Bangladesh Bank (BB) has introduced detailed rules for appointing temporary administrators to troubled banks and finance companies, giving them broad powers to protect critical operations, assess financial conditions and facilitate the resolution of failing institutions.

The central bank issued the “Regulations for Temporary Administration under the Bank Resolution Act, 2026” on August 6.

The rules apply to scheduled banks, including digital banks, and finance companies undergoing immediate corrective measures or the resolution process.

Under the regulations, the Bank Resolution Department will nominate one or more qualified persons as administrators or assistants. They may be Bangladesh Bank officials or outsiders, but must have no conflict of interest with the institution concerned.

Neither an administrator nor any family member can be a debtor, creditor, shareholder or other interested party of the institution. If an administrator acquires any direct or indirect financial or other interest after appointment, they must notify the Bank Resolution Department within 24 hours.

Administrators, in consultation with the department, can take measures to keep critical functions running. They may also replace key management personnel and temporarily perform the duties of the chairman, director or chief executive officer, where necessary.

For institutions under immediate corrective measures, administrators must appoint an independent auditor to assess their actual financial condition.

The audited financial statements and report must be submitted within three months of appointment, unless the department sets another deadline.

Within one month of submitting the report, the administrator must also submit a plan to preserve or restore the institution’s financial health.

For institutions undergoing resolution, administrators must prepare a list of assets and liabilities and submit it within two months of appointment. Within one month of that submission, they must recommend the most effective resolution option.

The regulations also require administrators to investigate suspected financial crimes through forensic audits. If directors or officials are found to have been involved in offences under the Bank Resolution Act, administrators must take legal action against them, without prejudice to other proceedings.

Administrators must maintain records of all decisions and actions, preserve confidentiality and submit quarterly progress reports to the Bank Resolution Department. At the end of the process, assets and liabilities may be transferred to a new board and management, a bridge bank, a transferee or a liquidator.

A final report on the temporary administration must be submitted within three months of its completion.

Bangladesh Bank will determine administrators’ remuneration, while the institution under administration will bear all related expenses, subject to conditions set by the central bank.

The regulations also require Bangladesh Bank to publish notice of an administrator’s appointment on its website and that of the institution concerned, as well as in one widely circulated Bengali and one English national daily, by the next working day.

The new rules repeal the temporary-administration provisions under the Regulations for Bank Resolution, 2025, but actions already taken under those provisions will be deemed to have been taken under the new regulations.

Total government debt stock rose over 5.4 per cent during the first nine months of the fiscal year 2025-26 to Tk 22.59 trillion, driven largely by increased domestic borrowing, particularly from the banking system.

According to finance ministry data, released Thursday, domestic debt climbed 8.41 per cent to Tk 12.954 trillion by the end of March from the level recorded at the beginning of the fiscal year, the report showed.

Borrowing from the banking system accounted for the largest share of domestic debts, rising nearly 14 per cent to Tk 8.82 trillion by the end of March, which reflects government's growing reliance on banks to finance its budget deficit.

In contrast, borrowing from nonbank sources, including National Savings Certificates (NSCs), declined 1.46 per cent to Tk 4.14 trillion during the period, suggesting weaker mobilisation from retail savings instruments.

External debt rose at a much slower pace, increasing 1.5 per cent to Tk 9.637 trillion as of March 2026 from July 2025.

The higher reliance on domestic borrowing also pushed up debt-servicing costs on account of principal and interest thereon.

In the meantime, total interest expenditure rose 29 per cent year on year in the first three quarters of FY2025-26.

Interest payments on domestic debts surged 34 per cent year on year to March 2026, driven by both higher borrowing volumes and elevated interest rates.

By comparison, interest payments on external debt increased by a modest 4.0 per cent year on year during the period ending March 2026.

Workers returned to production lines yesterday as the dials on gas pressure gauges began ticking up across major industrial belts, offering some relief to apparel factories during this peak Christmas shipment season.

“We can run our spinning mills at 60 percent to 80 percent now which was as low as 40 percent last week,” said a top official of a large textile and garment group in Gazipur yesterday.

Requesting anonymity, the official said they expect the power supply situation to improve soon as well.

In the third week of July, one of the country’s two floating storage and regasification units (FSRUs) was damaged in an accident, cutting the nationwide supply of liquefied natural gas (LNG) by more than 17 percent.

The resulting gas shortage became acute. Households struggled to cook with piped gas, long queues formed at CNG filling stations, and factories cut production or shut down altogether in some areas.

On Wednesday last week, more than 200 small and subcontracting garment factories in Gazipur sent their workers on a three-day leave.

Many other factories in Savar, Ashulia, Kanchpur and Narayanganj, which were also badly affected by the gas shortage, took similar measures.

After about half a month, the FSRU at Cox’s Bazar was partly repaired on Thursday. By Friday, the terminal, operated by Excelerate Energy, was able to supply about 115 million cubic feet of gas a day to the national grid, according to Petrobangla.

Mazharul Alam Milon, administrative officer of ABM Fashion Ltd in Gazipur, told The Daily Star that the factory reopened yesterday after a three-day closure.

“Work is continuing in all our sections, and the workers have also turned up as usual. Although the factory is fully operational, we are still facing a gas shortage,” he said.

Masud Kabir, managing director of Gazipur-based sweater exporter Motex Fashion, said yesterday that he could now buy two to three lorry loads of gas bottles a day, compared with one lorry load every two to three days last week.

Masud said he buys gas in bottles from nearby CNG filling stations because his factory does not have a direct gas connection.

Mohd Khorshed Alam, chairman of Little Star Spinning Mills Ltd, said his mill was currently running at 60 percent capacity as the gas supply had improved somewhat. However, he said further improvement is needed to meet existing work orders.

Mohammad Amzad Hossain, superintendent of Gazipur Industrial Police (Industrial Police-2), told The Daily Star by phone yesterday afternoon that most factories in Gazipur have reopened.

“The remaining factories will reopen tomorrow [today],” he said.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the gas supply has improved, but it is too early to say how much factories have recovered.

“It may take a few more days for full operations,” he said.

For apparel manufacturers, the disruption comes at a critical time as they work to ship Christmas orders to Western markets. Delays could force them to use costly air freight or offer discounts to compensate foreign buyers.

“The company will have to face the expensive air shipment or big discounts from the foreign buyers,” said the senior official of the Gazipur-based textile and apparel group.

BGMEA Vice President Shehab Udduza Chowdhury said gas supplies have improved since Thursday but remain inadequate.

“Still, we have to run the factories with diesel generators for at least four hours, for which the cost of production is increasing,” he told The Daily Star over the phone.

Nazma Akter, president of the Sommilito Garments Sramik Federation, said some garment factories remained closed for as long as five days, but the situation has started to improve.

She urged the government to give priority to supplying gas to mills and factories, saying millions of workers and shipments of goods depended on the industry.

Md Towhidur Rahman, president of the Bangladesh Apparels Workers Federation, also urged the government to monitor gas supplies at the factory level so that it could take appropriate measures.

A17-member advisory panel formed by the government will oversee and guide overall activities leading to the signing of a proposed free- trade agreement (FTA) with the European Union (EU) for a win-win deal.
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Sources say the high-level committee comprises top bureaucrats, trade bodies, and economic think-tanks.

