The Bangladesh Bank is moving to wind up nine ailing non-bank financial institutions as its board has approved their liquidation under the newly framed Bank Resolution Ordinance 2025, the country's first comprehensive framework for resolving failing banks and non-banks.

The ordinance sets out how distressed institutions may be merged, restructured or closed, and establishes the hierarchy for repaying creditors once assets are sold.

The BB board, chaired by Governor Ahsan H Mansur, granted the approval yesterday, clearing the way for the regulator to formally shut the institutions, appoint liquidators, sell their assets and distribute the proceeds to claimants, a senior central bank official confirmed on condition of anonymity.

The move coincides with another major clean-up operation in the financial sector -- the merger of five troubled shariah-based banks. The BB board also licensed the newly merged Sammilito Islami Bank, marking the largest bank consolidation in the country's history. It is to be the largest Islamic bank in the country now.

Officials say the NBFI liquidations, alongside the bank merger, reflect the regulator's shift towards aggressive intervention after years of deterioration across the financial system.

The nine selected NBFIs are FAS Finance, Bangladesh Industrial Finance Company, Premier Leasing, Fareast Finance, GSP Finance, Prime Finance, Aviva Finance, People's Leasing, and International Leasing.

Together, they accounted for 52 percent of total defaulted loans in the NBFI industry, which stood at Tk 25,089 crore at the end of last year, reflecting years of unchecked lending irregularities and erosion of capital.

Seven of the eight NBFIs have an average net asset value of negative Tk 95 per share, leaving little prospect of meeting obligations without state intervention. In other words, when the companies' assets are sold off and debts cleared, there will be nothing, or far too little, left for ordinary shareholders.

DEPOSITORS TO BE PRIORITISED

The BB board's approval comes as the institutions are failing to pay back depositors, many of whom have been waiting months, in some cases years, despite their schemes maturing.

Earlier on Saturday, responding to a query from The Daily Star, Governor Mansur said BB would appoint liquidators "soon".

He also confirmed that depositors would be paid before liquidation proceeds, saying, "The government has already verbally approved around Tk 5,000 crore to repay depositors of these NBFIs."

Mansur said they are moving forward with the liquidation of the companies only to protect depositors. "Returning the deposits of the NBFI customers is our top priority," he said.

For depositors, the collapse of these NBFIs has been devastating. Irregularities in lending, including loans to related parties, poor recovery practices and unchecked concentration of credit, left the institutions unable to meet obligations. As a result, customers' savings remain blocked despite matured schemes.

Khalil Ahmed Khan, a 64-year-old depositor of Aviva Finance, is among those affected. His Tk 23 lakh deposit matured in January, but he has so far received only Tk 8.98 lakh. He met with the top officials at the NBFI but all his attempts have turned futile.

A patient with high blood pressure and diabetes, he said the long delay has made it difficult to pay for treatment. "I need the money urgently to pay my dues and bear the cost of treatment."

BB data shows Tk 15,370 crore in deposits, belonging to both individuals and institutions, remain locked in the nine NBFIs. Of this, Tk 3,525 crore belongs to individuals and Tk 11,845 crore to banks and corporate depositors.

People's Leasing holds the largest volume of unreleased individual deposits at Tk 1,405 crore, followed by Aviva Finance with Tk 809 crore, International Leasing Tk 645 crore, Prime Finance Tk 328 crore and FAS Finance Tk 105 crore.

Industry insiders say the problems in the NBFI sector have deep roots. Unlike banks, non-banks were not subject to equally rigorous supervision, allowing scams and governance failures to accumulate over the years.

Several institutions continued reporting inflated assets and understated losses, masking their worsening condition until the impact became impossible to contain.

Earlier this year, the central bank's Financial Institutions Department shortlisted the nine NBFIs for closure and sent the names to the Bank Resolution Department. The decision followed an assessment 10 months ago, when BB identified 20 NBFIs with critically weak financial health, including high defaulted loans and depleted capital, and placed them in the "red" category.

The remaining 11 NBFIs are: CVC Finance, Bay Leasing, Islamic Finance, Meridian Finance, Hajj Finance, National Finance, IIDFC, Uttara Finance, Phoenix Finance, First Finance and Union Capital.

The BB has asked them to present viable recovery strategies.

Lub-rref (Bangladesh) Ltd, once a highly profitable lubricant blender and refiner known for its BNO brand, has suffered a dramatic financial reversal, reporting a record loss of Tk66 crore for the 2024–25 fiscal year.

This collapse, attributed to severe banking restrictions and a crippling shortage of working capital, has forced the company to declare no dividend for the first time since its listing.

Following the publishing of the annual corporate declaration, Lub-rref shares fell by 18.90% to Tk10.30 each at the Dhaka Stock Exchange (DSE).

Usually, the share price of any listed company may decline by 10% in a single day due circuit breaker. But did not apply to Lub-rref due to its annual corporate declaration.

According to its data, the loss per share stood at Tk4.56, with a substantial portion of the loss incurred in the last three months of FY25, during the April-June quarter.

In the first quarter (July-September 2024), the company incurred a loss of Tk6.91 crore, but in the following two quarters, it managed to return to profit, ending the first nine months until March 2025 with a net profit of Tk1.59 crore.

Its previous data showed that after listing on the bourses, it had posted a regular profit until 2022-23 fiscal, with the highest Tk36.43 crore in 2020-21 fiscal.

After that, due to the complexities in opening LCs amid banking restrictions began in October 2022 with its lead banker, Social Islami Bank's Agrabad Branch, the company failed to import raw materials and was forced to continue operations by procuring them from a local vendor that imports the materials from abroad.

In the last 2023-24 fiscal, it incurred a loss of Tk10.76 crore, a reversal from a profit of Tk20.47 crore the previous year, driven by higher financial expenses and decreased overall income and paid 1% cash dividend for its shareholders.

"Owing to the local procurement by its competitor, Lub-rref fell into 'unfair' competition in the domestic market. Combined with a working capital shortage and the lack of access to bank borrowing, the once-profitable company fell into trouble," said Kabir Hossain, company secretary.

He also said the loan burden is hitting the company hard, as finance costs have soared abnormally. The company currently owes around Tk397 crore in loans, and its interest payment in FY25 stood at Tk50 crore.

Kabir said, "We are trying to resolve the existing problems by restoring LCs to import raw materials and resuming direct imports to reduce costs.

"At present, procuring raw materials locally is substantially more expensive, as the local importer sells them with its own margin. Using these materials to produce our products for the local market has significantly pushed up our costs."

Uncertainty over Tk20cr IPO funds

Lub-rref has kept its Tk13.10 crore funds collected from the initial public offering (IPO) in Social Islami Bank in a special notice deposit account for the purpose of using the funds for expansion.

According to an auditor's report published on the DSE website on 9 November, the unspent funds – held in bank accounts – had grown to Tk19.86 crore with accrued interest as of August 2025.

Kabir said, "We kept the funds in the bank, but the bank did not repay us, citing liquidity crunch. The company also owed the bank as it is the lead banker of the company."

The auditor's report shows that by August 2025, Lub-rref had utilised Tk136.89 crore of its IPO fund – up from Tk99.42 crore in April.

Between May and June alone, it spent Tk37.47 crore, including Tk13.70 crore on land development and Tk23.40 crore for working capital.

Lub-rref has faced persistent liquidity challenges, attributed to the Covid-19 pandemic, the Russia-Ukraine conflict, and broader global economic instability.

In May 2024, the firm sought regulatory approval to redirect part of its IPO proceeds towards working capital to ease financial pressures.

Founded in 2001, Lub-rref began commercial operations in 2006. Today, 60% of its lubricants are produced from responsibly recycled sources, with the remaining 40% derived from imported base oil.

The company in 2021 successfully raised Tk150 crore from the capital market to purchase machinery and repay existing loans. It raised the IPO funds via the book-building method, setting a cut-off price of Tk30 per share.

General investors received shares at a 10% discount.

