The Bangladesh Bank (BB) has allowed scheduled banks to launch fully digital “e-loan” services of up to Tk 50,000, stepping up efforts to widen financial inclusion and support the transformation towards digital transactions.

In a circular issued yesterday, the central bank said customers will be able to take e-loans for up to 12 months through end-to-end digital processes. These will cover customer onboarding, loan approval, disbursement and recovery.

Banks have been instructed to include the term “e-loan” in the service name and ensure that all stages of lending are conducted digitally, without physical documents or branch visits.

The move comes at a time when digital lending services are rapidly expanding globally due to increasing smartphone penetration, internet usage and mobile financial service adoption.

In many countries, banks and fintech firms now offer instant small-ticket loans through banking apps, e-wallets and other digital platforms, expanding access to credit and reducing reliance on informal borrowing.

The BB said the increasing use of digital devices in banking, along with expanded internet and mobile network coverage, has raised demand for digital lending through internet banking, mobile apps, mobile financial services and e-wallets.

“The availability of such services can play a vital role in promoting financial inclusion, familiarising marginal populations with digital financial services, and achieving the vision of a cashless society,” the central bank said in the circular.

Banks will be allowed to set market-based interest rates for e-loans. However, the rate cannot exceed 9 percent if they avail themselves of refinancing facilities.

The central bank has instructed lenders to clearly communicate all loan-related information, including annual interest rates, tenure, repayment methods, the disbursement process and any additional charges, before obtaining customer consent.

Banks have also been asked to take necessary steps to improve customer-level financial literacy regarding digital loans.

To strengthen security, the BB said customer identity verification must be conducted through biometric authentication alongside OTP and two-factor authentication (2FA) or multi-factor authentication (MFA), where necessary.

However, agents or third parties engaged by banks will not be allowed to store customers’ biometric data.

The central bank directed commercial lenders to follow existing rules on interest calculation, fees, loan classification and provisioning, while prohibiting CIB inquiry charges for e-loans.

Banks must prevent defaulted borrowers from accessing such loans by verifying existing liabilities before disbursement.

The central bank also mandated a six-month pilot before commercial launch and stressed strict compliance with cybersecurity and data protection laws, requiring all customer and loan-related data to be stored within Bangladesh.

Bangladesh already has experience in digital nano-lending through partnerships between banks and mobile financial service providers. In 2021, bKash and City Bank jointly launched an instant nano-loan service that offers small loans to selected users through the bKash app.

Several other banks have introduced digital lending products.

Dhaka Bank launched “e-Rin”, an end-to-end digital nano-loan service through its mobile app. Prime Bank introduced “PrimeAgrim” through its app, while BRAC Bank has also rolled out digital lending services.

As President Donald Trump prepares to meet with Chinese President Xi Jinping this week, the US auto industry and lawmakers on both sides of the aisle are hammering him with ​a simple message: Please don’t offer China any access to the US car market.

Trump in January told the Detroit Economic Club that it would be “great” if Chinese automakers wanted to build ‌plants in the US and employ Americans, adding: “I love that. Let China come in, let Japan come in.”

His comments rang alarm bells in an industry that had systematically lobbied successive administrations to bar Chinese cars from the US market with tough data security rules and high tariffs on electric vehicles.

So automakers, suppliers, steelmakers, unions and politicians have redoubled their efforts, arguing that Chinese automakers, with limitless state support, massive scale, an EV technology edge and rock-bottom prices, would crush domestic and other foreign producers, hollowing out the core ​of the US manufacturing base.

Democratic Senator Elissa Slotkin of Michigan went to the same forum in Detroit on Thursday specifically to urge Trump not to make a deal with Xi to allow Chinese investment ​in the US auto sector that brings Chinese-brand cars into US dealerships.

“Please don’t make a bad deal,” said Slotkin, who also promoted her bipartisan bill with Republican Senator Bernie Moreno of Ohio that would explicitly bar Chinese vehicles over data collection concerns.

Their Connected Vehicle Security Act, which has a bipartisan companion bill in the House of Representatives, would codify a data rule effectively banning ​Chinese vehicles implemented by former President Joe Biden, making a reversal extremely difficult.

The House bill would go further, banning industry partnerships with Chinese companies. Congressional aides told Reuters that with broad support, the legislation could pass this year, possibly ​attached to a transportation spending bill.

“Every vehicle on American roads is a rolling data collection device, capturing information on location, movement, people, and infrastructure in real time, and we cannot allow Chinese vehicles or components to be a part of that system,” sponsoring representatives Debbie Dingell, a Democrat, and John Moolenaar, a Republican, said in a joint statement.

They are both from auto-heavy districts in Michigan. Some 74 House Democrats, and 52 House Republicans signed letters recently urging Trump not to allow Chinese automakers to enter the American market.

INDUSTRY ​BACKS CHINESE AUTO BAN

The US auto industry has shown unusual unity in supporting a ban.

Groups representing US and foreign-brand automakers, car dealers and parts manufacturers in March told the administration that China’s efforts to dominate global auto ​production and gain access to the US market “pose a direct threat to America’s global competitiveness, national security and automotive industrial base.”

Steel industry groups followed through with a similar letter on April 30, and the Information Technology and Innovation Foundation (ITIF), which has criticized Trump’s ‌past tariffs on Chinese imports, also applauded the legislation to ban Chinese vehicles.

“Chinese automakers are not normal market competitors. Their EVs are the product of decades of state-backed mercantilism designed to help China capture global leadership in advanced industries,” said ITIF vice president Stephen Ezell.

“Once China’s subsidized firms are embedded in the US market, the economic and national security damage would be far harder to reverse — and it would not be limited to Detroit,” Ezell added.

