China has spent several decades building roads, bridges, tunnel and power plants across Bangladesh. Now, its focus is expanding.

The strongest evidence suggests it has, and the clearest sign is foreign direct investment (FDI).

China became Bangladesh’s second-largest source of net FDI in 2025, accounting for more than 18 percent of total inflows, according to Bangladesh Bank data.

That means nearly one in every five investment dollars entering Bangladesh came from Chinese businesses. Chinese FDI reached a six-year high, while cumulative investment approached $2 billion last year.

In 2025, power attracted the largest share of FDI, receiving $448.18 million, followed by food processing with $410.62 million and textiles and apparel with $360.16 million.

Banking, telecommunications, chemicals and pharmaceuticals, agriculture, leather and information technology also drew substantial investment.

For years, Chinese companies were best known in Bangladesh as engineering, procurement and construction contractors rather than long-term investors. They built landmark projects such as the Padma Bridge Rail Link and the Karnaphuli Tunnel.

Now BB data show their role is changing.

China is increasingly directing capital towards industrial investment, relocating manufacturing and embedding itself more deeply in Bangladesh’s production base.

That change is becoming visible across a series of developments which, taken together, point to a new phase in China-Bangladesh economic relations.

The most significant is the long-awaited start of construction of the China Economic and Industrial Zone (CEIZ) at Anwara in port city Chattogram.

First proposed during President Xi Jinping’s visit to Bangladesh in 2016, the project remained largely dormant for years despite land acquisition and planning. Following Prime Minister Tarique Rahman’s first foreign visit to Beijing in June, it regained momentum.

Designed to attract around $1.3 billion in investment and create more than 1 lakh jobs, CEIZ will be China’s first dedicated industrial zone in Bangladesh. More importantly, it marks a shift from delivering infrastructure to establishing industrial production.

Chinese interest is also expanding outside Chattogram.

During the prime minister’s visit, Dhaka and Beijing signed an agreement to develop the China-Bangladesh Mongla Port Economic Zone in Mongla, an area that had previously featured in India’s industrial cooperation plans.

At the same time, Chinese involvement has widened to include port infrastructure, logistics and industrial development. While many of these projects are still at the planning or memorandum stage, together they suggest China is looking to build industrial ecosystems rather than deliver individual projects.

The timing is no coincidence.

As labour costs rise in China and geopolitical tensions reshape global supply chains, Chinese manufacturers are increasingly relocating labour-intensive production overseas. Vietnam and Cambodia have attracted much of that investment over the past decade.

Bangladesh is now positioning itself as another destination, offering competitive labour costs, preferential access to Western markets and a well-established garment industry.

The energy sector reflects the same trend. Chinese companies continue to pursue opportunities in power generation, renewable energy and liquefied natural gas infrastructure.

Last week, Bangladesh approved in principle the country’s third floating storage and regasification unit (FSRU), which will be built by China at Maheshkhali in Cox’s Bazar.

Chinese investment in textiles, apparel, furniture, plastics, chemicals, batteries and other manufacturing industries also shows this wider regional shift rather than an isolated bilateral development.

Bangladesh’s own investment policy has evolved alongside these global changes.

The Bangladesh Investment Development Authority (Bida) has introduced dedicated engagement mechanisms for Chinese investors. The agency says about 510 Chinese companies now run businesses in Bangladesh across manufacturing, power, textiles, construction and trading.

Mustafizur Rahman, distinguished fellow at local think tank Centre for Policy Dialogue (CPD), said China’s growing investment reflects a convergence of trade ties, industrial familiarity and changing global supply chains.

“China has been Bangladesh’s largest source of imports for years. That has given Chinese businesses a deep understanding of the market,” he said.

Mustafizur said Chinese companies also built confidence through years of involvement in infrastructure, power and construction projects before expanding into manufacturing.

Global supply chain realignment has further strengthened Bangladesh’s position.

“As China moves towards higher-value manufacturing and faces higher US tariffs, labour-intensive industries are relocating overseas,” Mustafizur said.

He said the China Economic and Industrial Zone in Anwara could become a major catalyst for industrialisation by attracting new manufacturers while increasing commercial use of the Karnaphuli Tunnel and Matarbari Port.

“Greater Chinese investment would create jobs, facilitate technology transfer, strengthen foreign exchange earnings and diversify exports,” he said.

Al Mamun Mridha, former secretary general of the Bangladesh China Chamber of Commerce and Industry, said China’s investment story has unfolded in stages.

Chinese firms initially entered Bangladesh as suppliers of affordable industrial machinery, often offering supplier credit unavailable from European or Japanese competitors. They later established operations in export processing zones before expanding into textile machinery, garments, backward linkage industries, power generation and major infrastructure.

The next stage, he said, is manufacturing.

“Chinese companies are now looking beyond construction projects. Many are relocating manufacturing to Bangladesh because of its competitive labour costs, preferential market access and growing domestic market.”

Lee Wai Choong, managing director of Vernon & Oliver Furniture Company Limited, a Chinese mattress manufacturer in the BEPZA Economic Zone in Mirsharai, Chattogram, said Bangladesh offers competitive labour costs, a growing industrial ecosystem and expanding opportunities for labour-intensive production.

As workers gain more skills, he said, the country could gradually attract higher value-added industries including electronics, chemicals, semiconductors and advanced manufacturing.

“BEPZA has set a good example of investor support and responsiveness. If other government agencies could match that level of efficiency, Bangladesh would become much more attractive to foreign investors,” he said.

Nahian Rahman Rochi, executive member of Bida, said the recent increase reflects years of targeted engagement rather than a temporary spike.

“Over the past year, Bida has established a dedicated pipeline and relationship-management mechanism for Chinese investors. We have identified high-potential companies, engaged with them regularly, and worked with relevant agencies to address specific bottlenecks as investors move from initial interest to actual investment,” he said.

The China Economic and Industrial Zone has already received investment proposals worth around $500 million and is expected to become a major platform for export-oriented manufacturing, he said.

Bida also plans to establish its first overseas office in Guangzhou and deepen cooperation with the China Council for the Promotion of International Trade (CCPIT).

“These initiatives will help us build a stronger and more sustainable pipeline of Chinese investment and, crucially, translate investor interest into projects on the ground,” said Nahian.

Bangladesh's statistics agency is set to prepare to digitise the inflation data collection, a move officials say will speed up the release of consumer price figures and strengthen confidence among the people in one of the most closely watched economic indicators.
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The plan is to replace the paper-based price survey system with Computer-Assisted Personal Interviewing (CAPI), according to officials familiar with the initiative.

The shift is intended to address long-standing concerns over the reliability of manually collected price data while allowing the agency to publish monthly inflation figures days earlier than at present.

The Bangladesh Bureau of Statistics (BBS) expects to begin piloting the digital system in August and aims to roll it out later this year if the trial proves successful.

"We expect to publish inflation data within the same month. We may even be able to release the figures by the 25th," a senior BBS official told The Financial Express on Wednesday requesting anonymity because the matter is yet to be formally announced.

