GPH Ispat, one of the country's major steel manufacturers, has reported its first-ever annual loss since debuting on the stock exchanges in 2012, marking a significant setback for the Chattogram-based steelmaker as rising production costs and spiralling finance expenses eroded its profitability in FY25.

The company incurred a loss of Tk24.68 crore in the fiscal year ended June 2025, according to a price-sensitive statement filed with the Dhaka Stock Exchange (DSE) today (2 December).

This sharp reversal comes just a year after GPH posted a profit of Tk85.77 crore in FY24.

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The loss translated into a negative earnings per share of Tk0.51, reflecting the pressure from higher costs across its operations.

The company said its bottom line was hit primarily by surging raw material prices, increased production costs, and a substantial spike in finance expenses.

Elevated global scrap prices and higher freight rates pushed up the cost of goods sold, while a rising interest-rate environment increased the burden of borrowing for a firm that relies heavily on loans to fund its operations and expansion projects, it added.

GPH noted that a combination of these factors ultimately wiped out its profitability for the year.

Its net asset value per share dropped marginally as well, falling 1.35% year-on-year to Tk51.72 at the end of FY25.

The company has yet to publish its detailed annual financial statements, but unaudited quarterly reports up to March 2025 showed GPH carrying Tk3,160 crore in long-term loans and another Tk3,182 crore in short-term borrowings – one of the highest leverage levels in the steel sector.

While GPH struggled, competitors strengthened their foothold in the market during the same fiscal year.

BSRM Steels Limited posted a 25% jump in revenue to Tk10,366 crore and a 36% rise in net profit to Tk517 crore in FY25. Bangladesh Steel Re-Rolling Mills Limited (BSRM) also delivered strong results, with revenue rising 16% to Tk9,572 crore and profits soaring 42% to Tk614 crore.

Both competitors announced a 50% cash dividend for their shareholders, underscoring their financial strength during a challenging year for the broader industry.

GPH, in contrast, has declared a 5% cash dividend only for general shareholders for FY25 – its lowest payout since listing. The company paid a 10% cash dividend the previous year, and its highest-ever payout was 20% for FY21.

The record date has been set for 23 December, with the annual general meeting scheduled for 31 December.

The company's capital-raising efforts also faced barriers throughout the year. In October 2024, GPH sought to issue preference shares to raise Tk500 crore to repay its high-cost debt, but the Bangladesh Securities and Exchange Commission rejected the application.

The regulator had previously declined the company's plan to raise Tk242 crore through a rights share offering aimed at expanding production capacity.

In February, GPH announced its intention to raise $150 million through an initial public offering on the Hong Kong Stock Exchange to finance a new expansion project.

Despite the loss and setbacks, investor reaction remained relatively calm. GPH Ispat's shares inched up 0.59% on Tuesday to close at Tk17.10, giving the company a market capitalisation of Tk827 crore.

The main task of the newly formed Sammilito Islami Bank will be to restore depositors' confidence, said Mohammad Ayub Miah, chairman of Sammilito Islami Bank PLC.

He made the statement yesterday while talking to journalists after meeting Ahsan H Mansur, governor of Bangladesh Bank (BB), at the central bank headquarters.

After taking charge as chairman, Ayub Miah, a former senior secretary, said that launching a Shariah-based bank under government ownership is good news for the country.

"A technical team is already working to properly establish the bank. Our main goal will be to regain depositors' trust. Sammilito Islami Bank will emerge as a symbol of confidence for the nation," he said.

He added that the meeting focused on reviewing the bank's vision and mission, legal framework, and overall operations.

"The next steps include making the bank fully functional and legally completing the merger of the five banks," he said.

Earlier, in a special board meeting on Sunday chaired by the BB governor, a decision was taken to merge five troubled Islamic banks—First Security Islami Bank, Global Islami Bank, Social Islami Bank, EXIM Bank, and Union Bank—into a single entity.

BB formally handed over the operating licence on Monday, and administrative work has already begun at the bank's head office in Sena Kalyan Bhaban, Motijheel. Officials said the governor will officially inaugurate Sammilito Islami Bank at a press conference on Thursday.

The new bank has a paid-up capital of Tk 35,000 crore, with Tk 20,000 crore contributed by the government and Tk 15,000 crore from depositors' shares. Its authorised capital is Tk 40,000 crore.

BB expects the merged entity to play a key role in stabilising the Islamic banking sector. From next week, the bank will start refunding deposits up to Tk 2 lakh, while a plan is being prepared for returning larger amounts.

The main task of the newly formed Sammilito Islami Bank will be to restore depositors' confidence, said Mohammad Ayub Miah, chairman of Sammilito Islami Bank PLC.

He made the statement yesterday while talking to journalists after meeting Ahsan H Mansur, governor of Bangladesh Bank (BB), at the central bank headquarters.

After taking charge as chairman, Ayub Miah, a former senior secretary, said that launching a Shariah-based bank under government ownership is good news for the country.

"A technical team is already working to properly establish the bank. Our main goal will be to regain depositors' trust. Sammilito Islami Bank will emerge as a symbol of confidence for the nation," he said.

He added that the meeting focused on reviewing the bank's vision and mission, legal framework, and overall operations.

"The next steps include making the bank fully functional and legally completing the merger of the five banks," he said.

Earlier, in a special board meeting on Sunday chaired by the BB governor, a decision was taken to merge five troubled Islamic banks—First Security Islami Bank, Global Islami Bank, Social Islami Bank, EXIM Bank, and Union Bank—into a single entity.