US Trade Representative Jamieson Greer said in Detroit in April that there were no plans to change the connected car rule, and that autos were not on the agenda at the Beijing summit. Commerce Secretary Howard Lutnick also has ruled out Chinese investments in ​the US autos sector.

But Scott Paul, president of the Alliance ​for American Manufacturing, a domestic industries group, said there is a strong concern that Trump, who often talks of attracting more auto assembly plants to the US, could act alone.

“He’s left wiggle room in dealing with the auto sector,” Paul said.

Any plant approved would take two-to-three years to launch production, leaving consequences to Trump’s successor.

The White House and the Chinese embassy in Washington did not ​respond to requests for comment on the matter.

LOW PRICES, MARKET SHARE GAINS

The industry wants to avoid a repeat of Chinese automakers’ steady market share gains in ​Europe and Mexico. A growing auto affordability crisis in the US, where Kelley Blue Book estimates the average vehicle list price now exceeds $51,000, makes existing producers especially vulnerable to cheaper Chinese models.

Last year, Chinese brands doubled their share of Europe’s car market to 6 percent, but took 14 percent of Norway’s market, 9 percent in Italy, 11 percent in Britain and 9 percent in Spain, and consumer interest in Chinese EVs is growing as the Iran war spikes gasoline prices.

Canada is beginning to import 49,000 Chinese EVs annually and 34 Chinese auto brands are now on ​sale in Mexico, accounting for about 15 percent of that market at prices far below anything available in the US.

Geely’s EX2 EV starts ​at about $22,700 in Mexico, more than twice its price in the cut-throat Chinese market, but far below the cheapest Tesla Model 3 US price of $38,630.

Even Toyota, which undercut Detroit automakers in the 1980s and 1990s, is having difficulty with Chinese pricing in the Mexican market, said Toyota Motor ​North America division manager David Christ.

“Obviously there’s some level of government support, or else they couldn’t transact at that price,” Christ said in an interview. “So it has a huge impact on business.”

The Bangladesh Telecommunication Regulatory Commission (BTRC) has decided to restart joint drives against the marketing, sale and distribution of illegal mobile handsets after more than three years of inactivity.

The decision was taken at a recent commission meeting following a proposal from its Enforcement and Inspection (E&I) Directorate.

Alongside mobile phones, the regulator will also take action against other illegal radio and telecom devices across the country.

The BTRC has long carried out joint operations with law enforcement agencies to curb illegal telecom equipment, including unauthorised mobile phones and wireless devices.

While enforcement against items such as signal jammers, boosters, repeaters and illegal VoIP equipment has continued, action against illegal handset traders has remained suspended since April 2023.

According to BTRC documents, the enforcement activities were paused due to the rollout of the National Equipment Identity Register (NEIR) system and preparations for the 13th national parliamentary election in 2026.

The NEIR system was introduced in 2021 to verify legal mobile devices by linking IMEI numbers with national ID and SIM data. However, key features like blocking illegal handsets were never activated, leaving the system largely inactive.

Although the platform has recently been relaunched, handset blocking is still awaiting a policy decision from the new government, a BTRC official said.

The commission has recently observed a sharp rise in the use, production, import, marketing and sale of illegal mobile handsets and wireless equipment in divisional cities, city corporations and district towns.

It noted that these activities are punishable under the Bangladesh Telecommunication Regulatory Act, 2001.

Industry insiders said weak enforcement over time, the depreciation of the taka, rising global handset component prices and repeated tax increases have all contributed to the growth of the illegal handset market in Bangladesh, particularly in the smartphone segment.

According to industry estimates and BTRC data, grey-market smartphones now account for 40 to 50 percent of the country’s handset market, which is valued at around 1.7 billion US dollars. The grey market is expected to exceed 0.7 billion US dollars in 2025.

Data from Samsung shows that grey-market imports rose from 24 percent in 2022 to 40 percent in 2024. In the same year, 93 percent of premium phones from one brand and around 69 percent of mid-range phones in Bangladesh entered the market through unofficial channels.

The commission said illegal handsets and wireless devices are causing several problems, including consumers being misled with low-quality products, loss of government revenue from illegal imports, disruption in telecom regulation and network management, and financial losses for legitimate handset manufacturers.

In response, the E&I Directorate proposed restarting joint drives with law enforcement agencies, including the Rapid Action Battalion, police and executive magistrates, to stop these activities nationwide.

The commission has decided that enforcement drives will resume at an appropriate time after further instructions.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Bangladesh Semiconductor Industry Association (BSIA) began a four-day roadshow in South Korea yesterday, bringing together industry, academia, and government representatives to strengthen bilateral semiconductor collaboration.

The roadshow, running May 11-14, forms part of the Silicon River vision, which seeks to advance Bangladesh’s semiconductor and deep-tech sector through global partnerships, reads a BSIA press statement.

During the roadshow, the Bangladeshi delegation will meet major players across Korea’s semiconductor ecosystem, including SK hynix, HANA Micron, KAIST’s Global Commercialization Center (GCC), ETRI, and McKinsey & Company.

The discussions will specifically focus on critical areas of development, including packaging, AI hardware, design, testing, and commercialisation.

A key highlight of the event is a Letter of Intent signing between BSIA, the Center of Research Excellence in Semiconductor Technology (CREST), and KAIST’s GCC, aimed at advancing joint research, talent development, and technology commercialisation, according to the press release.

“Our objective is to learn from Korea’s remarkable semiconductor journey while building meaningful long-term partnerships in research, talent development, commercialisation, and industrial collaboration,” said BSIA President MA Jabbar.

