Social Islami Bank PLC (SIBL) has incurred a record net loss of over Tk 1,704 crore in nine months (January-September) of 2025.

This marks the largest loss ever reported by the bank since its listing on the stock market in 2000, standing in stark contrast to the net profit of over Tk51 crore recorded in the same period of 2024.

According to the bank's unaudited financial report for the third quarter (July-September), the net loss after tax for the nine-month period (Jan-Sep 2025) was Tk704.48 crore, sharply down from the net profit of Tk51.16 crore in the corresponding period of last year.

The bulk of the losses accumulated during the third quarter (July-September), which alone saw a net loss of Tk 1,235 crore. This is a drastic increase compared to the Tk28.98 crore loss reported in the third quarter of 2024.

The massive loss is primarily attributed to a sharp increase in interest expenses and the requirement for substantial provisioning against loans.

Interest Payouts: During the January-September period, the bank paid Tk2,444 crore in interest, representing a 32 percent increase year-on-year. This included Tk 1,552 crore paid to depositors and Tk891 crore to cover borrowing costs.

The bank had to set aside Tk401 crore as provisioning against loans and advances.

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SIBL also registered an operating loss of Tk 648 crore against its income from shares, brokerage commissions, and other sources.

An SIBL official, speaking anonymously, confirmed that the primary driver of the damage was the "intense increase in the cost of funds," mainly due to high interest rates offered on deposits and the higher interest paid on borrowed funds. Provisioning against loans at risk of becoming non-performing also played a negative role.