The upward trend in inward remittances continued and 56.3 percent growth in January, with receiving over US $1.86 billion in 17 days of the month.

Bangladesh received $18.12 billion in inward remittances from July to January 17, 2026, in the current fiscal year FY 2025-26. It was 14.96 billion in the same period of the previous FY2024-25, and saw a growth of 21.1 percent.

Blessed by strong remittances, Bangladesh’s gross forex reserves have surpassed $33 billion, up from $29 billion under the IMF’s BPM6 standard.

Arif Hossain Khan, Executive Director and spokesperson of Bangladesh Bank, said the expatriates have sent $1.86 billion in the first 17 days of January 2026, which was $1.19 million in the same period of January 2025. It means the remittance earnings grew by 56.3 percent in this time.

The growth is attributed to several factors, including incentives offered for sending money through legal banking channels, increased encouragement for using the formal system, and the active role of exchange houses.

In FY2025-26, Bangladesh received $2.47 billion in remittances in July, $2.42 billion in August, $2.68 billion in September, $2.56 billion in October, $2.88 billion in November, and $3.22 billion in December.

This data revealed that the average inward remittance flow was over $2.42 billion in the last six months. This robust flow of remittance influences Bangladeshi policymakers to discourage lending from the IMF with tough conditions.

Over the past decade, ESG (Environmental, Social, and Governance) reporting has gradually moved from a voluntary practice to a mandatory legal framework worldwide.

Alongside European markets such as the London Stock Exchange, Euronext, and the Frankfurt Stock Exchange, ESG reporting has now become mandatory in Asian markets like Singapore and India.

Despite its global importance, ESG reporting remains largely absent in Bangladesh. While some multinational and fundamentally strong companies follow ESG practices partially, there is still no effective or mandatory initiative at the regulatory level.

According to sector insiders, ESG has become a pressing necessity for Bangladesh's capital market in order to restore investor confidence and attract foreign investment. Confidence has not fully returned since the market crash of 2010, nor has foreign investment increased significantly. Frequent policy changes, lack of transparency, and lagging ESG standards are cited as the main reasons behind this reluctance.

However, recently, a total of 16 companies listed on Bangladesh's stock market have been included in the Bloomberg ESG universe.

Notable among them are Grameenphone, BAT Bangladesh, Marico Bangladesh, BRAC Bank, IDLC Finance, Square Pharmaceuticals, Walton Hi-Tech, LafargeHolcim, MJL Bangladesh, BSRM, Linde Bangladesh, Reckitt Benckiser Bangladesh, Singer Bangladesh, Heidelberg Materials Bangladesh, Robi Axiata, and City Bank.

To address post-LDC challenges and achieve the SDGs, business organisations in the country have begun working on ESG issues. The Metropolitan Chamber of Commerce and Industry (MCCI) has already formed a 10-member committee to work on ESG development.

Although ESG is not mandatory in Bangladesh, the Dhaka Stock Exchange is working with GRI, which enables listed companies to prepare sustainability reports.

However, it has been observed that Bangladeshi companies prepared ESG reports partially in previous years. Due to the lack of mandatory requirements, most of these companies did not continue the practice.

When asked, Abul Kalam, Director and Spokesperson of the Bangladesh Securities and Exchange Commission (BSEC), said that BSEC has taken active initiatives to bring ESG reporting under a legal framework to enhance transparency and accountability in the capital market. Given the growing importance of ESG reporting, the commission is treating the matter with utmost seriousness.

He noted that under the current Corporate Governance Code, ESG standards are only partially complied with, which is insufficient to ensure full transparency. To address this limitation, work is underway to revise the Corporate Governance Code, where ESG reporting will be incorporated as a strong and effective provision.

Bangladesh Bank's 2022 Environmental and Social Risk Management (ESRM) guidelines and the 2020 Sustainable Finance Policy require banks to consider environmental and social risks. As a result, rapid growth has been observed in green and sustainable finance. In the first quarter of 2025, green finance reached approximately Tk8,763 crore and sustainable finance reached around Tk1.49 lakh crore, representing growth of 21% and 69% respectively, demonstrating that the policies are effective and that financial institutions are increasingly inclined toward environmentally friendly investments.

Arif Hossain Khan, Executive Director of Bangladesh Bank, told The Business Standard that banks are being encouraged to provide greater credit facilities to companies investing in environmentally friendly projects in Bangladesh. At the same time, Bangladesh Bank is closely evaluating ESG issues. However, considering the current market conditions, the country is not yet ready to make ESG mandatory.

Tarek Refat Ullah Khan, Managing Director of BRAC Bank, said that ESG reporting is now essential for a climate-vulnerable country like Bangladesh. "Bangladesh faces climate risks such as floods, cyclones, and water scarcity, which directly affect businesses and investments financially. ESG reporting helps identify risks that are not captured in conventional financial reporting. Foreign investors now expect disclosures in line with international standards such as ISSB or GRI."

He added that as more than 35% of BRAC Bank's shares are held by foreign investors, the bank has been regularly disclosing such information for the past three years.

Md Mostafizur Rahman Razu, Head of EHS & Sustainability at Walton Hi-Tech Industries, said that sustainability at Walton is fully integrated into everyday operations and decision-making.

From reducing carbon and water footprints to recycling wastewater and generating renewable energy, Walton's initiatives demonstrate a strong commitment to environmental protection, workplace safety, and social responsibility. The company's strategic approach sets a benchmark for responsible industrial growth.

He said that in FY 2024–25, Walton achieved significant progress: reducing its carbon footprint by 11.4%, reducing its water footprint by 10.7%, recycling 52% of process wastewater, and generating 13 MW of renewable solar energy, with a target of 50 MW by 2026.

Square Pharmaceuticals' Chief Financial Officer, Muhammad Zahangir Alam, said, "We report ESG from an ethical standpoint. Square Pharma places importance on every aspect of ESG and publishes this report every December. We believe that for companies aiming to play a significant role in the global pharmaceutical industry, publishing such reports is extremely necessary."

Akramul Alam, Head of Research at Royal Capital, identified four major challenges to ESG implementation in Bangladesh. According to him, "First, many investors prioritise short-term profits over long-term sustainability and are unwilling to bear the additional costs of ESG compliance. Second, no globally aligned ESG roadmap suitable for Bangladesh's context has yet been developed. Third, companies are unable to allocate sufficient resources to achieve targets for reducing carbon emissions or improving energy efficiency. Fourth, regulatory oversight remains limited."