According to trade analysts, the convergence of duty-facility losses by Bangladesh stemming from the upcoming least-developed country (LDC) graduation with the competitive asymmetry created by India and Vietnam's newly weaponised FTAs is a matter of concern that has sparked urgent calls for a radical re-engineering of the country's economic diplomacy and product mix.

Meantime, the commerce ministry on July 26 issued an official notification appointing the commerce minister as the chairperson of the panel, with the Head of FTA Wing of the ministry serving as member-secretary.

The committee brings together key government policymakers, major business-chamber heads and leading economic think-tank leaders to formulate negotiating strategies and ensure trade alignment.

From government and regulators, the committee includes secretaries of the Ministry of Commerce, Finance Division, the Ministry of Foreign Affairs, and the Prime Minister's Office (PMO), alongside the chairmen of the Bangladesh Trade and Tariff Commission (BTTC) and the National Board of Revenue (NBR).

Private-sector representations include presidents of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the chairperson of EuroCham Bangladesh.

From economic think-tanks is the executive director of the Centre for Policy Dialogue (CPD), chairmen of Research and Policy Integration for Development (RAPID), Policy Exchange Bangladesh, and Policy Research Institute (PRI), alongside the CEO of Bangladesh Foreign Trade Institute (BFTI).

According to the office order, signed by joint secretary Mahbuba Khatun, the committee's key mandates include monitoring the overall activities and negotiation proceedings of the core Bangladesh negotiating team.

It would also provide advice, technical opinions, and solutions on emerging negotiation issues and trade-policy dynamics during talks while it could co-opt additional members or seek sector-specific expert opinions "whenever necessary to safeguard national interests", according to the notification.

Insiders say the formation of this advisory body is a crucial policy measure as Bangladesh prepares for its upcoming graduation from LDC status, as, once graduated, Bangladesh will lose its Everything But Arms (EBA) initiative under the EU's Generalised System of Preferences (GSP), which currently provides duty-free and quota-free access to the European market-the country's largest export destination not only for ready-made garments (RMG) but also for other exportable goods.

Incorporating private-sector apex bodies like BGMEA, BKMEA and FBCCI and trade think-tanks CPD, PRI and RAPID signals a collaborative approach between the government and industry to negotiate favorable trade terms, tariffs, rules of origin, and sustainability requirements.

Asked about the development on the trade front, BGMEA president Mahmud Hasan Khan said both sides should benefit through signing any FTA.

"If signed, Bangladesh will get or sustain duty-free market access for RMG which might face up to 12-percent duty once graduated. And EU consumers will be ultimately benefitted once products enter without 12-percent duty," he explains.

Besides, Bangladesh buys EU-branded machinery manufactured in China which also benefits the EU, Mr Khan said, adding that there are government-to-government discussions regarding the FTA signing while the trade body will also sit with the EU ambassador once he comes back after enjoying holiday shortly.

The advisory committee members said they were yet to hold any meeting and could explain more once the members meet formally.

Talking to The Financial Express, Chairman of Policy Exchange Bangladesh Dr M Masrur Reaz said Bangladesh being an LDC is enjoying preference-based market access which is time-bound and temporary and it needs to sign trade agreements to enhance trade competitiveness through predictable market access and tariff structure.

"The EU is a very important market for Bangladesh where more than 50 per cent of overall exports are destined not only for RMG but also to diversify potential non-RMG exports."

Besides, under the EU-Vietnam FTA, the EU tariffs on Vietnamese exports are being progressively reduced to reach zero by 2027 while once implemented, the EU-India FTA will give India preferential access in sectors that overlap closely with Bangladesh's, including apparel, textiles, leather and footwear.

On the other hand, Bangladeshi RMG will face 9.0-percent to 12-percent duty after graduation and three years of transition period.

"FTA with EU is the most important for Bangladesh not only to diversify products exports but also to sustain the existing market access," Mr Reaz said, adding that trade agreements also help to rationalise tariff structure but also attract foreign direct investment as those accelerate local reforms.

With both the EU-India and EU-Vietnam FTAs in force, Bangladesh's overall exports to the bloc could fall by up to 36 per cent and the rate is 44 per cent for garment, according to a latest RAPID research paper.

A Bangladesh-EU FTA could limit the overall export decline to around 16 per cent and garments to19 per cent, it shows.

According to Eurostat data, Bangladesh garment exports to the EU stood at 19.41 billion euros in 2025 while the figure was 14.29 billion euros in 2021.

A provision of "Payment Guarantee" for renewable-energy sector is now restored, nearly two years after it was scrapped by the interim government only to dissuade both local and foreign investors from making fresh investment, sources said.
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In the absence of payment guarantee, local and foreign banks as well as multilateral lenders shied away y from providing loans for renewable energy projects, leading to lower response in the tenders.

Many tenders on renewable-energy projects received only a few bidders during the last two years, forcing the government to extend bid document-submission deadlines repeatedly.

Now investors say as the government agreed to include the provision of payment guarantee in the bid documents, they have no risks in making investment, and getting bank loans to set up renewable-energy-based power plants will be easier for them.

Officials said the investors had long been pressing the government to restore the provision of payment guarantee so that they can secure loans to set up green power plants.

In the face of their repeated demands, Power Division in a recent letter to Bangladesh Power Development Board (BPDB) has asked for incorporating the provision of payment guarantee while inviting tenders in the future, sources said.

Contacted Friday, Golam Mortuza, Director IPP Cell-1 of BPDB, acknowledged government directives to incorporate the provision of payment guarantee again into bid documents, now that government thrust on energy search grows amid a crunch.

"We are working on it. It was a long demand from the private sector," he told The Financial Express.

Mr Mortuza said the government guarantee would help attract both local and foreign investments in the renewable-energy sector.

As the interim government had written off the guarantee and was not issuing guarantee letters, a number of solar-power projects faced setbacks in getting loans disbursed from local and foreign financiers, including the Asian Development Bank and Japan International Cooperation Agency.

Amid the stalemate, the ADB- JICA duo in a letter to then energy adviser reminded about upholding the contractual obligations, including the issuance of payment-guarantee letters in favour of the independent power producers.

Imran Chowdhury, Deputy Director of Sonagazi Solar Power Ltd, said Power Division's decision to include the payment guarantee in contractual framework is a significant step towards improving the bankability of Bangladesh's utility-scale renewable-energy projects.

"Payment security is one of the key considerations for international lenders, and this measure is expected to strengthen lender confidence and facilitate access to long-term project financing," the company man told The Financial Express.

He has suggested incorporating the provision of payment guarantee into the tender documents of BPDB's ongoing IPP-based solar projects before the bid-submission deadline to maximise the benefits of the decision.

"This would provide greater certainty to prospective bidders, encourage wider participation from experienced international project developers and IPPs, and strengthen competition," said Mr Chowdhury, also a director of Bangladesh Sustainable and Renewable Energy Association.

Stakeholders say as Bangladesh moves towards its target of 10-gigawatt renewable- energy capacity by 2030, improving project bankability will be essential to mobilise international financing and accelerate the implementation of utility-scale solar projects.

Amid the significant fall of electricity generation due to the shortage of gas and fuel oils and rising power subsidy, the new government in the recent months gave utmost importance on producing clean power.

To this end, the renewable-energy sector has been granted various facilities, including waiving import duty on equipment for clean power plants and offering tax rebate for green power consumers.

Bangladesh currently has the installed capacity to generate 1,822 megawatts of electricity from renewable sources, according to the Sustainable and Renewable Energy Development Authority (BSREA).

