janata Bank holds the second-highest volume of classified loans in the country, which stood at Tk72,804 crore during the same period.

A senior official of the bank attributed this unprecedented surge to the exposure of "hidden" bad loans linked to the S Alam Group. The official explained that the previous management had systematically concealed these irregularities, but the new management's efforts to reveal the actual data have resulted in the skyrocketing numbers.

The 2025 audit report, prepared by Mahfel Huq and Co, chartered accountants, also revealed a massive gap in the bank's provisioning against bad assets.

The auditors issued a qualified opinion, noting that as of 31 December 2025, the bank required a total provision of Tk92,537.56 crore against its bad investments and assets. However, the lender maintained provisions of only Tk7,922.41 crore, leaving a monumental shortfall of Tk84,615.15 crore.

According to the auditors, failure to recognise the full provision shortfall significantly overstated the bank's assets, net profit and equity while understating its liabilities.

Furthermore, the audit firm drew attention to the bank's "going concern" status, stating that the financial statements were prepared based on the assumption that the bank will continue to operate only due to the extraordinary regulatory forbearance extended by Bangladesh Bank.

The auditors noted that the bank's ability to remain operational is entirely dependent on the central bank's ongoing policy support.

The bank's capital position is equally precarious. While the required capital based on Risk-Weighted Assets was Tk19,200.91 crore, the bank reported capital of only Tk9,855.19 crore.

This indicates a reported capital shortfall of Tk9,345.72 crore. However, the auditor clarified that if the Tk84,615 crore provision shortfall were fully taken into account, the bank's regulatory capital shortfall would actually reach a nearly incomprehensible Tk93,960.92 crore.

Under standard central bank directives, Islami Bank was required to maintain a Capital Adequacy Ratio (CRAR) of 12.50%, but it managed to report only 6.42%. Most tellingly, the auditor pointed out that without the central bank's special intervention, the bank would have incurred a solo aggregate loss of Tk84,507.83 crore for the year 2025.

Despite these grim realities, Bangladesh Bank granted the lender permission on 28 April 2026 to finalise its financial statements without incorporating the full provision adjustment.

This move was allowed due to the bank's insufficient profits, provided the shortfall was adequately disclosed to the market. In exchange for this life support, bank management must now submit a board-approved, time-bound action plan within one month to address the massive deficit, the auditor said.

The bank's exposure to the S Alam Group remains the primary engine of this collapse. Major borrowers identified in the report include S Alam Steels and Refined Sugar Industries, with an exposure of Tk10,394 crore; S Alam Vegetable Oil, with Tk14,899 crore; and S Alam Super Edible Oil, with Tk12,983 crore.

Financially, the bank's core performance has dwindled. Net investment income plunged by 40% to Tk1,847 crore in 2025. While the bank reported a technical net profit of Tk136 crore, this figure exists only because of the aforementioned regulatory forbearance.

As a result, the bank declared no dividend for its shareholders for the second consecutive year. This failure to reward investors has led to the bank being downgraded to the 'Z' or junk category on the stock exchange.

The market reaction has been one of paralysis. Currently, Islami Bank shares remain stuck at the floor price of Tk32.60.

Meanwhile, around 83% of the bank's total shares, which are linked to the S Alam Group, have been confiscated following orders from the central bank.

A high-powered committee led by the Bangladesh Bank has recommended extending the maturity of Beximco Ltd's Tk3,000 crore green sukuk by six years to 2032, instead of its scheduled maturity in December 2026, to avoid a potential default and protect institutional investors heavily exposed to the instrument.

The recommendation was finalised at a meeting held at the central bank yesterday under the leadership of Deputy Governor Md Kabir Ahmed, where the committee reviewed the feasibility of restructuring the terms and conditions of the "Beximco Green Sukuk Al Istisna".
The proposed extension remains subject to approval by the Bangladesh Securities and Exchange Commission, which has regulatory authority over bond approvals, tenure extensions and changes to profit rates.

