United News of Bangladesh

The Bangladesh Securities and Exchange Commission (BSEC) has directed listed companies that failed to appoint female independent directors in line with the Corporate Governance Code, 2018, to complete the appointments by June 30 this year. The decision was disclosed on Sunday through a press release following a meeting held on April 29 with company secretaries of non-compliant listed firms at the commission’s headquarters in Agargaon. BSEC Executive Director Md Anwarul Islam presided over the meeting organised by the Corporate Governance Department. According to the regulator, legal action will be taken against companies that fail to comply after the June 30 deadline. BSEC said eligible candidates for the post may include women entrepreneurs, members of business bodies, corporate leaders, teachers of public and private universities, serving or retired government officials, professional degree holders and practising High Court lawyers. The commission made the appointment of at least one female independent director mandatory for listed companies through a gazette notification issued on April 29, 2024, after amending a provision of the Corporate Governance Code. Initially, firms were given one year to comply, while the deadline was later extended until December 31, 2025. According to updated information submitted by Dhaka Stock Exchange PLC, 163 listed companies have already appointed female independent directors, while 131 companies failed to meet the requirement within the stipulated timeframe.

The Asian Development Bank (ADB) on Sunday launched a new financing facility to help countries in Asia and the Pacific develop critical minerals supply chains needed for clean energy, batteries, electric vehicles, and digital technology. “Critical minerals will shape the next industrial era,” said ADB President Masato Kanda at ADB’s 59th Annual Meeting. “Asia and the Pacific should be more than a source of raw materials. The region should also capture the jobs, technology, and value these minerals provide,” he said. ADB approves $250m loan to strengthen Bangladesh’s social protection system The ADB President added, “This facility is about urgency and fairness: building responsible supply chains now, so our developing member countries can compete in advanced manufacturing and create opportunities at home.” The Critical Minerals-to-Manufacturing Financing Partnership Facility is intended to move the region beyond mining and into higher-value industries such as processing, manufacturing, and recycling, according to a release issued by the ADB. The facility will help prepare projects, reform policies, and support public investment and private financing across critical minerals value chains. The facility has two parts: a grant window and a catalytic finance window. The grant window will fund early project work, including feasibility studies, environmental and social assessments, technical assistance and knowledge-sharing. The government of Japan has committed $20 million to the grant window, while the government of the United Kingdom has committed $1.6 million. The catalytic finance window is designed to bring in cofinancing and risk-sharing from other financing partners. Korea Eximbank and the Korean Trade Insurance Corporation, known as K-SURE, each signed a $500 million memorandum as the facility’s first partners. The facility builds on ADB's 2025 strategy to support responsible and sustainable critical minerals-to-manufacturing value chains across the region. ADB is already supporting battery manufacturing and recycling in India, geological data mapping in Mongolia, AI-driven critical metals production and circular approaches in Uzbekistan, a critical minerals strategy in Kazakhstan, and a critical minerals roadmap and regulatory reforms in the Philippines. It has also worked with partners to establish a Critical Minerals Database to improve information on critical minerals supply chains and support better policy coordination. All projects supported through the facility will be subject to ADB’s strict environmental and social requirements, due diligence, and impact assessments. The facility is intended to help meet rising demand for clean energy and digital technologies while creating jobs and supporting inclusive economic growth in the region, the release added.

Eleven listed banks have declared no dividend for the year ending on December 31, 2025 with 10 of them newly placed in the Z category. The latest disclosures, made on Sunday through the Dhaka Stock Exchange (DSE), also triggered restrictions on margin loan facilities for the banks concerned. The banks that recommended no dividend are AB Bank PLC, UCB PLC, Rupali Bank PLC, Premier Bank PLC, IFIC Bank PLC, Mercantile Bank PLC, Al-Arafah Islami Bank PLC, NRBC Bank PLC, National Bank PLC, NRB Bank PLC and One Bank PLC. Clouds gather over future of ‘Sammilito Islamic Bank’ as partner banks seek exit Ten of the banks except National Bank were placed in the Z category from their previous classifications, effective from Sunday, according to DSE notices. National Bank was already in the Z category and therefore remained unchanged despite recommending no dividend. Earlier last week, Islami Bank Bangladesh PLC, Standard Bank PLC and SBAC Bank PLC were also downgraded to the Z category after failing to declare dividends for two consecutive years. Under the Bangladesh Securities and Exchange Commission (Margin) Rules, 2025, stock brokers and merchant bankers were instructed to refrain from extending loan facilities to purchase shares of the banks that declared no dividend. Several banks cited regulatory constraints and provisioning shortfalls for their inability to recommend payouts. Rupali Bank said Bangladesh Bank granted regulatory forbearance against a provisioning shortfall of Tk 14,014.48 crore. Premier Bank said the central bank allowed it to finalise its financial statements without adjusting a shortfall of Tk 9,799.26 crore. Mercantile Bank said it was allowed to complete its accounts with an unadjusted provision shortfall of Tk 2,161.31 crore, while NRB Bank said the central bank did not allow it to declare a dividend due to a lack of distributable profit. AB Bank reported consolidated earnings per share (EPS) of Tk (43.42) with negative net asset value (NAV) per share of Tk (36.24), while National Bank posted EPS of Tk (7.55) and NAV per share of Tk (7.37). There was no price limit on trading the shares of these banks on Sunday following their corporate declarations.