The central bank has purchased $45 million from a single bank at a rate of Tk122.75 per dollar to beef up foreign exchange reserves after paying the Asian Clearing Union (ACU) liabilities.

The foreign exchange reserves under the IMF’s BPM6 manual stood at $29.56 billion on Monday after buying new dollars, said Arief Hossain Khan, executive director and spokesperson for the Bangladesh Bank.

According to him, the gross amount is now $34.22 billion.

The Bangladesh Bank has purchased $125 million from the market this month and a total of $5.79 billion so far in the current fiscal year.

After clearing $1.51 billion in the ACU payment for March and April on May 7, the reserves decreased to $29.47 billion.

After buying the dollar at Tk 122.30 on Mar 2, Bangladesh Bank increased the price by 45 paisa on Apr 15.Stock Market Data

The ACU is a regional arrangement through which member countries settle payments for intra-regional transactions on a multilateral basis.

The member nations include Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, and Pakistan.

The clearing union settles its accounts every two months. Sri Lanka, once a member, withdrew from the union in October 2022 amidst its severe economic crisis.

Finance Minister Amir Khosru Mahmud Chowdhury has said the conditions being added by the International Monetary Fund (IMF) under the loan agreement are not “suitable” for the economy of Bangladesh.

He made the comments at a discussion titled “Roadmap to Building Bangladesh’s Economic Future in the Face of Global Uncertainty” organised by the Daily Bonik Barta in Dhaka on Monday.Economic Trend Reports

The finance minister said the government could not accept all IMF conditions out of “responsibility” to the people.

Khosru said, “Most of the development partners agree with the BNP’s election manifesto. They are my development partners. If they do not agree with me, I will not be able to move forward.

“There are disagreements in many places with the IMF, because the conditions that they are giving are not suitable for my economy.”

Explaining the government’s continued stance against the IMF’s conditions, he said: “We are an elected government with a responsibility to the people. We cannot do everything according to their words.

“That is why we have differences with some multilateral organisations, and these differences will continue.

“I will correct my course as much as it is consistent with my manifesto. It is not possible to do anything beyond this.”

Amid concerns about the release of the remaining amount of the loan agreement with the IMF, the minister claimed on Apr 18 that the IMF has a “positive” attitude to continue the loan programme.

Earlier, after a meeting with IMF Deputy Managing Director Nigel Clark in Washington DC, US, he told journalists: “The discussions [on the release of funds] are still ongoing.”Geographic Reference

About three weeks later, he indicated that Bangladesh had failed to meet the IMF’s conditions, even as the country sought an additional $2 billion beyond the existing loan package.

The additional funds were requested to tackle the fuel crisis amid the war in the West Asia.

However, the IMF reportedly imposed stricter conditions than those under the current agreement.

Bangladesh signed a $4.7 billion loan deal with the IMF in early 2023 after several rounds of negotiations during the Awami League government to address the financial crisis.

In June 2025, the interim government led by Muhammad Yunus increased the package by $800 million, raising the total to $5.5 billion.

So far, Bangladesh has received $3.64 billion in five instalments, leaving $1.86 billion outstanding. The sixth instalment and the remaining funds were due in December last year.

At the time, the IMF said the remaining amount would be released following discussions with an elected government.

Before disbursing the funds, the lender also sought progress on reform conditions, including improvements in revenue collection, where implementation has lagged.

The dollar was steady on Monday after US President Donald ​Trump rejected Iran’s response to a US peace proposal, sending oil prices higher and prompting renewed concerns that ‌the conflict in the Middle East will drag on.

The US dollar index , which measures the greenback’s strength against a basket of six currencies, was little changed at 97.995.

Oil prices, meanwhile, jumped, with Brent crude up 3.6 percent at $104.94 a barrel, after President Donald Trump on Sunday rejected Iran’s response to a US proposal for peace ​talks, raising worries that the 10-week-old conflict may drag on.

Yet, markets still seem to believe that the conflict will be resolved, ​said Kenneth Broux, head of corporate research for FX and rates at Societe Generale.

“I think the reason for that may be the involvement of China,” he said. “The summit with China and the US later this week is, ​for me, the main event really,” Broux said, pointing to the influence the two countries have in the Middle East.

Trump and Chinese President Xi Jinping are set to discuss Iran, Taiwan, artificial intelligence, nuclear weapons and critical minerals when they meet, according to US officials.

Inflation and growth worries linked to higher oil prices, as well as any potential reaction from central banks, also continue to play on the ​market’s mind, Broux said.

US inflation data for April is due this week after the US jobs report released Friday showed that non-farm ​payrolls increased 115,000 in April, almost twice as fast as expected. Those figures reinforced expectations the Federal Reserve would keep interest rates unchanged for ‌some ⁠time.

The Fed held rates steady last month as expected, but the decision exposed its deepest split in decades, with three officials dissenting against signalling future rate cuts.

The Bangladesh Association of Banks (BAB) has urged the central bank to relax eligibility criteria for refinance schemes by removing current restrictions on banks with high non-performing loans (NPLs) and reducing general provisioning for rescheduled loans.

In a letter to the governor yesterday, the association proposed banks with NPL ratio below 20% should remain eligible for refinance and prefinance schemes for at least the next five years. It also requested to reduce the general provisioning requirement for rescheduled loans from 5% to 1%.

Currently, banks with high NPL ratios are often excluded from these facilities, which BAB argues unintentionally limits credit support to productive sectors such as SMEs, agriculture, and exports.

The BAB also sought policy support for income recognition during grace periods and several other reforms to help the sector navigate its current "challenging phase".

The letter highlighted that the banking sector is grappling with elevated NPLs, provisioning shortfalls, and liquidity pressures, necessitating coordinated and pragmatic policy interventions to restore investor confidence and maintain credit flow to the real economy.