BB formally handed over the operating licence on Monday, and administrative work has already begun at the bank's head office in Sena Kalyan Bhaban, Motijheel. Officials said the governor will officially inaugurate Sammilito Islami Bank at a press conference on Thursday.

The new bank has a paid-up capital of Tk 35,000 crore, with Tk 20,000 crore contributed by the government and Tk 15,000 crore from depositors' shares. Its authorised capital is Tk 40,000 crore.

BB expects the merged entity to play a key role in stabilising the Islamic banking sector. From next week, the bank will start refunding deposits up to Tk 2 lakh, while a plan is being prepared for returning larger amounts.

The securities regulator has granted additional time to 11 more market intermediaries to ensure compliance with provisioning requirements for unrealised losses and to adjust negative equity.

The extension will take effect after December 31 this year, when the current deadline expires. Some institutions have been given one more year, some two years, while others have received extensions up to 2032.

The securities regulator granted the extra time based on action plans submitted by the intermediaries - stockbrokers, dealers, and merchant banks - and endorsed by their respective boards.

The firms are Fintra Securities, Sheltech Brokerage, Joytun Securities International, BDBL Investment Services, BNB Securities, Hazrat Amanat Shah Securities, GMF Securities, Wifang Securities, BRB Securities, BMSL Investment and Midas Investment.

The regulatory approval came at a meeting of the Bangladesh Securities and Exchange Commission (BSEC) on Tuesday, chaired by its Chairman Khondoker Rashed Maqsood.

Abul Kalam, BSEC director and spokesperson, said market intermediaries with comparatively lower negative equity would get less time to regularise their positions, while those with greater levels of negative equity would receive longer extensions.

The regulator has so far granted 49 market intermediaries additional time to meet provisioning requirements and adjust negative equity under board-approved roadmaps.

"Some other market intermediaries that have negative equity will have to submit their action plans within this year," said Mr Kalam.

In April this year, the BSEC instructed stockbrokers, dealers, and merchant banks to submit an implementable roadmap by September, outlining how they intended to achieve full provisioning.

In response, some firms submitted action plans to resolve the long-standing problem of negative equity that has been hindering market growth for more than a decade.

Outstanding negative equity against margin loans taken for equity investments stood at Tk 150 billion as of October this year.

Under the regulator's approval, the institutions must complete full provisioning and negative equity adjustment within the extended deadlines.

The BSEC said intermediaries receiving additional time must submit quarterly progress reports until the issue is fully resolved.

The firms are also required to disclose their negative equity and unrealised losses in their financial statements based on IFRS accounting standards.

The regulatory order also imposed several restrictions, including a bar on share purchases in beneficiary owner (BO) accounts with negative equity. Only share sales will be allowed in margin accounts for adjustment during the extended period.

No interest will be charged on margin loans, nor will management fees be collected from BO accounts with negative equity. Intermediaries are also prohibited from declaring or distributing dividends during this period.

Moreover, no new negative equity may be created. If unavoidable circumstances lead to negative equity, full provisioning must be completed within the relevant financial year. Any information requested by the securities regulator must be provided within seven days.

The regulator, however, relaxed a provision relating to net-worth shortfalls arising from provisioning for unrealised losses or adjusting negative equity.

Previously, the securities regulator extended the deadline for negative equity adjustment at least six times, but most intermediaries failed to comply due to a prolonged bearish market.

"The market intermediaries that fail to keep provisions for unrealised losses and adjust negative equity within this given timeframe will face regulatory action," said Mr Kalam.

Marking a major consolidation in the financial sector, Sammilito Islami Bank PLC officially commenced operations on Tuesday following the merger of five Shariah-based banks.

Former secretary Mohammad Ayub Miah has taken office as the chairman of the new bank following a meeting with Bangladesh Bank Governor Dr Ahsan H Mansur this afternoon.

Talking to reporters, Ayub said that the establishment of a government-owned Islamic bank marks good news for the nation.

He added that a technical team is already working to ensure a strong institutional foundation.

“Our main goal will be regaining the trust of the depositors. The United Islami Bank will become a symbol of trust to the nation,” Ayub said.

Ayub Mia noted that the discussion with the central bank governor focused on reviewing the bank’s vision, mission, legal framework, and operational roadmap.

He said the process of establishing the bank as a fully operational entity – along with the legal merger of the five institutions – will now move forward.

Earlier on Sunday, a special board meeting chaired by Bangladesh Bank Governor Ahsan H Mansur decided to merge five troubled Islamic banks – First Security Islami Bank, Global Islami Bank, Social Islami Bank, Exim Bank, and Union Bank – into a single new entity. The central bank formally handed over the licence yesterday.

The bank has already started official activities from its head office at Sena Kalyan Bhaban in Motijheel. Bangladesh Bank announced that Governor Mansur will formally inaugurate the new institution at a press conference on Thursday.

Sammilito Islami Bank PLC has been established with a paid-up capital of Tk 35,000 crore, of which the government will provide Tk 20,000 crore, while the remaining Tk 15,000 crore will be raised through depositors’ shares. The authorised capital has been set at Tk 40,000 crore.

Bangladesh Bank expects the newly merged institution to play a significant role in stabilising the Islamic banking sector.

The process of returning deposits of up to Tk 200,000 is set to begin next week, while a roadmap is being prepared for reimbursing larger deposits.

Current crunch time comes as a reminder to ministries and divisions concerned to make realistic fund demand from this year's revised budget to help the government avoid higher bank borrowings and interest payments.

The direction comes from finance division while holding consultation with the ministries and divisions separately for revising the budget for the fiscal year 2025-26-deficit one as usual--to make the two ends meet.

Officials say at the meetings some ministries and divisions are claiming that they will need entire operating budget allocated to them in the current fiscal year.