Nabil J Ahmed, Executive Director (Standard Setting) of the Financial Reporting Council (FRC), said that ESG is no longer an option. He stated, "It is essential for a stable economy. Especially for the export-oriented ready-made garment sector, ESG is the key to maintaining international trade relationships. ESG reporting will reduce information asymmetry and make the capital market more attractive to foreign investors."

He further said that the FRC is currently working toward adopting the International Sustainability Standards Board frameworks, specifically the General Requirements and Climate-related Disclosures. In addition, Bangladesh Bank's Sustainable Finance Policy has already laid the groundwork by encouraging banks to prioritise green investments.

Professor Abu Ahmed, capital market analyst and Chairman of ICB, said, "Bangladesh should begin practising ESG because it enhances companies' long-term sustainability. Over the past 30 years, many Bangladeshi investors have been deceived after investing in various companies – companies went bankrupt or management engaged in fraud. If ESG had been in place, investors would at least have been able to understand when to invest and when to exit a company."

Dr Fazle Rabbi Sadeq Ahmed, a prominent expert in agriculture, climate change, and the environment in Bangladesh and Deputy Managing Director of the Palli Karma-Sahayak Foundation, told The Business Standard that ESG practices in Bangladesh are currently voluntary. Some garment companies, particularly exporters, are following these practices.

The benchmark index of the Dhaka Stock Exchange rebounded above the psychologically significant 5,000-point mark today (18 January) after nearly two months, as broad-based buying enthusiasm lifted the market sharply.

The rally reflected renewed investor confidence following a prolonged period of correction, with participation rising across most sectors, according to the market insiders.

The DSEX, the prime index of the DSE, jumped 76 points or 1.53% to close at 5,035. The last time the index finished above this level was on 27 November 2025, when it closed at 5,028.

Market operators said the decisive break above the 5,000 mark has lifted short-term market sentiment, with investors widely viewing the level as a key psychological resistance.

The blue-chip DS30 index also posted a gain, advancing 26 points or 1.38% to settle at 1,939, indicating buying interest in large-cap and fundamentally strong stocks.

Market breadth was overwhelmingly positive, with 290 issues advancing against just 42 decliners, while 57 stocks remained unchanged on the DSE trading floor.

Reflecting the upbeat mood, total market capitalisation of the DSE rose by around Tk6,000 crore to Tk6.90 lakh crore by the end of the session.

Daily turnover, another crucial indicator of market health, increased significantly, rising 25% to Tk474 crore compared to the previous session, suggesting improved liquidity and higher trading activity.

Stocks that played a major role in pulling the indices higher included BRAC Bank, Grameenphone, BAT Bangladesh, Beximco Pharmaceuticals and Islami Bank.

These stocks also featured prominently in turnover, alongside Square Pharmaceuticals, City Bank and Lovello Ice-cream, indicating active participation from both institutional and retail investors.

Stockbrokers said investors are gradually returning to the market in search of undervalued opportunities after weeks of cautious trading.

They noted that selective buying of fundamentally strong large-cap stocks lifted market confidence, with speculative interest returning to certain beaten-down segments.

Notably, liquidation-risky and loss-making non-bank financial institutions dominated the top gainers' list, with Peoples Leasing, Premier Leasing, Prime Finance, BIFC and Fareast Finance recording double-digit price increases.

Analysts cautioned that such sharp rallies in weak fundamentals-driven stocks carry higher risks, even though they often attract short-term traders during bullish phases.

On the losing side, Apollo Ispat, Nurani Dyeing, Renwick Jajneswar, Fareast Life Insurance and MBL First Mutual Fund posted modest declines.

Meanwhile, the Chittagong Stock Exchange also ended the session in positive territory. The CSCX index rose 103 points to 8,728, while the CASPI advanced 165 points to close at 14,087. Turnover on the port city bourse stood at Tk7.45 crore, reflecting moderate trading activity.

Non-performing loans (NPLs) at the country's non-bank financial institutions (NBFIs) climbed sharply to Tk29,408 crore by the end of September 2025, accounting for more than a third of total outstanding loans, highlighting deepening stress in the sector.

According to Bangladesh Bank data, NPLs at financial institutions at the end of September 2025 account for 37.11% of total outstanding loans of Tk79,251 crore. This marks an increase of Tk1,867 crore in just three months, from Tk27,541 crore at the end of June, when classified loans accounted for 35.72% of total disbursed credit.

An analysis of the data indicates that while overall loan outstanding in the fragile NBFI sector has increased in recent months, classified loans have grown at a significantly faster pace. This suggests that not only previously disbursed loans, but also newly issued loans, are increasingly slipping into the non-performing category.

Golam Sarwar Bhuiyan, chairman of the Bangladesh Leasing and Finance Companies Association (BLFCA), told TBS that the true extent of bad loans had long been concealed. "The amount of non-performing loans in Bangladesh's financial companies already existed, but it was hidden," he said. "After 5 August 2024, the central bank management began strict monitoring, forcing financial companies to disclose the actual level of NPLs."

He added that following the change in regime, many borrowers who had taken loans from financial companies had left the country, leading to immediate loan classification. "Many loans were repeatedly rescheduled even though they had already defaulted," Bhuiyan said.

Confidence in the sector has also been shaken by regulatory actions. The Bangladesh Bank has already announced plans to wind down nine financial companies, prompting depositors to withdraw funds and further straining liquidity across the sector. "Financial companies are not getting enough funds due to the lack of confidence," Bhuiyan noted.

In December last year, the central bank's board decided to liquidate a group of deeply distressed NBFIs after their loan portfolios collapsed under massive defaults. In the first phase, the Bangladesh Bank selected nine institutions – FAS Finance, Bangladesh Industrial Finance Company (BIFC), Premier Leasing, Fareast Finance, GSP Finance, Prime Finance, Aviva Finance, People's Leasing and International Leasing – whose combined depositor exposure could be managed within the Tk5,000 crore fiscal limit set by the government.

A senior central bank official said the government had instructed the Bangladesh Bank to ensure that the fiscal burden of the liquidation process remains within that ceiling.

The Bangladesh Bank's Financial Stability Assessment Report for the September 2024 quarter also paints a bleak picture for the sector. It noted a worsening trend in NBFIs' performance due to a further deterioration in asset quality and profitability. Total assets of financial institutions declined to Tk99,493 crore, down 1.22% from the April-June 2024 quarter, alongside a broader downturn in profitability.

The National Board of Revenue (NBR) has launched an automated system that allows advance income tax paid at the import stage to be directly credited to taxpayers' e-returns, aiming to ease long-standing difficulties faced by importers.

