Twenty-three listed companies have so far decided not to recommend any dividends for the FY2025–26, with several reporting substantial losses and facing significant operational challenges.

Among them, Zeal Bangla Sugar Mills, Meghna Cement, Shyampur Sugar Mills and Bashundhara Paper Mills have recorded particularly high losses per share.

According to the Dhaka Stock Exchange (DSE), more than 100 listed companies have announced their dividend decisions over the past two weeks. Of them, 82 companies have recommended cash dividends, stock dividends or both. In contrast, 23 companies have decided not to distribute any dividends.

According to DSE data, 213 listed companies paid cash dividends in 2025, while 33 companies declared stock or bonus dividends. In contrast, 51 companies did not declare any dividends that year, indicating that a significant number of listed firms failed to distribute profits among shareholders.

The 23 companies that have so far announced no dividends for FY26 are Aziz Pipes, Zeal Bangla Sugar Mills, Shyampur Sugar Mills, Usmania Glass, Bangladesh Building Systems (BBS), Information Services Network (ISN), Investment Corporation of Bangladesh (ICB), Rahima Food Corporation, Stylecraft, Zaheen Spinning, The Peninsula Chittagong, Safko Spinning, Apex Weaving, Deshbandhu Polymer, Bashundhara Paper Mills, Meghna Cement, Renwick Jajneswar, Shepherd Industries, Munno Agro, Jute Spinners, Mir Akhter, Central Pharmaceuticals and Miracle Industries.

Why firms are failing to pay dividends

Market insiders say financial weakness and operational difficulties are the main reasons behind the companies' decisions not to declare dividends. Accumulated losses have increased at many firms, forcing them to retain earnings to offset previous losses and strengthen their financial positions. Acute cash shortages, high debt burdens and pressure from interest payments have also weakened their ability to distribute profits among shareholders.

They also point out that several companies are unable to utilise their full production capacity. While some have experienced declining sales and revenues, others are struggling with rising production costs and intense market competition. These factors have put pressure on earnings and cash flows.

As a result, instead of distributing profits among shareholders, companies are prioritising day-to-day operations, debt repayment and efforts to rebuild their financial positions.

Several companies report heavy losses

According to financial disclosures published on the DSE, Zeal Bangla Sugar Mills reported a loss of Tk72.32 per share in FY26. Meghna Cement posted a loss of Tk63.68 per share, followed by Shyampur Sugar Mills at Tk42.94 and Bashundhara Paper Mills at Tk42.74.

Jute Spinners' loss per share increased to Tk40.20 from Tk36.32 in the previous financial year. Renwick Jajneswar also reported a higher loss of Tk10.63 per share in FY26, compared with Tk7.76 a year earlier, while the losses at Usmania Glass and Aziz Pipes stood at Tk4.79 and Tk3.77, respectively.

The Investment Corporation of Bangladesh (ICB) reported a consolidated loss of Tk7.52 per share, compared with Tk14 in the previous financial year. Its consolidated net asset value (NAV) per share also declined to Tk30.26 from Tk37.45.

Bangladesh Building Systems' loss per share widened to Tk0.91 from Tk0.59 a year earlier. Its NAV per share fell to Tk10.69. Information Services Network reported a loss of Tk0.51 per share, up from Tk0.43 in the previous year, while its NAV per share declined to Tk1.91.

Rahima Food Corporation also moved from profit to loss, reporting a loss of Tk0.25 per share against earnings of Tk0.56 in the previous financial year. Shepherd Industries posted a loss of Tk1.60 per share, compared with a profit of Tk0.04 a year earlier.

However, not all companies on the no-dividend list reported losses. Deshbandhu Polymer posted earnings of Tk3.15 per share, while Munno Agro reported earnings of Tk0.04 per share. Despite remaining profitable, neither company declared a dividend.

Four companies downgraded to Z category

Four companies have been downgraded from the 'B' category to the 'Z' category following their failure to declare dividends. They are Bangladesh Building Systems (BBS), Information Services Network (ISN), Investment Corporation of Bangladesh (ICB) and Deshbandhu Polymer.

Among them, BBS and ISN were moved to the 'Z' category on 28 October, while ICB was downgraded effective 29 October for failing to declare dividends for two consecutive years. Under DSE rules, margin loan facilities are not available for purchasing shares of BBS and ISN. The same restriction has applied to ICB since 29 October. Currently, 17 companies are trading in the 'Z' category on the DSE.

Market participants say heavy financial losses, accumulated deficits, cash shortages, high debt burdens and weak business performance are among the key factors preventing companies from paying dividends. These challenges have raised concerns over their financial health and the returns investors can expect from their investments.

BRAC Bank's consolidated net profit after tax rose 38% year-on-year to Tk2,120.95 crore in January-September 2026, up from Tk1,535.86 crore a year earlier, according to its un-audited financial statements.

Standalone net profit climbed about 50% to Tk1,583.81 crore from Tk1,055.20 crore.

Following the quarterly earnings disclosure filed on the Dhaka Stock Exchange (DSE), its share price inched down by 1.03% to close at Tk67.50.

The stellar bottom-line performance was backed by strong revenue expansion. Consolidated revenue income saw healthy growth across key streams, with total operating income climbing to Tk7,726 crore for the nine-month period, compared to Tk6,135 crore in the same period of 2025.

Specifically, cumulative net interest income grew to Tk1,655 crore from Tk1,166 crore, while investment income expanded substantially to Tk4,143.64 crore against Tk3,394.37 crore.

Despite the asset expansion, the bank maintained disciplined credit risk management. Total classified loans for the group stood at Tk1,910.55 crore as of 30 September 2026, representing a low classified loan ratio of 2.45% (and 2.27% on a solo basis).

Reflecting the higher profitability and stronger balance sheet, BRAC Bank's consolidated net asset value per share surged to Tk56.40.

Earnings per share – attributable to the parent company – jumped significantly to Tk7.70 for the first nine months of 2026, up from Tk5.29 in the same period last year.

Meanwhile, in the third quarter (July-September), the bank posted a net profit of Tk697.50 crore, which was 11% higher from the previous year at the same time.

Regarding BRAC Bank's financial results, Managing Director and CEO Tareq Refat Ullah Khan commented: "Our third quarter performance reflects the strength of our business model, prudent governance and disciplined execution. Continued customer confidence has enabled us to deliver growth well above the market while maintaining one of the industry's strongest asset quality indicators. We will stay focused on creating sustainable long-term value for our customers, shareholders and the economy."

As of 30 September 2026, the bank's customer deposits exceeded Tk1 lakh crore, while loans and advances reached Tk77,947 crore, bringing the fund under management to more than Tk1.81 lakh crore.

"Our achievements would not have been possible without the trust of our customers, the strategic guidance of our Board of Directors, the support of Bangladesh Bank, and the unwavering commitment of our colleagues. We are strongly committed to sustaining business growth while upholding the highest standards of governance, innovation, transparency and customer service," Tareq Refat Ullah Khan added.

bKash

bKash Limited, the country's leading mobile financial services (MFS) provider and a subsidiary of BRAC Bank, experienced a dip in its quarterly profit during the July–September period of 2026, despite achieving steady top-line revenue growth.

According to the un-audited interim financial statements, the company's net profit for the third quarter ended 30 September 2026 stood at Tk147.45 crore, dropping 25% from Tk197.07 crore recorded in the corresponding period of 2025.

Despite the quarterly dip in profitability, revenue continued to expand. For the third quarter of 2026, bKash reported a net revenue of Tk1,706 crore, which was 4.51% higher than the previous year at the same time.

The company said in its statement that the net profit dropped mainly due to increase in operating and administrative expenses.

For the cumulative nine-month period from January to September 2026, the MFS pioneer demonstrated overall resilience, posting a net profit of Tk559 crore, up from Tk504.78 crore in the same nine months of the previous year.