Reforming rescheduled loan classification, provisioning

BAB has also expressed concerns over the financial impact of current regulatory treatment of policy-supported rescheduled loans. Under existing rules, these loans are generally treated as Special Mention Accounts (SMA), requiring a 5% general provision and carrying a 150% risk weight.

The association argued that these requirements place undue pressure on Capital Adequacy Ratios (CAR) and limit fresh lending capacity. Consequently, BAB requested the central bank to treat compliant policy-supported rescheduled loans as Unclassified (UC), reduce the general provision requirement from 5% to 1%, and assign a more moderate risk weight instead of the current 150%.

Furthermore, BAB pointed to a mismatch where banks incur funding costs on deposits during a borrower's one-to-two-year grace period but cannot recognise interest income.

The association proposed allowing accrual-based income recognition during the grace period or immediate recognition upon the expiry of the grace period to protect bank profitability.

Addressing capital pressures and tax hurdles

The letter also detailed how certain tax policies and market classifications are hurting the sector's stability. BAB requested an exemption from the 10% additional tax on stock dividends for banks maintaining capital adequacy under Basel III.

The association said penalising the retention of earnings through stock dividends discourages banks from strengthening their Tier-1 capital.

Additionally, BAB proposed several fiscal measures for the upcoming national budget, including reducing the corporate tax rate for listed banks to 30%, allowing loan-loss provisions as tax-deductible expenses for at least five years, and preventing the automatic migration of banks to the "Z Category" on the stock exchange if they are under approved restructuring or transformation programmes.

Strengthening recovery through AMC and legal reforms

To address "legacy NPL challenges", BAB proposed establishing a professionally managed national Asset Management Company (AMC). The AMC would acquire large classified portfolios, conduct forensic investigations, and facilitate faster settlements.

On the legal front, the association called for amendments to the Artha Rin Adalat Ain to include ultimate beneficiaries and the introduction of fast-track financial courts. It said judicial bottlenecks, such as the misuse of stay orders, continue to delay the recovery of classified loans.

Bank owners fear return of former directors

Also yesterday, leaders of the BAB met Governor Mostakur Rahman.

Speaking to reporters after the meeting, BAB Chairman and Dhaka Bank Chairman Abdul Hai Sarker said the association was concerned about a provision in the amended Bank Resolution Act that could allow former bank owners to return to banks.

He said the amended law had created scope for individuals who had siphoned money from banks to return. "People know who took money from banks. If they are allowed to return, public confidence in the banking sector will weaken further, creating the risk of another crisis."

He added that the government should consider the issue more carefully. He further said important policy decisions such as amendments to banking laws should be discussed with stakeholders beforehand.

The BAB chairman said the governor had assured them that former owners would not be able to return without fully complying with the conditions outlined in Section 18(A) of the amended law.

The meeting was also attended by former FBCCI president and Shahjalal Islami Bank Director AK Azad, United Commercial Bank Chairman Sharif Zahir, Pubali Bank Chairman Monzurur Rahman and Bank Asia Chairman Romo Rouf Chowdhury.

IPDC Finance PLC reported a 78.52 percent year-on-year increase in net profit after tax to Tk 6.5 crore in the first quarter of 2026, driven by higher net interest income, strong investment earnings and disciplined cost management.
Earnings per share rose to Tk 0.16 in the January-March quarter from Tk 0.09 a year earlier, reflecting improved after-tax profitability
Despite a challenging macroeconomic environment, operating income grew 24.40 percent year-on-year to Tk 94.2 crore, according to a press release.

Gross interest income increased 6.01 percent year-on-year to Tk 242.5 crore, supported by sustained asset portfolio deployment and prudent lending. Interest expenses rose at a slower pace of 1.74 percent to Tk 184.4 crore, reflecting easing funding costs.

As a result, net interest income expanded 22.33 percent year-on-year to Tk 58.1 crore, reversing the margin pressure experienced through much of 2025.

“Our first-quarter performance reflects the resilience of IPDC’s business fundamentals and the disciplined execution of our strategic priorities,” said Rizwan Dawood Shams, managing director of the company.

“We remain committed to maintaining sound risk management practices and creating long-term value for all stakeholders while supporting Bangladesh’s evolving economic aspirations,” he added.
Investment income, a major growth driver, climbed 32.51 percent year-on-year to Tk 31.7 crore due to stronger yields from government securities and a broader treasury portfolio. Commission and brokerage income also rose 13.29 percent to Tk 38 crore.

Operating expenses increased only 3.52 percent year-on-year to Tk 39.7 crore, helping profit before provision jump 45.79 percent to Tk 54.5 crore.

As of March 31, 2026, loans, advances and leases stood at Tk 7,374.3 crore, down 1.18 percent from December 2025, reflecting selective credit deployment amid a recovering demand environment.

Total deposits grew 1.60 percent to Tk 6,324.7 crore, reinforcing the company’s funding base and depositor confidence.

Meanwhile, the company’s net asset value rose to Tk 18.01 in March 2026 from Tk 17.85 in December 2025.

Indian shares opened lower on Monday, weighed down by higher oil prices after the US and Iran failed to reach a peace deal, while jewellery and travel-linked stocks fell after Prime Minister Narendra Modi urged citizens to limit travel and gold purchases due to the Iran war.

The Nifty 50 fell 0.85% to 23,970.10 as of 9:15 am IST, while the BSE Sensex shed 0.89% to 76,638.09.

All 16 major sectors logged losses at the open. The broader small-caps and mid-caps lost 0.5% each.