The inflation data is vital because it measures how fast prices rise and purchasing power drops, used mainly in wage adjustments in many organisations. It should be guided by the interest rate regime.

The Bangladesh Bank uses it to decide whether to raise the policy rate or not, while companies use it to plan future costs and set product prices.

The BBS currently releases inflation data during the first week of the next month after completing field surveys and data processing.

Officials say the digital platform will automatically detect unusual price movements and require verification before they are incorporated into the Consumer Price Index (CPI), reducing the scope for reporting errors and improving oversight.

The reform also seeks to counter persistent allegations that some enumerators have failed to visit markets and instead completed survey forms from their offices.

Officials say the new system would rely on automated validation tools, making such practices significantly more difficult.

Under the CAPI system, the agency expects to complete price collection, validation, and processing in around 18 days, substantially reducing the time needed to compile the monthly CPI.

The project is being financed under the Statistical Capacity Enhancement and Modernisation Project (SCEMP), which is supported by the World Bank.

The BBS gathers price information from 154 markets nationwide, including 90 urban and 64 rural ones.

Urban coverage includes 12 markets in Dhaka, four in Chattogram, 18 in other divisional cities, and 56 in district towns. Enumerators collect three price quotations for each product and its varieties.

The survey covers 127 food items with 242 varieties and 256 non-food items with 507 varieties.

Prices in Dhaka and Chattogram city corporations are collected weekly, while surveys in other urban centres and rural areas are conducted monthly.

Data is obtained from selected retail outlets and service providers, with average prices used to calculate the indices.

The index is based on the 2021-22 prices, while expenditure weights are drawn from the Household Income and Expenditure Survey 2016-17.

The national CPI combines the urban and rural indices using weights based on the Classification of Individual Consumption by Purpose (COICOP).

The BBS publishes separate inflation measures for the national, urban, and rural populations, with food and non-food indices reported individually.

Elementary indices are calculated using the Jevons formula and chained Jevons methodology.

Bangladesh Bank (BB) has formed a revolving pre-finance scheme worth Tk 20 billion (Tk 2,000 crore) to foster the development, sustainability and international competitiveness of the country’s leather and leather goods sector.
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The central bank issued a circular, signed by Director of its Banking Regulation and Policy Department (BRPD) Gazi Md Mahfuzul Islam, on Thursday, outlining the operational policy guidelines for all scheduled banks.

The main objective of the fund – financed entirely from BB’s own resources – is to meet domestic demand, expand export earnings, promote eco-friendly production, ensure international quality standards, and generate employment opportunities in the leather industry.

Under the guidelines, the fund will operate as a revolving scheme for a tenure of three years, managed and monitored by the SME & Special Programme Department at the central bank’s head office.

All scheduled banks in Bangladesh are eligible to participate in the scheme upon signing a Participation Agreement with the SME & Special Programmes Department. Interested banks must apply to the central bank within 15 working days of approving loans for clients.

At the customer level, the maximum interest rate for loans disbursed under this scheme will be 7 percent per annum. Participating banks will receive pre-finance facilities from Bangladesh Bank at an interest rate of 4 percent. Banks are strictly prohibited from charging any fees beyond the central bank's prescribed schedule of charges.

For setting up new tanneries, installing effluent treatment plants (ETP), and constructing cold storage for raw hide processing, institutions can receive project term loans up to a maximum of Tk 30 crore with a tenure of up to seven years (including a maximum grace period of two years).

For existing tanneries, existing leather product factories, or setting up new leather product units, term loans ranging from Tk 10 crore to Tk 20 crore will be available.

Additionally, working capital loans up to Tk 30 crore can be disbursed to cover operational expenses such as raw material purchases, salaries, and utility bills for up to three years through annual renewals. Ancillary component manufacturers for the leather industry can receive working capital loans up to Tk 5 crore.

Eligibility & Environmental Obligations

The circular prioritises raw hide processors and raw leather processing institutions. However, institutions that currently enjoy loan facilities under other government or central bank funds such as the Export Development Fund (EDF), Export Facilitation Pre-finance Fund (EFPF), or Green Transformation Fund (GTF) will not be eligible to receive loans under this scheme for the same sector. Identified loan defaulters under the Bank Company Act, 1991 are also strictly excluded.

To ensure environmental and compliance targets, the central bank has imposed several special conditions.

Leather processing entities receiving funds must present proof of obtaining Leather Working Group (LWG) certification within two years.

Beneficiary units must meet at least 10 percent of their electricity demand from solar power sources within two years.

Factories must ensure health and safety risk mitigation for workers.

Failure to fulfil these special conditions will disqualify the entity from receiving future loan facilities under this or any other Bangladesh Bank scheme.

Bangladesh’s export sector is facing sharply higher ocean freight rates, largely driven by an escalating conflict between Iran and the US-Israel coalition that has choked shipping through the Strait of Hormuz, according to industry insiders.

However, most garment exporters, who account for the lion’s share of the country’s total exports, are expected to remain shielded from paying those costs directly, stakeholders say.

Import costs have risen too, though by a much smaller margin.

The Mideast conflict deepened this week, with Iran saying it stopped two vessels trying to leave the Strait of Hormuz and turned back four tankers, following a drone attack on ships at an Egyptian port earlier in the week, Reuters reported.

The US and Israel are reportedly planning strikes on Iran’s energy infrastructure, including power plants and refineries, possibly as soon as this weekend, though no final order had been given as of Friday.

RATES FOR MIDEAST TRIPLED

Khairul Alam Suzan, vice-president of the Bangladesh Freight Forwarders Association (BAFA), said freight rates to the Middle East had briefly dropped to $1,400 to $1,500 per container during a ceasefire three weeks ago.

They have since jumped to $5,000 to $6,000.

He also said rates to Europe have climbed from around $4,000 to $5,000 to about $11,000 per container. Rates to Africa are up by another $3,000 to $4,000.

“Freight charges have doubled or even tripled,” Suzan said. “Demand for 40-foot export containers remains high, while many containers are stranded in the Middle East because of the conflict.”

He said shipping lines have rerouted vessels to avoid the Strait of Hormuz, adding to fuel and insurance costs.

Houthi forces in Yemen have this month also begun threatening the Bab el-Mandeb Strait, the other route out of the Red Sea, adding a second pressure point for shippers.

Industry insiders say shipping companies have cut back on export bookings from Bangladesh as well, leaving exporters and freight forwarders paying more and waiting longer for vessel space — in some cases up to three weeks longer.

GARMENTS SHIELDED, FOR NOW: BGMEA

Mahmud Hasan Khan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said most garment exporters are insulated from the immediate impact, since 90 to 95 percent of export orders are shipped on Free on Board (FOB) terms.

“Under FOB contracts, exporters bear transportation costs only up to the port. Ocean freight, container charges and other international shipping costs are paid by overseas buyers,” he said.