The United Nations General Assembly (UNGA) has granted Bangladesh and Nepal a three-year preparatory period before they graduate from the least developed country (LDC) category, following requests from their governments for more time to carry out major reforms in key sectors.

The decision came at the 81st UNGA session in New York after extensive discussions at 1.30am (Bangladesh time) today. The Bangladesh Nationalist Party-led government had sent a letter to the UN Committee for Development Policy (UNCDP) just two days after assuming power on February 19 this year.

In its resolution, the UN acknowledged the severity of the challenges facing Bangladesh amid heightened risks of uncertain magnitude arising from recent conflicts and associated disruptions in international energy and supply flows. It granted the country a three-year preparatory period until November 24, 2029, taking into account uncertainties surrounding global trade, the lingering effects of recent shocks and long-standing domestic vulnerabilities.

The UN also noted the UNCDP’s view that, although the current graduation framework does not recognise domestic political transitions as grounds for extending preparatory periods, the complexity and specific nature of Bangladesh’s recent political transition merit consideration. It noted that domestic factors exacerbate the impacts of external shocks and affect the government’s capacity to respond to them.

The resolution suggested that Bangladesh advance domestic reforms and continue implementing them during the extended preparatory period. It also called for the implementation of a national smooth transition strategy, with support from the UN system and in cooperation with bilateral, regional and multilateral development and trading partners. Bangladesh was asked to provide regular updates on implementation in its annual report to the CDP.

After receiving Bangladesh’s letter, the UNCDP formed a panel to assess the request at its 28th plenary session in February at the UN headquarters in New York. The UN Economic and Social Council (ECOSOC) later recommended that the UNGA discuss the matter further.

Bangladesh’s plea was widely discussed at the 81st UNGA session and was supported by the G-77 countries, while the European Union (EU) also backed the request, Commerce Minister Khandakar Abdul Muktadir said recently.

The three-year deferment will provide relief from the prospect of facing an average tariff of 12.50 percent on exports from Bangladesh. Local businesses had been pressing the government to delay graduation to allow more time for preparation and ensure a smooth transition. With the deferment, Bangladesh will enjoy duty-free market access to major export destinations until November 2029.

Currently, Bangladeshi merchandise exporters enjoy duty-free market access in 38 countries and trade blocs under the LDC category, while 73 percent of the country’s total exports benefit from LDC-specific preferences.

Bangladesh was scheduled to graduate this year after meeting all three criteria—per capita income, the human assets index (HAI) and the economic vulnerability index (EVI)—twice since 2018 under two triennial reviews by the UNCDP. The country had earlier received a two-year extension because of the Covid-19 pandemic.

In the 2024 triennial review, the GNI per capita threshold for LDCs was set at $1,307, while Bangladesh’s GNI per capita stood at $2,684, according to data from the UN Department of Economic and Social Affairs.

The HAI threshold for LDCs was set at 59.6, while Bangladesh scored 77.5. Similarly, the EVI threshold was set at 40.6, while Bangladesh scored 21.9.
Ground for deferment

Bangladesh remains poorly prepared for a smooth graduation. The country has signed trade agreements with only Japan and South Korea to retain duty-free market access in the post-LDC era, but neither deal has yet been enforced. A preferential trade agreement with Bhutan was signed in December 2020, while negotiations are underway with nearly a dozen trading partners to conclude trade agreements.

Private investment has weakened significantly, with capital machinery imports falling from $5.1 billion to $2.8 billion between 2019 and 2024, according to a UN report published in April this year. The job crisis has deepened, with nearly 1.9 million jobs lost between 2023 and 2024, disproportionately affecting women.

Financial sector fragility remains acute, with non-performing loans in banks surging to 35 percent. Fiscal space is extremely limited, with revenue at just 6.8 percent of Bangladesh’s gross domestic product (GDP), while interest payments consume 36 percent of tax revenue, pushing the country’s debt distress risk from low to moderate.

The UN report underscored a series of shocks Bangladesh has faced between 2017 and 2026. These include continued exposure to climate vulnerability; the Rohingya crisis; a prolonged macroeconomic downturn that predates the regime change; the fallout from Covid-19; the political transition; the Russia-Ukraine war; inflation; and balance-of-payments pressures.

The report said Bangladesh’s preparedness for the loss of trade-related international support measures remained weak, with nearly 75 percent of exports dependent on LDC-specific duty-free access. A recent UNCTAD report estimates that Bangladesh could lose more than $17.5 billion in annual export earnings after graduation.

Only limited mechanisms, such as the UK’s Developing Countries Trading Scheme and free trade agreements with Japan and South Korea, have been secured, although the latter agreements have yet to be enforced.

Preparedness for the EU market, Bangladesh’s largest export destination, remains the weakest link. Inadequate preparation for the post-LDC phase, including the lack of preferential EU market access for apparel, comes as the recently concluded EU-India and EU-Vietnam free trade agreements are set to intensify competitive pressure.

Bangladesh is also unprepared for the loss of World Trade Organization policy flexibilities, particularly those relating to export subsidies and obligations under the Agreement on Trade-Related Aspects of Intellectual Property Rights. These changes will require stronger intellectual property protection and enforcement capacity.

Domestic readiness to offset preference erosion through lower logistics costs, improved compliance, reliable energy supplies and export diversification remains inadequate. The report warns that, amid ongoing macroeconomic turmoil, Bangladesh’s vulnerabilities—including reliance on external support, a lack of diversification and exposure to shocks—could become more pronounced.

Bangladesh’s preparedness for post-LDC financing realities is poorly aligned with the scale of the challenge. Although concessional finance will not end abruptly, its terms are tightening and LDC-specific financing windows are shrinking. Global official development assistance is also under pressure, with Bangladesh graduating amid declining aid flows and tighter donor budgets.

Effective use of available finance is constrained by weak project management, poor revenue mobilisation, rising debt servicing and limited fiscal space. Coordination gaps and delayed preparation have hindered the strategic use of transition-related financing opportunities. Implementation of the Smooth Transition Strategy has also been slow and uneven, with limited private sector engagement, weak inter-ministerial coordination and unclear financing frameworks.

Although Bangladesh meets all the graduation criteria, the central challenge lies in managing the transition and sustaining development gains. As the largest LDC and the biggest beneficiary of international support measures, Bangladesh faces a uniquely complex transition. The process is unfolding amid political uncertainty and a prolonged economic crisis, placing decades of progress under strain, the report said.

The UN has repeatedly emphasised, including under the Doha Programme of Action, that graduation should not disrupt development, making a smooth transition essential. Bangladesh represents a critical test case for ensuring that graduation translates into sustainable progress, the report said.
Graduation criteria

At the second triennial review held by the UNCDP on February 22-26, 2021, Bangladesh received the final recommendation to graduate from the LDC category. The country had first met all three graduation criteria in March 2018.

According to the UN, an LDC needs to fulfil at least two criteria to qualify for graduation. Bangladesh is the only country to have met all three criteria so far. Once a country meets the LDC graduation criteria, it must maintain this performance through two successive triennial reviews by the UNCDP.

Bangladesh’s per capita GNI was $1,827 in 2019, well above the UN threshold of $1,222. In the HAI, Bangladesh scored 75.3, higher than the UN threshold of 66. On the EVI, Bangladesh scored 27.3, below the required threshold of 32.

For all LDCs, graduation brings a mixed set of new realities. Countries must prepare well and make special efforts to ensure that graduation delivers meaningful benefits.

Bangladesh alone utilises 67 percent of the benefits provided by other countries to all 44 LDCs, while 73 percent of its exports benefit from LDC-specific preferences.

Oil prices jumped more than 2 percent on Friday and settled at their highest levels since the end of April, as traders braced for a potential escalation in the Iran war after the US midterm elections, with an attack on a tanker in the Strait of Hormuz highlighting supply risks.