Oil marketing companies such as BPCL, HPCL and Indian Oil fell about 1% each, while travel-linked stocks also declined, after Modi urged citizens to reduce fuel consumption and limit non-essential foreign travel amid the Iran war.

Jewellery stocks Titan, Senco Gold and Kalyan Jewellers lost between 3% to 4.5% after the comments.

Airline operator Interglobe Aviation lost 3.2%.

Brent crude jumped 4.1% to about $105.5 a barrel after US President Donald Trump on Sunday dismissed the Iranian response to Washington's proposal for peace talks as "unacceptable".

Higher crude prices are detrimental for the world's third-largest oil importer, as they exacerbate inflationary pressures and weigh on growth and corporate earnings.

The Bangladesh Association of Banks (BAB) has called for a reconsideration of certain provisions in the recently enacted Bank Resolution Act, saying that allowing former owners to regain control of troubled lenders through a limited upfront payment could raise concerns over accountability, governance and moral hazard.

The plea was made during a meeting between a BAB delegation led by Chairman Abdul Hai Sarker and Bangladesh Bank Governor Md Mostaqur Rahman at the central bank headquarters in Dhaka yesterday.

The association, which represents bank sponsors and owners, shared this view as the Bank Resolution Act was passed in the House last month. The revised law included provisions allowing former owners to reclaim merged banks under relatively easy terms.

According to the law, former directors or owners of banks under merger or listed for merger can pay 7.5 percent upfront of the amount injected by the government or the BB to regain control. The remaining 92.5 percent is to be repaid within two years at 10 percent simple interest.

While welcoming the government’s initiative to establish a structured resolution framework, BAB said the mechanism should ensure a strong “fit and proper” assessment, forensic audits, verification of fund sources and transparent regulatory oversight.

As part of its banking reform initiatives, the interim government approved the Bank Resolution Ordinance 2025. Under it, five crisis-hit lenders -- First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank and EXIM Bank -- were brought under the merger process.

The BB later issued a licence for a new state-owned entity, Sammilito Islami Bank PLC, in November last year, which is expected to become the country’s largest state-owned shariah-based lender.

A delegation of Bangladesh Association of Banks (BAB), led by its Chairman Abdul Hai Sarker, meets Bangladesh Bank Governor Md Mostaqur Rahman at the central bank headquarters in Dhaka yesterday. Photo: courtesy
After the Bangladesh Nationalist Party (BNP) came to power following the national election in February, the ordinance was amended and enacted as the Bank Resolution Act 2026.

Subsequently, five sponsor shareholders and former directors of troubled Social Islami Bank PLC applied to regain control of the shariah-based lender. However, senior BB officials told The Daily Star last week that the request was likely to be rejected as the merger process moves ahead.

Against this backdrop, BAB said international investors, development partners and global financial institutions closely monitor the credibility of financial sector resolution frameworks.

“Any perception of weak accountability may negatively affect investor confidence, depositor sentiment, and international financial perception regarding Bangladesh,” the association said.

It added that depositor protection, governance reform, financial discipline, transparency and long-term institutional stability should be prioritised in any resolution process.

BAB also urged the BB to consult it before finalising proposed amendments to the Bank Company Act, saying the changes could have a significant impact on board governance, capital raising, sponsor shareholding structures, independent director frameworks and management accountability.

The association said the banking sector is going through one of its most difficult periods.

“Elevated non-performing loans, provisioning and capital adequacy pressures, weak private sector credit growth, legal recovery bottlenecks, rising cost of funds, declining investor confidence, and global economic uncertainties continue to place significant stress on the sector.”

It added that the sector is suffering from broader confidence challenges.

“Public confidence, depositor trust, investor confidence, and international perception regarding governance, transparency, and institutional accountability within the banking sector are now critical issues requiring coordinated and balanced action.”

BAB urged the central bank to retain existing incentive bonuses for bankers in order to help banks retain skilled professionals. It also called for access to the BB’s refinance schemes for banks with non-performing loan ratios below 20 percent.

The association further pressed for changes in rules on income recognition, classification and provisioning, arguing that current requirements place undue pressure on capital buffers and restrict credit flow. It suggested allowing interest income recognition after the expiry of grace periods.

On rescheduled loans, BAB said existing classification and provisioning rules significantly increase risk-weighted assets and capital adequacy pressures, limiting banks’ ability to extend fresh lending to productive sectors.

It also proposed the creation of a professionally managed national Asset Management Company (AMC) to acquire classified loans, support restructuring and assist sector recovery, citing examples from Malaysia, South Korea and Indonesia.

On legal recovery challenges, BAB said the process for recovering defaulted loans remains slow and complex owing to case backlogs, delayed hearings, misuse of stay orders and weak enforcement of judgments.

To overcome this, BAB proposed amendments to the Artha Rin Adalat Ain to include ultimate beneficiaries and beneficial owners, the introduction of fast-track financial courts and dedicated recovery benches, along with mandatory hearings before stay orders are issued and time-bound limits on such orders.

“A major challenge currently faced by banks relates to accounts where courts direct loans to remain unclassified while regulatory inspections require provisioning treatment as ‘bad and loss’,” it said.

BAB said this creates inconsistencies in provisioning, affects profitability, increases capital stress and reduces lending capacity. It called for separate regulatory treatment for loans under litigation or stay orders, along with a phased provisioning framework.

“Such an approach will improve regulatory consistency while maintaining prudential discipline,” said the association.

Bangladesh Bank (BB) has allocated Tk 10 billion (Tk 1,000 crore) from its revolving Green Transformation Fund (GTF) for rural and local industrial sectors to promote environmentally sustainable industrialisation and accelerate green growth across the country.Bangladesh Investment Guide
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The initiative is aimed at supporting small-scale and regional entrepreneurs in acquiring environment-friendly machinery and components to transform local industries into greener and more sustainable production units, said a BB circular issued.