Officials familiar with the discussions said the existing 9% profit rate on the sukuk could increase by around 1 to 1.5 percentage points following the extension, linked to the yield on five-year treasury bonds. The current yield on five-year government treasury bonds stands at 10.78%.
Cenbank moves to prevent default

The decision follows months of discussions within two separate committees formed to examine the sukuk's restructuring.

Earlier, a Bangladesh Bank high-level committee and a separate 21-member working committee led by the Investment Corporation of Bangladesh, the trustee of the sukuk, had discussed extending the instrument's tenure.
However, officials said the central bank committee has now reached a final decision in favour of extending the maturity period.
Under the proposed arrangement, the ICB will formally inform the securities regulator of the committee's decision and initiate the required process for obtaining approval for the extension.

Officials at the meeting said the trustee would not inject additional funds to complete the partially developed Korotoa Solar Park, which had been financed through the sukuk's sinking fund.

The project suffered severe damage during political unrest surrounding the change in government in August 2024, when machinery and transformers at the solar park were burned, preventing the project from being connected to the national transmission grid.

According to officials, approximately Tk150 crore will now be required to make the project operational.

However, Beximco or a third-party investor may still revive the project with fresh investment. Any new investment would be recoverable only after sukuk investors are fully repaid.

Institutional investors heavily exposed

An official present at the meeting said Beximco Ltd's operations had effectively come to a halt following the political transition last year, making it impossible for the company to repay investors within the current maturity period ending in December 2026.

He said around 97% of the sukuk investors are institutional investors, primarily banks and bank subsidiaries. Failure to repay investors on time would place significant pressure on the banking sector, as banks could face provisioning requirements if the instrument were to fall into default.

"Considering the overall situation, the committee decided to extend the maturity period," the official said.

According to ICB's calculations, the Teesta Solar Plant financed through sukuk proceeds is currently supplying 200MW of electricity to the national grid and generating around Tk50 crore in monthly revenue.

Of that amount, approximately Tk7 crore is paid to Beximco as operational expenses, while the remaining revenue is used for periodic profit payments and contributions to the sinking fund.

Based on these cash flows, officials estimate that the sukuk, which has around Tk2,800 crore outstanding now, could generate around Tk3,600 crore in revenue over an additional 72 months.

ICB estimates also show that approximately seven months remain before the current maturity period expires. During this period, the project is expected to generate around Tk350 crore in additional revenue, while nearly Tk600 crore has already accumulated in the sinking fund.

Officials believe these funds, combined with cash flows generated during the extended tenure, would allow full repayment to investors within the revised maturity period.

Delays and project setbacks

Bangladesh Bank formed a 10-member committee last year to review and restructure the sukuk's terms. The committee included senior officials from Bangladesh Bank, ICB, the Bangladesh Securities and Exchange Commission, the Bangladesh Power Development Board and several leading banks.

The country's first asset-backed Shariah-compliant corporate green sukuk was issued by Beximco Ltd in 2021 and raised Tk3,000 crore.

Banks and their subsidiaries invested Tk2,439 crore through private placements, while Tk558 crore was raised through public offerings.

Of the total proceeds, Tk2,155 crore was ultimately spent on the Teesta Solar Plant against an original allocation of Tk1,886.83 crore. Another Tk39 crore was spent on the Korotoa Solar Project against an allocation of Tk308.31 crore, while Tk806 crore was used for textile expansion.

The Korotoa plant, planned as a 30MW solar project, had been expected to begin operations by June 2026. However, a fire during the August 2024 unrest damaged its transformers and site office, delaying implementation further.

Some foreign shareholders and owners of Ring Shine Textiles Limited – a company operating in Bangladesh since 1997 – have written to Prime Minister Tarique Rahman seeking a meeting to present the firm's ongoing crisis and request government support to protect the interests of public shareholders.

In the letter, the foreign investors said Ring Shine Textiles, a listed company that raised Tk150 crore through an initial public offering (IPO), is facing the threat of eviction due to a large volume of unpaid dues to the Bangladesh Export Processing Zones Authority (BEPZA).

They also noted that they have lost business operations of subsidiary garment units – Avant Grade Fashion and Shine Fashion Co (Pvt) Ltd.
Nine investors from Thailand, Taiwan, and Indonesia established the 100% export-oriented Ring Shine Textiles at the Dhaka Export Processing Zone (DEPZ).