However, sources say, the finance officials asked them to strictly follow the austerity measures taking into consideration the trend in revenue collection.

A senior finance official told The Financial Express that every year nearly one-fifth of operating expenditure of the fiscal budget is being spent to pay interest on loans taken from domestic sources. And the debt-servicing obligation has been on the increase over the years.

He says for the current fiscal year, some Tk 1.0 trillion has been earmarked for interest payment against domestic loans.

"If the ministries make demand for funds that would not be needed actually, the finance division would have to borrow from banks and other sources for which interest has to be paid unnecessarily," he adds.

"We can avoid the unnecessary payment of interest if the estimation of spending can be more realistic," says the official, preferring not to be quoted by name.

Another finance division official says already this year government is under financial pressure due to spending around Tk 30 billion for holding national elections. Moreover, very recently the government was forced to enhance house-rent allowances for the MPO-listed teachers which may cost some Tk 40 billion additionally.

Also, the government has made commitment to provide some Tk 200 billion in the newly formed United Islamic Bank to give five Islamic banks a lifeline.

"These will create a significant pressure on government spending this year, significantly raising the borrowings from banks and treasury system, unless the revenue board enhances collection magically," he added.

However, another finance official says revenue collection is rising significantly, registering over 15-percent growth during July-October period, generating hope of lessening pressure from bank borrowing for deficit financing.

"If the trend in revenue collection continues, the dependence on bank borrowing of the government may decrease," the official predicts.

Finance Division officials says the interim government has, until now, decided to lessen this fiscal budget by around Tk 150 billion but would not finalise the amount and leave it for a final decision to the next political government taking office after next parliamentary election.

Gold eased on Tuesday after touching a six-week high in the previous session, as rising US Treasury yields and profit-taking weighed on prices, while investors awaited US economic data to gauge the Federal Reserve's policy path.

Spot gold fell 0.4 percent to $4,216.13 per ounce by 0436 GMT, after hitting its highest level since October 21 on Monday.

US gold futures for December delivery were down 0.7 percent at $4,246.60 per ounce.

Benchmark 10-year US Treasury yields hovered close to a two-week high touched in the previous session, reducing the appeal of non-yielding bullion.

"Gold is having a soft performance today, but the fundamental picture has not changed - a picture which includes anticipated US rate cuts, which should be supportive of gold from a yield point of view," said KCM Trade Chief Market Analyst Tim Waterer.

Markets are acting cautiously as Fed Chair Jerome Powell is not expected to sound as dovish as some of his colleagues, and the core Personal Consumption Expenditures (PCE) price index - the Fed's preferred measure of inflation - on Friday is expected to remain fairly benign, Waterer said.

Bangladesh and Germany yesterday signed agreements worth 160 million Euros to expand financing for a major water supply project in Dhaka aimed at reducing dependence on groundwater and ensuring sustainable access to drinking water.

The loan package includes an additional 70 million Euros and an amendment agreement to the main 90 million Euros loan for the "Climate Change Adapted Drinking Water Resources Management Dhaka II (Saidabad WTP Phase III)" project, according to a press release.

The project, implemented by Dhaka WASA under the Local Government Division, was approved by the Executive Committee of the National Economic Council in March 2025.

Its total estimated cost is Tk 16,014.83 crore, with Tk 4,536.17 crore from the government, Tk 11,448.66 crore in loans, and Tk 30 crore from WASA's own funds.

The additional 70 million Euros (around Tk 988 crore) will finance the construction of a raw water intake and pumping station on the Meghna river at Haria, a 26km transmission pipeline, and the expansion of 54km of the primary distribution network.

As a result of the new financing, the disbursement period of the original 90 million Euros loan has been extended to December 31, 2026.

Germany has been a long-standing development partner of Bangladesh, with commitments of about 4 billion Euros since 1972. KfW Development Bank is currently financing 13 projects in Bangladesh, including 647.50 million Euros in loans and 170 million Euros in grants.

Md Shahriar Kader Siddiky, secretary of the ERD, signed on behalf of Bangladesh. Carla Berke, head of division for urban development for South Asia, KfW Frankfurt, and Stefanie Klappenbach, principal portfolio manager for urban development for South Asia, KfW Frankfurt, signed for Germany.

The United States on Monday exempted British pharmaceuticals from import tariffs under a unique deal which sees the UK increase spending on American drugs by 25 percent.

The accord aims to "address long-standing imbalances in US-UK pharmaceutical trade," ending what US trade ambassador Jamieson Greer called an arrangement where "American patients have been forced to subsidise prescription drugs and biologics in other developed countries."

Under the deal struck between the administrations of US President Donald Trump and British Prime Minister Keir Starmer, Britain's publicly-funded National Health Service (NHS) will increase its prices for new US treatments by 25 percent.

The agreement means Britain will be exempted from hefty US tariffs imposed on pharma imports that entered force on October 1. It is the only country to reach such a deal.

The lofty price of medications has been a major political issue in the United States for years, with a Rand Corporation study showing Americans paid 2.5 times as much for pharmaceuticals as in France.

Prior to Monday's announcement, the Trump administration had announced tariffs of 100 percent on branded pharmaceuticals.

At the same time, the White House delayed the tariffs for three years with Pfizer and British group AstraZeneca after both agreed to invest in US manufacturing capacity.

British Science and Technology Secretary Liz Kendall said the latest deal will "ensure UK patients get the cutting-edge medicines they need sooner," while also enabling "life sciences companies to continue to invest and innovate right here in the UK."