According to the circular, the central bank had earlier formed a revolving Green Transformation Fund amounting to Tk 50 billion (Tk 5,000 crore) from its own resources to support sustainable growth in manufacturing and export-oriented industries.

The newly earmarked Tk 10 billion (Tk 1,000 crore) has now been reserved exclusively for rural and local industrial enterprises in an effort to decentralise green industrialisation and expand sustainable economic activities beyond major urban centers.

Under the refinance scheme, participating financial institutions (PFIs) will receive funds from Bangladesh Bank at an interest rate of only 1 percent, while the maximum interest rate at the customer level has been fixed at 5 percent.

The loan tenure will range from two to five years depending on the nature of the project, while entrepreneurs will also be allowed a grace period of up to six months subject to the relationship between the borrower and the participating bank.Economic Trend Reports

The facility will support projects related to renewable energy, energy efficiency, water conservation and management, waste management, resource efficiency and recycling, and initiatives aimed at improving workplace environments.

Through these measures, the central bank intends to encourage the adoption of green technologies and sustainable production practices at the grassroots industrial level.

According to the circular, the maximum loan amount for a single borrower has been fixed at Tk 5 crore. The debt-equity ratio must not exceed 80:20 of the total import or purchase cost.

In addition, at least 10 percent of the total electricity consumption of financed projects must come from renewable energy sources.

Bangladesh Bank also imposed strict eligibility conditions for borrowers. Loan defaulters will not qualify for the scheme, and participating banks must verify updated Credit Information Bureau (CIB) reports of borrowers and all related interests before approving any financing.

All state-owned commercial banks will be eligible to participate as PFIs under the scheme. Private and foreign commercial banks, however, must maintain classified loan rates below 20 percent to qualify. Islamic Shariah-based banks have also been allowed to participate through their approved investment mechanisms.Financial Literacy Course

Banks interested in joining the programme will have to sign a “Participation Agreement” with the Sustainable Finance Department, although banks already operating under existing GTF agreements will not require new agreements.

The circular, issued under Section 45 of the Bank Company Act, 1991 (amended in 2023), came into effect immediately.

To ensure accountability and transparency, participating financial institutions will be required to submit quarterly reports to the Sustainable Finance Department within 15 days after the end of each quarter.

Bangladesh Bank warned that fines may be imposed for providing false information or failing to comply with reporting requirements.

Prime Minister Tarique Rahman has assured garment exporters that the government will reopen all closed public and private factories across the country and provide support to struggling factories to prevent further closures.

However, state-owned closed factories will not be run directly by the government. Instead, they will be reopened through interested Bangladeshi entrepreneurs.

Leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) shared the information with TBS after separate meetings with the prime minister at the Secretariat today (11 May).

After the meetings, top executives of BGMEA and BKMEA said the prime minister had asked for written proposals, after consulting factory owners, outlining what policy support is needed to reopen closed factories and rescue those on the verge of closure.

The two associations are expected to submit their written proposals after Eid-ul-Adha.

They said the prime minister placed the highest emphasis on employment generation. For that reason, he wants all closed factories in both the public and private sectors to reopen and also wants policy support for factories facing closure.

BKMEA Senior Vice-President Fazlee Shamim Ehsan, who attended the meeting, said the prime minister clearly mentioned two conditions for reopening state-owned factories through private management: they must be operated by Bangladeshi entrepreneurs, and they must produce the same products previously manufactured there.

There is no exact data on how many factories remain closed nationwide. After taking office, the BNP government initiated a Tk40,000 crore fund through Bangladesh Bank to help reopen closed factories. Around 300 garment factories are reportedly at risk of closure.

After the meeting, BGMEA President Mahmud Hasan Khan and BKMEA President Mohammad Hatem told The Business Standard they had requested that factories on the verge of closure also be given access to the fund.

They said the prime minister also wants to ensure no additional factories shut down and confirmed that vulnerable factories would receive assistance.

"The prime minister clearly told us that all closed factories will be reopened, and the government will provide every possible policy support to prevent any new closures. He also informed us of plans to reopen closed state-owned factories through privatisation," said BKMEA Senior Vice-President Fazlee Shamim Ehsan.

BKMEA President Mohammad Hatem told the prime minister that no entrepreneur would expand investment or bring in new investment unless gas and electricity supply improves.

He also requested removal of complexities surrounding the import of raw materials for man-made fibre and raw materials used in locally produced auxiliary chemicals.

The BGMEA delegation, led by President Mahmud Hasan Khan, met the prime minister first, followed by the BKMEA delegation led by President Mohammad Hatem. Each meeting lasted around an hour.

They informed the prime minister that identical support measures for all closed factories would not work, as each factory faces different problems. In response, the prime minister asked them to speak with factory owners individually and submit written reports detailing each case.

BGMEA President Mahmud Hasan Khan said, "The government cannot waive taxes or hand out money. But the prime minister asked us to submit written proposals on what type of policy support each factory needs so they can continue operations and preserve jobs. We will submit these after Eid."

He added that all duties and taxes on imports of equipment and batteries used for solar power generation and storage would be fully withdrawn.

BKMEA Senior Vice-President Fazlee Shamim Ehsan said, "The prime minister does not want foreign companies to run closed state-owned factories. He wants local entrepreneurs to operate them. But they must produce the same goods as before and meet international standards. Through this, the prime minister wants export diversification."

BKMEA President Mohammad Hatem said that during discussions on export diversification and reopening closed factories, the prime minister said anyone interested in reopening the Rajshahi silk factory should inform him.