With effect from yesterday (18 January), the NBR has completed and activated an effective system integration between its e-return platform and ASYCUDA World. As a result, income tax paid by taxpayers during the import process will now be automatically reflected as a credit in their electronic income tax returns.

The move is expected to significantly reduce hassles that importers have faced for years in claiming tax credits on advance income tax paid at the import stage, reads an NBR press release issued yesterday. It will also make e-return filing easier for import-based businesses.

Under the new system, when an importer enters business income information in the e-return, details of advance income tax paid against each bill of entry for the relevant assessment year will be automatically populated on a bill-of-entry basis. The tax paid at the import stage will then be adjusted against the taxpayer's total income tax liability, and the payable amount will be calculated accordingly within the system.

The NBR also shared updated figures on the progress of the online tax return initiative. Since the official launch of online e-return filing for the 2025-26 tax year on 4 August 2025 by Finance Adviser Dr Salehuddin Ahmed, more than 46 lakh taxpayers have registered on the e-return system, while nearly 33 lakh have already submitted their returns.

Notably, the NBR said many taxpayers for whom e-return submission is not mandatory are also choosing to file their returns online. For the first time, non-resident Bangladeshis are also able to register and submit their income tax returns through the system. So far, around 4,000 expatriate Bangladeshis have filed their income tax returns for the 2025–26 tax year online.

According to the NBR, no documents or supporting papers are required to be uploaded when submitting an online e-return. The authority said it is continuing all efforts to ensure that individual taxpayers can pay income tax and submit returns easily from home.

The NBR has urged all individual taxpayers to submit their income tax returns online using the e-return system by 31 January 2026.

The commerce ministry has recommended that the revenue board end the duty-free import of certain types of yarn under the bonded warehouse facility.

Local spinners have welcomed the recommendation, but local apparel manufacturers say this could push up production costs and undermine the country’s export competitiveness.

In a recent letter to the National Board of Revenue (NBR), the ministry recommended withdrawing the bonded facility for importing yarn of 10 to 30 count - a medium-to-coarse thickness range widely used in knitwear manufacturing. A higher count indicates less thickness.

The ministry cited mounting pressure on local spinning mills from cheaper imports, particularly from India.

Readymade garment exporters say the proposal risks unsettling the country’s largest export sector at a time of global uncertainty and intense price competition.

Leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) voiced their concerns regarding the move and announced to hold a press conference on the issue today.

BGMEA Director Faisal Samad said the suspension of duty-free imports would force garment manufacturers to rely more heavily on local yarn suppliers, where prices are already rising.

“The garment sector will be severely affected as we will have to buy yarn at higher prices from a monopolised local market,” he said, adding that BGMEA members had raised the issue at an emergency meeting.

He declined to comment further ahead of the press conference, but said exporters were deeply concerned about the government’s decision to restrict imports of “widely consumed” yarn.

BKMEA Executive President Fazlee Shamim Ehsan said imported yarn accounts for nearly 30 percent of the country’s total demand - roughly $1.5 billion worth - with most of it sourced from India. The remaining demand is met by domestic spinners.

He said local mills had already started quoting prices $0.25-0.3 (Tk 30-36) per kilogramme higher following the proposed restriction.

“It is not right to harm the export-oriented garment industry to salvage the spinning sector,” he said, arguing that targeted incentives of four to five percent could have been offered to primary textile producers instead.

The push for restricting imports follows sustained lobbying by the Bangladesh Textile Mills Association (BTMA), which has warned that some mills in the primary textile sector, which have investments of about $25 billion, are facing the risk of closure due to the import of cheap yarn from India.

In late December, BTMA urged the government to either suspend the bonded warehouse benefit or impose a 20 percent tariff on imports of the popular yarn counts.

According to BTMA sources, Bangladesh uses 400 crore kilogrammes of yarn in a year, with some 46 percent coming from India.

According to BTMA, Indian traders have been selling 30-count yarn in Bangladesh at $2.50 to $2.60 per kilogramme, even though the same yarn sells for $2.90 to $2.93 per kilogramme in India.

The association said such pricing reflects heavy incentives and has left local spinners struggling, with unsold yarn stocks reportedly reaching Tk 12,000 crore by the end of December.

The commerce ministry echoed these concerns in its letter to the NBR, noting that yarn imports surged sharply in recent years.

Import volumes rose by more than 68 percent in fiscal year 2023-24 (FY24) compared to the previous year, while values increased by over 46 percent. In FY25, volumes grew by another 18.4 percent and values by 26.3 percent.

The ministry said at least 50 spinning mills have already shut down and warned of further losses if the current import trend continues.

It also cautioned that growing dependence on imported yarn could reduce the garment sector’s competitiveness due to lengthened lead times, reduce local value addition, and put pressure on foreign currency reserves.

Exporters, however, argue that limiting access to competitively priced yarn could weaken Bangladesh’s position in global apparel markets, especially as buyers remain highly price-sensitive.

Showkat Aziz Russell, president of BTMA, said the issue must also be seen in the context of Bangladesh’s graduation from least developed country (LDC) status.

He said exporters would need to comply with “two-stage transformation” rules – using locally spun yarn instead of imported cotton – to qualify for preferential market access in destinations such as the European Union (EU), the United Kingdom and Japan after graduation.

He also noted that securing GSP Plus benefits from the EU would require at least 40 percent local value addition, compared to current levels of around 35 percent in spinning, knitting at 20 percent and weaving at 25 percent.

The local spinners mainly produce the 30-count yarn to serve the garment exporters.

While local mills can supply about 90 percent of yarn demand for knitwear and 45 percent for woven garments, the rest still depends on imports from countries including India, China and Pakistan.

Spinners said in fiscal year 2025-26, $2.0 billion worth of yarn was imported from India, with local mills using 1,600 tonnes daily.

Bangladesh is the largest destination for Indian yarn exports, receiving 44 percent of the total, while Cambodia ranks second at 21 percent.

Earlier, in April last year, Bangladesh banned yarn imports from India through land ports, though sea-route imports remained unaffected. Millers have said they do not seek a complete ban, but rather measures to curb what they describe as dumping.

Contacted, Mohammad Naziur Rahman Miah, first secretary of customs (export and bond), said the NBR had received the commerce ministry’s letter. “The issue is under consideration. No decision has been made yet.”

The general manager, the third-highest post at the Sammilito Bank PLC, can be appointed through open competition, transfer of GMs from state banks, or specially selecting officials from the five banks being merged to form the new bank, the government has decided.

Meanwhile, appointments to the managing director (MD) and deputy managing director (DMD) posts will be done through an open competitive process, according to a policy issued by the Financial Institutions Division (FID) yesterday.