Bangladesh’s prefabricated steel industry faces a severe downturn driven by a sharp contraction in public infrastructure spending, sluggish private investment, and rising competition from duty-free imports, executives said.

Prefabricated steel structures -- pre-engineered components assembled on-site -- are heavily used across commercial and industrial projects. However, demand has collapsed alongside a broader national development slowdown.

Implementation of Bangladesh’s Annual Development Programme fell to a 53-year low in fiscal year 2025-26, with authorities executing just 67.52 percent of the revised budget.

Public sector demand for locally manufactured prefabricated steel has dropped by nearly 90 percent, according to Md Sarwar Kamal, managing director of McDonald Steel Building Products Ltd.

Industry insiders estimate the domestic market at Tk 4,000 crore, with industrial projects accounting for 80 percent of demand, followed by commercial (15 percent) and residential (5 percent) construction.

Despite a government directive mandating local construction materials in public projects, industry officials allege foreign-funded developments continue to import finished steel duty-free.

“This creates a serious disadvantage for local investors,” Sarwar said.

Foreign suppliers are often able to bring finished structures into the country under duty-exempt arrangements, undermining local producers, he added.

In response to the market imbalance, McDonald Steel has urged the National Board of Revenue (NBR) to either offer concessional customs duties on imported raw materials used in structural steel production or levy equivalent duties on imported finished components.

“This policy does not support the growth of the local prefabricated steel structure industry,” Sarwar stressed.

He emphasised that the duty disparity is especially damaging given the substantial capital domestic firms have already invested in modern manufacturing plants, machinery, advanced technology, and workforce training.

Local producers have demonstrated the capacity to meet international standards and have previously supplied major national infrastructure projects, according to Sarwar.

Local manufacturer Tiger Steel invested roughly Tk 180 crore in 2021 to build a facility in Bhaluka, Mymensingh, anticipating a surge in industrial expansion.

However, the fallout from the Russia-Ukraine war, a weakening domestic economy, dollar shortages, and subsequent political instability severely disrupted those growth plans. New investment largely dried up, driving demand for industrial construction materials down to near zero.

“I am looking for a buyer for the factory because it has become a burden for me,” said Liton Kumar Sharma, managing director of Tiger Steel.

Liton noted that the plant is currently operating at no more than 15 percent of its capacity, forcing the company to slash its workforce from 250 to approximately 110 employees amid slim prospects for a near-term market recovery.

The factory’s retrenchment underscores a broader vulnerability across the sector: when industrial investment slows, demand for prefabricated steel falls in tandem.

The downturn has impacted major producers across the board, though some market segments show signs of resilience.

PEB Steel is currently operating at roughly 60 percent of its production capacity after industrial orders dropped by about 20 percent, according to Jowher Rizvi, managing director of the company and president of the Steel Building Manufacturers Association of Bangladesh.

To adjust, the firm has cut operations from two shifts to one, producing around 2,000 tonnes of steel structures per month.

While Jowher characterised the slowdown as a reflection of broader economic cooling rather than a critical failure, he noted that investment decisions typically pause ahead of the national budget as businesses await policy clarity on taxes and duties.

He also criticised the misuse of duty-free import privileges by some companies operating in Export Processing Zones (EPZs) and special economic zones, alleging that surplus duty-free steel enters the domestic market to unfairly compete with local makers.

Despite weaker orders, Jowher said his company would survive, although business “could have been much better.”

Meanwhile, certain players are tapping into alternative sources of demand. Steelpac, an Energypac concern, is reporting steady order inflow driven primarily by defence infrastructure and solar energy developments.

The firm, which holds an annual production capacity of around 15,000 tonnes, is currently producing about 800 tonnes a month and executing a 2,500-tonne contract at the Rajendrapur Cantonment. Almoy Biswas, chief engineer at Steelpac, said rising inquiries from defence authorities and prospective utility-scale solar projects are expected to generate additional momentum.

Royal Footwear expects its profit to jump by 50-60% if it can utilise the funds raised from the capital market as planned, primarily by repaying bank loans, cutting interest costs, and ensuring a steady supply of raw materials and spare parts.

The 100% export-oriented footwear manufacturer also expects its revenue to grow by 20-30%, as the funds will strengthen its working capital and support production, the company said.

Royal Footwear is raising Tk12 crore through an Initial Qualified Investor Offer (IQIO) on the SME platform. The Bangladesh Securities and Exchange Commission approved the proposal at its 1,020th commission meeting held on 14 July.

As part of the offer, the company will issue 12 lakh shares to qualified investors at a face value of Tk10 each.

Factory running at full capacity

During a recent visit to the company's factory at Tilargati in Tongi, Gazipur, The Business Standard found all three production lines running at full capacity.

The factory manufactures footwear for a host of international brands, including Deichmann, Intersport, Cisaisa, Arena, RedTape, Kappa, Admiral, Furo Sports Shoes, Bata, Bartek, ZXY, CAT, Umbro, Lidl, Fila, LPP and CCC.

Royal Footwear exports its products to markets such as Germany, Italy, Poland, Switzerland, the United States and the United Arab Emirates. It also supplies footwear to ROSS, a leading footwear retailer in the US.

Around 750 workers were engaged in production during the visit. Company officials said the workforce swells to more than 1,200 during the winter season, when the factory runs in two shifts. The company has also set up a training centre for new workers.

Most of the funds to repay loans

According to the approved utilisation plan, Tk8 crore of the Tk12 crore proceeds will go towards repaying bank loans, Tk2 crore towards purchasing raw and packaging materials, Tk1.67 crore towards procuring spare parts, and the remaining Tk33 lakh towards IQIO-related expenses. This means two-thirds of the funds raised will be used to reduce bank debt.

The company expects the repayment to lower interest expenses and ease pressure on cash flow, while spending on raw materials and spare parts will help maintain uninterrupted production.

Royal Footwear Chairman Md Zakir Hossain Patwari said the capital market funds would strengthen the company's financial position and support production.

"Repaying a significant portion of our bank loans will reduce interest expenses. At the same time, ensuring adequate supplies of raw materials and spare parts will reduce the risk of production disruptions," he said.

The company expects these measures to boost profit by 50-60%, though actual growth will depend on production, export performance, interest expenses and international market demand.

Revenue may rise 20-30%

Company officials said the funds would improve working capital availability and production efficiency. While production capacity is not expected to grow at the same pace as profit, revenue could rise by around 20-30%, they said.

Royal Footwear currently runs three production lines and plans to set up a second production unit on 206 decimals of land in Ashulia.

The new unit is expected to boost production capacity, allowing the company to meet growing demand from existing buyers while taking on orders from new international customers.

Buyer requirements behind listing

According to company management, the decision to enter the capital market was driven not only by the need for funds but also by the requirements of international buyers.

European buyers are increasingly focusing on corporate governance, transparency, compliance and accountability alongside product quality, pricing and production capacity, the company said.

Officials said several international buyers had encouraged Royal Footwear to go public, noting that stronger governance and compliance standards can, in some cases, help suppliers secure larger orders from global buyers.

Patwari said the listing would strengthen the company's transparency, accountability and corporate governance, and help build greater confidence among international buyers.

Second fundraising attempt

Royal Footwear had initially applied for a similar fundraising proposal in 2024 but later withdrew it, citing political uncertainty, a slowing economy and an unfavourable business environment.

With the business environment now improving, the company has revived its fundraising plan.