He said the factory could be modernised to produce world-class silk products for export.

BGMEA President Mahmud Hasan Khan said the prime minister also stressed building export-oriented market networks, improving the business environment and diversifying exports.

"We told the prime minister that several Bangladesh Bank policies are pushing many operating factories towards closure. There are complications in accessing bonded warehouse facilities, and many factories are facing audit-related problems. We also highlighted barriers to simplifying import-export procedures.

"After receiving our written recommendations, the prime minister assured us that policies would be revised to simplify import-export procedures and improve the overall business climate," said BKMEA President Mohammad Hatem.

Commerce Minister Khandaker Abdul Muktadir, Housing and Public Works Minister Zakaria Taher, and Education Minister Ehsanul Haque Milon were present at the meetings

The Bangladesh Bank has allowed banks to facilitate remittances for visa bonds and refundable security deposits required by foreign embassies, high commissions and other competent authorities as part of visa processing.

The central bank issued a circular in this regard today (11 May), stating that banks will be permitted to remit funds on behalf of individual visa applicants where a visa bond or refundable security deposit is mandatory for obtaining a visa.

The central bank said the move is aimed at easing difficulties faced by Bangladeshi travellers when applying for visas overseas.

A senior Bangladesh Bank official said, "Simply put, from now on, if a foreign embassy or high commission requires a certain amount of money to be deposited as security before issuing a visa, that money can be legally sent through Bangladeshi banks."

"Many countries, especially the United States and some other developed nations, seek financial guarantees from visa applicants. The objective is to ensure that applicants return to their home country after the permitted period. Previously, sending such bonds or deposits involved many complications. The new instruction from Bangladesh Bank will simplify the entire process," the official added.

According to the circular, banks may also issue international or virtual cards in the applicant's name, preloaded with the required amount of bond or security deposit.

Existing international cardholders under travel entitlement facilities may also have their cards reloaded for the same purpose, provided the funds are used solely for visa-related requirements.

The facility will be applicable against balances maintained in Exporters' Retention Quota (ERQ) accounts, Resident Foreign Currency Deposit (RFCD) accounts, or through international cards issued against such accounts, subject to existing foreign exchange regulations.

Bankers and industry insiders believe the new policy will simplify visa processing for Bangladeshi applicants, particularly for countries such as the United States that require financial guarantees as part of visa procedures.

Bangladesh Bank has capped the interest and fees banks can charge on foreign currency trade financing at a maximum of 3 percentage points above internationally recognised benchmark rates, in a move aimed at easing costs for importers and exporters amid high global interest rates.

The central bank issued a circular in this regard yesterday (10 May).

According to the circular, banks from now on cannot charge more than the applicable benchmark rate, such as the Secured Overnight Financing Rate (SOFR) for US dollar-denominated financing or Euribor for euro transactions, plus 3% annually as the "all-in-cost" for short-term trade finance in foreign currency.

The new rule takes immediate effect from today (11 May).

The ceiling applies to three categories of foreign trade financing: short-term import trade finance, discounting of usance export bills, and advance payments against exports under open account transactions.

The "all-in-cost" includes interest, commissions, fees and other charges associated with such financing.

For example, if the (SOFR) for the US dollar stands at around 4.5%, banks will now be allowed to charge a maximum of around 7.5% annually for eligible trade finance facilities.

The latest instruction has replaced an earlier ceiling set by Bangladesh Bank in August 2025.

Bangladesh Bank officials said the revised framework aims to align Bangladesh's trade financing practices more closely with international market standards while preventing excessive markups by banks.

The measure is expected to benefit importers managing rising input costs as well as exporters seeking cheaper access to pre-shipment and post-shipment foreign currency financing.

Bangladesh Bank officials said the ceiling would also help ensure competitive pricing in trade finance and reduce the risk of businesses facing unusually high borrowing costs due to fluctuating global rates.

Oil prices rallied on Monday, a day after President Donald Trump said Iran’s response ‌to a US peace proposal was “unacceptable,” raising supply fears as the Strait of Hormuz stayed largely closed, which kept the global market tight.

Brent crude futures climbed $2.70 or 2.67 percent to $103.99 a barrel at 0902 GMT US. West Texas Intermediate was at $97.66 a barrel, up $2.24, or 2.35 percent. They rose to $105.99 and $100.37 ​a barrel, respectively, earlier in the session.

Last week, both contracts recorded 6 percent weekly losses on hopes for an imminent end to the 10-week-old conflict that would allow oil transit through the Strait of Hormuz. “Despite reassuring noises, our take is that the US and Iran are as ​far away from agreement as when this supposed ceasefire started,” analyst John Evans said.

“We do not see anything changing before Donald Trump visits China and asks for Beijing’s aid in pressuring Iran.”

Trump is scheduled to arrive in Beijing on Wednesday and is expected to discuss Iran among other topics with Chinese President Xi Jinping, according to US officials.

The world has lost about 1 billion barrels of oil over the past two months and energy markets will take time to stabilise even if flows resume, Saudi Aramco CEO Amin Nasser said on Sunday.

“Our bullish view remains and we align with Saudi Aramco’s opinion that even if Hormuz is settled and opened, it will take many months ‌for normality ⁠in oil supply to break out,” Evans said.

Saudi Arabian crude oil exports to China are expected to fall further in June after buyers cut nominations because of costly prices linked to the US-Iran conflict and lower supplies, trade sources told Reuters.

Meanwhile, three tankers carrying crude exited the Strait of Hormuz last week and on Sunday with trackers switched off to avoid Iranian attacks, Kpler shipping data showed. One was loaded with Iraqi crude and bound for Vietnam.