The policy states that until the service regulations for the Sammilito Bank are formulated, appointments to these three positions will be made under this policy.

However, the process of appointing the MD had already begun through a newspaper advertisement before the new policy was issued.

According to sources familiar with the matter, 10 candidates have been shortlisted based on the prescribed qualifications.

From these 10, a subcommittee led by the Bangladesh Bank (BB) Governor Ahsan H Mansur will finalise one candidate for appointment.

For the positions of MD and DMD, recruitment will be conducted through open competition based on required educational qualifications and other experiences.

For the GM position, in addition to open competition, two separate arrangements will apply. One arrangement is that existing GMs working in state-owned, specialised, and financial institutions may be transferred to the newly formed bank with the approval of the finance adviser/minister.

The other arrangement is that qualified and suitable officials of equivalent rank from the merging banks - First Security Islami Bank, Exim Bank, Global Islami Bank, Union Bank, and Social Islami Bank. They may be appointed to the GM positions of the new bank.

The age limits for eligibility are 65 years for MD, 62 years for DMD, and 60 years for GM. The tenure of these positions will be three years on a contractual basis, with the possibility of renewal if necessary.

An eight-member selection committee led by the finance adviser/minister will decide on the appointment of the MD and DMD.

The members will include the principal secretary to the prime minister or chief adviser, the BB governor, the finance secretary, the FID secretary, the public administration secretary, and the chairman of the Shariah Advisory Board of the BB.

Meanwhile, the FID has issued a separate revised policy for appointment and promotion to these three positions in state-owned banks and financial institutions. The new policy reduced the minimum tenure in the previous post for promotion to two years, from three years.

A ministry official said the criteria have been revised so that those who gained opportunities during the previous government cannot take advantage of promotion merely on the basis of seniority.

Another major revision is the change in seniority score, which has been increased to 15 from five.

Defaulted loans at the country’s non-bank financial institutions (NBFIs) have surged to a record 37 percent, highlighting the sector’s fragile condition.

As of September last year, 35 NBFIs held Tk 29,408.66 crore in bad loans, equivalent to 37.11 percent of their total disbursed loans of Tk 79,251.11 crore, according to Bangladesh Bank (BB) data.

A year earlier, in September 2024, the sector’s non-performing loan ratio stood at 35.52 percent.

Industry insiders attribute the rise in bad loans to “the legacy of the massive irregularities and scams that took place seven to eight years ago”.

Referring to a Bangladesh Bank probe, they said that PK Halder, the former managing director of NRB Global Bank (later renamed Global Islami Bank), defrauded at least Tk 3,500 crore from four NBFIs.

The affected institutions are People’s Leasing, International Leasing, FAS Finance, and Bangladesh Industrial Finance Company Limited (BIFC). As a result, these four non-banks became ailing, with over 90 percent of their loans turning bad.

Industry insiders said the central bank’s inadequate supervision is to blame for the current state of the NBFI sector. Many non-banks are now unable to repay depositors because of widespread irregularities and scams.

Amid this situation, the central bank is planning to liquidate nine ailing companies.

These are FAS Finance, Bangladesh Industrial Finance Company, Premier Leasing, Fareast Finance, GSP Finance, Prime Finance, Aviva Finance, People’s Leasing, and International Leasing.

The government has pledged Tk 5,000 crore to repay depositors of these NBFIs.

A senior central bank official said administrators are expected to be appointed to these NBFIs soon.

Industry sources said some banks and NBFIs have fallen victim to an “unholy nexus,” which they described as a serious threat to the integrity of the overall financial system.

Additionally, several other NBFIs have been infiltrated by unscrupulous investors who exploited their positions as chairpersons and directors for personal gain, they added.

The Bangladesh Bank (BB) will not change its decision about paying no profits on deposits for 2024 and 2025 at five shariah-based banks now undergoing a merger, even as depositors staged protests at a number of branches.

The central bank confirmed this yesterday as the move aligns with shariah principles, under which no profit is distributed when banks incur losses, said BB officials.

Last week, BB instructed five merging lenders to recalculate their deposit balances and refrain from providing any profit for 2024 and 2025.

The banks -- First Security Islami, Social Islami, Union, Global Islami, and EXIM -- are being merged to form a new state-run institution, Sammilito Islami Bank PLC.

After the decision, depositors of the five banks expressed anger, disrupting normal operations at some branches of the commercial lenders.

The banks reported the unrest to BB and requested a reconsideration. Meanwhile, officials from the bank resolution department of BB met with the governor yesterday.

According to an official from the department who wished to remain anonymous, the governor said the decision would not be reversed as it conforms with shariah law.

He added that backing away could jeopardise the merger initiative.

Arief Hossain Khan, executive director and spokesperson for the BB, said the central bank remains firm on its stance.

On January 14, the banking regulator sent letters to the five troubled banks, stating that deposit balances would be recalculated based on positions as of December 28, 2025 and that no profit would be applied to deposits from January 1, 2024, to December 28, 2025.

Previously, it was decided that profits on deposits would be paid at the bank rate, which currently stands at 4 percent.

A day after the directive, BB Governor Ahsan H Mansur, at a press briefing, said that the move follows shariah principles.

“However, depositors will receive their full principal amount,” he said.

BB officials estimated that if implemented, the decision would reduce the banks’ liabilities by Tk 10,000 crore.

At the end of September last year, total deposits of these banks stood at Tk 141,000 crore, while the number of depositors was 75 lakh.

Officials of the merging banks said many depositors have been visiting branches and issuing threats. Some have remained at branches all day, causing operations to grind to a halt, according to letters sent to authorities.

Branch managers reported that customers have taken an “aggressive stance” and, in some locations, “transactions have been suspended”.

A senior official of Social Islami Bank told The Daily Star that if the decision is implemented, it will be “very difficult to handle customers”.

The Bangladesh Securities and Exchange Commission (BSEC) has carried out major legal reforms in the stock market, said its chairman, Khondoker Rashed Maqsood.

The capital market saw significant changes in 2025 with the completion of the Margin Rules, the Mutual Fund Rules, and the Public Offer of Equity Securities Rules, he said at a stakeholders’ meeting organised by the commission yesterday at its office in the capital.

“The heart of the capital market is the initial public offering (IPO), and the pathway for new IPOs to enter the market has been made easier through the public offer-related rules,” the BSEC chairman said.

“Now is the time to make proper use of this opportunity, and market stakeholders must work towards this,” he added.

Maqsood highlighted the commission’s initiatives and activities aimed at reforming and developing the capital market.