The Trump administration said it "is reviewing the pharmaceutical pricing practices of many other US trading partners and hopes that they will follow suit with constructive negotiations".

As it stands, the European Union and Switzerland face pharma tariffs totalling 15 percent.

AstraZeneca in July announced plans to invest $50 billion by 2030 on boosting its US manufacturing and research operations.

Around the same time, British rival GSK revealed it planned to invest $30 billion in the United States over the next five years.

The UK government on Monday said it will "invest around 25 percent more in innovative, safe, and effective treatments -- the first major increase in over two decades."

It meant the NHS "will be able to approve medicines that deliver significant health improvements but might have previously  been declined  purely on cost-effectiveness grounds."

AstraZeneca and Merck recently axed plans for sizeable infrastructure investment in Britain, with the US pharma group citing UK drugs prices as a major reason for its U-turn.

Critics argue high taxes and a lack of British government subsidies and investment are hindering foreign investment across various sectors.

China has issued the first batch of new rare earth export licences that should accelerate shipments to certain customers, a source said on Tuesday, fulfilling a key outcome of the summit between Presidents Donald Trump and Xi Jinping.

The approvals come after months of disruption triggered by China's introduction of rare earth export controls in April at the height of the trade war.

By forcing companies to apply for licences for each export, Beijing created shortages that brought parts of the auto supply chain to a halt and handed it enormous leverage in trade talks with Washington.

The new "general licences" are designed to ease that pressure by allowing more exports under year-long permits for individual customers, Reuters reported exclusively in November, and were a key outcome of the Trump-Xi meeting in late October.

Chinese magnet maker JL Mag Rare Earth has received general licences for nearly all of its clients, while Ningbo Yunsheng and Beijing Zhong Ke San Huan High-Tech have secured licences for some of their clients, the source said, declining to be identified due to the sensitivity of the matter.

The three firms and China's Ministry of Commerce did not immediately respond to questions.

All three companies sell to the automotive industry among others, according to their websites. JL Mag has a subsidiary in Europe and Ningbo Yunsheng says it has clients in Europe and the Americas.

The new licences will supplement but not replace the existing licensing regime, Reuters reported in November. For now, only large Chinese rare earth companies are eligible for general licences, but the criteria could widen if the rollout proves successful, the source said.

The new licences go some way to closing the gap between Beijing and Washington's respective accounts of what was agreed at the leaders' summit in South Korea.

While the White House likened general licences to the effective end of China's rare earth export controls, Beijing has said little about the new licences in public and given no sign it intends to dismantle its regime.

It remains to be seen how widely licences will be issued and whether they will be off limits for some customers, for example defence or sensitive sectors such as aerospace or semiconductors.

Meanwhile European firms on Monday complained again about long delays and a lack of transparency in the existing export control system.

The world economy has been "surprisingly resilient" in the face of adversity this year, the OECD said Tuesday, raising its growth estimates for key economies, notably the US and the eurozone.

The gradual implementation of new trade policy barriers, political uncertainty and declining investment had put the brakes on growth, but demand had held up astonishingly well, it said in its latest world economic outlook report.

Easier global financial conditions, supportive macroeconomic policies, real income growth, and strong demand for new AI-related investments, particularly in the US, was supporting demand, the organisation said.

American gross domestic product (GDP) growth is now estimated at 2.0 percent in 2025, 0.2 points more than in the OECD's previous outlook, published in September.

For the eurozone, the OECD now forecasts 1.3 percent growth, 0.1 points more than in September.

The world economy overall is on course for 3.2 percent growth in 2025, down from 3.3 percent last year, before slowing to 2.9 percent next year, and rebounding again in 2027, when a 3.1-percent expansion is forecast.

US growth will taper off to 1.7 percent next year, while eurozone growth is likely to come in at 1.0 percent. Both estimates are better than what was forecast in September.

China is set for 5.0-percent growth in 2025, 0.1 points above the September estimate. "The global economy has shown surprising resilience in 2025," the OECD said.

Growth is, however, expected to soften during the second half of this year, as higher tariffs translate into higher costs for businesses and consumers, and elevated geopolitical and policy uncertainty continues to weigh on domestic demand.

Global growth is then expected to recover through 2026, helped by the fading impact of higher tariff rates, favourable financial conditions, supportive macroeconomic policies and lower inflation, with emerging-market economies in Asia continuing to account for the majority of global growth.

But there are downside risks, as the outlook "remains fragile", the OECD cautioned. "A further rise in trade barriers, especially around critical inputs, could inflict significant damage on supply chains and global output," it said.

"High asset valuations based on optimistic expectations of AI-driven corporate earnings pose a risk of potentially abrupt price corrections," it said, also warning that fiscal vulnerabilities may push long-term sovereign yields higher, tightening financial conditions and hampering growth.

The Dhaka Stock Exchange (DSE) bounced back today (2 November), ending a two-day slump with late buying lifting the DSEX by 36 points to 4,950 after a 114-point drop, hinting at a mild recovery in investor sentiment.

Today's session began with cautious optimism, supported by light bargain hunting from investors looking to capitalise on the recent market correction. However, the momentum proved fragile.

According to EBL Securities, the market initially experienced modest buying pressure, but this quickly faded as renewed selling dragged the index into negative territory by mid-session. It was only in the latter half of the day that sustained buying interest returned, allowing the index to bounce back and close in the green.

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Despite the day's recovery, overall participation remained muted. Turnover declined by 9% to Tk379 crore, reflecting continued investor hesitation amid political uncertainties and broader concerns over ongoing restructuring efforts in the financial sector, according to the EBL Securities.

A total of 285 issues advanced, 56 declined, and 47 remained unchanged, indicating a broadly positive session despite the cautious undertone.