Established in 2014, Royal Footwear currently exports footwear to several international markets and manufactures products for multiple global brands.

The company now plans to use capital market financing to cut financial costs, strengthen production capacity, meet international buyer requirements and expand its export business.

An immediate relief for industries, power plants and household consumers from fuel crunch comes as the closed floating storage and regasification unit (FSRU) resumes operation.

The much-cherished development came in the early hours of Thursday (August 6) after two weeks of ordeals following the tripping of the US company-owned facility after an accident.

Located on the Moheshkhali island in the Bay of Bengal, the unit resumed operation around 3:00am with successful repairing of one of its two boilers and was currently re-gasifying around 115 million cubic feet per day (mmcfd) of liquefied natural gas, Petrobangla spokesperson Tariqul Islam Khan told The Financial Express.

With the resumption of the FSRU operation, Bangladesh's overall LNG regasification from its two FSRUs reached around 620mmcfd, from previous day's 490mmcfd, he said.

Regasification of LNG from the damaged unit is expected to reach above 250mmcfd from August 7, and overall regasification to hit around 800mmcfd after ship-to-ship transfer of an LNG cargo into this floating terminal, he said.

"Full-scale operation of the accident-ridden FSRU might take one more week," said the Petrobangla official.

Gas supplies across the country have increased with the resumption of the FSRU, he added.

Power, Energy and Mineral Resources Minister Iqbal Hasan Mahmud told reporters on Thursday gas supply across the country would return to normal within the next two to three days as the FSRU has resumed operations.

The minister said eventually gas transmission would resume and the pressure in the gas network would gradually improve.

Replying to a question on when the gas supply would return to normal, he said, "It will take at least two to three days."

"We will be able to overcome the current situation," he added.

The minister said the temporary gas shortage had affected electricity generation, resulting in load shedding in different parts across the country, as several power plants were forced to shut down due to the shortage.

Industries, power plants, and household consumers have now started getting gas with higher pressure compared to the crisis period in the past two weeks.

The abrupt operation closure of the FSRU on July 21 affected delivery of two LNG cargoes carried by Gunvor Singapore Pte Ltd and TotalEnergies Gas & Power Ltd.

The vessel carrying Gunvor's LNG remained stranded in the sea for more than a week until July 29 while that of TotalEnergies LNG over a week since July 26 failing to deliver LNG to the accident-ridden FSRU.

State-run Rupantarita Prakritik Gas Company Ltd (RPGCL) was, however, able to defer both cargoes following discussions with the suppliers.

The country's LNG-cargo purchases from spot market also dipped in August due to the FSRU accident as the South Asian country could purchase only two spot cargoes for August delivery windows with two more spot LNG tenders on offer, Khan said.

Bangladesh purchased eight spot LNG cargoes for July delivery and seven in each of the previous three months since April.

Bangladesh is currently struggling to meet its gas demand amid elevated LNG prices and as contracted long-term LNG suppliers continue to restrict scheduled cargo delivery.

Disruptions to long- and short-term LNG supplies due to the war in the Middle East coupled with restrictions on natural gas supplies after operation closure of the damaged FSRU dragged down the country's overall natural gas supply to about 2,140mmcfd on August 5, with 490mmcfd of regasified LNG, down from the pre-accident level of 2,642mmcfd, according to official Petrobangla data.

Bangladesh's natural gas demand is about 4,000mmcfd, according to Petrobangla.

People will soon be able to borrow digitally from banks to pay utility bills and top up their mobile phones. The interest-free loans, ranging from Tk 50 to Tk 5,000, will have to be repaid within 30 days.

There will be no interest on such loans. Banks will instead be allowed to charge a fixed service fee based on the amount, according to a draft policy by the Bangladesh Bank (BB).

The central bank said the facility would help expand digital financial services and promote a cashless economy.

The BB has published the draft for public consultation and feedback. Central bank officials said they would review comments from stakeholders before issuing the final policy.

The maximum service fee will be Tk 5 for loans of Tk 50 to Tk 250. The fee will rise to Tk 10 for loans of Tk 251 to Tk 500, Tk 15 for loans of up to Tk 1,000, Tk 25 for loans of up to Tk 2,000, Tk 35 for loans of up to Tk 3,000, and Tk 50 for loans of Tk 3,001 to Tk 5,000.

Banks will not be allowed to charge any interest, penalty, processing fee or other charge beyond the fixed service fee. Customers who repay their loans before maturity will also not have to pay an early settlement fee.

The entire lending process will have to be completed digitally. Instead of physical signatures, banks will have to verify customers through biometric authentication and obtain their consent digitally.

Banks must also verify customers through registered mobile SIMs and one-time passwords, and use two-factor or multi-factor authentication where necessary.

According to the draft, bank agents and third-party service providers will not be allowed to store customer biometric information.

To strengthen cybersecurity and protect customer data, commercial lenders will have to store all customer and loan-related information at data centres located in Bangladesh, in line with the BB’s cloud computing and cybersecurity guidelines.

For such small loans, real-time checks through the Credit Information Bureau (CIB) have been temporarily relaxed until the BB’s API-based 24/7 CIB system becomes fully operational. However, banks must put safeguards in place to prevent loans from being disbursed to defaulters.

Banks will also not be allowed to charge customers a CIB inquiry fee for this product.

Before disbursing a loan, banks must collect information about a borrower’s existing loans from other banks, finance companies and mobile financial service providers, where applicable, to comply with the Bank Company Act.

Banks will have to clearly explain the loan amount, repayment period, fees and repayment methods before obtaining customers’ consent, as per the draft. Besides, banks will have to take steps to improve customers’ financial literacy.

Before launching it commercially, scheduled banks will have to pilot the product for at least six months. After a successful evaluation, commercial lenders will be allowed to roll out the product after obtaining approval from their respective boards of directors.

Seeking anonymity, a senior central bank official told The Daily Star that City Bank has applied to the BB to introduce the loan product. The application prompted the central bank to prepare a policy that can be used by all banks.

Muhit Rahman, managing director of One Bank, said, “This will be a good move. Our neighbouring countries already have such loan products.”

He said the central bank’s draft policy is still at a preliminary stage and needs further clarification on issues such as borrower identification, borrower assessment and other operational aspects.

The scheduled banks disbursed Tk 428.34 billion (Tk 42,834.16 crore) in agricultural and rural credit in the just-concluded fiscal year 2025-26, exceeding the central bank’s annual target of Tk 390 billion (Tk 39,000 crore) (9.83 percent), according to a monthly report released by Bangladesh Bank (BB).

The report, titled “Monthly Report on Agricultural and Non-Farm Rural Credit Position” and prepared by the Agricultural Credit Department-1 (Monitoring and Oversight Wing) of the central bank, shows disbursement through 58 participating banks rose 14.76 percent compared to Tk 373.26 billion (Tk 37,326.52 crore) disbursed in FY2024-25.

Including Tk 13.34 billion (Tk 1,334.22 crore) disbursed by the Bangladesh Rural Development Board (BRDB), the total agricultural credit flow for FY26 stood at Tk 441.68 billion (Tk 44,168.38 crore), up 13.97 percent from Tk 387.54 billion (Tk 38,754.26 crore) in the previous fiscal year.

Target achievement by bank category:

Specialised banks – Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank and Probashi Kallyan Bank – posted the highest target achievement at 123.40 percent, disbursing Tk 126.16 billion (Tk 12,615.57 crore) against a target of Tk 102.23 billion (Tk 10,223 crore).