The Bangladesh Securities and Exchange Commission (BSEC) has fined three firms a total of Tk11.10 crore for serious manipulations in the share transactions of Alif Industries Limited, a company listed on the stock market.

The penalties were imposed after a detailed investigation and subsequent hearings by the commission.

BSEC found that the firms had attempted to artificially inflate the company's share price by creating fake demand—a direct breach of capital market rules.

Sudden price spike triggered probe

The investigation covered the period from 5 February to 9 May 2024, during which Alif Industries' share price shot up from Tk75.10 to Tk136.10. The sudden spike drew BSEC's attention, prompting a formal investigation. The share has since tumbled, closing at Tk45.70.

BSEC's investigation revealed that Faruque Enterprise, Raiyan Trading, and Islam Enterprise jointly fuelled abnormal buying pressure by engaging in circular trading, executing frequent low-volume trades, and buying and selling shares at artificially high prices, sending artificial signals to the market.

These activities drove share prices beyond normal supply-demand dynamics and influenced investor sentiment.

Among the three firms, Faruque Enterprise earned Tk34.4 million in realised profit and Tk22.7 million in unrealised profit through these manipulative activities. As a result, the firm was fined Tk31.2 million.

At the hearing, Kazi Mehedi Arafat, representing Faruque Enterprise, submitted a written explanation denying all allegations.

The company said that all transactions were conducted based on lawful investment strategies and prevailing market conditions. None of the trades created artificial demand or misled other investors.

Raiyan Trading earned Tk30 million in realised profit and Tk26.5 million in unrealised profit, leading to a fine of Tk27.3 million.

The company clarified that it did not coordinate with Faruque Enterprise, Islam Enterprise, or any other firm and said any breach of the 10% shareholding limit was inadvertent. It expressed willingness to provide further documentation if needed.

BSEC found Islam Enterprise to be the most deeply involved, earning Tk58.1 million realised and Tk28.7 million unrealised profit. The firm received the highest penalty of Tk52.5 million.

At the hearing, Rubel Bhuiyan, representing Islam Enterprise, denied engaging in any artificial transactions or deliberate price inflation, saying all trades were carried out under lawful strategies and market conditions.

Islam Enterprise has no coordination with Faruque Enterprise, Raiyan Trading, or any other firms. Any crossing of the 10% shareholding limit was unintentional.

All BO accounts were used for legitimate purposes, and no self-trading or market manipulation occurred. The company emphasised that all actions were conducted in compliance with legal and ethical regulations.

Investors hurt, regulator vows oversight

The latest shareholding data shows sponsors and directors hold 30.24%, institutional investors 10.14%, and general investors 59.62% of Alif Industries' shares.

Experts noted that general investors suffered the most from the manipulation.

BSEC emphasised that it maintains a zero-tolerance stance on artificial price manipulation and will intensify monitoring and enforcement to ensure transparency and safeguard investor interests in the capital market.

A worker in white gloves inspects the propellers of a boxy two-seater aircraft fresh off the assembly line at a Chinese factory trialling the mass production of flying cars.

Globally, technical and regulatory challenges have prevented the much-hyped flying car sector from getting off the ground.

But Chinese companies are building on rapid development of drones and electric vehicles (EVs) in the world's second-largest economy, while harnessing government support for the futuristic inventions.

"China has the potential to establish a competitive edge" for flying cars, said Zhang Yangjun, a professor at Tsinghua University's School of Vehicle and Mobility.

"Future competition will increasingly hinge upon cost control and supply-chain efficiency, and these are areas where China holds clear advantages," he told AFP.

At the brightly lit factory in the southern industrial heartland of Guangzhou, logistics robots zip around ferrying unfinished parts.

The lightweight six-propeller aircraft under construction take off vertically and fit into a large car, to create the "Land Aircraft Carrier" -- a modular flying vehicle made by Aridge, an arm of Chinese EV maker XPeng.

The flying part is stored and charged in a wheeled on-land vehicle dubbed "the mothership".

At full capacity, the Aridge factory can churn out one every 30 minutes. It began its trial production phase in early November and the company plans to start deliveries next year, saying it has had more than 7,000 pre-orders.

But there is a long way to go before flying cars are whizzing through the air every day.

"Regulations, the consumer's comfort with this product, and also how you manage airspaces, your supply chains, all need to catch up gradually," Michael Du, vice president of Aridge, told reporters at a recent event.

Competition is heating up among global tech giants over the future of aerial mobility, with Tesla CEO Elon Musk teasing the debut of a flying car prototype within weeks.

"If you took all the James Bond cars and combined them, it's crazier than that," Musk told the Joe Rogan Experience podcast.

American aviation pioneer Glenn Curtiss debuted the first flying car prototype in 1917.

But successful designs have only become possible in recent years as electric motors and high-performance batteries have advanced.

Major players in the sector have conducted manned test flights, including California-based companies Joby and Archer, as well as Aridge, EHang and Volant in China.

This year EHang became the world's first flying car company to be fully approved for commercial operation, something Aridge has yet to achieve.

EHang plans to introduce an air taxi service, priced similarly to a premium road taxi, within three years.

"Flying cars remain at an early developmental stage," said Zhang, who edited a white paper on China's flying car industry.

He still sees the sector as worthy of long-term endeavour, and authorities agree.

Beijing has named the "low-altitude economy" -- flying cars, drones and air taxis -- as a strategic field for the next five years, seeking to accelerate their development.

Provincial governments from Guangdong to Sichuan have pledged to loosen restrictions.

A Boston Consulting Group report said China's flying car market is approaching "a critical inflection point", and predicted it will be worth $41 billion by 2040.

However, the sector has struggled to find viable business models elsewhere, with several high-profile insolvencies in Europe, and leading US players burning through cash with plans for mass production yet to materialise.

Direct comparisons between the sector in China and other international markets is tricky.

But "in terms of the EV supply chain, China is far in the lead", said Brandon Wang, a Beijing-based investor whose portfolio includes AI, robotics and flying cars.

Flying cars can use EV parts once they are certified for aviation use, which may help Chinese companies scale up.

China also has an "engineer dividend" that allows its companies to quickly solve technical issues in the production process, Wang added.

Approximately half of the population in Bangladesh seeks medical care from unqualified providers, according to a recent survey from the Bangladesh Bureau of Statistics (BBS).

The findings, shared yesterday at a dissemination event for the Health and Morbidity Status Survey (HMSS) 2025, show that 54% of patients sought treatment from drugstore salespersons or practised self-medication, rather than consulting qualified medical practitioners. Only 11.5% visited government health facilities, while about 20% turned to private providers.

Conducted on 1,89,986 individuals across 47,040 households between November and December last year, the survey also recorded widespread patient dissatisfaction and highlighted systemic challenges affecting health outcomes.

Hypertension tops among 10 common diseases

The survey reveals that hypertension tops the list of the country's 10 most common diseases, affecting 78.28 per 1,000 people, followed by peptic ulcer, diabetes, arthritis, skin diseases, heart disease, asthma, osteoporosis, hepatitis and diarrhoea.

In the 90 days preceding the survey, 332 per 1,000 people (33%) reported falling ill, with women reporting a slightly higher illness rate than men. Experts warn that dependence on untrained providers has contributed to delayed diagnosis of chronic illnesses and rampant misuse of antibiotics.

Dr Abdus Shakur, registrar at the National Institute of Kidney Diseases and Urology, told The Business Standard that medication is not "magical"—its effectiveness requires correct dosage and clinical judgment.

"Taking medicines—especially antibiotics—on a shopkeeper's advice is extremely harmful. Drugs like meropenem were once considered revolutionary, but resistance has now become common in Bangladesh," he said.

He added that many kidney patients are unknowingly worsening their condition by taking unnecessary painkillers for prolonged periods based on pharmacy advice. Even for minor ailments, he stressed the need for at least one consultation with a qualified MBBS doctor to avoid irreversible complications.
Infograph: TBS
Infograph: TBS

Low hypertension control rate fuels health risks

Professor Dr Sohel Reza Choudhury, head of the Department of Epidemiology & Research at the National Heart Foundation, said that "Nearly one in four adults in Bangladesh lives with hypertension, yet only 16% manage to keep it under control—leaving 84% either undiagnosed, untreated, or poorly treated."