Sector-wise, engineering stocks led market activity, accounting for 15.4% of total turnover. Pharmaceuticals followed with 13.7%, while textile issues made up 11.2%.

Most sectors closed higher, with textiles, general insurance and travel showing the strongest gains. Services were the only sector to finish in the red, slipping 0.4%.

The day's top traded stocks included Orion Infusion, Shahjibazar Power, Khan Brothers PP Woven Bag, Dominage Steel and Simtex Industries, all of which saw heightened investor interest.

Meanwhile, companies that are out of operation or consistently loss-making dominated the day's top gainers. Nurani Dyeing surged 10%, followed closely by Zeal Bangla Sugar, BBS Cables, BD Thai Aluminium and Deshbandhu Polymer, each posting gains of around 9.8% to 9.9%.

On the flip side, non-bank financial institutions facing liquidation pressures led the list of top losers. International Leasing plunged 10%, with Fareast Finance, Peoples Leasing, Premier Leasing, Union Capital, BIFC and FAS Finance also witnessing steep declines ranging from 8% to nearly 10%.

Despite the recovery at the Dhaka bourse, the Chittagong Stock Exchange (CSE) ended marginally lower. The CSCX index dipped 0.87 points to close at 8,536, while the CASPI edged down 1.92 points to settle at 13,850. Total turnover at the port city bourse stood at Tk12.51 crore.

The Sammilito Islami Bank PLC, formed through the merger of five Shariah-based banks, officially commenced operations today (2 December).

Former secretary Mohammad Ayub Miah met Bangladesh Bank Governor Ahsan H Mansur this afternoon and took office as the chairman of the new bank, which received final approval and a licence yesterday (1 December).

Talking to reporters afterwards, Ayub said that the establishment of a government-owned Islamic bank marks "good news for the nation".

Mohammad Ayub Miah appointed chairman of Sammilito Islami Bank
He added that a technical team is already working to ensure a strong institutional foundation.

"Our main goal will be regaining the trust of the depositors. The Sammilito Islami Bank will become a symbol of trust to the nation," Ayub said.

Ayub Mia noted that the discussion with the central bank governor focused on reviewing the bank's vision, mission, legal framework, and operational roadmap.

Five merging banks get central bank approval to run under Sammilito Islami Bank
He said the process of establishing the bank as a fully operational entity – along with the legal merger of the five institutions – will now move forward.

Earlier on Sunday, a special board meeting chaired by Bangladesh Bank Governor Ahsan H Mansur decided to merge five troubled Islamic banks – First Security Islami Bank, Global Islami Bank, Social Islami Bank, Exim Bank, and Union Bank – into a single new entity. The central bank formally handed over the licence yesterday.

5-bank merger: New Sammilito Islami Bank staff may face up to 20% salary cut
The bank has already started official activities from its head office at Sena Kalyan Bhaban in Motijheel. Bangladesh Bank announced that Governor Mansur will formally inaugurate the new institution at a press conference on Thursday.

Sammilito Islami Bank PLC has been established with a paid-up capital of Tk35,000 crore, of which the government will provide Tk20,000 crore, while the remaining Tk15,000 crore will be raised through depositors' shares. The authorised capital has been set at Tk40,000 crore.

Bangladesh Bank expects the newly merged institution to play a significant role in stabilising the Islamic banking sector.

The process of returning deposits of up to Tk2 lakh is set to begin next week, while a roadmap is being prepared for reimbursing larger deposits.

Global payment service PayPal wants to begin operating in Bangladesh soon, aiming to connect small entrepreneurs to international markets, Bangladesh Bank Governor Ahsan H Mansur said on Tuesday (2 December).

"The international digital payment platform PayPal wants to do business in Bangladesh. Through PayPal, our small entrepreneurs will be able to sell products and receive payments from international markets much more easily," he said at the Agro Award 2025 ceremony organised by Standard Chartered Bank and Channel i at the InterContinental Hotel in Dhaka.

He added that small entrepreneurs cannot follow the LC procedures through banks to sell small consignments.
"Through this new international payment platform, they will be able to send products to various countries including Europe and America."

The governor noted that at present, due to the lack of such a platform, many people involved in outsourcing face difficulties in receiving their payments from international markets, and in many cases, they do not receive their payments at all.

At the Agro Award ceremony on 2 Dec/Courtesy
At the Agro Award ceremony on 2 Dec/Courtesy
PayPal is a global digital payment service that allows users to send and receive money online, pay bills, and make international purchases.

The platform securely links with a user's bank or card to complete transactions quickly.

It offers buyer and seller protection and refund facilities.

PayPal is widely used in more than 200 countries for freelancers, online businesses, and international payments.

At the event, Standard Chartered Bank and Channel i awarded eight individuals and three organisations for special contributions to agriculture.

Winners were selected after evaluating more than 500 applications.

Mentioning issues surrounding cash transactions, the governor said they "are at the root of corruption in the country".

"Wherever there is corruption, you will find cash transactions. Currently, around Tk20,000 crore is spent annually on cash handling. We want to gradually reduce cash transactions."

Regarding agricultural loans, he said, "Agricultural loans currently account for 2% of total loans in the country. But to develop the agricultural sector, this needs to be increased to 10%."

The central bank has a fund of Tk25,000 crore for SME loans, he said. However, this money is not being disbursed because banks lack the capacity.

"But if there is will, much can be done. today's award winners have proven that."

Speaking about food grain production, he said, "In 1971, after independence, the country's food grain production was 1.3 crore tonnes. Now it has increased to nearly 4 crore tonnes. more than triple.