Brent crude futures for December, which expired on Friday, settled up $2.76, or 2.4 percent, at $117.64 a barrel, after touching a high of $118. The more active January contract gained $2.63 to $113.43.

US West Texas Intermediate (WTI) crude futures settled $2.12, or 2.08 percent, higher at $104.12. For the month, Brent finished 13.6 percent higher, while WTI rose 15.2 percent. Traders will remain focused on oil flows out of the Middle East and the likely escalation by US and allied forces, said Dennis Kissler, senior vice president of trading at BOK Financial.

On Friday, a tanker in the Strait of Hormuz was hit by explosive devices attached by a small boat, said the UKMTO, the British maritime security service. It was not immediately clear who was behind the attack in the strait, the key sea outlet for Gulf crude and fuel supplies.

It was the first known successful strike in the waterway using limpet mines, explosives that are attached to a ship’s hull from a small boat, since the US-Israeli war with Iran began in February, maritime sources said.

The US ordered non-emergency government employees and their family members to leave Saudi Arabia effective October 23 due to safety risks, the US embassy in Riyadh said on Friday, citing Houthi attacks on civilian airports and other critical infrastructure.

Yemen’s Iranian-backed Houthi militants said on Thursday they had attacked several sites in Saudi Arabia, including the large Ras Tanura oil refinery, the Rabigh refinery and a production facility in Abqaiq owned by state oil company Saudi Aramco. A Saudi-led coalition also said it had intercepted a cruise missile launched by the Houthis towards the kingdom’s western region.

Meanwhile, Qatari mediators returned to Tehran on Friday as part of coordinated efforts to reach a deal between the US and Iran, an official briefed on the talks told Reuters. US President Donald Trump said on Thursday that Vice President JD Vance had reached out to Iran to help the country get medical supplies, after US media reported Vance had written to Tehran’s top security official to revive peace talks.

Iran has received a letter from Vance, but it has not responded to it yet, Iran’s semi-official Tasnim news agency reported, adding that Tehran wants the US to meet its conditions and any position that contradicts this framework is unacceptable. Oil prices could become even more volatile in the next couple of weeks due to Israel’s recent elections and the US midterm elections on November 3, according to a Saxo Bank briefing on Thursday.

The Danish bank said crude is expected to trade in a higher range of $70 to $90 a barrel even after the conflict ends, compared with a pre-war range of $60 to $70.

Saudi Arabia’s crude exports rose in October from September, two of three ship-tracking companies said, despite Iranian attacks on shipping in the Gulf and claims by Yemen’s Iran-aligned Houthis of attacks on Saudi oil facilities. The US oil rig count, an indicator of future output, rose by two.

US crude oil output increased in August, while demand for crude oil and petroleum products declined, the US Energy Information Administration (EIA) said in its Petroleum Supply Monthly report on Friday. Meanwhile, Libya’s National Oil Corporation said an armed group shut a valve on Friday on the main Hamada crude oil pipeline, which links the Hamada field to the Zawiya refinery. It said the closure of the valve had halted the flow of about 15,000 barrels per day.

The country's two first generation private sector lenders – Islami Bank and National Bank – suffered massive losses in the first nine months of 2026, driven by high non-performing loans and declining investment income.

Together, the two banks incurred losses of Tk6,303 crore during January-September, with Islami Bank accounting for Tk3,286 crore and National Bank Tk3,016.89 crore, according to their price-sensitive disclosures.

Both banks held board meetings on Thursday to approve their financial statements for the period. The nine-month results were published in newspapers yesterday (30 October) to meet regulatory requirements. However, the full quarterly financial statements have yet to be published.

Islami Bank's sharp reversal

Islami Bank Bangladesh reported consolidated profits of around Tk100 crore in the first nine months of 2025. A year later, however, it swung to a consolidated loss of Tk3,286 crore. On a standalone basis, excluding its subsidiaries, the bank incurred a loss of Tk3,302.57 crore.

According to its quarterly financial disclosures, the bank suffered a particularly severe setback in the July-September quarter, incurring a loss of Tk1,970.18 crore.

In an explanation of the significant variation in its financial performance, the bank attributed the decline mainly to lower investment income and higher profit payments on deposits.

"The decline in investment [income reflects] the continuing high level of classified or non-performing investments, mostly due to embezzlement of funds by connected parties against large legacy exposures and the consequent constraints on income recognition from such investments," the bank said.

"Again, profit paid on deposits also increased despite the decline in the period-end deposit base," it added.

Outlining measures to improve its financial health, the bank said it had undertaken various initiatives in line with recent Bangladesh Bank guidance to strengthen its capital base, improve asset quality, accelerate investment recovery and enhance income generation.

"These measures are expected to contribute positively to the bank's future earnings," it said.

Islami Bank's net operating cash flow also deteriorated sharply in the nine months ended 30 September 2026, pushing its cash flow per share into negative territory at Tk36.54, reversing the positive position recorded earlier.

Explaining the negative cash flow, the bank said it had declined mainly because of deposit withdrawals under unusual circumstances during the third quarter.

In line with Bangladesh Bank's regulatory guidance, the lender is taking steps to strengthen deposit mobilisation, maintain adequate liquidity and improve operating cash flow, it added.

In 2025, Islami Bank posted a profit of Tk136 crore but did not declare any dividend.

NBL's losses continue to mount

National Bank, another private sector lender, incurred a loss of Tk3,016.89 crore in the first nine months of 2026. The loss nearly doubled from Tk1,448.42 crore in the same period of the previous year, when its loss per share stood at Tk4.50, according to its disclosures.

National Bank's loss stood at Tk2,283.85 crore at the end of June 2026. This means it incurred a further loss of Tk733.04 crore in the July-September quarter.

Explaining the losses, the bank said it could not recognise interest income on some loans and advances because of their classification and non-recovery. It also incurred higher interest expenses on deposits and borrowings.

"Consequently, the period concluded with an operating loss, with significant deviations observed in earnings per share and net asset value. On the other hand, deposit withdrawals declined compared with the previous year due to the regaining of customers' confidence," it said.

Previous financial disclosures show that National Bank has been incurring substantial losses since 2022.

Over the four years and nine months through September 2026, its cumulative losses reached Tk11,914.17 crore. Of this, Tk8,897.28 crore was incurred over the four years from 2022 to 2025, while Tk3,016.89 crore came in the first nine months of 2026.

According to an earlier report by TBS, the bank resumed full banking services in mid-October as customers began withdrawing and depositing money and opening letters of credit.

Customers could once again withdraw money as needed from all branches and ATMs, while some branches also began accepting fresh deposits into business accounts.

Tk7,000cr liquidity support

National Bank has received Tk7,000 crore in liquidity support to restore normal banking operations, according to the report.

State-owned Sonali Bank provided the funds against a Bangladesh Bank guarantee. However, the central bank imposed several conditions on their use.

Under the conditions, deposits belonging to former or current directors of National Bank cannot be repaid using the funds. The money also cannot be used to disburse new loans.

The government is planning to establish a joint-venture fertiliser factory in Saudi Arabia with an annual production capacity of 10 lakh tonnes of Di-ammonium Phosphate (DAP), aiming to secure long-term supplies and reduce reliance on imports from multiple sources.

Under the proposal, Bangladesh and Saudi Arabia will jointly own a new company operating the factory, with each government holding a 50% stake, according to sources in the foreign and industries ministries.

Bangladesh will guarantee the purchase of all fertiliser produced for 20 to 25 years, while Saudi Arabia will ensure an uninterrupted supply of gas and other required raw materials.

The two governments will contribute equally to 30% of the total investment, while the remaining 70% will be financed through loans from Saudi Arabia's financial sector. The project is expected to begin commercial production in 2030.