The fate of the merger of five struggling Islamic banks to form the 'Sammilito Islamic Bank PLC' hangs in the balance, with increasing signs pointing to its potential dissolution less than five months into its journey. Sources at Bangladesh Bank (BB) confirm that at least one partner bank has formally applied to exit the merged entity, while another is reportedly considering a similar move, casting a shadow over the future of what was initially touted as a critical initiative to stabilize the country's troubled Islamic banking sector. The merger, finalized on December 21 last year, brought together Exim Bank, First Security Islami Bank, Global Islami Bank, Union Bank, and Social Islami Bank Limited (SIBL). The primary objective was to consolidate these distressed institutions under a single umbrella, restructure their operations, address severe liquidity shortages, and, crucially, restore waning depositor confidence. However, five months into the merger, anticipated progress has remained elusive. The bank’s operations have not fully normalized, and the process of returning depositor funds is moving slowly, in many cases failing to meet stated commitments. This has exacerbated the initial confidence crisis rather than alleviating it. The most significant development underscoring the turmoil is the formal application by SIBL to the central bank requesting permission to withdraw from the combined structure. The application, filed by a sponsor director and former chairman of SIBL, Rezaul Haque, has ignited considerable debate within the financial sector. Javedul Alam Chowdhury, a former director of SIBL, told UNB that the application was made utilizing the provisions of Section 18(A) of the newly incorporated Bank Resolution Ordinance, with the full consent of SIBL's previous board.  Simultaneously, reports suggest that Exim Bank is also actively exploring a similar course of action. The distinct positions taken by these two prominent institutions highlight a critical lack of cohesion and confidence within the merged structure. Financial analysts contend that the merger was inherently high-risk from its inception, primarily because the financial health of all five participating banks was exceptionally precarious before the amalgamation. Data from the Bangladesh Bank reveals non-performing loans (NPLs) ranging from 48 percent to a staggering 97 percent across the five banks, totaling nearly Tk 1.5 lakh crore out of a total loan portfolio of Tk 1.96 lakh crore—the vast majority of which is considered irrecoverable. Experts argue that grouping weak banks together without fundamentally addressing their core structural and management flaws cannot provide a sustainable solution to their deep-seated problems. To keep these banks afloat, the government and the central bank have provided substantial liquidity support, sometimes amidst allegations of creating money for this purpose.  The merger itself was facilitated with government funding. The lack of visible progress towards stability despite such extensive support has raised serious questions about the effectiveness of the policy decisions that led to the merger and their long-term implications for the financial sector. Further complicating the situation is the recently enacted bank resolution framework, which introduces various alternatives, including liquidation, transfer to a bridge bank, transfer to a new investor, and the option for former shareholders to reclaim ownership. The addition of Section 18(A), in particular, allowing previous owners a path back to control, has generated fresh controversy. Critics question whether returning ownership to those under whose stewardship the banks initially faltered will not lead to a resurgence of past irregularities and weaknesses, thereby undermining the original rationale for the merger. Perhaps the most significant challenge facing Sammilito Islamic Bank is restoring the trust of its massive customer base. With approximately 91.5 lakh accounts and a workforce of over 15,000, the bank's future directly impacts the lives of a vast number of customers and employees. However, the reality is stark: many branches report declining customer footfall and a reduction in new deposits. Limits on cash withdrawals have increased customer hardship and frustration. One customer expressed the prevailing sentiment, stating, "It feels risky to keep money, and there are problems withdrawing it—how can we trust the bank under these circumstances?" Internally, uncertainty is rampant among bank staff. A branch manager, speaking on condition of anonymity, emphasized the need for clear directives. "If the Bangladesh Bank provides specific guidelines and we can work accordingly, then we can gradually normalize customer services." In contrast, the central bank asserts that the merger process is ongoing and that efforts to strengthen the bank's operational structure, including the appointment of managing directors and board reconstitution, are underway. According to sources within Bangladesh Bank, the government will ultimately decide the future of Sammilita Islamic Bank, with the central bank responsible for implementing that decision. A spokesperson for the central bank, Arif Hossain Khan, clarified that the government's intention was never to permanently retain control of these banks through the merger. Instead, the plan is to allow them to return to the private sector once their situation improves. "If anyone wants to invest and take over the responsibility of this bank, they will be welcomed," he stated. In its application to the central bank, SIBL proposed a plan to operate independently and restructure its operations. The proposal includes targets to reduce NPLs to 25 percent by December, minimize risky assets, strengthen the capital structure, reactivate 22 government accounts to bring back nearly Tk 500 crore, and secure Tk 11,000 crore in liquidity support for a period of 10 years. However, analysts believe achieving these targets amidst such a profound financial crisis is extremely challenging and would require exceptionally robust management and stringent regulatory oversight. As the situation unfolds, critical questions remain: Is the merger model fundamentally viable in this instance? Can the entity survive if partner banks continue to seek exits? Will returning control to former owners merely reintroduce old problems? What actions are necessary to genuinely restore customer confidence? And ultimately, what is the government’s definitive strategy for these banks—restructuring, privatization, or dissolution?  Sammilito Islamic Bank stands at a crucial crossroads, with the government’s decision poised to determine its fate, a decision that will have far-reaching consequences for the entire banking industry in Bangladesh.