"While the population has just a little more than doubled, productivity has risen over threefold. This achievement should not be underestimated."

The Bangladesh Bank is set to begin the initial phase of liquidating troubled non-bank financial institutions (NBFIs) within the next two weeks, focusing initially on at least nine such firms.

A senior official from the central bank's Department of Financial Institutions and Markets (DFIM) confirmed the matter to TBS.

The NBFIs under consideration include – People's Leasing and Financial Services Ltd, International Leasing & Financial Services Ltd, Aviva Finance Ltd, FAS Finance & Investment Ltd, Fareast Finance & Investment Ltd, Bangladesh Industrial Finance Company Ltd, Premier Leasing & Finance Ltd, GSP Finance Company (Bangladesh) Ltd and Prime Finance & Investment Limited.

The move follows a Bangladesh Bank board meeting, chaired by Governor Ahsan H Mansur on Sunday, approving the liquidation of selected NBFIs.

A director of the Bank Resolution Department told TBS that the central bank's DFIM will finalise which institutions can be liquidated. At this preliminary stage, the division is working with a list of nine NBFIs struggling with irregularities, mismanagement, and financial losses.

A senior official at Bangladesh Bank said the Bank Resolution Ordinance 2025 allows for the liquidation of troubled NBFIs, but board approval is required to proceed.

Liquidation of troubled NBFIs may cost govt Tk12,000cr in taxpayer money

Regarding the nine NBFIs, the official said that the managing directors and chairpersons of these institutions will be called in for discussions. Even after responses, liquidation may not occur if the central bank is satisfied with corrective measures.

"It is not yet final whether all nine institutions will be liquidated together or in smaller numbers," he said.

Asked about measures for depositors, the official said the government would provide funding support, but procedures have not been finalised. The approval at this stage allows the central bank to begin preliminary liquidation procedures.

Relevant officials at Bangladesh Bank said the government's preliminary expenditure for closing these institutions has been estimated at nearly Tk9,000 crore. Returning funds to small depositors will be given the highest priority.

Status of 9 NBFIs in question

Earlier, the Bangladesh Bank identified nine institutions as "unviable" based on three key indicators: inability to return depositors' funds, high non-performing loans (NPLs), and capital shortfalls.

A review by the Bangladesh Bank revealed that a large portion of loans in these nine NBFIs is non-performing. Among them, FAS Finance has 99.93% of its total loans classified as non-performing, with a cumulative loss of Tk1,719 crore. Fareast Finance has 98% non-performing loans and a loss of Tk1,017 crore, while Bangladesh Industrial Finance Company has 97.30% non-performing loans and a loss of Tk1,480 crore.

International Leasing & Financial Services has 96% non-performing loans with a loss of Tk4,219 crore. People's Leasing's non-performing loans stand at 95%, resulting in a loss of Tk4,628 crore.

Aviva Finance has 83% non-performing loans and a loss of Tk3,803 crore. Premier Leasing has 75% non-performing loans, amounting to a loss of Tk941 crore. GSP Finance's non-performing loans are 59%, with a loss of Tk339 crore, and Prime Finance has 78% non-performing loans and a loss of Tk351 crore.

According to Bangladesh Bank sources, under the Finance Companies Act 2023, the central bank has moved to cancel the licenses of these institutions. Section 7(1) of the law allows license cancellation for actions against depositors' interests, insufficient assets to cover liabilities, or failure to maintain required capital. Section 7(2) requires giving the institutions 15 days to show cause before cancellation.

Cenbank's liquidation target: Who the troubled 20 NBFIs are

Notices were issued to these companies on 22 May, and as satisfactory responses were not received within the stipulated period, the Bangladesh Bank finalised the decision to liquidate them.

Total 35 NBFIs: 20 troubled, 15 better

Currently, there are 35 NBFIs operating in Bangladesh. Of these, the central bank has identified 20 institutions as troubled. The total loan amount of these troubled institutions stands at Tk25,808 crore, of which Tk 21,462 crore (83.16%) is classified as non-performing. In contrast, the value of collateral assets for these loans is only Tk6,899 crore, or just 26% of the total loans.

On the other hand, the remaining 15 NBFIs, which are in relatively better condition, have a non-performing loan ratio of only 7.31%. They earned Tk1,465 crore in profit last year and have a capital surplus of Tk6,189 crore.

According to the Bangladesh Bank, total deposits in the NBFI sector currently amount to Tk48,966 crore, of which Tk22,127 crore belongs to the 20 troubled institutions. These institutions also owe other banks and financial institutions an additional Tk5,164 crore.

Among these troubled NBFIs, net individual customer deposits total approximately Tk4,971 crore. The Bangladesh Bank believes that during the initial phase of liquidation and restructuring, funds may need to be made available to cover these deposits. The central bank also stated that after liquidation, employees of the institutions will receive all benefits due under employment regulations.

Asia's manufacturing powerhouses struggled with sluggish demand in November, extending declines in factory activity as progress in US trade negotiations failed to translate into a significant recovery in orders.

A raft of purchasing managers' indexes (PMIs) on Monday showed diverging conditions across the region, with China, Japan, South Korea and Taiwan all reporting declines in activity while Southeast Asian economies mostly saw growth.

In China, the world's largest manufacturer, factory activity slipped back into contraction, a private-sector PMI showed, a day after Beijing's official measure showed activity falling for the eighth consecutive month albeit at a slower pace.

"Container throughput at Chinese ports was little changed last month compared to October. To the extent that demand did improve, it didn't do much to support production amid already high inventory levels - the output component dropped to a four-month low," Zichun Huang, China economist at Capital Economics, said in a note.