A non-binding memorandum of understanding (MoU) is expected to be signed during Prime Minister Tarique Rahman's proposed visit to Saudi Arabia in November.

Industries Secretary Abdun Naser Khan told TBS over the phone on Thursday that the plan was still at a preliminary stage.

"The Ministry of Foreign Affairs and the Bangladesh Chemical Industries Corporation (BCIC) are working on this matter," he said, declining to elaborate further.

A techno-economic study has also been proposed to assess the project's technical and commercial feasibility. The proposed MoU would not create any obligation for either country to implement the project.

TBS emailed the Saudi Arabian Embassy in Dhaka on Wednesday seeking comments, but received no response before publication.

Reducing import reliance and ensuring supply

Bangladesh's sole DAP fertiliser factory produces only a small amount compared with national demand.

Production sometimes stops completely because of shortages of raw materials, leaving the country heavily dependent on imports, a significant share of which comes from Saudi Arabia.

A foreign ministry official, speaking on condition of anonymity, said, "If a joint-venture factory is established in Saudi Arabia, long-term DAP fertiliser supply for Bangladesh can be ensured. Simultaneously, an opportunity to procure fertiliser at a more affordable price compared to current imports may be created."

According to agriculture ministry estimates, annual field-level demand for DAP fertiliser stands at 14-15 lakh tonnes.

The Bangladesh Agricultural Development Corporation (BADC) must also maintain a buffer stock of 5 lakh tonnes, bringing the total annual requirement to around 19-20 lakh tonnes.

The private sector imports approximately 5 lakh tonnes, while BCIC's domestic production remains limited. The BADC imports the remaining requirement through government-to-government (G2G) agreements and open tenders.

Agriculture ministry projections suggest the BADC may need to import 9.40-10 lakh tonnes of DAP fertiliser annually in the coming years.

The proposed Saudi factory's annual capacity would be close to that volume, potentially allowing Bangladesh to secure a major portion of its imports through a guaranteed long-term source.

In its feedback on the proposal, the agriculture ministry indicated that the government could provide a buy-back guarantee for the factory's entire output.

Ownership and financing proposal

Under the proposal, the BCIC, which operates under the industries ministry and oversees eight state-owned fertiliser factories in Bangladesh, will hold the country's 50% stake in the proposed Saudi-based joint-venture company.

The company's board will have equal representation from both governments.

The project's construction cost has not yet been determined. Its total investment, financing arrangements and commercial terms will be finalised after technical and financial feasibility studies.

The proposed 20-25-year purchase guarantee is expected to help attract Saudi investment by securing a long-term buyer for the factory's output. However, the project's financial viability and production costs will need to be established through the studies.

MoU preparations ahead of PM's visit

Officials from the West Asia Wing of the foreign ministry said Prime Minister Tarique Rahman's visit to Saudi Arabia may take place in the second half of November, although the dates have yet to be finalised.

The ministry has prepared a concept note for the proposed MoU and sought input from the Industries ministry. It has also sought the agriculture ministry's views on future DAP demand, import requirements and the proposed purchase guarantee.

After the MoU is signed, the two countries will need to assess the project's technical and commercial feasibility. Final agreements covering investment, financing, raw material supplies and fertiliser purchases will follow if both sides agree to proceed.

The foreign ministry official said the proposal also aligns with Saudi Arabia's Vision 2030, which aims to diversify the country's economy and reduce its dependence on oil.

Long-standing DAP import agreement with Saudi Arabia

Bangladesh has imported DAP fertiliser from Saudi Arabia under G2G agreements since FY2015-16, according to a Ministry of Agriculture report.

The latest two-year agreement was signed on 15 December 2024. It provides for 15 shipments a year, including 11 committed and four optional lots. The committed shipments require Bangladesh to import at least 4.40 lakh tonnes annually.

The country's total DAP imports have also increased, rising from 12.72 lakh tonnes in FY2023-24 to 13.99 lakh tonnes in FY2024-25 and 16.20 lakh tonnes in FY2025-26.

If the proposed factory becomes operational, it could supply a substantial portion of Bangladesh's import requirements. However, the final project plan will need to address how its production will fit with existing G2G commitments and future demand.

Import costs and subsidy concerns

DAP fertiliser is sold to consumers at Tk21 per kg, with the government subsidising the gap between import and retail prices.

On 13 October, the Cabinet Committee on Government Purchase approved the import of 40,000 tonnes from Saudi Arabia under a G2G agreement at $861.50 per tonne. At Tk123 per dollar, the import price alone works out to around Tk106 per kg, excluding transport and handling costs.

The proposed joint venture aims to explore more affordable procurement. However, its cost-effectiveness will depend on production expenses, loan interest, raw material and transport costs, and the financial implications of the long-term purchase guarantee.

Production at sole factory falls far below target

Established in 2006 on 66 acres in Rangadia, Anwara upazila, Chattogram, DAP Fertilizer Company Limited is the country's only DAP-producing factory, with an annual capacity of 5.28 lakh tonnes.

However, raw material shortages have kept production well below capacity. Against a BCIC target of 1 lakh tonnes in FY2025-26, the factory produced only 40,000 tonnes. It has recorded no production so far in the current financial year, remaining shut since 28 June due to a shortage of phosphoric acid.

Officials consider an uninterrupted supply of raw materials essential to avoid similar disruptions at the proposed Saudi factory.

First potential overseas industrial investment

Bangladesh Bank sources say the government has no precedent of directly investing in an industrial factory abroad. The proposed Saudi project could be its first such venture.

Overseas investment must comply with Bangladesh Bank's foreign exchange rules, including approval for investments exceeding $10,000.

The project will therefore require scrutiny of investment approvals, foreign exchange management, debt liabilities and potential financial risks. Its final structure will depend on feasibility studies and bilateral negotiations.

Bangladesh’s ambition to become a trillion-dollar economy by 2034 is bold, but ambition alone cannot deliver prosperity. The challenge is to build an economy that produces more value, attracts investment and creates better jobs. Reaching the milestone will require better economic management and stronger institutions. The arithmetic is demanding. The International Monetary Fund’s April 2026 outlook estimated Bangladesh’s nominal GDP at $510.7 billion in 2026. Doubling that amount by 2034 would require annual growth of about 8.8 percent in dollar terms. But dollar-denominated GDP depends on output growth, domestic prices and exchange-rate movements. A depreciating taka can erode the dollar value of economic gains, even when production increases.

Recent conditions make the task harder. In October 2026, the World Bank projected Bangladesh’s growth at 3.4 percent in both FY2025-26 and FY2026-27, citing weak investment, inflation, energy constraints and financial-sector vulnerabilities. Bangladesh must restore economic confidence before it can accelerate growth. The first priority is macroeconomic stability. Persistent inflation reduces purchasing power, raises business costs and discourages investment. Monetary policy must remain credible, while fiscal policy should protect essential social spending without compromising debt sustainability. A predictable exchange-rate framework, supported by stronger export receipts, remittances and adequate reserves, would help businesses plan. Artificially defending the taka is no substitute for competitiveness, just as uncontrolled depreciation is not a growth strategy.

The second priority is repairing the financial system. A banking sector burdened by bad loans and weak governance cannot allocate savings efficiently. The World Bank reported that Bangladesh’s non-performing loan ratio reached 33.2 percent in June 2026. Such distress restricts lending, undermines depositor confidence and weakens investment. Independent asset-quality reviews, transparent recognition of losses, stronger supervision and accountability for financial misconduct must accompany restructuring of non-viable institutions. Third, Bangladesh needs productive private investment. Investors require reliable electricity and gas, efficient ports, predictable regulations and timely administrative decisions. Public investment should be selected on economic merit, with transparent procurement and rigorous evaluation of costs and benefits. Foreign direct investment can bring technology, management expertise and access to global supply chains, but capital will not flow at scale unless investors trust the rules and their enforcement.