He said many patients stop taking medication once their blood pressure stabilises, increasing the risk of heart attacks, strokes and kidney disease. Weak screening mechanisms and treatment gaps further aggravate the situation.

He recommended bolstering primary healthcare services, ensuring uninterrupted medicine supply, training community health workers for early screening, encouraging routine blood pressure checks for people aged 30 and above, and expanding telemedicine access.

Average treatment cost Tk2,487 per person

The survey also sheds light on the financial burden of healthcare. In the three months preceding the survey, the average medical expenditure per person stood at Tk2,487, with women spending slightly more (Tk2,576) than men (Tk2,387). Despite greater reliance on public facilities, women incurred higher overall expenses.

Among women aged 15–49, the national Caesarean section rate reached 49.3%, rising to 53.3% in urban areas and standing at 48.1% in rural settings.

The average cost of childbirth was Tk22,655, including Tk5,658 for antenatal care and Tk13,060 for delivery. Urban mothers spent more—Tk26,360, compared to Tk21,554 in rural areas.

Disability, tobacco use remain major concerns

The HMSS 2025 found that 5.2% of the population lives with a physical or mental disability, with the rate rising slightly to 5.6% in urban areas. Among people aged 18 and above, the disability rate jumped to 7.1%, with treatment expenses averaging Tk7,269 in rural areas and Tk5,417 in urban areas.

Tobacco consumption remains widespread, with 26.7% of individuals aged 15+ using tobacco products. Usage was higher in rural areas (27.7%) than in urban ones (24.1%). The survey recorded tobacco use among 37.9% of males and 16.5% of females.

The findings collectively point to urgent gaps in healthcare access, awareness and preventive practices—issues experts say require immediate policy attention to avert worsening health outcomes nationwide.

Both commitments and disbursements of foreign loans increased in the first four months of the current fiscal year, while Bangladesh's debt-servicing burden continued to climb.

Development partners pledged $1.20 billion in assistance during the July-October period, up from just $254 million the previous year, representing a surge of around 375 percent, according to new data released yesterday by the Economic Relations Division (ERD). Of the total commitments, about $1.11 billion was in the form of loans, while the remaining $89 million came as grants.

Similarly, disbursements also picked up, with Bangladesh receiving $1.66 billion compared to $1.20 billion a year ago.

Commitments and disbursements rose this year because last year's political turmoil had slowed development activities and delayed project implementation.

However, the government paid $1.58 billion in external debt servicing between July and October of FY26, up from $1.44 billion in the same period a year earlier.

Principal repayments rose to $1.02 billion, while interest payments reached $560 million, reflecting the growing pressure of maturing infrastructure loans and a weaker taka. In taka terms, the outflow is even more significant due to the currency's depreciation.

Total debt servicing in the first four months amounted to nearly Tk 19,314 crore, up from Tk 17,148 crore last year—an increase of about 12.6 percent.

Despite the higher inflows, the surge in repayment obligations meant that a large share of the foreign assistance received went straight into servicing outstanding loans, leaving limited fiscal space for new or ongoing development projects.

The rise in debt servicing comes at a time when the government is already grappling with lower revenue collection, high inflation, and slow project execution.

Experts warn that if the trend persists, Bangladesh may struggle to fund development without fresh borrowing.

"It's a good sign that foreign loan commitments and disbursements have picked up," said Ashikur Rahman, principal economist at the Policy Research Institute (PRI) of Bangladesh.

This indicates that development partners are re-engaging as project activities normalise, he said.

However, foreign debt servicing continues to climb as the overall stock of external borrowing has grown.

"Export earnings and remittances are still helping to maintain balance, but concessional loans are declining, and many older projects have entered their repayment phase, adding to the pressure," he said.

Rahman noted that repayments are not a concern for now, but if the current trend persists, the burden may rise even with stable exports.

Still, he said, the increase in disbursements is a positive signal for the economy.

The Zeal Bangla Sugar Mills in Dewanganj upazila of Jamalpur has resumed production amid a mounting debt of Tk 656.75 crore, more than half of which is accrued bank interest.

The mill began this year's sugarcane crushing season on November 28.

According to mill officials, the target for this season is to crush 70,000 tonnes of sugarcane to produce 5,000 tonnes of sugar.

Established in 1957 with financial and technical assistance from the then Pakistan and New Zealand governments, the mill is one of the oldest and most iconic heavy industrial units in Jamalpur and one of the first three sugar mills in Bangladesh.

It went into operation during the 1958-59 crushing season.

Its name was changed from Zeal Pak Sugar Mills Ltd to Zeal Bangla Sugar Mills Ltd after the independence of Bangladesh. The mill was declared a state-owned enterprise in 1972.

It is currently operated under the Bangladesh Sugar and Food Industries Corporation, with a daily crushing capacity of 1,016 tonnes of sugarcane and a total production capacity of 10,150 tonnes of sugar.

Over the decades, the mill has completed 67 crushing seasons but made profits in only 18.

Local farmers have alleged mismanagement, syndicate influence, and various complications within the mill that have led to losses year after year.

They also complained that irregularities in procurement, price fixing, and delayed payments by the mill authorities have been pushing sugarcane cultivation into decline.

"There is no profit in cultivating sugarcane. The mill delays paying us, so I have reduced sugarcane cultivation," said Manik Miah, a sugarcane grower.

Another farmer, Samad, said, "If the mill authorities ensure proper support for us, sugarcane cultivation will rise again."

Tarikul Alam, managing director of the sugar mill, said the government and the Ministry of Industries have initiated a five-year roadmap for the mill's recovery.

He called for government initiatives to modernise the mill, diversify its production, and promote sugarcane cultivation to enable the mill to return to profitability.

Despite repeated attempts, Changrabandha port authorities in India's West Bengal could not be reached for comments.

The government has increased the prices of diesel, kerosene, petrol and octane by Tk2 per litre, even as global oil prices continue to fall.

The Energy and Mineral Resources Division issued a notification tonight (30 November), announcing the revised rates.

Under the new pricing, effective from 1 December, diesel will retail at Tk104 per litre, kerosene at Tk116, octane at Tk124, and petrol at Tk120.

Previously, on 31 May, the energy and mineral resources division last announced fuel prices, fixing diesel at Tk102 a litre, kerosene at Tk114, octane at Tk122 and petrol at Tk118. The government then kept fuel prices unchanged for five consecutive months.

The price hike comes just ahead of the boro season, raising farmers' production costs.

Meanwhile, global prices of both refined and crude oil have been declining in recent weeks. Brent crude, one of the key international benchmarks, has fallen to $62 per barrel. The price of WTI crude has dropped to $58.33. These are advance prices for January and are the lowest in a month.

According to Oilprice.org, Brent crude hovered around $60 per barrel throughout November, with the highest level recorded on 11 November at $65.11.

At the beginning of the year, on 1 January, Brent crude was priced at $74.64 per barrel, reaching its highest level on 16 January at $81.29. This year, Brent's lowest price has been $61.70. Prices of other crude grades generally follow the movements of Brent and WTI.

Md Amin Ul Ahsan, chairman of Bangladesh Petroleum Corporation (BPC), told TBS that fuel prices are adjusted every month. Since prices had not changed after June, no gazette had been issued.

He said global prices of both refined and crude oil had been rising slightly for several months, with a sharper rise this month that BPC could not absorb. As a result, prices were increased. If global prices fall in the coming months, domestic prices will also be reduced.

According to BPC sources, fuel prices are set by calculating the average global market price from the 21st of one month to the 20th of the next. BPC earns up to 40 paisa per litre. The calculation is based on S&P Global Platts and Arabian oil price indicators.