Currently, two of the nine foreign investors remain stranded in Bangladesh because of travel bans since 2020, while others are reportedly avoiding travel to the country over fears of facing similar restrictions.

Aniruddho Pial, the current managing director of Ring Shine Textiles Limited, said the company had performed strongly in the ready-made garment sector and contributed significantly to the economy until 2019.

However, he said the company ran into trouble during the Covid-19 pandemic and has since struggled with a business slowdown, mounting debt burdens, growing dues to BEPZA, and a shortage of working capital.

Against this backdrop, the company's foreign investors have sought a meeting with the prime minister to present the company's current situation and seek government assistance to safeguard the interests of public shareholders.

"We have already received loan-rescheduling facilities from Bangladesh Bank. Now, as the central bank is forming a Tk40,000 crore special fund for sick and closed factories, we will seek financial assistance from the fund," Pial said.

Controversial IPO listing

According to the letter, Ring Shine's troubles began after a controversial IPO process allegedly involving FAR Group's Abdul Kader Faruk and Indian textile trader Ashok Kumar Chirimar.

The investors described in detail how the disputed IPO process led to the company's current crisis and the difficulties faced by the foreign shareholders.

Ring Shine entered the stock market in 2019 through a Tk150 crore IPO – one of the largest offerings in the textile sector. Before going public, the company increased its paid-up capital from less than Tk10 crore to more than Tk285 crore.

BSEC findings

Findings by the Bangladesh Securities and Exchange Commission (BSEC) revealed that a syndicate involving controversial tax official Matiur Rahman and FAR Group Chairman Abdul Kader Faruk allegedly embezzled hundreds of crores of taka by issuing new shares of Ring Shine Textiles without investing any funds.

According to the findings, the group allocated shares worth Tk112 crore at a face value of Tk10 each without depositing any money into the company's account.

The BSEC later decided to seek travel bans on 13 individuals linked to the company, including sponsors, former directors, the managing director, executive director, chief financial officer, and company secretary, as well as Faruk and Chirimar.

Once a profitable company, Ring Shine's financial condition deteriorated after its stock market listing. The company also suffered severe setbacks during the coronavirus pandemic as foreign buyers suspended orders amid weakening global demand.

When irregularities surrounding the IPO came to light, the BSEC froze the company's unutilised IPO funds that were intended for business expansion and loan repayment.

Investors left in the dark

Ring Shine has also failed to publish financial statements for the fourth quarter of FY25 and the first three quarters of the current fiscal year, leaving investors unaware of the company's financial condition for nearly a year.

According to previous reports by The Business Standard, BEPZA has initiated proceedings to cancel six additional lease agreements of Ring Shine for failing to clear outstanding dues.

The Dhaka EPZ office issued a notice expressing its intention to terminate the leases of plots no 157-163. Earlier, on 20 February 2025, BEPZA had cancelled leases for plots no 231-236 on similar grounds.

As of 25 January 2025, Ring Shine's outstanding dues to BEPZA stood at around $16.19 million, against a deposit of only $2,54,945. Despite repeated reminders, the company has yet to clear the arrears.

In November last year, Bangladesh Bank allowed publicly listed Ring Shine Textiles to reschedule its loans for up to 10 years, including a two-year moratorium period.

The company also received an eight-year rescheduling facility for its working capital loans – including overdraft, cash credit, and forced loans – with a 2% down payment requirement, of which 1% was to be paid before rescheduling and the remaining 1% after six months.

Aniruddho said that government support would enable the foreign-owned company to resume full operations and help foreign investors save the firm, which in turn could restore confidence among foreign investors.

HSBC's Bangladesh operations posted a 23% decline in net profit in 2025, weighed down by higher provisions against rising classified loans and lower income from government treasury investments.

According to the multinational bank's audited financial statements for 2025, net profit after tax stood at Tk823 crore, down significantly from Tk1,086 crore in 2024.