Export diversification must become a practical industrial strategy, not a list of promising sectors. Readymade garments will remain important, but pharmaceuticals, agro-processing, electronics, light engineering and information technology services can broaden the export base. Progress depends on competitive energy costs, skilled workers, international standards, research and development, and stronger links between local suppliers and global markets. None of this is possible without greater productivity. Better technical education, digital skills, modern production methods and stronger management can raise output per worker. Women’s participation in the labour force must expand, while small and medium-sized enterprises need better access to finance and technology.

The government must also strengthen revenue mobilisation. The World Bank puts Bangladesh’s revenue collection at just 8.3 percent of GDP, leaving limited room to finance infrastructure, healthcare, education and social protection. Broadening the tax base, reducing unjustified exemptions, simplifying compliance and improving administration would create fiscal space without overburdening taxpayers. Ultimately, Bangladesh should treat the trillion-dollar target as a direction, not a deadline to be met through accounting or currency management. Stabilisation must come first, followed by stronger investment and productivity, then structural transformation. Success should be judged not only by GDP, but also by real incomes, job creation, lower poverty and resilience.

The writer is an economic analyst and lead partner at Financial Excellence Limited

Bangladesh’s readymade garment (RMG) sector faces a $4.8 billion financing gap against an estimated $6.6 billion investment requirement for 2025-2029, threatening to slow its transition to sustainable manufacturing and undermine its competitiveness in global markets.

The shortfall represents around 73 percent of the total requirement, highlighting the challenge of mobilising funds for green investment, speakers said at an event in Dhaka last week.

The dissemination event, titled “Unlocking Green Finance Pathways for Bangladesh’s RMG Sector”, was jointly organised by LightCastle Partners and Policy Exchange Bangladesh (PEB) at a hotel in Gulshan.

The underlying research estimates that around $1.6 billion in financing has been confirmed, with another $175 million in the pipeline, leaving a substantial funding gap.

Speakers said accessible green finance, increased investment and stronger collaboration among the government, financial institutions and industry stakeholders were essential to reduce greenhouse gas emissions and maintain the sector’s competitiveness.

They also stressed the need to increase the number of environmentally sustainable factories and improve access to finance for small and medium-sized garment manufacturers.

Hasan Khaled Foisal, additional secretary to the finance ministry, who attended the event as chief guest, emphasised stronger public-private collaboration to expand access to sustainable financing for greening the garment industry.

The discussion highlighted the need to simplify financing requirements and procedures, introduce government-backed credit guarantees and strengthen partnerships among government agencies, financial institutions, industry owners and development partners.

Speakers also called for greater financial and technical support for smaller factories, which often face difficulties adopting environmentally sustainable production practices.

The investment requirement is linked to efforts to reduce greenhouse gas emissions in the apparel manufacturing sector. The report’s underlying research identifies decarbonisation as essential to the industry’s long-term sustainability and competitiveness.

The ongoing global energy crisis has further underscored the importance of energy security and reducing dependence on fossil fuels.

At the event, Shoumik Shahriar, principal business consultant at LightCastle Partners, presented an analysis of the sector’s green investment gap, barriers to accessing finance and emerging investment opportunities.

Nuria Lopez, managing director of Zalo Knitting Limited; Molla Karimul Islam Tuhin, senior assistant vice-president and operational head of sustainable finance at City Bank PLC; Nazmul Haque, chief investment officer of Infrastructure Development Company Limited; Shams Mahmud, managing director of Shasha Denims Limited; Taif Hossain, programme manager at the Delegation of the European Union to Bangladesh; and Tashmeem Muntazir Chowdhury, senior vice-president and head of ESG and sustainable finance at BRAC Bank PLC, also spoke.

The event was organised under Oporajita Phase 2, an initiative focused on a just transition for women in the RMG ecosystem. LightCastle Partners is implementing the programme under Bunon 2030, which aims to promote sustainable and inclusive development in the sector while safeguarding women garment workers’ livelihoods.

A stock exchange listing is often associated with corporate growth, transparency and accountability. Yet listing does not always mean that a company is seeking fresh capital or preparing to expand. Under Bangladesh's new direct-listing framework, it may instead provide existing shareholders with an opportunity to exit part of their investments.

The Bangladesh Securities and Exchange Commission's (BSEC) Direct Listing of Securities on the Stock Exchange Rules, 2026, notified on 13 October 2026 and published in the Bangladesh Gazette on 18 October 2026, allow eligible companies to enter the main board through the sale of existing shares held by sponsors, directors and primary shareholders.

Unlike an initial public offering (IPO) involving newly issued shares, direct listing does not inject fresh equity into the company. The proceeds go to the selling shareholders rather than the business.

The central question, therefore, is whether direct listing will strengthen Bangladesh's capital market or primarily serve as an exit route for existing shareholders seeking liquidity.

A liquidity mechanism, not a capital-raising tool

Annexure H requires disclosure that the proceeds from the sale will belong to the selling shareholders and that the company will not receive the money. This distinction is fundamental: direct listing changes ownership of existing shares without necessarily improving the company's financial position.

For shareholders whose investments have remained illiquid, listing may offer a valuable opportunity to realise their holdings. However, a public listing should not automatically be interpreted as evidence of new investment, business expansion or improved financial strength.

A conventional IPO can finance growth, technological development, debt reduction and operational improvements. Direct listing, by contrast, primarily facilitates the transfer of shares from existing owners to public investors.

The arrangement is not inherently undesirable. Shareholders should have a legitimate route to liquidity. The concern is whether the market can distinguish between a company seeking capital for growth and one whose existing shareholders are primarily looking to exit.

Will established companies find the framework attractive?

The framework may struggle to attract established companies that are financially strong and have access to conventional financing. Businesses seeking funds for expansion or debt reduction may prefer an IPO because it directly strengthens their balance sheets.

For companies whose shareholders have no immediate need to sell, direct listing may offer limited benefits relative to the costs of valuation, disclosure, governance and ongoing compliance.

As a result, the framework may appeal more to companies whose sponsors or major shareholders want to realise their investments than to businesses seeking capital for future growth. Although established companies may participate when their shareholders need liquidity, the BSEC should consider whether the framework will attract companies capable of deepening the market through productive investment.

The policy challenge is to ensure that direct listing does not become primarily a mechanism for transferring ownership and risk from existing shareholders to less-informed public investors.

A discount does not guarantee fair value

The rules require independent valuation using at least two methods, including one absolute and one relative approach. Permitted methods include discounted cash flow, residual income, asset-based valuation and market multiples.

The minimum asking price must be at least 25% below the reference price. However, a discount offers little protection if the underlying valuation is overstated.

If a company's reference price is Tk100, an asking price of Tk75 may appear attractive. But unrealistic growth projections, inappropriate comparable companies or understated liabilities could still leave investors paying more than the business is worth.

Stock exchanges must therefore scrutinise valuation assumptions, financial projections, material liabilities and sensitivity to changing conditions. The credibility of the reference price matters more than the discount applied to it.

Price discovery and investor exposure

The rules provide for a two-hour price-discovery period on the first trading day, during which investors may submit buying bids but offerors cannot place sell orders. The minimum asking price serves as the reference price, and no circuit breaker applies on the first trading day.

Offerors must collectively offer and offload at least 10% of the company's paid-up shares within 30 trading days.

In less-liquid securities, speculative demand and concentrated selling may cause sharp price movements. Without a first-day circuit breaker, investors could face substantial volatility, particularly where reliable information is limited.

The BSEC should assess whether the price-discovery mechanism adequately protects investors under different market conditions. A successful exit for existing shareholders should not come at the expense of fair and orderly price formation.

Governance must precede the exit

Rule 3(j) requires eligible companies to undertake to comply with the Commission's corporate-governance requirements within one year of listing. Annexure H also requires disclosure of existing governance practices and a time-bound compliance plan.