The pathway for new IPOs to enter the market has been made easier through the public offer-related rules
“We must work to resolve the identified obstacles or problems and move forward,” said Anisuzzaman Chowdhury, special assistant to the chief adviser and chief guest of the event.

He emphasised the need for unanimous decisions based on cooperation and collective opinions, and the importance of ensuring their implementation.

He also directed that the existing identified obstacles be resolved swiftly and called upon market stakeholders to work towards capital market development by setting clear targets under a long-term plan.

Experts at the meeting emphasised adopting a five-year plan for capital market development, introducing new products, listing state-owned enterprises and multinational companies in the capital market, developing the mutual fund sector, and ensuring institutional governance.

Mominul Islam, chairman of the DSE; Saiful Islam, president of the DSE Brokers’ Association of Bangladesh; Nuzhat Anwar, managing director of the DSE; and Niranjan Chandra Debnath, managing director of the ICB, were also present at the meeting.

Meanwhile, the DSEX, the benchmark index of the DSE, jumped 76 points, or 1.53 percent, to 5,035 points yesterday. With that, the index crossed 5,000 points after one and a half months.

China's economy expanded five percent in 2025, Beijing said Monday, one of its slowest rates of growth in decades as it struggles with persistently low consumer spending and a debt crisis in its property sector.

Leaders set a growth target of "around five percent" for last year, following a five percent rise in 2024.

The economy grew at 4.5 percent between October and December last year, in line with expectations but marking a significant slowdown towards the end of the year.

While China's GDP grew enough for officials to declare victory, analysts warn that growth has been uneven and figures mask weak sentiment on the ground.

Chinese consumers remain jittery about the wider economy and high unemployment, even though officials have relaxed fiscal policy and subsidised the replacement of household items in a sputtering bid to boost spending.

Retail sales, a key indicator of consumption, rose 0.9 percent year-on-year in December -- the weakest pace since the end of 2022, when stringent zero-Covid measures ended.

Last month's sales were worse than the 1.3 percent year-on-year growth recorded in November, extending a months-long slowdown.

China's crucial property sector was once a major indicator of the country's economic strength.

But in recent years it has failed to overcome a flagging debt crisis despite rate cuts and loosened restrictions on homebuying.

Fixed-asset investments in China shrunk 3.8 percent year-on-year in 2025, an inevitable rebalancing following a property and infrastructure boom in recent decades.

Real estate investment was down 17.2 percent last year.

House prices have risen slightly in some large cities but the broader market remains sluggish.

Last year also saw the return of Donald Trump to the White House and the revival of a fierce trade war between the world's two largest economies.

Chinese President Xi Jinping and Trump reached a tentative truce to their fierce trade war when they met in late October, agreeing a pause to painful measures that included lofty tit-for-tat tariffs.

Official data showed Chinese exports to the United States plunged by 20 percent in 2025, but that had little impact on demand for Chinese products elsewhere.

Robust exports remained a bright spot in the cloudy economic picture despite that bruising trade war.

China's trade surplus hit a record $1.2 trillion last year, with officials lauding a "new historical high" filled by other trade partners.

Shipments to the ASEAN group of Southeast Asian nations rose 13.4 percent year-on-year, while exports to Africa saw 25.8 percent growth.

Exports to the European Union were also up 8.4 percent, though imports from the bloc dipped.

British Prime Minister Keir Starmer spoke to US President Donald Trump on Sunday after talking to the leaders of Denmark, the EU and NATO, to say he believed "applying tariffs on allies for pursuing the collective security of NATO allies is wrong".

A Downing Street spokesperson said Starmer held phone calls with Danish Prime Minister Mette Frederiksen, European Commission President Ursula von der Leyen and NATO Secretary General Mark Rutte. He then spoke to Trump.

"In all his calls, the prime minister reiterated his position on Greenland. He said that security in the High North is a priority for all NATO allies in order to protect Euro-Atlantic interests," the spokesperson said.

The Bangladesh Securities and Exchange Commission (BSEC) has imposed fines on two credit rating companies – ARGUS Credit Rating Services Ltd and National Credit Ratings Limited – for violating regulatory provisions governing the credit rating process.

According to sources at the securities regulator, the commission fined Tk5 lakh each on the two firms. The penalties were disclosed in the BSEC's monthly enforcement report for December.

In the case of ARGUS Credit Rating Services Ltd, the action followed a complaint lodged by National Credit Ratings Limited.

National Credit Ratings informed the regulator that it had entered into a credit rating agreement with Padakhep Manabik Unnayan Kendra (PMUK) on 11 April 2019. Under the Credit Rating Companies Rules, 1996, and the terms of the agreement, National Credit Ratings was responsible for conducting surveillance ratings for at least three years following the initial rating.

However, the complaint stated that PMUK, without obtaining prior approval from the BSEC, subsequently entered into a separate agreement with ARGUS Credit Rating Services and obtained a credit rating from the firm.

A BSEC enquiry found the allegation to be valid and concluded that ARGUS had breached the applicable rules. As a result, the commission decided to impose a fine of Tk5 lakh on ARGUS Credit Rating Services Ltd.

Separately, the regulator also took enforcement action against National Credit Ratings Limited following a complaint from Credit Rating Information and Services Limited (CRISL).

According to the complaint, CRISL had signed an agreement with Rupali Insurance Company to conduct a credit rating. Despite the existing agreement, the insurer reportedly obtained a rating on the same issue from National Credit Ratings.

The BSEC investigation found that National Credit Ratings had violated the credit rating rules by issuing a rating and therefore imposed a fine of Tk5 lakh on National Credit Ratings Limited.

Fortune Shoes Limited slipped into losses in the first quarter of FY26, reflecting mounting cost pressures and ongoing governance concerns, according to its latest financial disclosure filed with the Dhaka Stock Exchange (DSE) on Sunday.

The footwear maker reported a loss per share of Tk0.31 for the July–September 2025 quarter, reversing from a profit of Tk0.11 per share in the same period a year earlier.

Following the disclosure, the company's share price fell 1.47% to close at Tk13.40 on the DSE.

The latest quarterly loss follows a difficult FY25, during which the company's profitability weakened amid rising manufacturing expenses and higher finance costs driven by elevated interest rates.

Earlier disclosures showed that earnings for the year ended 30 June 2025 declined as material costs surged, customer claims increased, and losses were incurred on several export orders. Reduced contributions from other income sources also weighed on overall profitability.

Despite the earnings pressure, Fortune Shoes recommended a 0.50% cash dividend for FY25, applicable only to general shareholders, excluding sponsors and directors.