The decline in profit was largely driven by a sharp increase in provisions. HSBC set aside Tk265.96 crore in provisions in 2025, up 149% from the previous year. At the same time, income from treasury bond holdings fell 17% year-on-year.

During the year, the bank's classified loans surged 134% to Tk748.20 crore, accounting for 3.99% of its total loan portfolio.

Summit Alliance Port Limited, one of the country's leading inland container terminals and logistics operators, reported a 26% decline in export freight earnings in the July-March period of FY26, weighed down by weaker export container handling and a challenging global trade environment.

In its unaudited financial statement for the first nine months of the fiscal year, the company said export freight income fell to Tk310.64 crore. The downturn in exports dragged overall performance, with consolidated revenue – covering both export and import container freight and handling – falling 18% to Tk499.88 crore.

Net profit declined sharply by 31% to Tk38.27 crore, while consolidated earnings per share dropped to Tk1.62 at the end of March 2026, compared to Tk2.34 in the same period of the previous fiscal year.

The company attributed the weaker performance largely to its subsidiary Container Transportation Services Limited (CTSL), which faced lower cargo volumes, higher operating costs, and pressure from geopolitical tensions in the Middle East.

It also cited subdued export activity and heightened competition in the freight forwarding segment, which compressed margins despite efforts to expand services.

The trend aligns with broader export weakness, as Export Promotion Bureau data showed national export earnings fell nearly 5% to $35.39 billion in the same period.

CTSL remains the group's main revenue driver, leaving overall performance highly sensitive to export volumes and global trade conditions.

In January 2025, the company entered a strategic partnership with Germany's Hellmann Worldwide, which subscribed to 3.33 lakh CTSL shares at Tk66.50 each to strengthen regional logistics capacity. However, the benefits have yet to offset weaker demand and lower freight rates.

Yesterday, Summit Alliance Port shares fell 1.75% to Tk50.40 on the Dhaka Stock Exchange.

Sonali Bank, the country's largest state-owned commercial bank, reported a record net profit of Tk1,313 crore in 2025, marking a 33% increase from the previous year, according to its audited financial statements.

The strong performance was primarily driven by a surge in investment income, largely from government bond holdings, which rose 55% year-on-year to Tk9,799 crore.

However, the bank's net interest income declined sharply, falling 77% to Tk337 crore during the year.

The drop was attributed to reduced interest earnings from borrowers alongside higher interest payments to depositors.

Sonali Bank's earnings per share (EPS) improved to Tk28.99 in 2025, up from Tk21.82 in the previous year.

State-owned Janata Bank recorded a substantial loss of Tk3,931 crore in 2025, marking a 28% increase compared to the previous year, according to its audited financial statements.

The significant loss has pushed the bank's net asset value further into negative territory, standing at Tk108.51 per share.

The downturn was largely driven by a sharp deficit in net interest income, which reached a negative Tk5,903 crore, alongside a surge in classified loans totaling Tk72,800 crore.

By the end of 2025, the bank's loss per share rose to Tk169.90.

Advanced Chemical Industries (ACI) PLC is set to further diversify its business portfolio by entering the stationery market through a joint venture with the Chinese industry leader, Deli Group.

In a regulatory filing on Thursday, the local conglomerate informed that its board of directors approved the formation of a new company titled "Deli ACI Bangladesh Limited" in a meeting held on 29 April. The joint-venture entity will have an authorised capital of Tk100 crore and an initial paid-up capital of Tk27 crore.

ACI PLC will hold a 50% stake in the new venture, with the partnership remaining subject to the approval of the relevant regulatory authorities.

The collaboration aims to combine Deli's international expertise in stationery manufacturing with ACI's extensive local market knowledge and its massive nationwide distribution network.

The company stated that the venture will introduce a wide range of stationery solutions for students, professionals, and creative users, focusing on functionality, durability, and contemporary design while meeting both global standards and local demand.

Founded in 1981, Deli Group is a prominent Chinese stationery manufacturer. As of October 2018, it was recognised as the largest stationery manufacturer in Asia. The group operates several global sub-brands, including Deli Tools, Deli Plus, Deli Genius, Agnite, Nusign, and Dmast, focusing on office and school supplies.