This raises a concern: should public investors be exposed to governance weaknesses that could reasonably have been addressed before listing?

Weak board oversight, inadequate internal controls, poor audit practices and problematic related-party transactions can harm minority shareholders even when a company appears financially sound.

Essential safeguards concerning financial reporting, board accountability and conflicts of interest should be established before trading begins wherever practicable. Any transition period should be limited, justified and subject to effective oversight.

Restrictions cannot replace accountability

Rule 11(13) restricts offerors from selling more than 50% of their listing-date holdings until the conclusion of the first annual general meeting held after completion of one full financial year from listing. Offerors are also prohibited from purchasing the company's shares for one year from the first trading day.

These restrictions may prevent an immediate, extensive exit, but they do not eliminate concerns about valuation or information asymmetry. Effective disclosure, monitoring and enforcement remain essential to ensure that public investors can assess the risks before buying shares.

Ensuring a fair and transparent market

The BSEC should ensure that essential governance safeguards are in place before listing, valuations receive substantive independent scrutiny, and price discovery does not expose investors to avoidable volatility. Disclosures should clearly explain the scale and purpose of the sale, ownership structure, financial position and material risks.

The Commission should also monitor whether direct listing attracts credible businesses with long-term potential or primarily serves shareholders seeking liquidity. Misleading disclosures and regulatory breaches should attract timely and proportionate enforcement.

An exit for shareholders, but at what cost?

The BSEC's Direct Listing Rules provide an alternative route to the public market. For existing shareholders, they may open an exit route that has previously been difficult to access. But the availability of an exit does not, by itself, create a stronger company or a healthier capital market.

Shareholders have a legitimate right to realise their investments, while incoming investors deserve fair pricing, reliable information and meaningful protection. Established companies seeking growth capital also need financing routes that support productive investment.

Ultimately, direct listing should not be judged simply by how easily existing shareholders can sell their holdings. Its success depends on whether the framework can facilitate legitimate exits without shifting disproportionate risks to public investors.

A public listing should be more than an exit route for existing shareholders. It should also mark the beginning of greater corporate accountability and contribute to a fairer, more transparent and more trustworthy capital market.

S&P Global Ratings on Friday revised its outlook on Meta Platforms to "negative" from "stable", citing significant uncertainty around the social media giant's capital spending and free operating cash flow. Big Tech has historically spent heavily on cloud computing, online advertising and e-commerce, but the AI boom has pushed capital expenditure to dizzying levels, stoking investor concerns about whether the sector can generate returns quickly enough.

Last week, Meta forecast annual capital expenditure between $135 billion-$145 billion after reporting a free cash flow deficit of $2.12 billion in the third quarter. Meta is also planning to tap public markets and sell $97.5 billion in stock to fund the AI buildout.

Meta's ability to monetize its AI investments is more limited than that of its peers, S&P said, adding it was unclear when its revenue streams would generate material contributions exceeding their rising costs over the next few years. S&P now forecasts Meta will generate FOCF deficits of $39 billion in 2026 and $71 billion in 2027.

The agency said elevated spending could keep FOCF negative beyond 2028 and expects Meta to fund its 2028 cash shortfall entirely with debt. "Given the lack of clarity around the company's future capex and its very ambitious multi-year AI investment plans, we are less certain that it will curtail its spending as previously anticipated," S&P said.

The ratings agency said it believes Meta's leverage could rise to above 1.0x as early as 2027, which is S&P Global's threshold for the "AA-" issuer credit rating. "We respectfully disagree with S&P's assertion about Meta's AI monetization capabilities," a Meta spokesperson told Reuters, adding that the company sees "significant product and business opportunities ahead of us, supporting our very strong credit profile."

Meta's leverage increased from 0.1x in 2025, primarily due to its strategy of leasing data-center capacity rather than issuing debt, S&P said.

"If capex remains elevated and continues to grow at a faster pace than we expect, credit profiles will continue to weaken and cash flows will be negative," Naveen Sarma, US media and telecom sector lead at S&P Global Ratings, said. The company reported long-term debt of $80.92 billion as of September 30.

S&P on Thursday also lowered its outlook on Broadcom to stable from positive, saying the chipmaker's rapid AI growth was increasing its exposure to a few big customers.

Earlier this year, S&P lowered cloud computing giant Oracle's credit rating to "BBB-", one notch above "junk", due to its heavily leveraged balance sheet.

British American Tobacco (BAT) Bangladesh PLC reported a 67.28% year-on-year decline in net profit to Tk99.84 crore in the July-September quarter of 2026, as lower revenue and higher operating expenses weighed on earnings.

According to the company's unaudited financial statements for the third quarter ended on 30 September, net profit after tax fell from Tk305.04 crore in the same period last year.

Quarterly earnings per share (EPS) dropped to Tk1.85 from Tk5.65 a year earlier.

The company's net revenue from contracts with customers fell to Tk1,259 crore in the third quarter, down from Tk1,677.13 crore in the corresponding period of 2025.

Following the earnings disclosure filed with the Dhaka Stock Exchange (DSE) yesterday, the company's share price fell 4.95% to close at Tk209.10.

The decline came as net revenue from contracts with customers fell to Tk1,259 crore in the third quarter, down from Tk1,677.13 crore in the corresponding period of 2025.

The company generated gross revenue of Tk7,328.34 crore during the quarter, from which Tk6,068.78 crore was deducted as supplementary duty and value-added tax (VAT).

The weaker quarterly performance also weighed on the company's cumulative earnings for the first nine months of the year.

From January to September, BAT Bangladesh's net profit after tax fell 28.77% year on year to Tk513.02 crore from Tk720.26 crore in the same period of 2025.

Net revenue for the nine-month period declined to Tk5,090 crore from Tk5,754 crore a year earlier, while EPS fell to Tk9.50 from Tk13.34.

Bangladesh and Japan are exploring alternative financing mechanisms beyond foreign direct investment (FDI) to strengthen bilateral economic ties and expand investment cooperation.

The issue came up at a meeting in Tokyo on Friday between Bangladesh’s Finance and Planning Minister Amir Khosru Mahmud Chowdhury, Japanese Finance Minister Satsuki Katayama and Vice Minister of Finance for International Affairs Atsushi Mimura.

The meeting was held at the Japanese finance minister’s office, according to a press release issued by Bangladesh’s finance ministry.

Both sides recalled the longstanding economic ties between the two countries and discussed ways to deepen bilateral cooperation, with particular emphasis on alternative financing, infrastructure development and trade expansion in Bangladesh.

They also agreed to take steps to strengthen existing economic relations and explore opportunities for cooperation in new sectors, the press release said.

Tanvir Shahriar Ghani, special assistant to the prime minister for investment and capital market affairs, and senior officials from both countries attended the meeting.

Japan is one of Bangladesh’s major development partners and has financed numerous infrastructure and social development projects. Several Japanese-funded projects are currently under implementation.

Marico Bangladesh Limited reported a 7% year-on-year decline in profit for the first half of FY27 as higher operating costs eroded earnings despite revenue growth.

The India-based fast-moving consumer goods company's profit after tax fell to Tk323.90 crore in April-September from Tk348.14 crore in the same period a year earlier. Earnings per share (EPS) declined to Tk102.82 from Tk110.52, according to financial statements approved by the board on Wednesday (28 October).

Revenue rose to Tk1,056 crore during the six-month period. However, the cost of sales increased to Tk524.78 crore from Tk477.09 crore, alongside higher general, administrative, marketing and distribution expenses. Rising energy prices also added to the cost burden.

In the second quarter, revenue increased to Tk524.21 crore in July-September from Tk500.72 crore a year earlier, while profit after tax remained nearly unchanged at Tk153.42 crore.