State-owned commercial banks achieved 109.89 percent of their Tk 36.57 billion (Tk 3,657 crore) target, disbursing Tk 40.19 billion (Tk 4,018.62 crore), while foreign commercial banks reached 104.05 percent of their Tk 15.93 billion (Tk 1,593 crore) target with disbursement of Tk 16.57 billion (Tk 1,657.46 crore).

Private commercial banks, the single largest contributor to overall disbursement, achieved 108.05 percent of their Tk 171.06 billion (Tk 17,106 crore) target, disbursing Tk 184.83 billion (Tk 18,483.19 crore), which alone accounted for 43.15 percent of the year’s total agricultural credit.

Islamic banks were the only category to fall short of their target, disbursing Tk 60.59 billion (Tk 6,059.32 crore) against a target of Tk 64.21 billion (Tk 6,421 crore), an achievement rate of 94.37 percent and a 1.50 percent decline from the previous year.

Under the Agricultural and Rural Credit Policy and Programme for FY26, banks were required to disburse 55 percent of credit to the crops sector, 20 percent to livestock and poultry, 13 percent to fisheries, 2 percent to irrigation and agricultural equipment, and the remaining 10 percent to non-farm rural income-generating activities.

Actual disbursement, however, showed a somewhat different pattern: crops received 47.32 percent of total disbursement, livestock and poultry 26.38 percent, fisheries 13.33 percent, non-farm rural credit 11.68 percent, and irrigation and agricultural equipment combined just 0.93 percent. A further 0.37 percent went to grain storage and marketing.

Loan recovery outpaces disbursement growth:

Recovery of agricultural loans grew faster than disbursement during the year, rising 19.99 percent to Tk 456.27 billion (Tk 45,626.93 crore) from Tk 380.24 billion (Tk 38,024.50 crore) in FY25. Amounts due for recovery also rose 9.37 percent to Tk 660.26 billion (Tk 66,025.75 crore).

Overdue loans fell 8.43 percent year-on-year to Tk 198.07 billion (Tk 19,807.33 crore), while classified agricultural loans declined 5.92 percent to Tk 185.78 billion (Tk 18,578.47 crore), offering some relief after a sharp jump in both categories during FY25.

Foreign commercial banks reported zero overdue and zero classified loans in both fiscal years, while Islamic banks saw their overdue loans surge 73.11 percent and classified loans nearly two-and-a-half times higher, the only category to see a rise in both indicators.

Outstanding agricultural credit across all bank categories stood at Tk 635.74 billion (Tk 63,574.38 crore) at the end of FY26, up 5.55 percent from Tk 602.32 billion (Tk 60,232.42 crore) a year earlier.

Month-wise figures show disbursement fluctuated through the year, peaking in December 2025 at Tk 49.15 billion (Tk 4,915.49 crore) before falling sharply in the following months. Disbursement picked up again in June 2026, the final month of the fiscal year, rising 29.47 percent from May to close the year at Tk 47.57 billion (Tk 4,757.55 crore) for the month.

The Bangladesh Rural Development Board disbursed Tk 13.34 billion (Tk 1,334.22 crore) in agricultural credit in FY26, 6.55 percent lower than its Tk 14.28 billion (Tk 1,427.74 crore) disbursement in FY25, against a target of Tk 14.86 billion (Tk 1,486.10 crore). Recovery through BRDB, however, rose 2.71 percent to Tk 13.11 billion (Tk 1,311.23 crore).

BB data going back to FY2016-17 shows agricultural credit disbursement has more than doubled over the past decade, from Tk 209.99 billion (Tk 20,998.70 crore) to Tk 428.34 billion (Tk 42,834.16 crore), alongside a steady rise in the annual disbursement target, which has grown from Tk 175.5 billion (Tk 17,550 crore) to Tk 390 billion (Tk 39,000 crore) over the same period.

The report noted that the agriculture sector continues to contribute 11.71 percent to Bangladesh’s GDP and employs around 46 percent of the country’s workforce, underlining its centrality to food security and rural livelihoods even as the sector faces mounting pressure from climate change and shrinking arable land.

The central bank’s report cautioned that despite the positive overall disbursement picture, the continued scale of overdue and classified loans “compels” close attention to recovery and default management to sustain healthy agricultural financing going forward.

Chinese exports and imports soared in July, official data showed Friday, as the manufacturing powerhouse benefits from a global AI boom lifting overseas demand for its tech products.

The world’s second-largest economy last year achieved a historic trade surplus of nearly $1.2 trillion, helping its manufacturing sector through a prolonged slump in domestic consumption.

The export boom has been propelled further this year by increased demand for Chinese data-processing equipment and related components, as companies rush to build artificial intelligence capacity.

Exports climbed 23.9 percent year-on-year last month, the General Administration of Customs (GAC) reported, compared with a 23.0 percent forecast by Bloomberg.

Overseas shipments of computers and related parts jumped 45.2 percent on year in the first seven months, the data showed.

“Export and import values remain elevated, helped by soaring global demand for electronics and green tech products,” wrote Julian Evans-Pritchard of Capital Economics.

China’s trade surplus appears to be on pace to match that of last year, reaching $687 billion through the end of July, the data showed Friday.

The yawning gap has increasingly raised eyebrows abroad -- particularly in Europe, where leaders worry about floods of Chinese exports squeezing out local manufacturers.

Beijing has insisted it never deliberately pursued a trade surplus.

The Communist Party’s Politburo -- the decision-making body headed by President Xi Jinping -- urged a more “balanced” trade development at a key meeting late last month.

“Export growth continued to support the economy in July,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, wrote in a note after Friday’s data.

“I expect intense negotiations between China and (its) major trading partners in coming months on what can be done to make trade more balanced,” he added.

Imports increased 27.5 percent in July, extending this year’s strong performance even as main indicators of domestic demand have remained weak.

However, that was slower than the 36 percent surge seen in June, and also missed a Bloomberg forecast of 29.5 percent growth.

The growth has been achieved despite considerable pressure on the global trading system from the war in the Middle East and simmering trade frictions between Beijing and Washington.

China’s shipments to the United States rose 17 percent year-on-year last month, Friday’s data showed, as the countries remain locked in a trade war despite efforts to ease tensions.

That brought China’s surplus with its superpower rival this year to nearly $171 billion through the end of July, according to the official data.

The latest figures come days after a fresh flare-up in trade tensions between the world’s top two economies.

Following sanctions imposed by Washington over forced labour and national security concerns, Beijing on Wednesday announced restrictions on drone exports to the United States and blacklisted six firms.

China and the United States spent much of last year embroiled in an escalating trade war but reached a truce when US President Donald Trump met Xi in October.
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The relationship will undergo further scrutiny in coming weeks as officials prepare for a scheduled state visit by Xi to the United States in late September.

High taxes and weak returns are discouraging investment in Bangladesh's travel, tourism and aviation sectors despite their strong growth potential, experts said at the launch of the Travel and Tourism Development Centre (TTDC) at Hotel InterContinental Dhaka yesterday (8 August).

Policy gaps, limited investment, weak coordination and institutional challenges are also holding back the industry despite the country's rich tourism assets and rising demand, they said.

The newly launched TTDC aims to promote sustainable development of the tourism, hospitality and aviation sectors through public-private collaboration, providing a platform for policy dialogue, knowledge sharing, industry cooperation and advocacy, while strengthening Bangladesh's international tourism positioning.