Meanwhile, the company's auditors have raised serious concerns over financial management and regulatory compliance. G Kibria & Co, Chartered Accountants, reported major documentation gaps involving approximately Tk76 crore withdrawn in cash during the 2024–25 financial year.

According to the audit report, the funds were withdrawn from a regular account with Islami Bank through 207 cheques, but the company failed to provide essential supporting records, including cash and bank books, cheque counterfoils, vouchers, invoices, or delivery challans.

The auditors also highlighted irregularities in dividend distribution, noting that although dividends for the 2022, 2023 and 2024 financial years were approved, the full amounts were not transferred to designated dividend accounts. As of 30 June 2025, unpaid dividends stood at Tk10.05 crore a violation of applicable laws and regulations.

In a significant policy shift aimed at safeguarding the domestic spinning industry, the government is moving to scrap a decades-old duty-free import facility for yarn, a move that could see import taxes on the raw material surge to approximately 37%.

The commerce ministry formally requested the National Board of Revenue (NBR) on 12 January to suspend tariff-free imports under the bonded warehouse facility – an incentive in place since the 1980s – indefinitely. While the NBR is yet to implement the directive as of 18 January, the proposal has already created a sharp divide between local textile millers and export-oriented garment manufacturers.

A lifeline for local spinners

Local textile mill owners, who have invested an estimated $23 billion in the sector, argue that the move is essential for survival. According to the Bangladesh Textile Mills Association (BTMA), nearly 100 mills have already partially or fully closed due to a lack of demand.

"This decision provides a chance for our industry to survive," said Saleudh Zaman Khan Jitu, managing director of NZ Apparels Limited. He noted that Indian exporters have been selling yarn in Bangladesh at $0.30 per kilogram cheaper than their own domestic rates, thanks to various Indian government subsidies.

Fazlul Hoque, managing director of Israq Spinning Mills Limited, highlighted the severity of the crisis: "We currently have a stockpile of 3,000 tonnes of yarn, whereas our normal inventory is around 700 tonnes. Restricting imports will finally allow us to clear this stock."

Bangladesh earns about 85% of its export revenue from the readymade garment sector, with knitwear accounting for roughly 54% of total garment exports. Knitwear production relies heavily on 10-30 count yarn – the very category for which import restrictions have been sought.

According to Export Promotion Bureau data, Bangladesh imported yarn worth Tk26,700 crore (around $2.22 billion) in the 2024-25 fiscal year. Industry insiders say nearly 90% of imported yarn comes from India, where exporters allegedly benefit from government subsidies that allow them to sell yarn in Bangladesh at prices about $0.30 per kg lower than in their own domestic market.

The BTMA says the surge in duty-free imports has severely hurt local producers. Speaking at a recent press conference, BTMA President Showkat Aziz Russell said nearly 100 textile mills had already shut down partially or fully due to declining orders.

In its letter to the NBR, the commerce ministry argued that bonded imports of yarn had increased sharply over the past two years, drastically reducing sales of locally produced yarn and causing heavy financial losses. The letter warned that if the trend continues, more spinning mills will face closure, increasing import dependence, lengthening lead times, reducing local value addition and putting pressure on foreign exchange reserves.

RMG leaders raise concerns

However, the apparel sector – the backbone of Bangladesh's exports – has reacted with alarm. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) warn that the move could be "suicidal."

Fazlee Shamim Ehsan, executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), alleged that some local yarn producers had already begun exerting pressure by delaying proforma invoices.

Industry leaders estimate that if duty-free imports are halted, the price of yarn could rise by approximately 10%, jumping from the current $2.55-$2.60 per kilogram to as much as $2.85.

"Our export competitiveness is at stake," said Md Shehabudduza Chowdhury, vice president of BGMEA. "Global demand for clothing has dropped by 15%, and exports have been declining for five months. We cannot pass these increased production costs on to international buyers."

The BGMEA and the BKMEA yesterday called a press conference for today to highlight their position.

Yarn price may rise by 10%

Currently, locally produced yarn sells for $2.70–2.75 per kg, compared with $2.55–2.60 for imported Indian yarn. Industry estimates suggest prices could rise by about 10% to $2.80–2.85 per kg if import restrictions are enforced.

After several months of relative stability, the prices of daily essentials are again edging upwards, with traders pointing to delays in cargo clearance at Chattogram port and consumer groups blaming a lack of effective market oversight.

Wholesale prices of key Ramadan items such as edible oil, sugar, chickpeas and lentils have increased by Tk3 to Tk5 per kilogram in just a week, raising concerns that retail prices could soon rise.

Market trends in Khatunganj

The impact is already visible in Chattogram's largest wholesale hub, Khatunganj. Over the past week, wholesale prices of almost all essential goods have risen. Locally produced onions are now selling at Tk35-40 per kg, up from Tk34-38 a week earlier, while Indian onions have increased by Tk3 to Tk60-65. Garlic prices have climbed by Tk3 to Tk130 per kg, and ginger, which sold at Tk100-105 two weeks ago, is now priced at Tk110-115. Chickpeas have risen by Tk5 to Tk70-75, depending on quality, while anchor lentils are selling at Tk45-48 per kg after a Tk2 increase.

At the wholesale level, sugar prices have jumped by Tk100 per maund (40kg) to Tk3,500, while palm oil is trading at Tk5,990 per maund. Prices of vermicelli, a Ramadan staple, have also increased to Tk1,950-2,000 per maund from Tk1,800-1,900 earlier.

Lighterage vessel shortage

Behind the price pressures lies a more serious logistical bottleneck at Chattogram Port. The main congestion points are the outer anchorage and the Kutubdia channel, where more than 100 cargo vessels remain stranded.

According to port data, as of 17 January, these ships were carrying over 4.5 million tonnes of goods, including around 1.2 million tonnes of Ramadan-related food items such as wheat, maize, soybeans, chickpeas, lentils and edible oil. More than 2,00,000 tonnes of sugar are also stuck on five vessels, while fertiliser and cement clinker shipments are similarly delayed.

Under normal conditions, a 50,000-tonne mother vessel can discharge cargo within seven to ten days using lighterage vessels to transport goods to river ports and terminals. Currently, however, acute shortages of lighterage vessels have stretched waiting times to 20-30 days.

The WTCC said demand for lighterage vessels far exceeded supply. On 13 January alone, 104 lighterage vessels were required to service 90 mother ships, but only about 50 could be allocated.

Calls for intervention

Expressing strong dissatisfaction with the current situation, SM Nazer Hossain, divisional president of the Consumers Association of Bangladesh (CAB) in Chattogram, told TBS that the lack of effective monitoring is allowing unscrupulous traders to exploit the market.