The company declared a 350% interim cash dividend, equivalent to Tk35 per share against a face value of Tk10, for the period ended 30 September. The record date is 24 November.

The latest payout follows a 500% interim cash dividend declared for the first quarter ended 30 June.

Following the disclosure, the company's share price fell 0.28% to close at Tk2,642.50 on the Dhaka Stock Exchange.

Bata Shoe Company (Bangladesh) Limited has recommended a 36.31% interim dividend for its shareholders for the year 2026, translating to Tk3.63 per share of Tk10 each, based on the retained earnings up to 31 December last year.

The decision came during the company's board meeting yesterday afternoon (29 October).

According to the financial statements for the period ended 30 September, the footwear giant posted robust growth in both revenue and profitability compared to the same period of the previous year.

For the third quarter (July–September 2026), the company's revenue surged to Tk211 crore, up from Tk183 crore recorded in the corresponding period of 2025.

During this three-month period, the company reported that its net loss narrowed to Tk5 crore from the same period the previous year.

Meanwhile, for the cumulative nine-month period ending 30 September, Bata Bangladesh reported a significant jump in revenue to Tk770 crore from Tk700 crore in the same nine months of 2025.

The company's net profit for the nine months more than tripled, soaring to Tk45 crore compared to Tk12.74 crore year-on-year, driving the earnings per share (EPS) up to Tk33.21 from Tk9.32.

The record date for the entitlement of the interim dividend has been set for 25 November.

Most of the listed multinational companies (MNCs) suffered a decline in profit in January-September this year, compared to the same period last year, amid a challenging business environment.
The affected companies include Unilever Consumer Care, LafargeHolcim Bangladesh, Grameenphone, Linde Bangladesh, and British American Tobacco Bangladesh Company (BATBC).Bangladesh Investment Guide

According to officials and company disclosures, the latest financial performance of the above-mentioned MNCs reflects the challenges they face in sustaining growth and profitability.

Macroeconomic worries also played a role in the decline in profit.

Despite a rise in revenue, LafargeHolcim Bangladesh suffered a 21 per cent year-on-year decline in profit to Tk 2.79 billion in the first nine months this year, mainly due to a surge in energy, fuel, and production costs.

Talking to the FE, the company's Chief Executive Officer Iqbal Chowdhury said the cement industry experienced a contraction in bottom-line profitability during the July–September quarter due to severe macroeconomic and structural headwinds.

"Ongoing geopolitical conflict in the Middle East disrupted global supply chains, driving up the costs of fuel, energy, and imported raw materials like clinker," Mr Chowdhury said.

Furthermore, intense market dynamics, with domestic production capacity standing at more than double the actual demand, forced companies to maintain competitive pricing, limiting their ability to absorb or pass on additional costs. That ultimately squeezed profit in the quarter to September.

The macroeconomic challenges led to a marginal fall in the revenue and profit of Grameenphone, the top mobile phone operator.

The company's weaker nine-month performance was primarily driven by subdued consumer spending, declining voice revenue and difficulties in monetising its customer base amid changing consumption patterns.

However, Grameenphone's performance was not uniformly weak throughout the period. Its third-quarter recovery suggests that the business was beginning to regain momentum after a difficult first half.

Against a year-on-year fall of 1.63 per cent in revenue, the company's profit declined more than 4 per cent year-on-year to Tk 21.72 billion in the first nine months through September this year.

On the other hand, data-centric services, a growing 4G customer base and tighter operational management drove growth in the revenue and profit reported by Robi Axiata for the January-September period this year.

The company's ability to monetise rising internet consumption helped it stay on a growth trajectory.

BATBC experienced a significant decline in both revenue and profit, primarily due to falling cigarette sales volumes, a higher tax burden, growing competition from illicit cigarette manufacturers and weakening consumer purchasing power.

Linde Bangladesh and Unilever Consumer Care faced different challenges that eroded profitability during January–September 2026.Bangladesh Investment Guide

The challenges included higher imported raw material costs, a higher tax burden, and higher distribution expenses. Unilever Consumer Care suffered from sluggish sales amid persistent inflation and weaker consumer purchasing power.

On the other hand, Bata Shoe, Reckitt Benckiser and Berger Paints demonstrated resilience through stronger consumer demand, operational efficiency and effective cost management.

Berger Paints, which follows the April-March fiscal year, demonstrated stronger financial performance in January–September this year, compared with the same period last year, riding on increased revenue. It bagged a profit of Tk 2.59 billion in April–September. The company's profit in the previous quarter was Tk 1.05 billion. As a result, its profit stood at Tk 3.64 billion in the first nine months of this year, up 53 per cent from the corresponding period of the previous year.

Reckitt Benckiser protected its margins through tighter expense management despite largely stagnant sales. Although revenue showed no growth, the company experienced a 6 per cent year-on-year increase in profit to Tk 572 million in January-September this year.

Bata Shoe, meanwhile, reportedly delivered exceptional profit growth, supported by strong Eid-season demand, successful marketing campaigns, product launches, retail expansion and disciplined expense management.

The company's profit jumped to Tk 454 million in January–September 2026 from Tk 127 million in the corresponding period of the previous year.

Meanwhile, despite 4.1 per cent revenue growth, Singer Bangladesh's loss widened by 4.4 per cent year-on-year to Tk 1.19 billion in the first nine months of this year.Bangladesh Investment Guide

Apart from higher finance costs and operating expenses, the company faced intense competition from other local manufacturers, limiting its ability to raise product prices to offset higher costs.

Concerns about Bangladesh's export competitiveness stoke up as the local-currency taka gets overvalued by nearly 6.5 per cent against its benchmark level in exchange with peer currencies and makes products costlier.

According to latest data, the real effective exchange rate (REER) of the currency rose to 106.29 in September, indicating that the taka was overvalued by nearly 6.5 per cent.

The elevated REER suggests that the local currency has become relatively expensive against the currencies of Bangladesh's major trading partners, potentially making Bangladeshi goods less competitive on the international market.

The increase has largely been driven by persistently higher inflation in Bangladesh than in its trading-partner economies which has pushed up the relative price of locally produced goods.

The September reading indicates that the local currency would need to depreciate to restore external competitiveness, economists and central bank officials have said.

However, instead of allowing the currency to weaken in line with the REER movement, Bangladesh Bank has maintained an exchange rate that has kept the taka relatively strong against the US dollar.

The dollar-taka exchange rate stood at Tk 121.87 in September, while the indicative bilateral rate consistent with the REER benchmark was Tk 123.03, suggesting a gap between the prevailing and indicative exchange rates.

REER measures a currency's value against a weighted basket of currencies of major trading partners, adjusted for differences in inflation.

It is widely used by central banks to assess a country's external price competitiveness.

An index value of 100 represents the benchmark level. A reading above this mark generally indicates that a currency is relatively overvalued, while a reading below 100 suggests undervaluation.

The central bank officials argued that maintaining a relatively strong taka helps contain the domestic cost of imports.

Since import payments are settled in foreign currencies, a depreciation of the taka would require importers to spend more local currency to purchase the same amount of dollars, increasing the cost of imported goods.

"If we depreciate the taka in line with the REER, we will have to pay more in local currency for imported goods," a Bangladesh Bank official told the FE, requesting anonymity, about the virtues of managed exchange rate.

But economists warn that keeping the currency relatively strong for an extended period could undermine export competitiveness and affect foreign-exchange earnings as well as the remittance inflows.

"In my view, higher inflation is the principal reason behind the increase in the REER," said Dr Md. Ezazul Islam, director-general of the Bangladesh Institute of Bank Management (BIBM).

He said a persistently high REER would adversely affect exports by making Bangladeshi products relatively more expensive in overseas markets.

The longer-term implications could also extend to remittance inflows if an overvalued taka reduces the incentives for expatriate Bangladeshis to send money through formal banking channels, he added.