But he warned the effects would eventually reach exporters too. “When logistics costs increase, buyers usually reduce imports or place fewer orders,” he said.

Large international buyers are more insulated, he said, since they lock in freight rates through annual contracts with major shipping lines.

Smaller buyers who rely on spot bookings have to absorb the higher rates — and that, he said, could start affecting where they choose to source from.

On the import side, traders report a comparatively smaller 20-30 percent rise in freight rates.

They attributed this partly to container-size dynamics – most inbound cargo moves in 20-foot containers, while exports mostly need 40-foot ones, which are running short during the disruption.

Oil prices closed more than $1 per barrel higher on Friday, ending July with their biggest monthly gains since March, as concerns over global crude flows mounted on Iranian reports that some tankers were forced to turn back in the Strait of Hormuz.

Brent futures settled up $1.09, or 1.2 percent, at $90.12 a barrel, while US West Texas Intermediate (WTI) futures closed up $1.08, or 1.3 percent, at $84.67 a barrel.
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For July, Brent gained 24 percent and WTI rose 21 percent.

The war in Iran, which began on February 28, has sharply curtailed traffic through the Strait of Hormuz, a vital chokepoint that previously carried about a fifth of global crude oil and natural gas supplies, disrupting millions of barrels per day of Middle East output.

Iran has largely blocked shipping through the strait since the conflict began, while its Houthi allies in Yemen this month threatened vessels transiting the Bab el-Mandeb strait at the southern end of the Red Sea, jeopardizing an alternative export route used by Saudi Arabia and other regional producers.

Iran’s Revolutionary Guards stopped two tankers from transiting the Strait of Hormuz, while four others changed course, Fars News Agency reported.

Two very large crude carriers carrying oil loaded from the Gulf exited the strait on Friday, although traffic through the waterway remained sparse, according to Kpler ship-tracking data.

Twenty-nine commodity vessels passed through the Bab el-Mandeb strait on Thursday.

“The market has stopped trading the war and started trading the shipping data,” said Ole Hvalbye, market analyst at SEB Research.

Talks between Iran and Oman on managing the strait continue, according to the Iranian Labour News Agency, despite Tehran’s rejection of Oman’s proposal for joint management of the waterway.

Research firm Gelber & Associates wrote in a note that the “geopolitical risk premium (remains) firmly in place near chokepoints like the Strait of Hormuz. Domestic supply is reinforcing the move as well, with US crude stockpiles ... down to multi-year lows.”

The note was referring to Energy Information Administration (EIA) data showing US commercial crude stocks last week fell to their lowest levels since 2018.

A drone strike that sparked fires on two gas vessels in Egypt’s Mediterranean port of Damietta also raised threats to shipping through the Suez Canal.

Saudi Arabia this week said it is seeking to lead a coalition to boost defense cooperation in the Bab el-Mandeb strait, the Red Sea and the Gulf of Aden.

Ukraine’s military said it hit Russia’s Volgograd oil refinery overnight on Friday, causing a fire at the facility.

In Kazakhstan, Tengizchevroil, the operator of the giant Tengiz field, has resumed oil exports via the Georgian port of Batumi for the first time since March, two sources told Reuters.

Crude oil output in the US fell about 2 percent in May from a record high in April, while exports hit a record high for the second consecutive month, according to EIA data on Friday.

Higher oil prices, however, dented consumption, with demand for crude oil and petroleum products falling more than 3.5 percent in May to about 20.07 million barrels per day, the lowest level since March 2025, the data showed.

A report from Baker Hughes on Friday showed that US energy firms this week added rigs for a sixth time in seven weeks. The number of active rigs is an early indicator of future output.

Separately, a Reuters survey of 31 economists and analysts showed that oil prices are expected to rise further this year.

Brent crude is estimated to average $85.22 a barrel in 2026, up from June’s forecast of $84.50, the survey showed.

Stocks rebounded sharply this week, with the benchmark index recovering most of the previous week's losses as bargain hunters returned to the market amid growing optimism over corporate earnings.

Market operators said investor sentiment improved after retaliatory actions in the Middle East temporarily subsided, easing fears of a further escalation in the conflict.

Expectations of strong quarterly earnings, particularly from banks and several blue-chip companies, also prompted investors to rebuild positions, triggering broad-based buying across the market.

Meanwhile, most listed banks posted double-digit year-on-year profit growth in the first half of 2026, buoyed by higher investment income as well as increased earnings from fees and commissions.

Some of the multinational companies also posted higher profit despite prolonged inflation and rising energy costs, according to their financial statements released during the week.

A leading broker said investors took advantage of the recent price correction to accumulate fundamentally strong stocks, especially those expected to report robust earnings for the April-June quarter.

"The improving earnings outlook, coupled with relatively attractive valuations after the previous week's decline, helped restore confidence among both institutional and retail investors," said the broker.

However, many investors remained cautious over several domestic and external factors. Concerns over disruptions to gas supply, lingering geopolitical tensions in the Middle East and uncertainty surrounding the final amendment to margin loan rules prompted many investors to book profits during the week.

Of the five trading sessions during the week, three closed higher and two sessions ended lower.

The benchmark index of the Dhaka Stock Exchange (DSE) finally climbed more than 91 points or 1.57 per cent to close at 5,895 points, after shedding 96 points in the previous week.

According to EBL Securities, the market demonstrated resilience as renewed buying interest emerged in the final trading session, enabling equities to end the week on a firm positive note.

Expectations of favourable quarterly earnings from key sectors also boosted investor confidence, triggering broad-based buying across the market.

The DS30 Index, which tracks blue-chip companies, advanced 25 points to 2,217, while the Shariah-based DSES Index rose 12 points to 1,195.

Selective heavyweight stocks, including British American Tobacco Bangladesh (BATBC), Pubali Bank, Beximco Pharmaceuticals, Walton Hi-Tech Industries, and Dominage Steel Building Systems, accounted for nearly one-third of the benchmark index's weekly gain.

Trading activity also remained resilient. Total turnover on the Dhaka bourse stood at Tk 52.99 billion during the week, slightly down from Tk 53.16 billion a week earlier.

Consequently, average daily turnover dropped 0.31 per cent to Tk 10.60 billion from Tk 10.63 billion in the previous week, indicating that some investors preferred to remain cautious.

Textile sector accounted for the largest share of weekly turnover at 22.5 per cent, followed by pharmaceuticals with 12 per cent and engineering with 10.8 per cent.

Market breadth was firmly positive, with 264 issues advancing, 89 declining and 35 remaining unchanged on the prime bourse.

Dominage Steel Building Systems emerged as the week's most-traded stock with transactions worth Tk 1.86 billion. It was followed by IT Consultants, Summit Alliance Port, Fareast Knitting and Saiham Cotton.

Most sectors posted gain during the week. General insurance saw the highest gain of 8 per cent, followed by food, engineering, power, banking and pharmaceuticals.

The Chittagong Stock Exchange (CSE) also ended the week higher. Its All Share Price Index (CASPI) rose 140 points to 15,760, while the Selective Categories Index (CSCX) gained 80 points to close at 9,616.