He noted that consumer groups had been urging authorities for stricter oversight for the past two to three months, but enforcement remained weak as officials were preoccupied with election-related and protocol duties.

"Ramadan is a month of worship for people, but for dishonest traders it becomes a season of profiteering," Nazer said, warning that artificial shortages could be created if monitoring is not strengthened immediately.

The CAB leader cautioned that the situation could mirror the liquefied petroleum gas market, where supply shortages are cited despite availability at higher prices. He stressed that waiting until Ramadan to intensify enforcement would be too late, as markets typically spiral out of control by then.

However, traders offered a different perspective. Md Mohiuddin, general secretary of the Chaktai-Khatunganj Aratdar General Traders Welfare Association, said supplies are adequate and trading is normal. He argued that prices remain lower than last year and have only risen slightly after an earlier period of unusually low rates.

The Directorate of National Consumer Rights Protection in Chattogram dismissed the justification for price hikes. Assistant Director Md Anisur Rahman said stocks currently exceed demand and import costs are lower than before. "There is no logical reason for prices to rise at this moment," he said, adding that action will be taken against any trader found increasing prices unreasonably.

Anisur also claimed that regular market monitoring is under way and will be intensified in the coming days.

Bangladesh Securities and Exchange Commission (BSEC) Chairman Khondoker Rashed Maqsood on Sunday said recent regulatory reforms have significantly eased the entry of new companies into the capital market, particularly through initial public offerings (IPOs), marking a major step forward in market development.

He made the remarks while speaking at the fifth monthly coordination meeting with capital market stakeholders held at BSEC in Agargaon.

The chairman outlined the commission's key reform initiatives aimed at strengthening market structure and restoring investor confidence.

He said the commission completed three major regulatory reforms in 2025 the margin rules, mutual fund rules and the public offer of equity securities rules, which together constitute a substantial part of the long-awaited legal overhaul of the capital market.

Describing IPOs as the "heart of the capital market," Rashed Maqsood said the new IPO rules have removed long-standing bottlenecks and created a more efficient and transparent pathway for new listings.

The meeting was attended by Anisuzzaman Chowdhury, special assistant to the chief adviser and chairman of the committee formed to strengthen the capital market, along with BSEC commissioners and other senior market officials.

Anisuzzaman said addressing identified structural barriers must be a collective effort, stressing the need for coordinated action to resolve long-standing challenges.

He welcomed the stakeholder consultation mechanism, noting that such forums are essential for identifying problems and crafting practical solutions.

Anisuzzaman also called for swift resolution of immediate obstacles and urged stakeholders to work towards long-term goals under a clearly defined development roadmap.

The meeting discussed a wide range of reform and development initiatives, including a five-year capital market development plan, introduction of new financial products, roadshows, e-KYC-based investor onboarding and online BO account opening, establishment of a commodity exchange, increased API connectivity among market institutions, listing of state-owned and multinational companies, mergers and acquisitions, development of the mutual fund sector, institutional governance reforms, registration and operationalisation of CCBL, expansion of merchant banking activities, and nationwide investment education programmes.

Among others present were Dhaka Stock Exchange (DSE) Chairman Mominul Islam, CCBL Chairman Major General (retd) Wahid-uz-Zaman, DSE Brokers Association (DBA) President Saiful Islam, Investment Corporation of Bangladesh (ICB) Managing Director Niranjan Chandra Debnath, DSE Managing Director Nuzhat Anwar, Central Depository Bangladesh Limited (CDBL) Managing Director Abdul Motaleb Chowdhury, Bangladesh Merchant Bankers Association (BMBA) President Iftekhar Alam, and DSE Director Minhaj Mannan Emon.

Tawfika Foods and Lovello Ice Cream, a listed company on the stock exchanges, reported that its net profit grew to Tk20.93 crore in the first half of the current fiscal year, marking a 62% year-on-year growth.

The company's net profit in the October-December quarter surged 119% to Tk11.41 crore.

Following the quarterly earnings despite growth in its profitability, its shares price fell by 1.54% to Tk70.10 each at the Dhaka Stock Exchange (DSE).

Its diluted earnings per share (EPS) in the first half stood at Tk2.13, and in the Q2 at Tk1.16, which was Tk1.38, and Tk0.56 respectively in the same time of the previous fiscal year.

Regarding the significant variation in EPS, Lovello said its net profit increased 62% compared as the sales increased 29%.

The diluted net operating cash flow per share significantly jumped to Tk4.48, up from Tk1.78 in the same time of the previous fiscal year meaning that its cash inflow increased significantly.

While its net asset value increased by around Tk10 crore to Tk122.91 crore at the end of December, which was Tk112.27 crore at the end of June 2025, its quarterly report showed.

Lovello has paid a 16% dividend combining of 11% cash dividend and a 5% stock dividend for the fiscal year ending 30 June 2025 as part of its continued efforts to reward shareholders despite a modest drop in annual earnings.

At the end of FY25, the company reported earnings per share (EPS) of Tk1.65, in comparison, the restated EPS for FY24 were Tk1.79.

In the same meeting, the board proposed to increase the company's authorised capital from Tk100 crore to Tk200 crore, subject to approval from shareholders and regulators at the upcoming AGM.

In a recent disclosure, Taufika Engineering placement holders declared to have sold 5 lakh shares to Taufika Foods.

Md Ekramul Haque, a sponsor-director of Taufika Foods expressed his intention to transfer 25 lakh shares of the company to his brother Md Zahedul Haque, a general shareholder of the company by way of gift outside the trading system of the stock exchanges within 30 working days.

Bangladesh's garment and other accessories industry is emerging as a formidable export powerhouse, with direct exports doubling over the last three years and stakeholders projecting a rise to $5 billion within the next three years if policy barriers are removed.

According to the Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA), the sector contributed $7.45 billion to national exports in the 2024-25 fiscal year. While the majority of this consists of "deemed exports" (supplies to the local RMG sector), direct exports reached $1.6 billion.

From import reliance to global ambition

Two decades ago, the Bangladeshi garment industry was almost entirely dependent on imported accessories. Today, through investments totalling approximately Tk40,000 crore, the sector has achieved nearly 100% supply capacity for the local export-oriented industries, employing over 7,00,000 people across 2,000 functional units.

"With the removal of a few policy hurdles, we can achieve $5 billion in direct exports not only for garments but also for pharmaceuticals, agriculture, footwear and other industries within three years," Md Shahriar, president of BGAPMEA, told TBS.