Bangladesh faces a difficult policy tradeoff between bringing inflation under control and allowing further depreciation of the taka to restore external competitiveness, Dr Islam said about the quandary.

A persistently elevated REER can erode the price advantage of domestic producers in international markets, particularly in export-oriented industries that compete primarily on cost.

The central bank calculates the REER using a basket of 17 currencies, with fiscal year 2023-24 serving as the base year, when the index was assigned a value of 100.

The calculation incorporates Bangladesh's trade and remittance relationships with its major trading partners, adjusting the nominal exchange rate for relative inflation movements.

Despite continued volatility in the capital market, the Investment Corporation of Bangladesh (ICB), a state-owned investment banker, halved its consolidated net loss to Tk652.55 crore in FY2025-26.

The corporation did not recommend any dividend for shareholders amid persistent losses, resulting in its shares being downgraded to the Z category for the first time since its listing.

Under the rules, a listed company may be downgraded to the Z category if it fails to declare or recommend dividends for two consecutive years.

In the previous fiscal year, ICB incurred a record loss of Tk1,213 crore amid prolonged market volatility, which weighed on its capital gains and dividend income. The corporation also faced higher provisioning requirements against bad investments, particularly funds trapped in fixed deposit receipts (FDRs).

On that year, it had also skipped the dividend payouts to the shareholders.

Owing to downgrading the shares into the Z category, ICB's shares price fell 4.07% or Tk1.40 each for per share closing at Tk33 each today (29 October) at the Dhaka Stock Exchange (DSE).

After the board of directors meeting held on Wednesday, ICB published its annual corporate declaration for FY26 today at the website of the bourses.

As per the information, on the consolidated basis, the consolidated loss per share declined to Tk7.52, which was Tk14 in the previous fiscal year.

Regarding the improving losses, ICB said, the net loss in FY26 decreased due to decrease in provision expenses against other assets (mainly FDRs), loans and advances, and income tax liabilities despite an increase in interest expenses and a decrease in capital gains from the sale of securities.

As per sources at the ICB said, the state-owned firm owns around Tk1,000 investment in some non-bank financial institutions, but despite having maturity, the institutions failed to repay the investment to the ICB. That is why the ICB had to keep a substantial amount of provision against the bad investment.

The net operating cash flow per share in FY26 decreased to Tk8.96, decline from Tk10.31 at the same time of the previous fiscal year due to decrease in capital gain from sale of securities, increase in the payment of Interest Expense and decrease in the cash inflow from short-term debt.

The net asset value per share significantly declined to Tk30.26, which was Tk37.45 in FY25.

The annual general meeting is scheduled to be held on 5 December through a digital platform, while 18 November has been fixed as the record date to identify eligible shareholders.

City Bank PLC reported a 19% year-on-year decline in its consolidated net profit for the July–September quarter of 2026, as lower investment income and higher operating expenses weighed on its quarterly earnings, despite maintaining strong growth in its nine-month performance.

According to the bank's unaudited third-quarter financial statements, approved at a board meeting on 29 October, consolidated net profit after tax stood at Tk341 crore, down from Tk422 crore in the same period of 2025.

On a standalone basis, quarterly net profit after tax fell to Tk337.63 crore from Tk403.98 crore a year earlier. Consequently, consolidated earnings per share (EPS) declined to Tk1.95 in the third quarter of 2026 from Tk2.41 in the corresponding quarter of the previous year.

The lower quarterly profit was primarily influenced by a drop in investment income, which fell to Tk1,082.34 crore during the July–September quarter from Tk1,110.54 crore reported in Q3 2025. At the same time, consolidated operating expenses for the quarter climbed to Tk636.68 crore from Tk535.35 crore in the prior-year period, driven by higher salaries, administrative costs, and depreciation expenses.

Despite the third-quarter decline, the lender sustained overall profit expansion across the cumulative nine-month period. For the January–September 2026 period, consolidated net profit after tax grew by 20% to Tk867 crore compared to Tk722 crore in the corresponding nine months of 2025. Cumulative nine-month EPS rose to Tk4.96 from Tk4.13, supported by higher commission and fee income alongside improved net interest and investment earnings over the full nine-month horizon.

The bank's balance sheet metrics strengthened over the year. Consolidated net asset value per share reached Tk41.51 as of 30 September 2026, up from Tk35.37 at the end of December 2025. Meanwhile, Net Operating Cash Flow per Share surged to Tk72.72 for the first nine months, compared to Tk33.41 reported in the same period of 2025.

Beximco Pharmaceuticals PLC, one of the country's largest drugmakers, reported a record consolidated net profit of Tk916.08 crore for FY26, up 31% from Tk699.89 crore in the previous fiscal year.

According to price-sensitive information approved at a board meeting on 28 October, the company recommended a 60% cash dividend for FY26. The record date for determining eligible shareholders is 19 November.

Consolidated earnings per share (EPS) rose to Tk20.17 from Tk15.56 in FY25. On a standalone basis, net profit increased to Tk852.47 crore from Tk671.26 crore, while EPS rose to Tk19.11 from Tk15.05.

The company's profit stood at Tk500 crore in FY22 before falling to Tk461 crore in FY23. It then rose to Tk583 crore in FY24, Tk700 crore in FY25 and a record Tk916 crore in FY26.

Consolidated net asset value (NAV) per share increased to Tk139.18 as of 30 June 2026, from Tk119.04 a year earlier. Net operating cash flow per share (NOCFPS) also rose to Tk21.33 from Tk16.19 in FY25, reflecting improved operating cash generation.

The company's 50th annual general meeting (AGM) for FY26 remains subject to the holding of its 49th AGM for FY25. An application seeking condonation of delay in holding the 49th AGM is pending before the High Court Division of the Supreme Court of Bangladesh, with a judgment scheduled for 1 November 2026.

The dates, times and formats of both AGMs will be announced after the court's decision.

Following the disclosure, Beximco Pharma's share price rose 0.49% to close at Tk143.70 on the Dhaka Stock Exchange.

The results come after the Bangladesh Securities and Exchange Commission approved the reconstitution of the company's board, excluding former vice-chairman Salman F Rahman, to form a new nine-member board and resolve ongoing legal disputes between the regulator and the company.

Global shares were trading mixed Friday, as worries about the future of artificial intelligence grew after Alphabet's stock drop dragged on U.S. markets.Read Economics
France's CAC 40 gained 0.2% in early trading to 7,988.84, while the German DAX edged down 0.1% to 26,008.99. Britain's FTSE 100 added nearly 0.4% to 10,759.33. U.S. shares were set to trade mixed with Dow futures up 0.2% at 52,613.00, while S&P 500 futures were down 0.8% at 7,689.00.

In Asia, Japan's benchmark Nikkei 225 dropped 2.1% to finish at 63,290.11. At the end of its two-day monetary policy board meeting, the Bank of Japan decided to keep its benchmark interest rate unchanged at 1.25%. That was widely expected because the central bank raised the rate last month.

The U.S. has been pressuring Japan to raise rates because of concerns about the weakening yen. In currency trading, the U.S. dollar fell to 157.28 Japanese yen from 157.65 yen. The euro cost $1.1196, up from $1.1181.Invest in Stocks

Australia's S&P/ASX 200 rose 0.2% to 8,908.10. South Korea's Kospi declined 3.5% to 5,730.74, as shares in SK Hynix and Samsung Electronics both slipped.

AI-related stocks have been volatile. Shares of chipmakers and other companies have risen on enthusiasm for the technology, then fallen on concerns about issues such as supply constraints.

Hong Kong's Hang Seng added 1.5% to 23,294.42, while the Shanghai Composite lost 1.4% to 3,599.02.

In energy trading, benchmark U.S. crude gained 1.53% to $103.56 a barrel. Brent crude, the international standard, edged up 1.65% to $116.77 a barrel.