Bangladesh's reconditioned vehicle dealers have alleged that National Board of Revenue (NBR) officials are harassing traders and creating unnecessary complications in VAT collection in violation of existing tax laws, threatening to drive businesses to collapse. At a press conference at the BARVIDA office in Bijoy Nagar on Saturday, leaders of the Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) said many of their members were considering shutting down operations due to mounting VAT-related harassment. BARVIDA demands depreciation facility maximum of 50 percent in next budget “Despite clear VAT laws on the books, officials ignore them entirely and treat traders as if they have come to steal rather than do business,” said BARVIDA Secretary General Riaz Ahmed Khan. He said members were fully willing to cooperate with the NBR but the field-level harassment they faced was wholly unacceptable. He called on the NBR chairman and the finance minister to urgently formulate a fair and transparent policy for the automobile trade, warning that failure to act would trigger a serious downturn in the sector. One leader cited the case of ordinary traders in Chattogram being slapped with penalties of up to Tk 40 million under the pretext of VAT violations, an amount he described as grossly abnormal. He said such conditions were pushing many businesspeople to the edge of despair, with some even contemplating leaving the country. In a separate set of demands ahead of the forthcoming national budget, BARVIDA President Abdul Haque called for reducing existing duties on fuel-efficient hybrid and plug-in hybrid vehicles, withdrawing supplementary duty on microbuses used as public transport, and cutting taxes on reconditioned electric vehicles (EVs) imported from Japan. “If tax relief on reconditioned EV imports is aligned with the government's existing incentives for the electric vehicle industry, the uptake of eco-friendly vehicles will rise significantly,” Abdul Haque said. “This would simultaneously reduce fuel expenditure, ease pressure on foreign exchange reserves, and bring vehicle prices within the reach of middle-income buyers, expanding the market and boosting government revenue.” BARVIDA leaders argued that a rational tariff structure for the motor vehicle sector was essential to accelerating economic activity, attracting investment, generating employment, and supporting poverty alleviation at a time of broader economic challenge.

City Bank, a leading private commercial bank in Bangladesh, recorded a staggering 162 percent growth in its net profit for the first quarter (Q1) ending March 31, 2026. According to a press release issued by the bank on Thursday, its Profit After Tax (PAT) surged to Tk 241 crore in Q1 2026, up from Tk 92 crore during the same period last year. Consequently, the bank's Earnings Per Share (EPS) rose significantly to Tk 1.6, compared to Tk 0.6 in the previous year. The strong financial performance was largely driven by robust core banking income. Interest income from loans grew by 14 percent, reaching Tk 1,306 crore, up from Tk 1,143 crore. Investment income also saw a sharp rise, jumping from Tk 603 crore to Tk 1,014 crore, accounting for 32 percent of the total operating income. The bank’s fee and commission income grew by 27 percent, fueled by increased earnings from foreign exchange transactions, card fees, and trade commissions. Total income for the quarter stood at Tk 1,338 crore, marking a 38 percent overall increase. Operating profit rose by 61 percent to Tk 743 crore, compared to Tk 461 crore in the first quarter of last year. Improved cost management brought the Cost-to-Income ratio down to 44 percent from 52 percent. Additionally, enhanced asset quality resulted in lower provisioning requirements, further boosting the net profit. Despite the stellar financial results, City Bank’s Managing Director and CEO, Mashrur Arefin, expressed caution regarding the broader banking landscape. While welcoming the profit growth, he voiced concern over a decline in loan growth. "The downward trend in credit growth is a matter of concern for the entire banking sector," Arefin noted, highlighting the challenges facing the industry's traditional lending model.