Under the International Monetary Fund (IMF) conditions, Bangladesh now adjusts domestic fuel prices monthly in line with the global market. However, despite regular adjustments, fluctuations in global prices have had limited impact on the domestic market.

Industry insiders say the main reason is the increase in the dollar exchange rate. At the beginning of 2022, the dollar stood at Tk86; it has now risen to Tk122. As a result, global price reductions have not translated into lower domestic prices.

Fuel price increases have a direct impact on transport costs, industrial production and irrigation in agriculture. The indirect impact extends to all sectors. Higher fuel prices also contribute to rising inflation.

The Bangladesh Bank has given final approval to merge five troubled Shariah-based banks into a single entity named "United Islami Bank", clearing all the regulatory hurdles for the new institution to begin operations.

The approval was granted today (30 November) at a board meeting of the central bank, officially paving the way for the launch of what will now be the country's largest state-run Islamic bank.

The five banks are First Security Islami Bank, Global Islami Bank, Union Bank, Exim Bank, and Social Islami Bank.

Earlier, on 9 November, the Ministry of Finance granted the bank its initial approval, known as a Letter of Intent (LoI), following an application that required the government to complete regulatory steps, including securing a name clearance from the Registrar of Joint Stock Companies (RJSC) and opening the bank's current account, under the Bank Company Act.

According to central bank officials, with the final nod, the merged bank can now formally start operations. The Bangladesh Bank has announced that detailed guidelines, covering depositor payments, profit rates, salary structure and other operational issues, will be issued soon.

Ordinary depositors will be allowed to withdraw up to Tk2 lakh, with the highest priority being given to small depositors during the initial settlement phase.

On 5 November, the central bank took control of the five Islamic banks, declaring their existing boards defunct and appointing five central bank officials as administrators in each. The managing directors of those banks were also asked to resign.

The central bank's draft outline data shows that the merger will cost Tk35,000 crore. Of this, Tk20,000 crore will come directly from the government, meaning the money will come from the pockets of taxpayers.

Tk10,000 crore will be drawn from the deposit insurance fund, pending legal amendments to use it as a loan. The remaining Tk5,000 crore is expected from multilateral lenders, including the IMF, World Bank, and ADB, as part of broader financial sector reforms.

Even the external funds will ultimately be repaid by taxpayers.

Small savers will be protected through early payouts to safeguard confidence, according to the draft. But large institutional deposits -- corporates, state agencies, and others -- will be converted into equity in the new bank.

The total cost of the country's first nuclear power plant, the Rooppur Nuclear Power Project, is rising by Tk26,181.26 crore due to another adjustment of the exchange rate, which is 23.15% higher than the original estimated cost.

Earlier, at the beginning of November, the science and technology ministry had submitted the first revised project proposal to the Planning Commission, proposing a cost increase of 11.84% or Tk13,386.21 crore for the Rooppur project.

Following a meeting of the Project Evaluation Committee (PEC) on 11 November, it was found that the impact of foreign exchange rate changes had not been accurately reflected in the first revised proposal. As a result, the total project cost in Bangladeshi taka had not been correctly calculated.

The implementing agency then re-adjusted the calculations and, on 27 November, sent a revised proposal to the Planning Commission, raising the project cost to Tk1,39,274.17 crore.

In the original proposal approved in 2016, the project cost was set at Tk113,092.91 crore.

Although the project cost has increased, Russia's $11.38 billion credit remains unchanged in dollar terms. However, calculated in taka, the foreign loan now stands at Tk1,16,799 crore. In the original proposal, Russia's loan was estimated at Tk91,040 crore.

According to the proposed Development Project Proposal (DPP) exchange rate, the utilisation of DPA up to June 2025 is $8.29 billion, calculated at an exchange rate of Tk95.28 per dollar. For the remaining three years, DPA amounting to $3.09 billion has been estimated at Tk122 per dollar (the Bangladesh Bank rate on 16/11/2025).

In the revised proposal initially submitted by the Atomic Energy Commission, the $8.29 billion already spent was calculated at $1 = Tk80. After the PEC meeting, the exchange rate was updated to $1 = Tk95.28.

According to the newly revised proposal, the government-fund portion, initially set at Tk22052.91 crore, has increased to Tk22475.04 crore.

With the increased expenditure, the project duration has also been extended. The original plan, which began in July 2016, was scheduled to conclude in December 2025. The revised proposal, according to Planning Commission sources, recommends extending the project period to June 2028.

Officials at the Planning Commission state that unless the total cost is accurately determined, the cost per unit of electricity produced at Rooppur cannot be properly assessed, nor can the project's cost–benefit analysis be correctly determined. This issue was discussed in detail at the PEC meeting. After extensive discussion, it was decided that the revised project cost would be recalculated using the actual exchange rate for funds already spent and the updated rate for future expenditure.

The Rooppur NPP is being implemented under an intergovernmental agreement (IGA) between the Russian Federation and the Government of Bangladesh. The Bangladesh Atomic Energy Commission (BAEC) signed a contract with Russia's Atomstroyexport in December 2015 to construct two NPP units with a combined capacity of 2,400 MW, including equipment supply, training, and fuel delivery.

According to the first revised proposal, the first unit will begin commercial production in 2026.

Earlier, the plan was to start electricity generation from Unit 1 of the Rooppur NPP in December this year. Unit 2 was scheduled to begin production in December 2026. Officials say that since Unit 1 has been delayed, Unit 2 will also be pushed back.

The interim government is pursuing measures expected to save between Tk 2,000 crore and Tk 3,000 crore annually on fertiliser, according to Mohammad Emdad Ullah Mian, secretary of the Ministry of Agriculture.

The measures have already saved Tk 1,000 crore this year, he said at a seminar on local farm machinery and the challenges of exporting agricultural products at the CIRDAP in Dhaka yesterday.

The event was organised by the Bangladesh Agricultural Journalists Forum (BAJF) in celebration of its 25th anniversary, marking the opening of a four-day international conference, "Political Commitment in Agriculture and Food."

The secretary revealed that a long-term plan is being formulated to modernise and develop Bangladesh's agricultural sector over the next 25 years. The final draft is expected by December.

He also stated that Tk 600 crore from the mechanisation project has already been returned to the government.

Md Durrul Huda, chief scientific officer and head of the Farm Machinery and Post-Harvest Technology Division at the Bangladesh Rice Research Institute, pointed out that Bangladesh faces challenges in producing modern agricultural machinery due to a shortage of skilled workers, outdated infrastructure, and limited access to advanced equipment.

The country's light engineering sector and foundries are not fully modernised, making it difficult to maintain interchangeable parts or adopt assembly-line production, he said. Besides, Huda stressed that domestic production of agricultural machinery requires state support, long-term planning, and low-interest loans.

He called for stronger collaboration between the government and private sector to make local production viable, noting that the absence of state-owned engine manufacturers has hindered progress in both public and private initiatives.

Kamruzzaman Kamal, marketing director at PRAN-RFL Group, said while the global agro-processing market is valued at $4 trillion, Bangladesh currently accounts for only $1 billion, meaning the country has significant potential in this sector.

However, he noted that gaps in product variety and quality prevent many producers from meeting high international standards.

Kamal also criticised the complex regulatory process for agricultural exports, which "requires approvals from 18 different departments", raising both costs and timelines.

He argued that a one-stop service and stronger country branding are essential, alongside improvements in quality control and internationally accredited laboratories.

Currently, he said many tests must be conducted abroad, as Bangladesh Standards and Testing Institution (BSTI) standards are not recognised globally. Ensuring quality from farm to table, he said, is critical to guaranteeing safe food.

Md Fazlul Kader, managing director of the Palli Karma-Sahayak Foundation, talked about the importance of mechanisation and adopting modern agricultural technologies, which he described as key to reducing costs, increasing revenue, and elevating agriculture into a dignified profession.

Locally adapted machinery, carefully planned subsidies, and active involvement of extension workers, he noted, are crucial for farmers to fully benefit from mechanisation.

Arifur Rahman, project director of the Department of Agricultural Extension's exportable mango production project, said over the past five years, mango exports have tripled while imports have fallen to zero.