Delivering the keynote, TTDC executive committee member and ShareTrip co-founder and CEO Sadia Haque said barriers must be addressed to make sector investment more viable.

"Bangladesh has a strong story to tell, but we are not communicating that story effectively," she said, adding that adverse travel advisories discourage international visitors.

There have, however, been positive developments, Sadia said. In July 2026, the US lowered its travel advisory for Bangladesh from Level 3 to Level 2, while Japan reduced its advisory from Level 2 to Level 1.

Civil Aviation and Tourism Minister Afroza Khanam called for travel, tourism, aviation and hospitality stakeholders to work together to bring the industry up to international standards.

The government, working under the prime minister's directives, is taking steps towards that goal, she said, expressing hope that TTDC would provide an important platform.

Tourism currently contributes around 3% of Bangladesh's gross domestic product, and the government aims to raise this to 6-7%, Khanam said. She urged greater private-sector coordination and participation in sustainable development, assuring stakeholders of policy support and necessary assistance.

She also said the sector had seen little significant development over the past 17 years, but the current government was taking initiatives to harness its untapped potential.

TTDC President Kazi Wahidul Alam said the organisation's ultimate goal was an integrated travel ecosystem with efficient airports, competitive airlines and seamless visitor experiences.

Government, private-sector and investor collaboration is essential to unlock Bangladesh's potential, create opportunities for young people and strengthen its global image, he said.

TTDC executive committee member Shahid Hamid said tourism already contributes nearly 3% of gross domestic product, equivalent to about $10 billion, and supports more than 20 lakh jobs across hotels, airlines, restaurants and local tourism services.

These services span more than 30 districts with recognised tourist destinations. Despite being a significant industry, much of its potential remains untapped, he said, calling for a stronger platform to bring the country's tourism attractions together and stressing the private sector's leading role.

Bida Chairman Ashik Chowdhury said Bangladesh had never properly attempted to build a strong national brand despite having the resources.

Developing and promoting one would require around $8 million-$15 million annually, compared with an Annual Development Programme of about $25 billion and a total government budget of around $78 billion, he said.

The issue is now receiving high-level attention, Ashik said, citing a meeting last Saturday with the prime minister, several ministers and private-sector representatives on "Brand Bangladesh". "We worked through the issues and now have a strategy in place," he said.

CPD Research Director Khondaker Golam Moazzem called for greater private-sector participation supported by appropriate policies and institutional structures. Without stronger private-sector involvement, the sector cannot move forward effectively, he said.

The Ministry of Civil Aviation and Tourism received around Tk1,800 crore this year, but most of the allocation is for local airport infrastructure, leaving very little for broader travel and tourism development, he added.

The minister said TTDC's launch was an important step, providing a permanent forum for public-private collaboration and linking government ambitions with the infrastructure, expertise and cooperation needed for tourism development.

Bangladesh's two leading apparel sector trade bodies - Bangladesh Garment Manufacturers and Exporters Association (BGMEA), and Bangladesh Textile Mills Association (BTMA) - have joined hands to help achieve the country's $100 billion apparel export target.

To this end, the two organisations signed a Memorandum of Understanding (MoU) at a ceremony held at the Gulshan Club in Dhaka today (4 August).

BGMEA President Mahmud Hasan Khan Babu and BTMA President Showkat Aziz Russell signed the MoU on behalf of their respective organisations.

Under the agreement, the two associations will jointly organise the Bangladesh International Textile and Apparel Machinery Exhibition (BITMA), which will be held in December.

The organisers said the exhibition and the MoU are significant steps toward creating a stronger, more innovative, environmentally friendly and technologically advanced platform for Bangladesh's textile and ready-made garment (RMG) sector.

They added that the primary objective of the international exhibition is to establish Bangladesh as a globally recognised hub for sustainable textile and apparel manufacturing by integrating state-of-the-art machinery, artificial intelligence (AI) technologies, fashion trend showcases, networking opportunities, technology transfer, skills development, sustainability initiatives, investment promotion and international partnerships across the textile and RMG industries.

Speaking at the event, BGMEA President Mahmud Hasan Khan Babu said that although differences of opinion occasionally arise between garment and textile entrepreneurs, both sectors share the same goal.

"In some cases, issues arise regarding Proforma Invoices (PIs). …A joint arbitration team may be formed to ensure that neither party dishonours the Proforma Invoice (PI) or the Letter of Credit (LC)," he said.

BTMA President Showkat Aziz Russell said the association's biennial textile machinery exhibition, previously known as DTG, would become a larger, more meaningful and internationally recognised event through the partnership with BGMEA.

Bangladesh's economic outlook remains broadly optimistic following ongoing structural reforms, greater policy flexibility and easing global energy prices, according to a latest central-bank assessment.

"Measures to revitalise distressed industries, reopen closed factories, and expand access to bank financing through targeted credit stimulus packages are expected to support job creation and stronger economic development over the medium term," says the Bangladesh Bank (BB) in its latest 'Bangladesh Bank Quarterly (BBQ)'.

The observations came as the central bank unveiled a Tk 600-billion stimulus package recently to support the struggling private sector, encourage investment and accelerate economic recovery.

The package, unveiled by BB Governor Md Mostaqur Rahman on May 23, aims to generate around 2.5 million direct and indirect jobs through sector-specific refinancing schemes and targeted credit support.

The January-March BBQ, however, said the third quarter (Q3) of the outgoing fiscal year (FY) 2025-26, presents a mixed economic picture, with the real sector facing near-term headwinds from broad-based sectoral moderation and persistent inflation, while the external sector shows relative resilience.

"The implementation of the proposed stimulus package remains slow, mainly due to inadequate utility support, particularly shortages of power and energy," Md. Ezazul Islam, Director-General of the Bangladesh Institute of Bank Management (BIBM), told The Financial Express in response to a query.

Dr Islam, a former executive director of the BB, said the government should adopt a pragmatic policy to ensure an adequate supply of gas and electricity, especially for the private industrial sector, to facilitate investment and economic recovery.

Bangladesh's economy showed slower momentum in the Q3 of FY'26, as real GDP (gross domestic product) growth moderated amid a broad-based slowdown across all three major sectors -- agriculture, industry and services, according to the BB assessment.

Inflation, however, remained elevated, warranting the continuation of a contractionary monetary-policy stance, the BBQ says, adding that the external sector demonstrated resilience, underpinned by record-high remittance inflows, despite ongoing geopolitical tensions in the Middle East.

Meanwhile, the banking sector continued to undergo structural reforms, although sustained efforts would be required to translate these initiatives into tangible improvements in overall financial health, the central bank has explained.

The quarterly health check on the economy also shows that the country's banking sector continued to navigate a challenging landscape in the Q3 under consideration, marked by deteriorating asset quality, persistent capital shortfalls, and weak profitability.

The gross non-performing loan (NPL) ratio rose to 32.26 per cent in the Q3 of FY'26 from 30.60 per cent in the previous quarter.

"Despite these challenges, funding and liquidity conditions improved, supported by stable deposit growth and a higher excess Statutory Liquidity Ratio (SLR)," the BBQ reads.

This improvement reflects subdued credit demand, cautious lending, and a stronger preference for risk-free government securities, it explains.

The central bank also has said ongoing reform initiatives and the implementation of risk-based supervision (RBS) are expected to strengthen market discipline, enhance sector resilience, and support financial stability over time.