India said Friday it will provide $8.8 billion in financial support for offshore oil and gas exploration as part of its efforts to reduce its heavy reliance on energy imports.

India, the world’s third-largest importer of oil and the second-largest buyer of liquefied petroleum gas (LPG), has faced major disruptions due to restrictions on the Strait of Hormuz driven by conflict between the United States and Iran.

To cushion the impact, New Delhi has expanded its pool of crude suppliers from 27 to 41 countries, including Venezuela, while increasing purchases from Russia and several African nations.

The cabinet, chaired by Prime Minister Narendra Modi, approved what officials described as a “very ambitious” push to explore vast offshore areas on Friday under India’s jurisdiction for untapped oil and gas reserves.

“If exploration is carried out properly, India can achieve substantial production,” Information and Broadcasting Minister Ashwini Vaishnaw told reporters in New Delhi.

Modi first announced the offshore exploration mission during a speech marking the country’s Independence Day in August last year.

India’s Petroleum and Natural Gas Minister Hardeep Singh Puri told AFP last month that the recent energy crunch had provided fresh impetus to India to expand its domestic supplies.

India currently meets only around 10 percent of its crude oil requirements through domestic production.

The cabinet also approved a separate plan to expand renewable energy generation, targeting 102 gigawatts of solar power capacity over the next five years through photovoltaic installations on reservoirs, canals and industrial water bodies.

India’s installed solar capacity currently stands at about 162 gigawatts, among the highest in the world.

“This programme aims to prevent 10 million tonnes of CO2 emissions,” Vaishnaw said.

Energy demand in India, home to more than 1.4 billion people, is expected to continue rising rapidly even as the government pursues its goal of achieving carbon neutrality by 2070.

Listed multinational companies (MNCs) in Bangladesh delivered a resilient performance in the April-June quarter of 2026, with most reporting higher revenue and profit despite persistent inflation and the ongoing energy crisis.

Of the 13 MNCs listed on the Dhaka Stock Exchange, eight posted higher net profits while 10 recorded revenue growth. Together, the blue-chip companies had a market capitalisation of about Tk77,000 crore at the end of the quarter.

Reflecting strong cash generation, Grameenphone declared a 105% interim cash dividend, while Marico Bangladesh announced a 500% interim cash dividend.

Robi Axiata posted the highest quarterly profit at Tk263 crore. British American Tobacco (BAT) Bangladesh reported a 109% year-on-year profit growth to Tk203.67 crore, while Berger Paints Bangladesh doubled its profit to Tk173.2 crore from Tk86.5 crore a year earlier.

Berger attributed the sharp increase to strong sales, strategic price adjustments to offset higher raw material and packaging costs, lower interest expenses on UPAS loans and a reduced effective tax rate following favourable tax adjustments.

LafargeHolcim Bangladesh also maintained steady growth, reporting a net profit of Tk104.47 crore. Chief Executive Officer Iqbal Chowdhury said the performance reflected the company's strong brand equity, innovation and pricing discipline.

Singer Bangladesh and Bata Shoe returned to profit after posting losses in the same quarter last year.

Singer earned Tk13.58 crore but said sales remained below expectations due to persistent inflation, geopolitical uncertainty and adverse weather, which weighed on consumer demand for electronics. The company added that intense competition limited its ability to fully pass higher costs on to customers despite an improvement in margins.

Five MNCs, however, came under earnings pressure. Grameenphone remained the country's most profitable listed MNC, posting a net profit of nearly Tk759 crore, although this was down 14% year-on-year.

Marico Bangladesh's profit fell 12%, mainly because of higher raw material costs and lower finance income.

Unilever Consumer Care recorded the sharpest decline, with profit plunging 68% to Tk7.79 crore. The company attributed the fall to lower sales and the absence of a one-off gain recognised in the corresponding quarter last year following a reassessment of trademark and technology royalty obligations.

Heidelberg Materials Bangladesh was the only listed MNC to report a quarterly loss, posting a net deficit of Tk6.13 crore.

United Finance PLC has reported a stellar start to the 2026 financial year, with its net profit surging by 55.48% during the first half ended 30 June.

According to the company's financial results released on Wednesday, the non-bank financial institution earned a net profit of Tk5.03 crore in the January-June period, up from the corresponding period of the previous year.

The significant bottom-line growth pushed the company's earnings per share to Tk0.27 for the six months, compared to Tk0.17 in the first half of 2025. This robust performance was further highlighted by a 67% year-on-year increase in operating profit before provision, driven primarily by strong growth in net interest income and disciplined cost management.

In terms of business volume, United Finance recorded a steady expansion in its total portfolio, which reached Tk2, 349 crore. The company's lease, loan, and advance segment grew by 4.26%, while its deposit portfolio stood at Tk1, 465 crore – marking an 11.12% growth against December 2025. This double-digit growth in deposits reflects increasing customer confidence in the institution despite broader macroeconomic challenges.

United Finance has also positioned itself as a leader in sustainable banking. In the first half of 2026, a staggering 81% of its total disbursements were channelled into green and sustainable financing, significantly exceeding the targets mandated by the Bangladesh Bank.

On the technological front, the company's mobile app, UMA, has continued to streamline the customer journey through fully paperless services, including account opening and instant certificate downloads.

Commenting on the results, Mohammed Abul Ahsan, acting managing director of United Finance, attributed the performance to the company's "prudent risk management DNA and solid corporate governance."

He noted that these core strengths have allowed the firm to remain resilient and perform consistently even under macroeconomic stress.

Disruption to shipping through the Strait of Hormuz has prompted oil-producing countries in the Gulf to accelerate plans for alternative export routes, with a series of pipeline projects announced or revived.

Here is a breakdown of the proposals.

REGIONAL PICTURE

A total of 14.95 million barrels per day (mbd) of crude oil was exported through the Strait of Hormuz in 2025, according to the International Energy Agency (IEA).

Iran exported around 1.69 mbd and is expected to continue relying on Hormuz over the long term given its effective control of the waterway, Andrew Wilson of BRS Shipbrokers told AFP.

“Iran is just going to produce as much as it can, ship as much to China as it can. It’s not really such an issue,” he said.

Of the remaining 13.26 mbd, as much as 11.5 mbd could eventually be rerouted by maximising existing pipeline capacity and completing planned projects, according to official announcements and industry experts.

SAUDI ARABIA

Before the war broke out in late February, Saudi Arabia transported around 2 mbd of crude through its East-West Pipeline linking Abqaiq, near the Gulf coast, with the Red Sea port of Yanbu, according to the IEA.

State oil giant Aramco said in March 2025 it had increased the pipeline’s capacity to 7 mbd, leaving up to 5 mbd of spare capacity. Riyadh is also planning a further expansion of up to 2 mbd, according to the US-based Institute for Energy Research (IER).

The IER said it was “unclear” whether this would involve upgrades to the existing line or construction of a parallel pipeline.