Bangladesh now exports mangoes to 38 countries, he stated, adding that expanding into European markets remains a possibility, though high transport and air freight costs, coupled with limited cargo space, continue to constrain growth.

Shahanuare Shaid Shahin, president of the BAJF, underlined that political commitment is essential to safeguard farmers' interests. "Every political party must include a clear and long-term strategy on this issue in their election manifesto."

Bangladesh's banking sector is staring at a long climb out of its deepening bad-loan crisis, with Bangladesh Bank Governor Ahsan H Mansur warning yesterday that it may take five to ten years for soaring non-performing loans (NPLs) to return to safer territory, despite expectations that they will stabilise at the current level.

However, business leaders, already weighed down with high borrowing costs, want immediate actions to put a stop to the surge in toxic loans, saying they fear the NPLs will continue to rise, impacting investment.

According to the central bank, defaulted loans stood at Tk 6.44 lakh crore at the end of September this year, nearly 36 percent of total disbursed loans. Net NPLs also jumped to 26.4 percent, or Tk 4.15 lakh crore, as of September. A year earlier, bad loans accounted for 16.93 percent of outstanding loans.

"A default rate exceeding one-third of total loans poses a severe challenge. The true scale of bad loans is now becoming apparent due to stricter loan classification rules," Mansur told business leaders at the Fourth Bangladesh Economic Conference 2025, organised by the Bonik Barta in Dhaka.

With banks effectively operating on only two-thirds of their asset quality intact, the governor described the crisis as a structural risk that cannot be resolved quickly.

"We expect NPLs to stabilise at this level. After that, a gradual decline may begin. But a full recovery will require five to ten years of sustained reform and discipline," he said.

Business leaders, however, were sceptical about any stabilisation without a crackdown on serial defaulters.

"If the average NPL is around 35 percent, then where has this money gone? Strict action against defaulters is necessary," said AK Azad, chairman of Ha-Meem Group.

With such a large share of loans outside the system, he said, "running the state will be impossible, and GDP will decline even further."

The next government, he stressed, must identify the borrowers behind the bad loans and bring them under the law.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association, said they believe the NPLs may rise in the future.

"Steps must be taken to prevent any further increase. Industries should keep running so banks can get returns; if they get shut by dint of the law, banks get nothing," he said.

Kamran T Rahman, president of the Metropolitan Chamber of Commerce and Industry, echoed the concern. "When will this upward trend be checked, and when will it start moving in the right direction?"

'FIX LENDING RATE 2-3% BELOW TREASURY BOND YIELDS'

Industry representatives also pressed the central bank to ease monetary policy, arguing that high interest rates are choking investment at a time of already weakened demand.

"These higher interest rates are leaving the private sector unable to borrow, which is constraining the private sector's expansion," Ha-Meem Group's Azad, one of Bangladesh's leading exporters.

Echoing the same, Transcom Group CEO Simeen Rahman said the combined effect of inflation and elevated lending rates had slowed growth and consumer spending. "Our economy is going through challenges both in terms of growth and consumer spending."

GPH Group Chairman Mohammad Jahangir Alam noted that Bangladesh's 10 percent policy rate contrasts with the lower rates in competing countries, except Pakistan.

"If the policy rate comes down, lending rates will also fall and businesses will get some relief," said Alam, also president of Bangladesh Steel Manufacturers Association.

He also pointed to treasury bonds yielding 11–12 percent, which have become more attractive to banks than lending to businesses.

"As a result, banks are choosing the risk-free option of investing in treasury bonds instead of supporting industries. That is why we are facing a credit shortage," he said.

He urged the central bank to reduce both the policy rate and the yield on treasury bonds, saying businesses could survive if bank loans were priced 2–3 percent below bond returns.

Governor Mansur acknowledged the strain caused by the high interest rate but said rate cuts would only follow a sustained drop in inflation.

"The interest rate is certainly high. But globally, there is usually a gap of at least 2–3 percent between the policy rate and inflation," he said.

"Our inflation rate is still 8.2 percent. I will lower the interest rate once it comes down," he said.

However, he also criticised the government's policy. "Inflation could have been lower, but the government's policy failures are behind it not falling further."

Turning to external balances, the governor said foreign exchange conditions had improved ahead of Ramadan.

"Last year's Ramadan was the most difficult period for managing foreign exchange liquidity. But this year, we are not seeing signs of stress," he said.

He said all import LCs for essentials had been opened, while LC openings across product categories had risen sharply from a year earlier.

"Imports have increased, showing double-digit growth this month. Yet even then, there is no exchange rate pressure now," he said.

Bangladesh Institute of Development Studies Director General AK Enamul Haque, City Bank Managing Director and CEO Masrur Arefin also spoke at the event.

The high volume of non-performing loans (NPLs) in Bangladesh's banking sector is creating risks of a credit crunch, weakening investment, collapsing investor confidence, and even stagflation, according to the Policy Research Institute of Bangladesh (PRI).

NPLs, loans that borrowers are failing to repay, have reached Tk 6.44 lakh crore, nearly 36 percent of total disbursed loans, according to a PRI study presented at a seminar on its "Monthly Macroeconomic Insights".

"At least 16 banks have become incapable of issuing new loans," Ashikur Rahman, principal economist of PRI, said while presenting the keynote paper at the event jointly organised by the PRI and the Department of Foreign Affairs and Trade of Australia, at the PRI office yesterday.

The paper also noted that distressed assets – the sum of officially classified NPLs along with rescheduled, written-off, and otherwise troubled loans – in the banking sector could now total around Tk 9.5 lakh crore, highlighting the low potential for recovery.

PRI said without decisive action to address rising NPLs, Bangladesh faces mounting financial stability risks.

"Effective NPL resolution will require a comprehensive, multi-pronged strategy – similar to the approaches adopted in the UK, Malaysia, and China – that combines strengthened supervision, robust legal and recovery frameworks, and well-designed asset management mechanism," it added.

A CRISIS NEVER ENCOUNTERED BEFORE

When banks hold so many bad loans, they struggle to lend new money, which slows investment, limits public spending, and undermines economic growth. PRI's study warns that the situation could even lead to stagflation, a scenario in which high inflation coexists with low growth and high unemployment.

Rahman noted that with Tk 6.44 lakh crore in bad loans, reducing interest rates is practically impossible.

He said Bangladesh has yet to develop the institutional capacity to implement international best practices for resolving NPLs, largely because the country has never faced a crisis of this magnitude before.

"But the moment has now arrived when such capacity must be built. Bangladesh has much to learn from how countries like Malaysia, the United Kingdom, and China successfully cleaned up their financial sectors," he said.

The economist added that in many countries, specialised asset management companies (AMCs) purchase NPLs from banks' balance sheets to recover value and restore lending capacity.

If the spiralling bad loans remain unchecked, he warned that Bangladesh risks becoming trapped in a high-interest-rate, high-inflation, low-investment, low-growth equilibrium. "Resolving NPLs is no longer a banking issue-it is a macroeconomic imperative."

Anwar-Ul-Alam Chowdhury Parvez, president of the Bangladesh Chamber of Industries (BCI), said businesses are often blamed for rising defaults, but they are not entirely responsible.

"The business environment here is not supportive. Entrepreneurs now have to take fresh loans just to repay earlier ones," he noted.

Chowdhury also pointed out that the loan repayment period, previously six months, has been reduced to three months, meaning loans are now classified as defaulted much faster, which has contributed to the rise in NPLs.

He recommended improving law and order, resolving the energy crisis, ending mob culture, and providing policy support to businesses. "Otherwise, defaulted loans will continue to rise."

The prominent businessman also stressed the importance of a stable political environment and credible elections for sustainable development.

He further highlighted the need for stronger domestic policy frameworks, a long-term energy strategy, fiscal support, more effective tax administration, banking sector reforms, and comprehensive skill development to build a resilient, competitive economy.