Japan’s ⁠industry ministry said a tanker carrying Azerbaijani crude oil was set to arrive as early as Tuesday, the first cargo of oil received from Central Asia since the Iran war began.

ANZ analysts ​expected Brent to remain above $90 per barrel through 2026 and around $80 to $85 per barrel into 2027 ​as demand growth ⁠resumes and inventories are gradually rebuilt.

In an attempt to hedge prices and ensure revenue, US producer Diamondback Energy bought options to sell the price difference between US West Texas Intermediate crude and Brent at around minus $42 a barrel in the coming months, a bet that could ⁠pay off ​if the US banned oil exports.

This would lead to a rise in domestic inventory as US refiners typically process less domestic crude than is produced in the country and would push down WTI prices and widen its discount to Brent.

Garment exporters yesterday urged the government to ensure uninterrupted power and energy supply, quick release of export receipts from banks, reopening of closed factories, and easing of customs rules.

Leaders of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) made the demands at a meeting with Prime Minister Tarique Rahman at his secretariat office in Dhaka.

In separate meetings with the two trade bodies, the prime minister listened to the problems and challenges they face in running their businesses.

After the meeting, BGMEA President Mahmud Hasan Khan said they discussed export diversification within the garment sector, reopening of closed factories, and the struggles many factories face for survival.

Regarding factory reopening, Khan said a total of 104 factories have informed the BGMEA about their closure so far. The BGMEA will scrutinise the cases of closed factories to identify the genuine reasons for the shutdowns. Following the scrutiny, the association will send recommendations for reopening those factories, as the government is working to open a Tk 20,000 crore fund to assist in their revival.

BKMEA President Mohammad Hatem said they thanked the prime minister for taking the initiative to defer Bangladesh’s graduation from the least developed country (LDC) category for three more years. The BKMEA also welcomed the government’s amendment of the labour law to meet international standards, as demanded by global stakeholders.

Hatem noted that some 400 factories were closed in the last three years, nearly 300 of them due to non-cooperation from banks. He explained that banks release export receipts to exporters’ lien accounts, but delays in payment often force loans into default, leaving exporters unable to pay suppliers on time.

He also demanded uninterrupted supply of power and gas to industrial units, as recent shortages of fuel oil have severely affected productivity. Hatem further raised concerns about the misuse of the bond facility and urged action against violators of bond licences.

Additionally, he called for easing National Board of Revenue (NBR) rules, particularly customs procedures, to smooth export and import processes and reduce lead times. He stressed that complex and time-consuming customs procedures have deterred both domestic and foreign direct investment.

Commerce Minister Khandakar Abdul Muktadir was present in both the meetings.

Sri Lanka will increase electricity rates by up to 18 percent from Monday to offset the additional costs of generating power using thermal plants due to the Middle East war, the Public Utilities Commission said.

Consumers using more than 180 units (kilowatt hours) of electricity a month will have to pay an additional 18 percent from Monday, while those using less than that will not see their bills affected.

“The increase will apply to industries, hotels, businesses and government institutions and religious places of worship consuming more than 180 units a month,” the commission said in a statement Sunday.

The measure is the latest in a series of steps taken by the island nation following the war in the Middle East.

The latest hike comes on top of a 40 percent tariff increase introduced last month.

Sri Lanka has also raised fuel prices by more than 35 percent and rationed the same following energy supply disruptions.

Higher energy prices have pushed inflation to more than double, reaching 5.4 percent in April, according to official data.

Sri Lanka has been slowly emerging from the 2022 economic meltdown, when it ran out of foreign exchange reserves to pay for essential imports such as food, fuel and medicines.

It was hit hard by a cyclone last year that killed at least 643 people and affected more than 10 percent of the island’s population of 22 million.

The storm caused an estimated $4.1 billion in direct physical damage to buildings and agriculture, according to the World Bank.

The country has been stabilising its fragile economy with the help of a $2.9 billion IMF bailout agreed in early 2023, but high energy prices have posed a serious challenge to recovery efforts.

The board of directors of Sonar Bangla Insurance Limited has recommended a 10% dividend, comprising 5% cash and 5% stock, for the financial year ended 31 December 2025.

Despite the dividend declaration and a sharp rise in annual profitability, the general insurer's share price dropped by 4.85% yesterday (9 May) to settle at Tk35.30 on the Dhaka Stock Exchange (DSE) following the disclosure.

The company reported a stellar performance for the full year 2025, with its consolidated earnings per share (EPS) skyrocketing by 245% to reach Tk0.69, up from the Tk0.20 recorded in 2024.

During the same period, the consolidated net asset value (NAV) per share stood at Tk20.02, while the net operating cash flow per share improved to Tk1.22 from Tk1.17 in the preceding year.

In its regulatory filing, the company said the stock dividend is aimed at reinvesting retained earnings to strengthen its paid-up capital base. The management also assured shareholders that the bonus shares will be issued from accumulated profits, not from any revaluation or capital reserves, thereby maintaining a healthy post-dividend balance sheet.

However, the company's most recent quarterly data suggests a slowdown in momentum. For the first quarter of 2026 (January–March), consolidated EPS fell to Tk0.26, marking a 41% decline from the Tk0.44 reported in the corresponding period of 2025. On a positive note, the quarterly net operating cash flow per share saw a significant improvement, rising to Tk0.50 from Tk0.19. As of 31 March 2026, the company's NAV per share inched up to Tk20.28.

To finalise the dividend and approve the audited financial statements, the insurer has scheduled its annual general meeting for 13 August. The record date for determining shareholder eligibility for the dividend has been set for 11 June.