The project could potentially be completed by 2030/2031, Wilson told AFP.

UNITED ARAB EMIRATES

Before the conflict, the UAE exported around 1.1 mbd of crude through its Abu Dhabi Crude Oil Pipeline (ADCOP), which links inland oil fields with the port of Fujairah on the Gulf of Oman, bypassing the Strait of Hormuz.

The IEA said the pipeline had a capacity of 1.8 mbd, leaving an additional 0.7 mbd available.

The UAE said in May it was fast-tracking construction of a second pipeline that would run parallel to the existing route before extending to the country’s northern coast, allowing crude produced north of Hormuz to bypass the strait.

The project would double export capacity through Fujairah and is expected to enter service next year, according to the Abu Dhabi Media Office.

IRAQ

The US State Department said earlier in July that plans were under way to restore a major pipeline linking Iraq’s oil fields with Syria’s Mediterranean coast.

Washington is overseeing an international consortium “to execute the technical and financial aspects of this project”, which is expected to have an initial capacity of 2 mbd, the department said.

No timetable has been announced, however, and political and investment hurdles risk delaying the project, Wilson warned.

KUWAIT AND BAHRAIN

Neither Kuwait nor Bahrain currently has a pipeline route that bypasses Hormuz.

However, both have recently held discussions with Saudi Arabia on a possible connection to its pipeline network, according to the IER.

Depressed development works in the transition time are among reasons that diminished Bangladesh's Annual Development Programme (ADP)-implementation rate to a historic low of 67.52 per cent in the past fiscal year, latest official data showed.
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Officials think a dismal failure in the vital education sector in implementing the ADP dragged down the development-fund-spending rate in 2025-26.

Government ministries and agencies spent Tk 1.41 trillion worth of funds, 67.52 per cent of total Tk 2.089-trillion ADP outlays, in the just-concluded FY2026, according to data released Thursday by the Implementation Monitoring and Evaluation Division (IMED).

In the previous year, FY2025, the ADP-implementation rate was a bit higher at 68.18 per cent, the IMED data showed.

Development works even under the Covid-19 impact in FY2022 were recorded 92.74 per cent, but the rate went on a slide in the subsequent years.

The rates dropped to 85.17 per cent in the FY2023 and 80.63 per cent in FY2024, the IMED report showed.

The report highlights deepening challenges in the country's domestic fund utilisation and project management.

Government ministries and agencies spent Tk 842.10 billion or 65.79 per cent of their total Tk 1.28-trillion domestic-fund outlay, Tk 498.27 billion or 69.20 per cent of the Tk 720-billion outlay from the project aid, and Tk 70.35 billion or 78.73 per cent of the total Tk 89.36 billion from own resources by the public autonomous and semi-autonomous bodies, the official data showed.

IMED officials said the latest figures marked the second consecutive fiscal year when development spending remained below 70-percent mark, following a 68.18 per cent recorded in FY2024-25 and 67.52 per cent in FY2026.

Historically, ADP implementation rates in Bangladesh regularly exceeded 80 per cent. However, execution capabilities have deteriorated sharply over the past two years, culminating in the lowest execution performance in recent history.

According to the IMED, Technical and Madrasha Education Division, Primary and Mass Education Division, and Secondary and Higher Education Division under the Education Ministry executed only 50.33 per cent, 60.87 per cent and 66.30 per cent respectively during FY2026.

Among top 15 development budget-holders, Energy and Mineral Resources Division implemented the highest 93.73 per cent of its ADP works while Water Resources Ministry 88.77 per cent, Civil Aviation and Tourism Ministry 88.60 per cent, Agriculture Ministry 87.23 per cent, and Power Division of 83.73 per cent.

Officials said between FY2010 and FY2023, ADP implementation consistently ranged between 78 per cent and 96 per cent. Even during severe macroeconomic shocks, such as the initial outbreak of COVID-19 in FY2020, public spending reached over 80 per cent of the revised budget allocation.

The implementation benchmark dropped sharply below 70 per cent in FY2025 to 68.18 per cent and hit a rock-bottom 67.52 per cent in FY2026.

A senior IMED official says mass departures and reassignments of project directors (PDs) following the administrative changes after the August-5 changeover, increased scrutiny, mid-term evaluations, and suspension or downscaling of non-essential or low-priority projects, administrative machinery remaining occupied with state-level governance reforms and election management are some of reasons behind the "historically poor ADP-execution rate".

"Besides, the poor capacity of project-implementing agencies, the slower releases of external credit lines coupled with cautious domestic treasury releases amid austerity pursuit of the government in recent years have affected the overall execution," he adds.

Procurement bottlenecks, delayed tender evaluations, and unresolved land disputes continued to impede progress. Foreign contractor hesitancy and delayed disbursements of foreign aid further constrained megaproject delivery schedules, the IMED official further mentions.

Economists and government officials attribute the slow implementation to structural inefficiencies.

Ministries consistently struggle with timely land acquisition, lengthy procurement processes, and delays in foreign-fund mobilisation.

Policy Exchange Bangladesh Chairman Masrur Reaz has said the inability to utilise allocated development budgets directly impacts infrastructure growth, job creation, and overall economic momentum.

"Without drastic administrative reforms in project monitoring, the trend of under-utilisation is likely to persist in the future days too," he added.

SANEM Executive Director Professor Selim Raihan says implementation of the revised ADP reached just 67.52 percent of the revised allocation in FY2025-26, marking the weakest performance since 1973 and highlighting persistent shortcomings in Bangladesh's public investment management.

"The last interim government faced exceptional challenges, including political instability, law-and-order concerns, administrative disruptions, and the need to review ongoing development projects. However, these difficulties also exposed deep-rooted deficiencies in project design, procurement, institutional coordination, and execution."

Consequently, delays in project implementation have slowed infrastructure-and social-sector development, limited employment creation, weakened business confidence, and reduced the effectiveness of public expenditure in supporting economic growth, he explains the drawbacks.

After the February 2026 election, the newly elected government inherited a significant implementation backlog with limited time left in the fiscal year, the Dhaka University Economics professor has said.

Addressing this situation will require stronger administrative leadership, improved coordination among implementing agencies, expedited procurement and approval processes, and more effective monitoring to accelerate project execution, the SANEM ED suggests.

The FY2025-26 experience demonstrates that higher development allocations alone cannot deliver better outcomes unless accompanied by meaningful improvements in institutional capacity, governance, efficiency, and accountability, he observed.

Mercantile Bank PLC, a listed private commercial lender, has reported a consolidated net loss for the second quarter of 2026, driven by a dramatic collapse in its net interest income and deteriorating cash flows.

According to the bank's un-audited financial statements for the April-June period, the consolidated net loss stood at Tk7.70 crore. This marks a sharp reversal from the corresponding quarter in 2025, when the bank posted a healthy net profit of Tk108 crore.

Consequently, the loss per share for the quarter reached Tk0.07, a steep fall from the earnings per share (EPS) of Tk0.98 recorded a year earlier.