Meanwhile, chairing the event, Zaidi Sattar, chairman of PRI, said the Real Effective Exchange Rate (REER) index - which measures price competitiveness against trading partners – has been rising since May, causing concerns for exporters.

A rising REER signals that Bangladeshi goods are becoming relatively more expensive in global markets.

"The Bangladesh Bank can no longer purchase dollars from the market to depreciate the taka; therefore, loosening import restrictions is the only viable option. This would also benefit exporters," he added.

The central bank has been purchasing dollars from the market to rebuild foreign exchange reserves and maintain stability in the exchange rate in recent months.

Nasiruddin Ahmed, former chairman of the National Board of Revenue (NBR), called for allowing politicians to formulate tax policy and the business community, instead of bureaucrats, some of whom he believes contribute to the problem.

He also highlighted employment and the lack of quality, job-oriented education as major national concerns that the next government must address.

Wasel Bin Shadat, research director at public-private dialogue platform Business Initiative Leading Development (BUILD), raised concerns over fairness in implementing penalties for tax-related violations.

"Compliant taxpayers are being penalised, which goes against the principle of tax justice. This is one of the main reasons why 85 percent of the economy remains informal," he said.

Moreover, he said election manifestos across political parties fail to address the economic situation with sufficient seriousness.

AKM Atiqur Rahman, professor at North South University, said the July uprising led to the disclosure of the true scale of rising NPLs. Otherwise, he said the figures would have remained hidden, raising doubts about the economy's ability to sustain itself.

He emphasised the urgent need for export diversification beyond RMG, warning that potential Trump-era tariffs and a REER above 6 percent are already weakening competitiveness.

Sammilito Islami Bank, the proposed largest shariah-based state-run bank to be formed by merging five troubled ones, is going to be launched within the next week, said Bangladesh Bank Governor Ahsan H Mansur yesterday.

The bank will begin operations with Tk 35,000 crore in paid-up capital, the highest in Bangladesh, he said at an economic conference at Pan Pacific Sonargaon Dhaka organised by the business daily Bonik Barta.

His comments came as the BB board is scheduled to sit for a meeting today, where the proposed new bank is expected to receive approval. After the approval, the central bank will issue a letter awarding the bank its licence.

Earlier on November 9, the BB issued a preliminary licence and the new entity received name clearance from the Registrar of Joint Stock Companies and Firms (RJSC).

Later in the day, responding to The Daily Star, Mansur said depositors will be able to withdraw their money after the launch of the new bank.

Initially, depositors of all the five banks will be able to withdraw a maximum of Tk 2 lakh immediately, and then every three months, they can receive a certain portion of their deposits, he said.

The BB chief said all the accounts in those banks will be operational as will the branches of these banks.

"Depositors will get interest at the market rate on their deposits and realise the interest after the launch of the new bank," he said, but added that they will be unable to realise the interest accrued against their savings in the past.

As part of the move, the central bank has drawn up a detailed roadmap outlining specific timelines for the repayment process. This will be announced soon through an official gazette, with the repayment schedule taking effect from the date specified.

To ensure investment income for the new bank, the new bank is expected to invest Tk 10,000 crore in the shariah-based sukuk bond. This is expected to generate Tk 800 crore-Tk 900 crore in income for the bank.

"We are not going to cut any staff in these banks. But their salaries and benefits will be rationalised," he said, replying to another question. The existing employees of the five banks — nearly 16,000 — may see their salaries reduced by 20 percent.

On November 5, the BB took over the five troubled shariah-based banks — First Security Islami Bank, Union Bank, Global Islami Bank, Social Islami Bank, and EXIM Bank — on a temporary basis by dissolving their boards as part of the formal merger process.

The new bank, being formed under the newly enacted Bank Resolution Ordinance 2025, is going to be the largest one in Bangladesh.

The authorised capital of the bank will be Tk 40,000 crore — each share valued at Tk 10, totalling 4,000 crore shares.

Of the amount, the government will provide Tk 20,000 crore designated as Class-A shareholders, according to the draft notification of the finance ministry.

Another Tk 7,500 crore will come from the permanent deposits of depositors in the transferring banks and financial institutions, converted under special terms. They will be designated as Class-B shareholders.

The remaining Tk 7,500 crore will come from deposits of other institutional depositors — excluding banks, financial institutions, and multinational companies — also converted specially. They will be designated as Class-C shareholders.

Bangladesh must introduce pricing for industrial water use to curb excessive extraction and wastage, and avert a looming groundwater crisis, experts warned today (29 November).

At a roundtable organised jointly by WaterAid and The Business Standard in Dhaka, they painted a stark picture: In Gazipur – the heart of the country's manufacturing hub – groundwater is falling by 2-3 metres every year, sucked out relentlessly by factories that treat water as an inexhaustible free good.

This continued decline, they argued, is pushing Bangladesh toward a point where industries may simply no longer be able to draw the water they need to operate.

The concern is compounded by another troubling trend. Despite a prolonged monsoon this year, the soil is losing its natural ability to absorb and hold water, meaning even the rains are failing to recharge aquifers. The country's industrial engine, powered by groundwater, is running on a shrinking reserve.

"Water is being wasted in many cases. To prevent wastage, imposing a price on industrial water use can be considered," said Hasin Jahan, country director of WaterAid Bangladesh, at the roundtable titled "Strategic Consultation on Sustainable Water Management Action Plan in the RMG Sector."

She pointed out that the government has already imposed restrictions on groundwater extraction in several industrial pockets. But the warning signs are now much more ominous.

"If groundwater levels fall further in Gazipur," Hasin asked, "what happens to industries there? What happens when they can't pull water out anymore?"

If optimal use of water is ensured, industries will be compelled to adopt alternative measures such as rainwater harvesting and proper use of effluent treatment plants (ETPs), which can help protect industries, agriculture, and the people from future water scarcity, she said.

A draft guideline on water use has also been prepared by the Water Resources Planning Organization (WARPO), which includes mandatory permission from local authorities. However, no decision has yet been made regarding water tariffs, added Hasin Jahan.

Representatives from factories, development organisations, and water specialists echoed similar worries. The message was unmistakable: unless Bangladesh begins treating water as a finite economic resource – not a free commodity – the country's industrial zones may soon hit a wall no policy can cheaply fix.

Speakers expressed disappointment that Bangladesh does not have policies to prevent water discharge (untreated water), even though such laws exist in various states in neighbouring countries. Because of the absence of such policies, industries access water for free and use it excessively, they said.

To reduce industrial water misuse, they emphasised not only water pricing but also awareness building, coordinated efforts from all parties, and ensuring low-cost, sustainable financing.

AKM Masum Ul Alam, adjunct faculty at Bangladesh University of Health Sciences, said, "Policies are needed to determine whether a metering system will be used to measure water usage… The government should introduce a unified inspection policy for industries to ensure optimal use of water."

He urged the relevant government agencies and private sectors to collaborate, pointing out that although ETPs have been installed in many industries, most of them are not operated regularly due to additional costs. They are often used only when government officials visit for inspections.

"There should be technologies to measure ETP usage," Masum added.

Md Yakub Hossain, executive director of Village Education Resource Centre (VERC), said, "Groundwater levels in some areas, including Savar, have fallen so much that even submersible pumps are failing to extract water. Shallow tube wells are also dry. Because of pollution and unplanned industrialisation, farming is no longer possible there – people cannot even use river water from Dhamrai to Munshiganj."

"Industries are necessary, but people also need to survive," he said.

Delowar Hossain, joint director of the Sustainable Finance Unit at the Bangladesh Bank, citing the failure of the CETP in Savar's tannery estate, emphasised the need for private-sector management over government management in such cases.

He added that initiatives are underway to allow banks to offer low-cost financing for green projects beyond Bangladesh Bank's refinancing schemes.

70% of RMG factories not ready for zero-discharge

At the roundtable, garment industry entrepreneurs highlighted issues such as a lack of space for zero-discharge facilities, the absence of incentives, and the failure to obtain fair prices despite additional investment.