On the other hand, inflationary pressures persisted through the Q3 of FY'26. Point-to-point headline inflation edged up to 8.71 per cent in March 2026 from 8.49 per cent in December 2025, driven mainly by stronger consumer demand during Holy Ramadan and Eid, as well as global supply disruptions stemming from conflicts in the Middle East.

Non-food inflation eased marginally to 9.09 per cent in March 2026 from 9.13 per cent in December 2025, while food inflation rose to 8.24 per cent from 7.71 per cent, reflecting higher prices for meat, fish, fruits, vegetables, and spices.

"The wage rate index rose slightly to 8.09 per cent in March 2026 from 8.07 per cent in December 2025, but remained below the inflation rate, leaving real wages in negative territory and continuing to erode household purchasing power," the BBQ explains.

Describing developments in the external sector, the BBQ concludes that Bangladesh's external outlook remains cautiously optimistic, supported by robust remittance inflows, improved financial-account performance and continued exchange-rate stability.

The world is on the verge of another bout of food inflation as wars in Iran and Ukraine along ​with El Nino create a perfect storm of higher costs and lower crop yields, the chief economist of the ‌United Nations Food and Agriculture Organization said.

Food prices were a key driver of the 2022 global inflation surge but have been relatively benign so far this year, even tempering in some places the surge caused by high energy costs.

This calm is likely to be temporary, however, as higher crude oil ​prices, the loss of fertiliser from the Gulf region, the shortage of diesel in some parts of the world ​and extreme weather are feeding through to costs and will show up in consumer prices, even ⁠if with a delay.

Costs seen accelerating by year-end, next year

"I expect that commodity prices will start to increase more now ... and ​food prices will start increasing by the end of the year, and next year for sure they will increase more," Maximo Torero ​told Reuters in an interview.

"The transmission from the commodity to the final food price is around three to six months," he said.

Although some commodity prices, such as wheat, maize and rice, have increased in recent months, most still reflect relatively good harvests, rather than likely difficulties in the coming year.

"The ​Strait of Hormuz is a problem that affects all the inputs of agricultural commodities, agricultural systems," Torero said. "Brent oil, because it's ​used for pumping, packaging, processing, and transportation. And natural gas because it's used for fertilisers."

Meanwhile, the damage inflicted by Ukraine on Russia's oil and ‌gas infrastructure curtails the export market for diesel and natural gas, both of them key inputs in food production.

Since commodity prices are global, this inflicts pain across the world, even if richer countries have more cash to buffer producers.

"You're hearing this in Europe, in the U.S., Brazil and in Asia," Torero said. "Tight margins are putting stress in planting decisions."

Indeed, even in the U.S., which is self-sufficient for ​most key inputs, without federal ​assistance farmers growing nine principal ⁠crops may lose $32 billion in 2027, the American Farm Bureau Federation, an industry lobby group, said.

On a per-acre basis, every crop analysed is projected to remain below breakeven in 2027, it said.

Global ​wheat and corn planting was already cut in the first three months of the Iran war, ​and some US ⁠producers have shifted to soybeans, because they require lower fertiliser inputs.

Australia, one of the world's top crop exporters, recently said that winter crop production is seen down by 21% in part because of a significant increase in both fuel and fertiliser prices and uncertainty over the ⁠availability of ​key inputs.

Meanwhile, this year's El Nino weather phenomenon is likely to be especially ​strong, significantly shifting rainfall patterns, likely impacting commodity prices and potentially pushing tens of millions into acute food insecurity.

The monsoon in India is already delayed, and below-average rainfall ​is seen this month, a potential hit for rice production that could impact global commodity costs.

The Bangladeshi taka remained one of the most stable currencies in South Asia and neighbouring economies over the past year, depreciating by just 0.59 percent against the US dollar between March 2025 and March 2026, according to the Bangladesh Bank quarterly report.

The central bank’s latest data showed that only Cambodia performed slightly better, with its currency weakening by 0.44 percent during the period.
Among the peer countries, India experienced the sharpest depreciation, with the rupee losing 8.94 percent of its value against the US dollar.The Sri Lankan rupee depreciated by 5.11 percent, followed by the Philippine peso at 3.70 percent and the Indonesian rupiah at 2.67 percent.

In contrast, the Chinese yuan appreciated by 5.14 percent, making it the strongest-performing currency among the countries compared. The Pakistani rupee also posted a modest appreciation of 0.39 percent against the US dollar.

Officials at the central bank said that the relatively limited depreciation of the taka came after Bangladesh Bank adopted a more market-based exchange rate regime and tightened monetary and foreign exchange management to reduce volatility in the currency market.

In May last year, Bangladesh adopted a market-based exchange rate regime to meet a condition by the International Monetary Fund (IMF).

The central bank has also been able to rebuild foreign exchange reserves through stronger remittance inflows and improved export earnings, helping ease pressure on the local currency.

After the fall of the Awami League-led government in August 2024, remittance inflows continued to rise, and the BB was able to build its forex reserves, according to BB officials.

As of July 30, the foreign exchange reserves (BPM6) stood at $31.60 billion, up from $24.86 billion during the same period last year, according to Bangladesh Bank data.

Over the past year, the exchange rate of the US dollar against the local currency has hovered between Tk 122 and Tk 123, indicating a stable currency.

Industry insiders said that a relatively stable exchange rate can help contain imported inflation by reducing the cost of essential imports such as fuel, food, and industrial raw materials.

However, in recent months, the US dollar has continued to strengthen against the taka amid increased demand for foreign currency to settle import bills.

On August 4, the interbank exchange rate of the US dollar stood at Tk 123.81, up from Tk 123.69 per dollar a few days earlier, according to Bangladesh Bank data.

Bank Asia PLC has received regulatory clearance to double its authorised share capital to Tk3,000 crore, a strategic move that provides the lender with significant room for future capital expansion.

According to a disclosure filed with the Dhaka Stock Exchange (DSE) yesterday, the bank's authorised capital has been enhanced from Tk1,500 crore – comprising 150 crore ordinary shares – to Tk3,000 crore, divided into 300 crore ordinary shares with a face value of Tk10 each.

The enhancement has been duly approved and certified by the Registrar of Joint Stock Companies and Firms (RJSC). Consequently, the bank has amended the relevant clauses of its Memorandum and Articles of Association to reflect the new capital structure.

Currently, Bank Asia's paid-up capital stands at Tk1,391.50 crore, meaning the bank now has the flexibility to more than double its existing paid-up base through rights issues or bonus shares in the coming years, according to the market insiders.

The capital restructuring comes at a time when the bank is navigating a challenging earnings period. Bank Asia reported that its consolidated earnings per share (EPS) fell by 16% year-on-year during the first half (January-June) of 2026. The EPS settled at Tk1.77, down from Tk2.11 in the corresponding period of 2025.

The bank attributed the decline primarily to a surge in interest expenses which outpaced interest income, coupled with a contraction in investment income and reduced earnings from commission, exchange, and brokerage services.

Despite the drop in profitability, the bank's balance sheet showed resilience in other key metrics. On a consolidated basis, its Net Asset Value (NAV) per share rose to Tk26.92 at the end of June 2026, compared to Tk24.33 a year earlier.

This growth was driven by an increase in shareholders' equity, supported by higher statutory reserves and the transfer of startup funds from other liabilities.