The global fashion accessories market, valued at $720 billion in 2023, is expected to hit $1,502 billion by 2033. Industry insiders believe Bangladesh is perfectly positioned to capture this growth as manufacturing hubs shift away from China.

As China moves toward high-tech manufacturing and away from basic items, foreign investors are flocking to Bangladesh. In the last two years alone, at least eight Chinese firms, including Baida Industrial, YiXin Bangladesh, and Tianhui Button, have proposed or initiated investments in Export Processing Zones (EPZs).

Over the past three years, nearly 300 new accessories companies have entered the Bangladeshi market, BGAPMEA estimates.

Local firms are also expanding rapidly. RSS Thread and Accessories Limited has doubled its production in three years, now manufacturing 35 types of accessories. The firm has been nominated by the Spanish retail giant Inditex Group to supply its 200+ Bangladeshi garment manufacturers.

Technological evolution

The sector is undergoing a digital transformation to meet international compliance standards. Over 100 factories are now prepared to invest in Radio Frequency Identification (RFID) technology for automated tracking and inventory management.

Innovative products such as "Digital Product Passports" (DPP) are already being manufactured locally. RSS Thread and Accessories produces specialised chips for labels that store comprehensive supply-chain data, a requirement for new European Union initiatives.

"Through these chips, buyers can verify where a product was made and what materials were used," said Sheikh Zulfikar Ali, group director of RSS Thread. "We have also introduced data-metrics systems and invisible coding to prevent counterfeiting, ensuring brand authenticity."

Policy challenges

Despite its progress, entrepreneurs say the sector faces significant policy challenges, including discriminatory export incentives and high import taxes on raw materials. Md Shahriar said the accessories sector has never received cash incentives, unlike other export industries.

He also pointed out that importing paper below 300 GSM attracts import taxes ranging from 58% to 83%, making it difficult to produce competitively priced products. In addition, exporters face various customs-related hurdles.

Former BGAPMEA president Rafez Alam Chowdhury said the sector continues to suffer from policy discrimination, warning that without targeted support, Bangladesh may fail to fully capitalise on the growing global demand for packaging and accessories products.

Abdul Kader Khan, managing director of Khan Accessories and a former BGAPMEA president, noted that political uncertainty over the past year has dampened investment inflows. He expressed optimism that investment would accelerate once stability returns following the formation of a new government.

New-generation Meghna Bank aims to rank among the country's top 15 lenders by expanding its footprint in the SME sector, Managing Director Syed Mizanur Rahman has said.

In a recent interview with The Business Standard's ASM Saad, he added that the bank plans to invest heavily in digital banking to reach customers in remote areas.

At a time when the banking sector is facing a severe crisis with default loans at 36%, Meghna Bank has kept its non-performing loans in single digits, which he believes will help build depositor confidence.

What kind of banking does Meghna Bank focus on?

Meghna Bank is focusing on small lending, particularly in the SME segment. The aim is to channel funds to areas where there is strong demand for small loans, so that small businesses can access financing more easily. There is currently significant demand for this type of small-scale financing, and the bank is working to understand the specific credit needs at the grassroots level.

Meghna Bank believes this approach will play a leading role in bringing positive change to the rural economy. At present, around 80% of the bank's portfolio is in corporate banking, but it is gradually expanding its exposure to retail, SME and digital banking in line with market demand.

Why is Meghna Bank focusing on retail banking?

Most banks in the country are heavily focused on corporate lending. There is a belief that larger loans generate higher profits. However, large lending also creates significant concentration risk. Non-performing loans have risen sharply, making corporate banking particularly vulnerable. By concentrating too heavily on corporate lending, many banks have significantly increased their risk exposure. If banks had maintained a more balanced focus on SME, retail and corporate banking from the outset, the sector's current challenges might have been less severe.

For this reason, Meghna Bank believes diversification is essential for long-term sustainability. Rather than being confined to a single segment, banks need a more diversified business model. Taking customer demand into account, Meghna Bank is therefore placing greater emphasis on retail banking and aims to deepen diversification in this segment after carefully assessing risk and business dynamics.

Why can depositors have confidence in Meghna Bank?

The country's top banks have a long history. Many first-generation banks are over 40 years old. Meghna Bank, by contrast, is about to celebrate 13 years of operations this year. When large and established companies choose a bank for deposits, they consider its overall financial health, as deposits are the lifeblood of a bank.

Meghna Bank's financial position is strong, with non-performing loans below 6%, giving it a solid foundation. As a result, several corporate clients are placing deposits with Meghna after assessing its financial strength. We expect individual customers will also be encouraged by the bank's robust position, as key indicators such as the ADR ratio, capital adequacy, and non-performing loans compare favourably within the sector.

What are the future plans for digital banking?

Since the future of banking is increasingly digital-focused, Meghna Bank is ramping up investments in this area. The plan is to integrate four platforms – web-based banking, corporate banking, retail banking, and mobile financial services (Meghna Pay) – into a single seamless system. This will allow customers to conduct transactions digitally without visiting a branch.

Once fully developed, digital banking will even enable customers to access loans remotely, a facility already available in many countries. We believe that Meghna can enter the list of the country's top 15 banks in the future, not merely in terms of profit but from a balance sheet strength perspective.

What challenges are fourth-generation banks facing?

Banks should not rely on political considerations; they must focus on their operations. Meghna Bank is actively building relationships with foreign correspondents and working to secure specific credit lines, which can be accessed once targets are achieved.

Political instability, however, can reduce the availability of credit lines. A fair and credible election is therefore essential, as it would show internationally that the country's situation is improving. After such an election, the overall environment is expected to stabilise, resolving issues related to credit line access.

Why is private sector investment low?

Currently, banks are struggling to find reliable, creditworthy borrowers. Political uncertainty has made entrepreneurs reluctant to invest in new businesses. As a result, private-sector lending demand is weak. This lack of new investment has contributed to rising unemployment. It is expected that after a credible election, private investment will pick up, which in turn will increase demand for loans.

At present, a significant portion of many banks' profits comes from treasury bills and bonds, reflecting the low appetite for private sector lending. Once investment activity resumes after the elections, demand for credit is likely to rise, enabling banks to expand lending again.

What impact does rescheduling loans have on the market in terms of reducing non-performing loans?

Many of the country's large borrowers have taken loans from banks but failed to repay them, with some diverting funds abroad instead of using them for the intended business purpose. For such companies, granting a two-year grace period or a ten-year rescheduling makes little difference.

However, there are businesses that genuinely face losses due to currency fluctuations and other economic factors. These enterprises truly need support, and targeted rescheduling can help them recover.