A zero-discharge facility refers to an industrial setup where all wastewater and effluents are fully treated and recycled.

Nafiz-ud-Doula, a director of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said, "To achieve zero-discharge, factories need space, which 70% of factories do not have. Small and medium factories also face challenges in accessing low-cost funds needed for such investments. This must be ensured."

He said that green production – including ETPs – requires 30% additional investment, but factories do not receive higher product prices in return.

Nafiz added that producing one kilogram of cotton fabric requires more than 70 litres of water, although some factories have reduced this to 40 litres through additional investment.

Admitting that ETPs exist in many factories but are not used properly, he said there are currently 268 green factories in the country, some of which practice rainwater harvesting and make significant contributions.

Hafizur Rahman, chief textile officer of Fakir Fashions Ltd, said that factories that invest in reducing water use are not getting fair judgment in product pricing.

Delowar Hossain of the Bangladesh Bank added, "We can encourage banks to provide low-cost funds for green financing in the SME sector, but we cannot force them. However, an initiative has been taken to introduce a credit guarantee scheme."

Others who spoke included Partha Hefaz Sheikh, director of WaterAid Bangladesh; Azman Ahmed Chowdhury, director of WaterAid; Mostafizur Rahman, senior programme officer at the Embassy of Sweden, Dhaka; Farhana Bari, representative of Swedish brand Lindex; Kazi Matin Uddin Ahmed, a professor at the Department of Geology, University of Dhaka; and Faria Fahim Badhon, a WASH (water, sanitation, and hygiene) officer at Unicef Bangladesh.

TBS Deputy Editor Sajjadur Rahman moderated the roundtable.

চট্টগ্রাম স্টক এক্সচেঞ্জ পিএলসির (সিএসই) পরিচালক হিসেবে পুনরায় নির্বাচিত হয়েছেন মোহাম্মদ নাসির উদ্দিন চৌধুরী। তিনি লংকাবাংলা সিকিউরিটিজ লিমিটেডের ব্যবস্থাপনা পরিচালক হিসেবেও দায়িত্বরত।

বৃহস্পতিবার (২৭ নভেম্বর) সিএসই থেকে পাঠানো এক সংবাদ বিজ্ঞপ্তিতে এ তথ্য জানানো হয়েছে।

সংবাদ বিজ্ঞপ্তিতে উল্লেখ করা হয়েছে, কোম্পানি আইন অনুযায়ী, আগামী ১১ ডিসেম্বর সিএসইর সাধারণ বার্ষিক সভায় (এজিএম) একজন পরিচালকের পদ শূন্য হওয়ার কথা রয়েছে। সে হিসেবে নির্বাচনি প্রক্রিয়ার অংশ হিসেবে নমিনেশন জমা দেন মোহাম্মদ নাসির উদ্দিন চৌধুরী। তবে নমিনেশন জমা দেওয়ার শেষ দিনেও আর কেউ তা জমা না দেওয়ায়, মোহাম্মদ নাসির উদ্দিন চৌধুরী বিনা প্রতিদ্বন্দ্বিতায় পরিচালক নির্বাচিত হন।

এ কে এম মোহসেন উদ্দিন আহমেদ চৌধুরীকে চেয়ারম্যান করে সিএসইর গঠিত নির্বাচন কমিটি এই ঘোষণা দেন। এই কমিটির অন্য সদস্যরা হলেন মো. শওকত আলি তালুকদার এবং ড. মো. খোরশেদ আলম তালুকদার।

Nearly one-third of the Dhaka Stock Exchange's fixed deposit receipts, totalling Tk87.39 crore, in four Shariah-based banks currently undergoing a merger remain stuck as the repayment process remains uncertain.

Amid a liquidity crisis and heavy non-performing loans, these banks have failed to repay the bourse despite the FDRs reaching maturity.

A total of five Shariah-based banks – EXIM Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank, and Union Bank – are being merged into a single entity under Bangladesh Bank. While the banks' boards have been dissolved and share trading suspended, the handling of institutional investors' deposits is still under the restructuring process.

According to DSE's latest annual report for FY25, the bourse has 87.39 crore investment in four banks, with Tk48 crore in EXIM Bank, Tk19.39 crore in Union Bank, Tk16 crore in Global Islami Bank and Tk4 crore in Social Islami Bank.

Due to a fragile situation – marked by a liquidity crunch and difficulties in repaying investors' savings – the DSE is diversifying its investments into government treasury bills, a safer investment instrument in the country, by encashing its FDRs.

As of June 2025, the total FDRs of the DSE stood at Tk356.81 crore, compared to Tk832 crore at the end of June 2024.

Its latest annual report shows that it had encashed Tk639 crore and invested Tk221.83 crore in one-year and six-month treasury bills.

Despite repeated attempts urging the banks in question to repay, the DSE has failed to recover the invested funds, a DSE official said, on condition of anonymity.

He said that the FDRs were kept in the banks by the previous boards at a time when the banks' financial health did not appear to be poor. "After the fall of the previous government in August 2024, their real financial condition became apparent. Since then, we have sent several letters to the banks urging repayment, but despite the FDRs reaching maturity, they have failed to return the funds to the bourse," he added.

"Now, we see that the central bank is merging the banks. We have heard that institutional investors will get their funds repaid, and we are waiting for guidance from the central bank," said the DSE official.

A director on the DSE board said that due to a volatile capital market, lower turnover, and zero new company listings in the past year, the bourse's non-operational income has been sustaining it, with most earnings coming from interest income.

"If the bourse does not get back the invested Tk87 crore in the banks, its financials will be significantly affected, and the entire amount could be lost. But the management is trying to recover the funds," he added.

These FDRs continue to be recorded at carrying value while recovery efforts are being pursued by the DSE. Over the years, due to capital market volatility and lower turnover throughout the year, the DSE has faced significant declines in revenue and has incurred operational losses.

Amid the backdrop of a downward-trending capital market, its non-operating income – from interest on FDRs, rental income, and dividend income – has helped keep the DSE in the green.

Non-operating income surpasses DSE's operational income

Its annual report showed that its non-operational income — from interest, building rentals, and dividends from CCBL and CDBL — surpassed its operational income in 2024-25.

Its revenue from operations stood at Tk101 crore, mostly from Tk59 crore in share transaction fees, with the rest from fees charged to listed companies and data sales.

Meanwhile, its non-operational income surged to Tk121 crore, mostly Tk94 crore from interest, with the remainder coming from rentals, dividends, and other income, including some long-standing dues.

In that year, the DSE incurred hefty operating losses of Tk49 crore, but its non-operational income generated a profit of Tk31 crore, down nearly 46% from Tk61.3 crore in FY24.

Several directors and officials attributed the DSE's losses primarily to capital market volatility over the year, driven by political instability and economic factors following the regime change in August 2024.

First Security Islami Bank, once closely linked to the scandal-hit S Alam Group, has plunged into one of the worst financial collapses in Bangladesh's banking history, posting an unprecedented loss of Tk3,750 crore in the January-September period of 2025.

The staggering deficit, disclosed in the bank's latest filings to the Dhaka Stock Exchange (DSE), underscores the scale of damage caused by years of concealed toxic lending, reckless governance, and systemic manipulation that went unchecked for more than a decade.

The third quarter (July-September) alone accounted for Tk2,060 crore in losses, a dramatic reversal from the Tk31 crore profit recorded during the same quarter of the previous year.

On a consolidated basis, the bank's loss per share stood at Tk31.04 for the nine-month period, while the July-September quarter alone generated a loss per share of Tk17.04.

The erosion of profitability has been accompanied by a complete collapse of asset value. According to the disclosure, the bank's consolidated net asset value (NAV) per share dropped to negative Tk14.65, compared to a positive Tk20.66 during the same period a year earlier.

Its total NAV now stands at negative Tk1,770 crore, meaning all shareholder equity has effectively been wiped out.