Furthermore, the bank's net operating cash flow per share (NOCFPS) witnessed a healthy jump to Tk48.77 from Tk37.60, largely due to increased cash inflows from customer deposits and institutional borrowings.

Looking back at the previous calendar year, Bank Asia reported a total net profit of Tk407.25 crore for 2025, yielding an EPS of Tk3.18.

To reward its investors, the bank had disbursed a 17% dividend for the year, consisting of an equal split of 8.5% in cash and 8.5% in stock.

Following the announcement of the capital enhancement yesterday, investor reaction remained neutral on the bourse, with the bank's share price closing unchanged at Tk18 on the Dhaka Stock Exchange.

Bangladesh's overall external assistance confirmation dropped by 37 per cent in the 2025-26 fiscal year, with India not committing even a single penny, officials say.

The lowest-ever aid confirmation by two major development partners - the World Bank and Japan - also affected overall confirmation, they say.

According to the Economic Relations Division (ERD), the development partners made a combined aid commitment of $5.24 billion in the last fiscal year, 37 per cent down from $8.32 billion in FY25.

Bangladesh's largest multilateral donor -- the World Bank -- made the lowest commitment of $820.25 million between July 2025 and June 2026, while the largest bilateral one -- Japan -- committed $314 million.

Other key donors, including China and the Asian Infrastructure Investment Bank (AIIB), committed moderate amounts of $279.84 million and $250 million, respectively.

The second largest multilateral donor -- the Asian Development Bank (ADB) -- made an impressive commitment of $2.685 billion.

"Since aid commitment by key donors, including the World Bank, Japan, China, India, and AIIB, was poor, overall foreign assistance confirmation dropped," says a senior ERD official.

During the previous regime of Sheikh Hasina, India committed a total of approximately $7.36 billion of aid through multiple Lines of Credit (LoCs), grants, and defence loans to fund major infrastructure, connectivity, and security projects in Bangladesh.

It extended an initial $1.0 billion line of credit covering 21 development and transport projects in 2010.

A fresh commitment of $2.0 billion was added to bridge trade gap and improve connectivity infrastructure in FY16 under LoC-II and a massive $4.5 billion under LoC-III in 2017.

The ERD official says not only aid commitment dropped in FY26, but foreign assistance disbursement also decreased.

According to the ERD data, all development partners released $8.07 billion worth of loans and grants in FY26, $494.29 million down from $8.56 billion in FY25.

Of the disbursed aid, the World Bank provided the largest amount of $2.07 billion, ADB $1.91 billion, Russia $1.047 billion, Japan $795.32 million, AIIB $693.13 million, and China $532.88 million.

Meanwhile, Bangladesh had to repay the record highest $4.494 billion against its outstanding debts to the bilateral and multilateral lenders in FY26, the ERD data shows.

Of the amount, the government had to repay $1.54 billion in interest and $2.953 billion in principal.

Agricultural lending by Bangladesh’s banking sector rose nearly 15 percent in fiscal year 2025-26, exceeding the central bank’s annual target, driven by strong lending from specialised and private commercial banks.

Banks disbursed Tk 42,834.16 crore in agricultural and rural credit during the year, up 14.76 percent from Tk 37,326.52 crore a year earlier and equivalent to 109.83 percent of Bangladesh Bank’s Tk 39,000 crore lending target for the country’s 58 participating banks, according to the central bank’s latest agricultural and rural credit report.
Private commercial banks accounted for the largest share of total lending at 43.15 percent, followed by specialised banks, while Islamic banks contributed 14.15 percent.

Specialised banks posted the strongest performance against their targets, disbursing Tk 12,615.57 crore, or 123.4 percent of their allocation.

State-owned commercial banks achieved 109.89 percent of their target, private commercial banks 108.05 percent and foreign commercial banks 104.05 percent.

Islamic banks were the only category to miss their target, disbursing Tk 6,059.32 crore, or 94.37 percent of the planned amount.

The report also highlighted a mismatch between policy priorities and the distribution of credit across sectors. Crop production received 47.32 percent of total lending, below the policy target of 55 percent, while livestock and poultry accounted for 26.38 percent, exceeding the 20 percent target. Fisheries and non-farm rural activities also surpassed their respective allocations.

By contrast, lending for irrigation and agricultural machinery accounted for just 0.93 percent of total disbursement, less than half the policy target of 2 percent.

Agricultural loan recovery rose 19.99 percent year-on-year to Tk 45,626.93 crore. Recoveries increased across all bank categories except Islamic banks, the report said.

Asset quality also improved overall. Overdue agricultural loans fell 8.43 percent year-on-year to Tk 19,807.33 crore at the end of June, while classified loans declined 5.92 percent to Tk 18,578.47 crore.

Foreign commercial banks more than doubled their loan recoveries from the previous fiscal year and reported no overdue or classified agricultural loans for a second consecutive year.

Bangladesh Bank said the stronger lending performance signalled a positive outlook for agricultural finance. However, it warned that the large stock of overdue and classified loans remained a key challenge, underscoring the need to prioritise loan recovery and strengthen the management of defaulted loans.

India’s central bank kept interest rates unchanged on Wednesday as it waits to see whether volatile oil prices caused by the Iran war feed wider inflationary pressures.

The Reserve Bank of India (RBI) said the benchmark repurchase rate, the level at which it lends to commercial banks, would remain at 5.25 percent after a unanimous vote by a six-member panel.

Emerging and frontier market central banks from Indonesia to Sri Lanka have raised rates to curb price rises and boost their currencies since the outbreak of the Middle East crisis in February.

Limited and staggered fuel price hikes by the Indian government have so far shielded citizens from the worst of the war’s economic impact but there are signs that this may not hold.

Retail inflation rose to 4.4 percent in June -- breaching the central bank’s medium target of four percent for the first time in 17 months -- though it remains within RBI’s 2-6 percent tolerance band.

Retail inflation rose to 4.4 percent in June -- breaching the central bank’s medium target of four percent for the first time in 17 months
Bank governor Sanjay Malhotra said economic growth was supported by “resilient domestic demand” and inflation was not “broad-based” yet.

“The MPC (Monetary Policy Committee) noted that even though headline inflation is projected to increase, it is primarily on account of supply side pressures caused by food and fuel. It is not getting broad-based,” Malhotra said in a televised address from the financial capital Mumbai.

“There is a need for greater clarity to emerge, especially regarding inflation, its path and composition before taking any policy action.”

Analysts said Malhotra’s speech had a dovish tinge.

“What stood out just as much as the tone itself was what was missing from it,” Sneha Pandey of Quantum AMC said. With the war still unresolved and already influencing both oil markets and yields, there were ample reasons for the central bank to express greater concern, she said.

“It didn’t... and that comfort is a genuine positive for equities.” Adding to the central bank’s calculations is pressure on the Indian rupee, which slid to a record low before its June policy meeting.

Instead of raising rates, the RBI chose to announce a range of moves aimed at wooing dollar inflows, including a deposit scheme for the Indian diaspora.

These measures have brought in more than $40 billion since June, according to central bank data released last Saturday, boosting the RBI’s forex buffers.

While the steps have helped stop the rupee’s losses, the currency has faced fresh challenges.

India, the world’s third-largest buyer of oil, normally sources about half of its crude through the Strait of Hormuz, which has been effectively closed since the beginning of the war in February.

Analysts say this makes New Delhi among the most vulnerable economies to a global energy shock, as higher crude and fertiliser prices drive up India’s import bill.