This move marks ACI's fifth major international partnership. At present, the conglomerate operates four successful joint-venture companies: pladis ACI Bangladesh Limited (with the UK's pladis), ACI Godrej Agrovet Private Limited (with India's Godrej), ACI CO-RO Bangladesh Limited (with Denmark's CO-RO), and Colgate-Palmolive ACI Bangladesh Private Limited (with the US-based Colgate-Palmolive).

The telecom regulator has decided to allocate 10 MHz from the highly valuable 700 MHz band to state-owned Teletalk, despite the operator owing around Tk 5,500 crore in spectrum fees and already holding significant unused or underused spectrum.

The decision was taken at a recent Bangladesh Telecommunication Regulatory Commission (BTRC) meeting, according to documents.

The 700 MHz band is considered globally valuable for wide coverage, strong indoor signal, low rollout cost, and suitability for rural-urban networks, including 5G. In Bangladesh, 45 MHz of the band is allocated for mobile use, while 20 MHz remains unused due to a legal dispute.

TIMELINE OF GOVT, REGULATORY ACTIONS

On February 8, just before the national election, the interim government, through the telecom ministry, sent a letter to BTRC instructing it to allocate 10 MHz of spectrum to Teletalk.

A day later, Teletalk applied for the spectrum.

On February 16, the ministry informed the regulator that Teletalk had proposed converting its unpaid dues -- including licence and spectrum fees -- into government equity, now under finance division review.

On April 9, BTRC sought guidance from the ministry on how Teletalk would pay for the allocation. On April 24, the ministry directed the regulator to proceed with the allocation, citing the need to reduce customer inconvenience in line with the government’s election manifesto.

The price was set at Tk 237 crore per MHz, matching the rate paid by Grameenphone for 10 MHz in January as the sole bidder in the auction.

The move means the government may forgo at least Tk 2,000 crore in revenue in the near term.

Only 5 MHz of available spectrum in this band will remain for Banglalink and Robi, both of which have large customer bases. The two operators did not join the latest auction, saying prices were too high.

Spectrum is a limited and valuable resource that countries manage carefully, as it is important for improving telecom services and generating government revenue. In Bangladesh, there have been concerns about spectrum management, particularly regarding Teletalk.

LARGE DUES AND UNUTILISED SPECTRUM

Teletalk holds 55.2 MHz across the 900, 1800, 2100, and 2300 MHz bands and serves around 68 lakh subscribers, giving it about 0.81 MHz per lakh users.

By comparison, Grameenphone has 137.4 MHz for 8.44 crore subscribers (0.16 MHz per lakh), Robi has 124 MHz for 5.74 crore users (0.22 MHz per lakh), and Banglalink has 80 MHz for 3.74 crore users (0.21 MHz per lakh).

Despite higher spectrum per subscriber, Teletalk’s voice and data service quality has been weaker than peers in BTRC quality tests over the years, and it has added only about 1 lakh subscribers in five years.

The operator has also not used 30 MHz in the 2300 MHz band acquired in the 2022 auction, despite rollout obligations, which is considered a breach of spectrum utilisation rules.

Teletalk’s total liabilities include Tk 120 crore in licence fees, Tk 102 crore in revenue sharing, Tk 5,506 crore in spectrum fees, and around Tk 62 crore in other charges.

EXPERT CRITICISM

“Private operators are required to follow strict rules, but public companies often do not face the same obligations, which creates a market imbalance,” said Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue.

He added that large unpaid dues raise doubts about such firms’ ability to survive in a competitive market, noting they often rely on government support rather than efficiency.

TIM Nurul Kabir, a telecom expert, said, “Spectrum is a valuable resource and allocating it to an operator that cannot ensure good service or generate revenue is a poor regulatory decision.”

“The government needs a different approach to revive Teletalk rather than using up valuable resources. Such decisions are also anti-competitive,” he added.

Md Emdad ul Bari, chairman of BTRC, said the allocation was approved on the condition that spectrum charges would be converted into government equity.

He said this would not cause revenue loss, as funds would shift between state entities as equity investments.