Banking analysts say a negative NAV of this size leaves no doubt about the bank's insolvency, as its liabilities now exceed its assets by a wide margin. Even a full liquidation of the lender's asset base would fail to cover depositor claims, while shareholders have been left holding equity that is essentially worthless.

Liquidity stress intensifies

The bank's operational health has deteriorated just as sharply. Its net operating cash flow has sunk to negative Tk2,880 crore, signalling an acute cash crisis.

The negative cash flow indicates that First Security Islami Bank is spending far more on interest expenses, deposit servicing, and administrative costs than it earns from lending and investment operations.

With the bank's loan book already crippled by defaults and revenue streams shrinking, analysts say its liquidity strain has reached "an unsustainable level".

The seeds of the collapse were already visible in the bank's 2024 audited report, which revealed that the bank's non-performing loans (NPLs) had skyrocketed to Tk55,920 crore – an astonishing 92% of its total loan portfolio.

The bank also reported a provision shortfall of Tk47,862 crore at the end of that year, forcing the board to decide against declaring any dividend for shareholders.

Although the third-quarter report of 2025 did not include updated NPL figures, banking experts believe the situation has likely worsened further.

Bangladesh Bank steps in

In early November, Bangladesh Bank declared First Security Islami Bank inactive, dissolved its board and appointed an administrator. This action came alongside the regulator's announcement that the bank would be merged with four other Islamic banks – Social Islami Bank, Exim Bank, Union Bank, and Global Islami Bank – all of which had also been struggling.

Bangladesh Bank Governor Ahsan H Mansur stated at the merger announcement that the sponsor and general shareholders of the five banks would receive no compensation, as the net asset value per Tk10 of face-value share had fallen as low as negative Tk450 in some cases.

Share trading of First Security Islami Bank has since been suspended on both stock exchanges.

Before trading was halted, the bank's stock had closed at Tk1.90 per share, giving it a market capitalisation of just Tk229 crore, far below the scale of losses the institution is currently carrying.

Analysts said the ongoing merger process is expected to reshape the Islamic banking landscape, but for depositors and shareholders of First Security Islami Bank, the damage has already been done.

Advanced Chemical Industries (ACI) PLC Chairman Anis Ud Dowla has announced his intention to purchase 3.60 lakh shares of the company, further strengthening his stake in the diversified conglomerate at a time when sponsor-director activity in the stock has been rising.

According to a disclosure posted on the Dhaka Stock Exchange (DSE) today (27 November), the shares will be acquired at the prevailing market price through the block market within the next 30 working days.

On the day of the announcement, ACI shares closed at Tk178.80 each, meaning the intended purchase would be worth roughly Tk6.44 crore.

The move marks the chairman's continued effort to raise his ownership, as he previously bought 5 lakh shares in October. As per the latest shareholding report, Anis Ud Dowla currently owns 1.92 crore shares, representing 21.87% of the company's total paid-up shares.

Other board members have also been increasing their stakes. Between January and April this year, other ACI directors purchased a substantial volume of shares, contributing to a notable rise in insider accumulation. As a result, the combined stake of sponsors and directors has risen by 9.7%, bringing their total ownership to 45.77% of the company.

The strengthening of insider holdings comes amid signs of recovery in ACI's financial performance.

For the fiscal year ended 30 June 2025, ACI reported a significant reduction in losses. Its consolidated loss per share fell to Tk7.40—an improvement of nearly 53% from Tk15.88 in FY24.

The board of directors has recommended a 25% cash dividend for shareholders.

Government agencies have questioned whether two proposed projects – funded by the Japan International Cooperation Agency (JICA) – are actually needed, particularly since previous loans were not fully utilised and the new loans would be costlier. They said the proposals, prepared without sufficient assessment of actual needs, "seem supply-driven" and are not aligned with Bangladesh's development priorities.

Economic Relations Division (ERD) officials said Jica proposed an interest rate of 2.35%, including 0.80% for consulting services, for the two projects, up from 2% it offered in June. If approved, Jica loans would be costlier than comparable loans from the World Bank and the Asian Development Bank (ADB).

According to ERD officials, a Jica delegation recently visited Bangladesh to prepare loans for three new projects. Following the visit, a 16 October meeting chaired by Md Mizanur Rahman, additional secretary and wing chief (America & Japan) at ERD, reviewed the progress of Jica's fact-finding mission.

Meeting minutes, seen by TBS, show that ERD and the Power Division raised objections to two of the projects: Foreign Direct Investment Promotion Project (FDIPP) Phase II and the Power Grid Stabilisation Project.

ERD sources said that although Tk240 crore remained unused in FDIPP Phase I, Jica now proposes another loan of 60,053 million Japanese yen (around Tk 4,703 crore) for Phase II. The project is being implemented under the Bangladesh Investment Development Authority (Bida) and Bangladesh Economic Zones Authority (Beza). ERD officials argued that the unused funds should be utilised first.

Meanwhile, the Power Division officials present in the meeting objected to the Power Grid Stabilisation Project, saying it was pushed forward without sufficient consultation or a comprehensive assessment of the country's actual needs.

When contacted, Jica's Dhaka office said the project proposals are under discussion and refused to comment further.

FDIPP Phase II

ERD sources said the FDIPP Phase-II plans to expand Bangladesh Special Economic Zone (BSEZ) in Narayanganj, strengthen Bida's central investment licensing platform BanglaBiz, and provide two-step loans (TSL) for FDI-focused industries.

Phase I completed off-site development of 480 acres in the Special Economic Zone. Eight companies are operational, but only one used the TSL facility. A customs building was constructed, with plans to buy equipment with funds from Phase II.

ERD officials said that around Tk240 crore of Phase-I funds remain unused and suggested using them first for the customs building to ensure effective loan use.

They also questioned taking loans for BanglaBiz, a digital platform launched by Bida in 2025 to centralise investment services, as it is fully operational now.

The actual loan demand of FDI-based industries — which could justify TSL — still needs verification. ERD officials said Phase II will proceed only if private-sector demand is confirmed.

In the meeting, it was decided that Beza will complete a full Phase I evaluation to guide Phase II decisions. Using unused Phase-I funds to buy customs building equipment can also be considered.

Bida and Beza Executive Chairman Chowdhury Ashik Mahmud Bin Harun told TBS, "Our focus remains on FDIPP Phase I. Progress has not fully met expectations. Phase I aims to create support systems. Phase II work will continue at its own pace."

Beza sources said work for the first 500 acres in the Special Economic Zone under Phase I could continue until June 2027. A Beza official said that since the two phases have separate objectives, running them independently should not cause issues.

Power Grid project

Power Division representatives in the meeting said it is cautious about the Power Grid Stabilisation Project and believes further internal discussion is needed before proceeding with loans. They noted the proposal was advanced without sufficient consultation with the division or a detailed field-level assessment.

The project aims to stabilise and strengthen the national grid and improve the quality of electricity by replacing certain equipment at the Karnaphuli Hydropower Plant.

It includes multiple sub-projects: upgrading transmission networks and substations, improving power supply and demand management (including the National Load Dispatch Centre), and primarily replacing key equipment at the Karnaphuli plant.

The division decided to conduct a thorough review of the project's necessity and will inform the ERD whether Jica's proposal should proceed.

TBS wrote to Jica for its position regarding the concerns raised by relevant Bangladeshi authorities about two proposed projects. Jica's Dhaka office responded by saying, "As the projects you mentioned are under discussion with the Government of Bangladesh, we are unable to provide specific comments at this stage."

Asked about the higher interest rate offered, the Japanese agency said terms and conditions of Japanese ODA loans are publicly available on the Jica website. "For loans extended to Bangladesh, the conditions applicable to Least Developed Countries (LDCs) are applied".

Another Jica project proposal discussed in the meeting was the Chattogram-Cox's Bazar Highway Development (Phase II) which aims to ease cargo transportation to Matarbari Port by widening National Highway-1. The loan amount might be finalised in December, with a target to sign the loan agreement by March 2026.

Under the project, the Forest Department proposed a 10 km viaduct in Chunti and additional surveys to protect the elephant corridor.