The bank's performance for the first half of the year (January-June) was equally subdued. While it managed to remain technically in the black with a consolidated net profit of Tk24.78 crore for the six-month period, this figure is a staggering 88% lower than the Tk201 crore profit reported in the first half of 2025. The half-yearly EPS settled at a mere Tk0.22, compared to Tk1.82 in the prior year.

Financial analysts point to the bank's core operations as the primary source of distress. Its net interest income – the difference between interest earned on loans and paid on deposits – plummeted by 69% to settle at Tk111 crore.

Furthermore, the bank's liquidity position saw a significant squeeze, with the consolidated net operating cash flow per share (NOCFPS) dropping by 79% to Tk0.74 at the end of June.

As of 30 June 2026, the bank's consolidated net asset value (NAV) per share stood at Tk24.30.

Mercantile Bank is currently trading in the 'Z' (junk) category on the stock exchanges, a relegation triggered by its failure to declare any dividends for two consecutive years.

On Thursday (30 July), the bank's shares closed at Tk7.50 on the Dhaka Stock Exchange, continuing to trade well below their face value of Tk10.

Prime Minister Tarique Rahman has told business leaders that the country's third floating LNG terminal (FSRU) will be dedicated exclusively to supplying uninterrupted gas to industries, as part of broader measures to ease the energy crisis and help achieve Bangladesh's $100 billion export target by 2030.

The government is considering importing gas in ISO containers for direct supply to industrial factories to mitigate the ongoing gas shortage. In addition, all business licences and approvals will be issued within 14 days to improve the ease of doing business.

The prime minister also assured business leaders that the damaged floating LNG terminal (FSRU), currently under repair, is expected to resume operations by 10 August, helping restore gas supply.

The commitments came during a meeting with the country's leading business leaders to discuss measures needed to raise Bangladesh's annual export earnings to $100 billion by 2030, up from $48 billion recorded in FY2025-26.

According to a PMO press release, the meeting discussed business expansion, foreign investment promotion and industrialisation.

Business leaders highlighted that the energy crisis is disrupting industrial production and discouraging new investment, urging the government to take immediate action.

Representing the business community, Apex Group Chairman Nasim Manzur presented key challenges facing the 10 priority export sectors identified by the government and proposed solutions. The prime minister assured entrepreneurs that the issues would be addressed, according to officials from the PMO, the Bangladesh Investment Development Authority (Bida), and participants at the meeting.

In response to business leaders' demand for a dedicated FSRU to ensure uninterrupted gas supply for industries, the meeting was told that the proposed third FSRU at Maheshkhali, already approved by the cabinet, will be used exclusively for industrial gas supply.

Bida also presented progress on the implementation of decisions taken at a previous meeting with business leaders held in April.

To encourage investment in the energy sector, the prime minister said investors in economic zones would receive priority land allocation, while those investing in solar power would have easier access to low-interest financing.

Business leaders also called for lower wheeling and cross-subsidy charges for using the electricity transmission and distribution network. The PMO said the proposed Open Access Tariff is currently under consideration by the Bangladesh Energy Regulatory Commission (BERC) after consultations with Bida and other stakeholders.

The Open Access Tariff policy would allow large industrial and commercial consumers to purchase electricity directly from independent power producers.

The PMO also plans to allow duty-free imports of batteries used for solar power storage and provide policy support for local lithium battery manufacturing. Although customs duties on solar equipment were reduced in the current budget, a 15% VAT and 2% advance income tax remain in place.

The meeting also decided to introduce 24-hour, seven-day customs services at Chattogram Port and Hazrat Shahjalal International Airport. Customs, ports and related banking services will be declared "essential services" to facilitate uninterrupted import and export operations.

After the meeting, Moynul Islam, chairman of Monno Ceramic Industries and president of the Bangladesh Ceramic Manufacturers and Exporters Association, told The Business Standard that discussions focused heavily on the energy crisis.

"The prime minister said the third FSRU will be dedicated to ensuring uninterrupted gas supply to industries. He also stressed importing gas in ISO containers to maintain industrial production and exports," he said.

Moynul added that the government sought business leaders' recommendations on how to achieve the $100 billion export target by 2030. Outside the readymade garments sector, each of the 10 priority export sectors has been assigned a target of $3 billion in exports, with Vietnam identified as the benchmark. Discussions also covered faster customs clearance, improved bonded warehouse facilities, and quicker approvals from Bida and other government agencies.

Mustafa Kamal, chairman of Meghna Group of Industries (MGI), said follow-up meetings between the prime minister and business leaders will now be held every two months. He added that entrepreneurs expressed satisfaction with the government's investment-friendly approach and noted that 8-9 of the 20 decisions taken at the April meeting have already been implemented.

Business leaders who attended the meeting said the discussions centred on policy measures needed to support the government's 10 priority export sectors. They warned that persistent gas and electricity shortages would discourage both local and foreign investment and undermine exports.

One participant, speaking on condition of anonymity, said business leaders highlighted tariff and non-tariff barriers alongside energy shortages. "The prime minister ordered immediate action on some issues, and ministers and agency heads present assured us they would resolve them quickly," he said.

Another participant said the pharmaceutical sector received special attention during the discussions.

"We discussed the challenges Bangladesh will face after graduating from least-developed country (LDC) status, particularly the possible loss of patent-related benefits for the pharmaceutical sector. We emphasised accelerating work on the API Industrial Park and ensuring policy support for local API production," he said.

Business leaders also urged the government to facilitate international certification for pharmaceutical exports by encouraging certification authorities from the US, UK and other developed countries to operate in Bangladesh.

They further proposed visa-free entry for investors from the UK, US, Japan and South Korea, along with a streamlined online visa system for foreign investors.

PMO spokesperson Mahdi Amin later told reporters that the government has decided to introduce uninterrupted 24-hour services at ports to boost import and export activities and pledged full policy support for the private sector to overcome the country's prolonged economic slowdown.

He said the government is also restructuring key state institutions after years of "authoritarian rule" and held detailed discussions with business leaders on resolving critical issues, particularly in the power and energy sectors.

E-visas for citizens of select countries

The PMO has decided to introduce e-visas for citizens of strategically important countries and waive visa fees for investors from priority nations. According to discussions at the meeting, Bida has proposed waiving on-arrival visa fees for investors from the Netherlands, the United Kingdom, China, Singapore and South Korea.

Business approvals within 14 days

The PMO told business leaders that all business licences and regulatory approvals will be issued within 14 days to improve the investment climate.

The government also plans to develop Bogura as a hub for the light engineering industry, with Beza arranging site visits for entrepreneurs.

At the API Industrial Park in Munshiganj, a 50-bigha site has been earmarked for a coal-generated steam facility, with the location already selected following a field inspection.

ICT investors will receive priority land and space allocation in economic zones.

Rana Automobiles Chairman Hafizur Rahman Khan proposed establishing testing and certification facilities for automobile components through BSTI and other relevant agencies.