Six listed banks have declared dividends for the fiscal year ended December 31, 2025, the Dhaka Stock Exchange (DSE) disclosed on Thursday, with shareholders' meetings scheduled between June and July. Pubali Bank PLC offered the most generous combined payout, recommending 15% cash and 15% stock dividend. The bank posted consolidated earnings per share (EPS) of Tk. 8.38, net asset value (NAV) per share of Tk. 54.32, and net operating cash flow per share (NOCFPS) of Tk. 32.04 against Tk. 5.99, Tk. 41.17 and Tk. 54.85 respectively in 2024. Its AGM is set for June 16. Uttara Bank PLC recommended 5% cash and 25% stock dividend, subject to approval from the Bangladesh Securities and Exchange Commission (BSEC). The bank reported EPS of Tk. 6.08, NAV per share of Tk. 31.95 and NOCFPS of Tk. 11.45, compared to Tk. 4.93, Tk. 27.29 and Tk. 6.55 a year earlier. Its AGM will be held on June 15. Jamuna Bank PLC recommended the highest all-cash return among the six, declaring 29% cash dividend, equivalent to Tk. 2.90 per share of Tk. 10 face value. Its consolidated EPS stood at Tk. 5.92, NAV per share at Tk. 27.43 and NOCFPS at Tk. 0.73, against Tk. 2.97, Tk. 24.61 and Tk. 13.43 respectively in 2024. The bank's AGM is slated for July 27. Bank Asia PLC recommended 8.50% cash and 8.50% stock dividend. The lender reported EPS of Tk. 3.18, NAV per share of Tk. 27.42 and NOCFPS of Tk. 41.74, compared to Tk. 1.95, Tk. 24.80 and Tk. 45.87 the previous year. The bank also announced a proposal to double its authorised capital from Tk. 1,500 crore to Tk. 3,000 crore, subject to Bangladesh Bank approval and shareholder resolution. Its AGM is scheduled for June 11. Mutual Trust Bank PLC declared 12% stock dividend only, citing the need to bolster its capital base in line with Basel III requirements. The bank reported EPS of Tk. 3.14, NAV per share of Tk. 28.11 and NOCFPS of Tk. 22.64, against Tk. 2.93, Tk. 23.58 and Tk. 46.66 respectively in 2024. Its AGM will take place on June 28. Southeast Bank PLC recommended the most modest return, proposing 3% cash and 7% stock dividend, with the stock component subject to BSEC clearance. The bank's EPS rose sharply to Tk. 2.51 from Tk. 0.32 a year ago, while NAV per share stood at Tk. 25.74 and NOCFPS at Tk. 4.72. Its AGM is set for July 16. All six banks cited capital base strengthening and support for future business growth as the rationale behind their stock dividend recommendations. The record date for most banks is May 20, 2026. All AGMs will be held via digital platforms. Shares of all six companies traded without price limits on Wednesday following the corporate disclosures.

Three banks lost their existing stock exchange category status on Wednesday as the Dhaka and Chittagong stock exchange downgraded them to the 'Z' category for failing to declare dividends for two consecutive years. Islami Bank Bangladesh PLC, Standard Bank PLC and SBAC Bank PLC were stripped of their respective standings: Islami Bank from 'A' category and the other two from 'B' category, effective Wednesday, in accordance with provision 1(a) of BSEC directive. Stock brokers and merchant bankers have been directed to refrain from extending loan facilities for the purchase of securities of all three banks with immediate effect, as per rule 11(8) of the Bangladesh Securities and Exchange Commission (Margin) Rules, 2025. All three boards of directors have recommended no dividend for the year ended December 31, 2025. Islami Bank reported a consolidated earnings per share (EPS) of Tk 0.85, net asset value (NAV) per share of Tk 44.52 and net operating cash flow per share (NOCFPS) of Tk 26.18 for 2025, against Tk 0.68, Tk 44.36 and Tk 57.90 respectively in 2024. Its AGM is scheduled for June 25, with a record date of May 21. Standard Bank posted a consolidated EPS of Tk 0.72, NAV per share of Tk 16.94 and NOCFPS of Tk 11.37 for 2025, compared to Tk 0.74, Tk 16.63 and Tk 3.86 (all restated) in 2024. Its AGM will be held on July 30 with a record date of June 3. SBAC Bank recorded a consolidated EPS of Tk 0.01, NAV per share of Tk 13.61 and NOCFPS of Tk 0.20 for 2025, against Tk 0.14, Tk 13.49 and Tk 7.62 respectively in the previous year. Its AGM is set for June 15 via a hybrid system, with a record date of May 20. Trading in the shares of all three companies on Wednesday carried no price limit following their corporate declarations, though floor prices remain applicable. Under BSEC policy, the 'Z' category encompasses companies that have failed to hold their AGM when due, failed to declare any dividend based on annual performance, remained non-operational for more than six months, or whose accumulated losses exceed paid-up capital after adjustment of revenue reserves.