"And while the output price component edged up slightly, it stayed at a low level, pointing to persistent deflationary pressures."

Still, Capital Economics noted a general disconnect between the PMIs and hard trade data from across Asia.

"Exports from most of Asia have been surging in recent months and we think the near-term outlook for export-driven manufacturing sectors in the region remains favourable," Shivaan Tandon, Asia economist at Capital Economics, said in a separate report.

EXPORTERS NAVIGATING MURKY TRADE CONDITIONS

Across Asia this year, businesses in major exporting nations have been scrambling to navigate the uncertainty created by US President Donald Trump's sweeping tariffs.

While Trump's trade deals with countries like Japan and South Korea and lowered tensions with China have given firms some confidence, many are still adjusting to the new US trade reality.

Japan's PMI showed new orders continued to decline, stretching the downturn to two-and-a-half years, blamed on factors such as a sluggish global business environment, tighter client budgets and subdued capital investment.

Official data on Monday also showed Japanese corporate spending on factories and equipment rose 2.9 percent in July-September versus the same period a year prior, slowing from the previous quarter.

South Korea's factory activity contracted for a second month in November, though a finalised trade deal with the United States brought some clarity for manufacturers.

Separate data showed Korean exports rose in November for a sixth consecutive month, beating market expectations, as chip sales hit a record on strong technology demand, while autos also jumped after a US trade deal.

Taiwan's PMI showed factory activity continued to fall, but at a slower pace.

Meanwhile, Asia's emerging-market manufacturers remained outperformers with Indonesia and Vietnam both reporting brisk growth in factory activity and Malaysia swinging back to growth.

India's factory activity growth slowed from October's strong reading, however the country's PMI remained well above those of its peers, aligning with other indicators that show strong growth in Asia's third-largest economy.

Gross domestic product in the South Asian nation grew at its fastest pace in 18 months in the July-September period, data released on Friday showed, lifted by robust consumer spending.

After taking a hit in the last fiscal year, Golden Son, a listed firm in the engineering sector, incurred significant losses in the first quarter of the current fiscal year as its sales and cost of sales increased.

The company's losses soared to Tk6.70 crore in the July–September quarter of the 2025–26 fiscal year, with a loss per share of Tk0.39. In the same period of the previous fiscal year, losses stood at Tk1.20 crore with a loss per share of Tk0.07.

The company attributed the loss mainly to a decline in turnover and a proportionate increase in the cost of sales compared to the corresponding quarter of the previous year, in a disclosure published today (1 December) on the stock exchanges website.

Its shares price soared today by 3% to Tk10.30 each at the Dhaka Stock Exchange (DSE).

Data shows that Golden Son, a producer of various goods such as toys for children, electric goods, garment accessories, and home appliances, has incurred substantial losses for four consecutive years.

From FY2021-22 to FY2024-25, the company recorded a cumulative loss of Tk81.57 crore, with the highest loss of Tk31.43 crore reported in the most recent fiscal year.

Despite these losses, it had paid a 1.50% cash dividend for FY24 and has recommended no dividend for FY25.

In the Q1 of FY26, its consolidated net operating cash flow per share become negative at Tk0.35, which was positive at Tk0.69 for the July-September 2024.

While it's consolidated net asset value per share declined to Tk15.66 as of 30 September against Tk17.92 as of September 2024.

The firm said in a disclosure that its consolidated cash flow dropped significantly during the period, as cash receipts from customers declined while payments to suppliers and employees rose proportionately compared to the previous year.

Golden Son Limited, listed as an engineering company in the capital market in 2007.

Advanced Chemical Industries (ACI PLC) reported a 6% year-on-year decline in pre-tax loss, which fell to Tk145.54 crore during the July–September quarter of FY26, primarily from its retail chain Shwapno, as well as foods, consumer plastics, and healthcare businesses.

On the other hand, the company posted a pre-tax profit of Tk51.85 crore from its pharmaceuticals, animal health, consumer brands, crop care and public health, motors, pure flour, salt, and flexible packaging segments, reversing a Tk24.55 crore loss in the same quarter of FY25.

These businesses operate under 12 ACI subsidiaries in which the company holds majority stakes, according to its financial statements. Driven by the profitable segments, ACI posted a consolidated net profit of Tk3.40 crore in Q1 FY26, compared to a Tk42.35 crore loss in the same period last year. Consolidated earnings per share stood at 39 paisa at the end of September.

Meanwhile, the group's total revenue rose to Tk3,696 crore during the quarter, up 24.4% from Tk2,971 crore in Q1 FY25, reflecting strong growth across several businesses.

Segment-wise performance

ACI demonstrated mixed results across its diverse business sectors. The motor business emerged as the highest revenue contributor, generating Tk950 crore with 25% growth, while pre-tax profit in this segment rose by 28% to Tk58 crore.

ACI operates its motor business through its subsidiary, ACI Motors Limited, in which it holds a 48.10% stake. The company imports, assembles, and sells vehicles for agricultural and non-agricultural use and also distributes Yamaha motorcycles and parts in Bangladesh through an agreement with India Yamaha Motor Private Ltd.

The retail chain Shwapno recorded a 27% increase in revenue, earning Tk717 crore during the quarter, yet it reported a significant pre-tax loss of Tk65 crore. The pharmaceuticals segment saw revenues rise to Tk570 crore, a 41% increase from Tk404 crore in the same quarter last year, while pre-tax profit more than doubled to Tk83 crore, reflecting a 114% increase.