"We all acknowledge there are many challenges," Tarique Rahman said at the meeting. "The government has at least demonstrated that we are trying. The government has not yet completed six months in office, but we have already held several meetings, including our first meeting with you. We are working sector by sector to resolve the problems."

The meeting was attended by Finance Minister Amir Khosru Mahmud Chowdhury; Home Minister Salahuddin Ahmed; Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmud Tuku; Commerce Minister Khandaker Abdul Muqtadir; Road Transport and Bridges Minister Sheikh Robiul Alam; the prime minister's adviser on finance and planning Rashed Al Mahmud Titumir; Bida Executive Chairman Ashik Chowdhury; Bangladesh Bank Governor Mostaqur Rahman; senior government officials and representatives of major business groups.

The listed banking sector posted a sharply divided performance in the first half (January-June) of 2026, as robust treasury returns buoyed strong performers while mounting non-performing loans and high deposit costs pushed several major lenders into deep losses.

Out of the 36 banks listed on tyhe stock exchanges, 14 posted a surge in net profit year-on-year, five experienced profit declines, and six incurred massive losses.

Meanwhile, trading remains suspended for five banks that are undergoing merger processes with Sammilito Bank, while another five lenders have yet to release their financial statements.

Industry insiders attributed the profitability growth among top performers largely to lucrative investment income generated from government risk-free securities.

However, the broader sector continues to wrestle with a tough macroeconomic environment characterised by elevated interest rates, a sluggish economy, and muted private sector credit growth.

Top earners capitalise on yields and growth

BRAC Bank emerged as the top earner in H1 2026, logging a consolidated profit of Tk1,423 crore, reflecting a massive 57% year-on-year growth. Pubali Bank secured the second spot with Tk685 crore in profit (up 19%), followed by City Bank with Tk527 crore (up 75%), Dutch-Bangla Bank with Tk442 crore (up 319%), and Eastern Bank with Tk439 crore (up 25%).

Speaking to The Business Standard, BRAC Bank Managing Director and CEO Tareq Refat Ullah Khan said the bank currently manages a combined fund of nearly Tk1.70 lakh crore across deposits and assets.

"Our portfolio is expanding every year," Khan said. "Over the past year, our deposits grew by nearly 25%, surpassing Tk95,000 crore, while assets expanded around 18% to cross Tk76,000 crore – achieving growth well above the market average."

He added that operational efficiency improved significantly, trimming the bank's cost-to-income ratio from 48% to 42%, while its non-performing loan (NPL) ratio declined to 2.03% from 2.27% over six months.

City Bank similarly attributed its sharp profit rise to strong investment yields alongside healthy growth in commission and fee income.

Other banks recording profit increases during the period include Jamuna Bank, SBAC Bank, NCC Bank, Uttara Bank, NRBC Bank, Southeast Bank, Midland Bank, United Commercial Bank, Shahjalal Islami Bank, and NRB Bank. Conversely, profits dropped at One Bank, Mutual Trust Bank, Standard Bank, Bank Asia, and Trust Bank.

Suspense income and bad loans squeeze bottom lines

On the flip side, six lenders reported severe consolidated net losses, led by National Bank with a loss of Tk2,286 crore. AB Bank followed with Tk1,936 crore in loss, IFIC Bank at Tk1,668 crore, Islami Bank at Tk1,316 crore, Rupali Bank at Tk640 crore, and Premier Bank.

National Bank explained in its disclosure that its deficit stemmed from an inability to recognise interest income on delinquent and rescheduled loans with grace periods, even as deposit interest obligations remained fixed.

Islami Bank Acting Managing Director Md Altaf Hossain noted that a large non-income-generating investment exposure to a major group hit earnings, as Shariah rules mandate holding unrealised yields in suspense accounts rather than recognising them as income. He added that future recoveries could significantly reverse the bank's fortunes.

Petrobangla has said the government currently has no plan to increase gas prices, seeking to dispel confusion created by recent media reports about a possible tariff hike.

In a statement issued today (1 August), the state-owned corporation said, "Following recent reports in different media outlets regarding a gas price increase, it is being informed that the government has no plan at this moment to raise gas prices. All concerned are requested not to be confused over the issue."

The clarification came after reports emerged that Petrobangla had sent a proposal to the Energy and Mineral Resources Division (EMRD) seeking higher gas prices for compressed natural gas (CNG) used in transport and gas supplied to power plants.

According to those reports, the proposal was aimed at narrowing the widening gap between the cost of imported liquefied natural gas (LNG) and regulated domestic gas tariffs, as the government continues to grapple with mounting subsidy pressures.

The issue has drawn attention at a time when the country is also facing a severe gas supply crunch following a fire at Excelerate Energy's floating storage and regasification unit (FSRU) off Moheshkhali.

The incident significantly reduced LNG regasification capacity and disrupted gas supplies to industries, power plants and households.

India today effected a sharp cut in the prices of commercial LPG used in hotels and restaurants while hiking aviation turbine fuel (ATF) prices in line with divergent trends in benchmark rates.

The commercial LPG prices were slashed by Rs 192 per 19-kg cylinder.

ATF rates have been raised to Rs 115 per litre from Rs 110, according to price information from state-owned oil firms.

This is the second straight monthly reduction in commercial LPG rates following a Rs 183.5 cut on 1 July. In the case of ATF, the revision reverses the reduction by a similar proportion that was effected on 1 July.

The revision in ATF prices does not apply to jet fuel supplied for international flights. Fuel for overseas routes is priced separately, and airlines operating such services will continue to purchase ATF under the prevailing international pricing mechanism.

US-Bangla Airlines yesterday announced the acquisition of 21 new Boeing aircraft in a deal worth about $1.5 billion, calling it “one of the most significant fleet expansion programmes in the country’s aviation history.”

The announcement was made at an event titled “Beyond with Boeing” at the Sheraton Dhaka.

The new fleet will include 15 Boeing 737-8 aircraft and six Boeing 737-800 aircraft. All are scheduled to be delivered in phases by the end of 2027 under a leasing programme.

In a statement, the private airline said the expanded fleet would allow it to launch flights to several new destinations, including Bengaluru and Hyderabad in India; Colombo in Sri Lanka; Kathmandu in Nepal; Kunming, Shenzhen and Beijing in China; Johor Bahru and Penang in Malaysia; destinations in South Korea and Japan; Kuwait; Bahrain; Madinah and Dammam in Saudi Arabia; and Salalah in Oman.

“This investment represents much more than fleet expansion. It reflects our long-term vision to transform US-Bangla from an airline into a fully integrated global aviation group. We are investing in aircraft, people, technology, training, maintenance, cargo, catering and infrastructure to support the sustainable growth of Bangladesh’s aviation sector,” said Mohammad Abdullah Al Mamun, managing director of US-Bangla Group and US-Bangla Airlines.

Mamun said foreign airlines still carry nearly 70 percent of passengers on Bangladesh’s international routes, indicating a significant opportunity for the country’s aviation industry.