Brent crude oil prices climbed sharply to around $123 a barrel on Thursday as worries over the Iran war and stalled U.S.-Iran talks fuelled concerns about global supply disruptions and the continued closure of the Strait of Hormuz. Brent crude for June delivery rose 4.1% to $122.88 after briefly crossing $125 per barrel, while July contracts gained 2.5% to $113.17. U.S. crude also increased 2% to $109.05 a barrel. Before the conflict began in late February, Brent was trading near $70. The war has blocked a clear path to peace, with continued U.S. restrictions on Iranian ports and the Strait of Hormuz remaining shut, keeping oil markets under pressure. New reports suggesting possible further escalation by U.S. President Donald Trump also weakened hopes for a quick resolution. Analysts said the breakdown in talks has dampened expectations of a restart in oil flows. “The breakdown of talks between the U.S. and Iran, along with President Trump reportedly rejecting Iran’s proposal for a reopening of the Strait of Hormuz, has the market losing hope for any quick resumption in oil flows,” ING Bank strategists Warren Patterson and Ewa Manthey said in a note. Oil prices have also moved close to their highest levels since 2008, when Brent hit $147.50 a barrel during the global financial crisis. In currency markets, the U.S. dollar strengthened further, reaching 160.61 Japanese yen, its highest level in nearly two years. It later closed at 160.44 yen. The euro slipped slightly to $1.1671. The dollar has benefited from its safe-haven status during global uncertainty and from relatively high U.S. interest rates. The Federal Reserve’s decision to keep rates unchanged on Wednesday also supported the currency. Analysts said Japanese authorities could step in if the yen weakens further. Global stock markets also declined. In Asia, Japan’s Nikkei 225 fell 1% to 59,284.92, South Korea’s Kospi dropped 1.4% to 6,598.87, and Hong Kong’s Hang Seng lost 1.1% to 25,816.80. Shanghai’s Composite index edged up 0.2% to 4,113.88. Australia’s S&P/ASX 200 slipped 0.2%, while Taiwan’s Taiex and India’s Sensex each fell about 1%. On Wall Street, U.S. futures and shares were mostly lower after a mixed session on Wednesday. The S&P 500 edged down less than 0.1%, the Dow Jones Industrial Average fell 0.6%, while the Nasdaq posted a slight gain. Despite the broader weakness, some companies posted strong gains, with Starbucks rising 8.4% and Visa up 8.3% after better-than-expected earnings.

Bangladesh Bank (BB) on Wednesday instructed all banks to stop opening Letters of Credit (LC) or processing Telegraphic Transfers (TT) for the import of dietary and nutritional supplements without mandatory prior approval from the Directorate General of Drug Administration (DGDA). The directive, issued by the Foreign Exchange Policy Department (FEPD), follows a request from the Ministry of Health and Family Welfare to ensure the strict application of the "Drugs and Cosmetics Act, 2023". According to the central bank circular, products including dietary supplements, herbal supplements, nutritional supplements, and medical or therapeutic nutrition items require mandatory registration or prior clearance from the DGDA for production, import, export, sale, and distribution. The circular emphasized that importing or marketing such products in violation of the law is a punishable offense. The move comes after several importers brought in supplement-related products without the necessary registration. Following customs' refusal to release these unauthorized goods, legal disputes reached the Supreme Court's Appellate Division, which ultimately directed that those goods must be cleared only "in accordance with law". To safeguard public health and ensure legal compliance, the Ministry of Health urged the central bank to instruct authorized dealer banks not to facilitate the import of such products unless the importers provide a valid registration certificate or prior approval from the DGDA.