Other segments contributed to the group's performance as follows: the animal health business generated Tk165 crore, consumer brands Tk300 crore, crop care and public health Tk101 crore, pure flour Tk167 crore, salt Tk92 crore, foods Tk254 crore, flexible packaging Tk168 crore, consumer plastics Tk70 crore, and healthcare Tk24 crore.

Among these, the healthcare segment remained the most loss-making, incurring a pre-tax loss of Tk72 crore.

Remittance inflows to Bangladesh rose by 31.34 percent year-on-year to $2.88 billion in November, marking the highest in the last six months.

Expatriates had sent $2.19 billion home in the same month last year, according to the latest data from the Bangladesh Bank.

November's figure is also 13 percent higher than October's inflow of $2.56 billion.

Bangladesh has seen a growing trend in remittance inflows since December last year, driven by multiple factors, including a narrowing gap between official and informal exchange rates, industry insiders said.

During July to November of this fiscal year, remittance inflow reached $13.03 billion, up from $11.13 billion in the same period last fiscal year, the data showed.

The recent growth in manpower exports has also boosted remittance earnings. Over 40 lakh people left the country for jobs abroad in the four years ending in fiscal year 2024-25, according to the Bureau of Manpower, Employment and Training (BMET). Industry insiders said this migration will further increase remittance earnings in the coming days.

Bankers noted that as irregular or alternative payment methods are now under control, demand for US dollars has declined, reducing foreign currency transactions through hundi or informal channels. As a result, remittance inflows through banking channels are rising.

A senior central bank official said the regulator had warned commercial banks that it would no longer provide US dollar support, requiring banks to manage their own dollars for import payments.

This has encouraged lenders to make greater efforts to collect more remittances since the beginning of this year, he added.

In fiscal year 2024-25, remittance inflows crossed $30 billion for the first time, rising by a record $6.4 billion. Previously, the highest remittance received by Bangladesh was $24.8 billion in fiscal year 2020-21.

The country's foreign exchange reserves are now stable, supported by factors including high remittance inflows. As of November 27, forex reserves stood at $26.40 billion, up from $18.73 billion in the same period last year, according to Bangladesh Bank data.

Bankers said the growing remittance trend has helped boost forex reserves.

In November, Islami Bank Bangladesh received the highest remittance at $606 million, followed by Agrani Bank with $241 million, Janata Bank with $228 million, and Trust Bank with $147 million, the data showed.

The Bangladesh Export Processing Zones Authority (Bepza) has moved to auction the factory and long-term leasehold plots of Ring Shine Textiles Limited at the Dhaka Export Processing Zone (DEPZ), after the troubled company repeatedly failed to clear its long-standing dues amounting to $18 million.

The auction notice, published in newspapers today (1 December), invites proposals from interested buyers by 6 January 2026, marking a decisive step by the authorities to recover arrears after years of non-payment.

The auction covers the 30-year lease of plots 231–236, on which Ring Shine built and operated one of its main manufacturing facilities.

Bepza cancelled the lease earlier this year over the unpaid rent, following multiple warnings to the company. With the lease termination now in effect and the factory itself falling within the scope of the auction, the regulator is seeking buyers capable of taking over the assets and restoring productive operations on the site.

Ring Shine Textiles, once one of the largest fully-integrated textile manufacturers listed on the bourses, has been grappling with severe operational, financial, and governance crises since shortly after its stock market debut in 2019.

Managing Director Auniruddho Piaal told The Business Standard that the company had intended to repay a portion of Bepza's dues – about Tk10 crore – from its IPO proceeds.

However, the Bangladesh Securities and Exchange Commission (BSEC) froze the company's IPO fund in 2020 and subsequently rejected its requests to use a portion of the funds for settling the EPZ dues.

"As a result, we cannot stand on our commitment, leading Bepza to auction our six plots out of fifty," he said.

He added that we are trying to reopen the company which may provide better benefit to our shareholders, but the non-cooperation of the regulator we failed to do that. Now, the company has no legal avenue to retain the land.

Earlier in February, Bepza terminated the lease of six plots due to persistent non-payment.

In July, the BSEC turned down Ring Shine's plea to release $1 million (about Tk12 crore) from the frozen IPO funds to settle part of its dues, stating that the funds could not be used for that purpose.

Ring Shine raised Tk150 crore from the public in 2019 for business expansion, but the company soon became engulfed in a collapse of export orders during the pandemic, liquidity shortages, and a governance scandal that later came to be known as an IPO scam.

The BSEC investigation found that a syndicate involving controversial tax officer Matiur Rahman and FAR Group Chairman Abdul Kader Faruk allegedly siphoned off hundreds of crores of taka by issuing shares without actual investment backing. Indian national Ashok Kumar Chirimar, the company's former supply chain agent, was also implicated in the scheme.

Ring Shine's financial performance has also deteriorated sharply. The company has not paid any dividend since its listing year and has accumulated losses of Tk446 crore from FY21 to FY24.

Its shares are classified under the Z category, reserved for non-performing companies, and closed 2.94% lower at Tk3.30 today.

The National Board of Revenue (NBR) today announced that from January 1, 2026, all exporters who import raw materials without paying duty will be required to use the Customs Bond Management System (CBMS) for all related services.

The CBMS is an online platform launched on January 1, 2025 to make customs procedures faster, easier, and more transparent. It currently operates through three customs offices using 24 different modules to provide services digitally.

However, even after 11 months, most exporters still apply for Utilisation Permission (UP), which allows duty-free import of raw materials, through manual paperwork.

Only a small number are using the online system.

NBR has upgraded the CBMS to make it more user-friendly after taking feedback from users.

From next year, exporters seeking UP will have to use the CBMS exclusively. No manual applications or alternative methods will be accepted.