United States Ambassador Brent T Christensen described the announcement as a historic milestone and called Boeing Bangladesh’s “best business case”.

“Perhaps even more important is the investment in people. US-Bangla’s plan to send about 200 Bangladeshi pilots to the US for advanced training represents an investment in the next generation of aviation professionals,” he said.

“Today’s ceremony also highlights something larger: the growing economic relationship between the US and Bangladesh. American companies offer innovation, technology, high-quality products and long-term partnerships. Bangladeshi companies likewise offer entrepreneurial spirit, determination and a vision for growth,” the ambassador added.

Humaiun Kobir, the prime minister’s foreign affairs adviser, spoke about the challenges facing the aviation sector. He said the industry was seeking tax relief and pledged the government’s financial support.

Rashiduzzaman Millat, state minister for civil aviation and tourism, said that with the opening of the third terminal at Dhaka airport, Bangladesh aims to serve 24 million passengers a year.

He added that Biman Bangladesh Airlines is expanding its fleet with 14 new Boeing aircraft. The growth of both airlines will strengthen the country’s aviation industry and improve services for passengers at home and abroad.

Air Vice Marshal Md Mostafa Mahmood Siddiq, chairman of the Civil Aviation Authority of Bangladesh, said increasing the share of Bangladeshi airlines in the country’s passenger traffic is one of the government’s national priorities.

Paul Righi, vice-president of sales and marketing for Eurasia, India and South Asia at Boeing, also spoke at the event.

Foreign commercial banks operating in Bangladesh saw their credit portfolio contract in 2025 despite a modest rise in net profits, as institutions maintained a cautious lending strategy amid shifting macroeconomic conditions, central bank data showed.

According to a report by the Statistics Department of Bangladesh Bank covering July-December 2025, total loans and advances extended by foreign banks fell 11.3% year-on-year to Tk46,122 crore at the end of December 2025.

Their share of total credit in the domestic banking sector subsequently slipped to 2.6%, down from 3.1% in December 2024.

While broad credit participation declined, foreign banks retained significant dominance in international trade settlement.

Foreign lenders processed $4.12 billion in export receipts, accounting for 18.8% of Bangladesh's total export receipts and $4.29 billion in import payments, equivalent to 13.1% of the country's imports.

Net profit has also increased despite a decline in credit. Post-tax profit rose to nearly Tk3,739 crore in the second half of 2025, up from Tk3,557 crore during the same period a year ago, aided by reduced tax liabilities.

Outward profit and earnings remittances by foreign banks grew to Tk1,314 crore, up from Tk577 crore in the same period a year earlier. Reinvested earnings fell by more than half to Tk2,096 crore.

Deposits held at foreign banks stood at Tk87,568 crore, reducing their total market share slightly from 4.6% to 4.2%.

Though non-performing loans (NPL) ticked up to 5.9% in December 2025 from 4.9% in December 2024, it remains far lower than the banking sector's average of over 32%.

Also, foreign banks remain among the most heavily capitalised in the region, boasting a Capital Adequacy Ratio of 41.05% and a Liquidity Coverage Ratio of 458.56%, far above regulatory baselines.

Depositors of the five merging Islamic banks will now be allowed to withdraw up to Tk 10 lakh not only for their own medical treatment but also for other emergency needs.

The central bank took a decision in a board meeting held at the Bangladesh Bank headquarters in Dhaka today.

Previously, withdrawals under the central bank's special scheme were limited to a depositor's own medical expenses.

Under the revised policy, funds can also be withdrawn for the treatment of immediate family members, including parents, spouses, children, and siblings, as well as for other urgent necessities.

The decision applies to the five banks that are merging to form Sammilito Islami Bank PLC: First Security Islami, Social Islami, Union, Global Islami, and EXIM.

According to Bangladesh Bank officials, the revision was made after depositors sought access to their savings for emergencies beyond medical treatment, such as family healthcare or other pressing financial needs.

A senior official of the central bank said that its board also decided to suspend the haircut system on depositors' profits, and that depositors will receive their profits as per Shariah law.

He also said that the merging process is likely to be completed by September this year, and that the administrator teams of the five banks will be withdrawn soon.

The five banks collapsed after years of large-scale irregular lending under the control of business groups linked to the previous Awami League government.

To protect depositors, the interim government merged the banks last year and introduced a phased repayment scheme.

The merged bank has a paid-up capital of Tk 35,000 crore, including Tk 20,000 crore provided by the government. Depositors will receive shares against the remaining Tk 15,000 crore.

In addition, the Deposit Insurance Fund is paying up to Tk 2 lakh per depositor, while the central bank is gradually repaying the remaining deposits through a separate scheme.

Officials of the central bank said that, so far, Tk 3,887 crore has been repaid to more than 822,000 depositors under the scheme.

As of December last year, the five banks had outstanding loans of Tk 195,000 crore, of which only Tk 47,900 crore, or 24.56 percent, was backed by collateral.

Their non-performing loans stood at Tk 170,500 crore, accounting for 87.43 percent of total loans.

IPDC Finance PLC, the country's first private non-bank financial institution, has reported a robust 37.6% year-on-year growth in its net profit after tax, reaching Tk20.70 crore during the first half of 2026.

The company's strong financial performance was primarily underpinned by a significant increase in net interest income, robust investment earnings from government securities, and a disciplined approach to cost management, according to a press release.

According to the financial results approved by its board on 28 July, IPDC maintained steady business momentum despite persistent domestic and global economic headwinds. The company's total operating income rose by 29% to reach Tk206 crore during the January-June period.

A significant portion of this growth was driven by core financing activities, which accounted for 60% of the total operating income, reflecting the institution's focus on sustainable long-term growth.

Rizwan Dawood Shams, managing director of IPDC Finance, attributed the success to the trust placed in the institution by its customers, stating that the company remains committed to the highest standards of governance and operational excellence.

IPDC Finance Chairman Ariful Islam added that the performance underscores the strength of the institution's core business model, as the majority of income continues to be generated from financing businesses and individuals, thereby fostering actual economic value and sustainable growth.

The company's loan portfolio stood at Tk7,417 crore as of 30 June 2026. Simultaneously, total deposits grew by 8% from December 2025 to reach Tk6,716 crore, a clear indicator of sustained customer confidence and a stable funding base.

On the investment front, the company expanded its portfolio to Tk1,534 crore, supported by strategic allocations in treasury instruments and other high-yield investments, read the press release.

Furthermore, investment income skyrocketed by 39.2% to Tk78.60 crore, as the company successfully leveraged the treasury market and higher yields on government securities.

The NBFI's profitability metrics also saw significant improvement, with earnings per share (EPS) rising to Tk0.48 from Tk0.35 in the corresponding period of 2025.

The net operating cash flow per share (NOCFPS) improved to Tk12.02, up from Tk8.12 a year earlier, highlighting stronger liquidity generation. Net Asset Value (NAV) per share remained stable at Tk17.01.