United News of Bangladesh

Pubali Bank PLC has decided to purchase a plot of land along with a 26-storey under-construction building in the capital's Tejgaon area to set up its new Corporate Head Office, at a total cost of Tk 800 crore. The bank's Board of Directors took the decision at a meeting held on Wednesday, according to a disclosure sent to the Dhaka Stock Exchange (DSE) on Thursday. The property, measuring 95.10 decimals or 57.64 kathas, includes the building named "Swiss Tower," which has 26 storeys and three basement floors, located at 208, Bir Uttam Mir Showkat Sarak, also known as Tejgaon Link Road. The Tk 800 crore price tag includes income taxes but excludes VAT, the disclosure said, adding that the purchase remains subject to approval from Bangladesh Bank and all other relevant regulatory authorities. The building was originally developed by Bengal Hotel and Resort, a concern of Bengal Group of Industries, to house the five-star Swissôtel Dhaka. However, sources said the company has now decided to sell the site to Pubali Bank instead of proceeding with the hotel project. If the deal receives regulatory clearance, the tower will transition from its planned identity as a luxury hospitality venue to becoming the nerve centre of one of the country's oldest private commercial banks.

Bangladesh Bank on Thursday issued a comprehensive Master Circular updating the operational guidelines for the Export Development Fund (EDF), allowing the repayment tenure of EDF loans to be extended up to a maximum of 270 days, subject to prior central bank approval. The Foreign Exchange Policy Department of the central bank issued the circular to consolidate previously scattered directives and update foreign currency-based refinancing policies for export-oriented manufacturers importing raw materials and intermediate inputs. Under the updated framework, regular EDF loans must be settled within 180 days, with the provision for extending the repayment window up to 270 days upon receiving prior approval from the central bank. According to the new financial structure, Bangladesh Bank will provide refinancing to Authorized Dealer (AD) banks at a rate equal to the 6-month benchmark interest rate plus an additional 0.50 percent. AD banks, in turn, can charge exporters a maximum interest rate of up to 1.50 percent above the 6-month benchmark rate. The central bank has also tightened eligibility criteria to ensure financial discipline. Exporters who fail to repatriate export proceeds within the stipulated timeframe, those whose EDF liabilities have been adjusted through other bank loans, and banks that default on timely EDF settlements will be ineligible for the facility. Exporters can, however, regain access to EDF financing once overdue export earnings are brought back or upon securing approval from the discount committee. The Master Circular retains the existing sector-specific financing limits for back-to-back Letter of Credit (LC) imports, capped at up to $20 million depending on the industry. Sector-specific limits for bulk imports also remain unchanged, ranging between $1 million and $20 million. In addition, a maximum EDF refinancing facility of $500,000 has been introduced for eligible bulk imports regardless of sector. Exporters who utilize both bulk imports and back-to-back LCs will be restricted to using the financing ceiling designated for a single trade association. Business leaders have welcomed the central bank's initiative, noting that bringing isolated instructions under a single master circular will simplify compliance and make EDF operations far more transparent and efficient for commercial banks and exporters alike.

Bangladesh Bank (BB) has further simplified foreign exchange transaction procedures for freelancers and IT service exporters to streamline incoming earnings and facilitate necessary international payments. According to the central bank, the updated guidelines aim to remove operational bottlenecks, enabling freelancers to easily receive payments for service exports from abroad and execute legitimate foreign currency transactions for operational costs – such as software subscriptions, domain and hosting renewals, and digital marketing expenses. BB opens one-time exit window for bad loans at finance companies Under the relaxed framework, authorised dealer (AD) banks have been directed to expedite the processing of inward remittances and ensure smoother access to Exporter’s Retention Quota (ERQ) accounts and international payment cards. Industry leaders and freelancing communities have welcomed the central bank's initiative, noting that simplifying financial channels will encourage more digital professionals to bring their foreign earnings through official channels, ultimately driving the growth of Bangladesh’s service export sector and bolstering foreign exchange inflows.

Affected depositors of the five merged banks under the Sammilito Islami Bank staged demonstrations in the capital on Tuesday, demanding the immediate issuance of an official gazette notification cancelling the "haircut" mechanism on their deposits and a clear roadmap to return full funds, including accrued profits. The depositors gathered in front of the Bangladesh Bank headquarters and then marched towards the Jatiya Press Club. From there, a five-member delegation went to the Secretariat and submitted a memorandum to Finance and Planning Minister Amir Khosru Mahmud Chowdhury. BB indecisive over withdrawing ‘haircut’ on Sammilito Islami Bank profits, depositors in limbo According to the depositors, though the cancellation of the "haircut" scheme was announced in Parliament during the budget discussion on July 8, an official gazette notification has not yet been issued. They demanded the immediate publication and implementation of the notification. In their memorandum, the depositors urged the authorities to announce a clear roadmap for returning all types of matured deposits, including Fixed Deposit Receipts (FDR), Deposit Pension Schemes (DPS), and Monthly Term Deposit Receipts (MTDR), along with accrued profits. They also called for scrapping the proposal to recalculate deposit profits and demanded the restoration of regular banking operations similar to other scheduled banks. The depositors expressed deep frustration, stating that they have been unable to withdraw their own money for nearly two years. This has plunged thousands of families into severe financial distress, leaving them unable to cover essential daily expenses, medical treatments, and educational costs for their children, they said. The depositors urged the government to issue immediate directives to the BB governor, as well as the chairman and newly appointed managing director of Sammilito Islami Bank, to facilitate the prompt return of deposits and refund the money provisioned under the "haircut." Highlighting the scale of the crisis, they said the situation directly affects around 76 lakh account holders and their nearly 3 crore family members. The depositors asserted that fulfilling these demands will restore customer confidence in Sammilito Islami Bank and allow normal transactions to resume. They warned that if the government and Bangladesh Bank fail to take swift and effective action, they will be forced to announce tougher protest programmes.

The Asian Development Bank (ADB) has warned people in Bangladesh against fraudulent schemes that are using the bank’s name and logo to offer fake loans in exchange for fees. ADB said it does not provide loans, funds or financial assistance directly to individuals. It also never asks people to share personal financial information or make payments through mobile financial services or any other channel in return for financial assistance. The warning comes following reports that fraudsters have created fake websites, Facebook pages, social media accounts and other deceptive materials impersonating ADB and its officials. According to the Manila-based multilateral lender, the scammers are using ADB’s name and logo to mislead people and solicit money, although the bank has no connection with such activities. ADB urged members of the public to remain vigilant and ignore any offers claiming to provide ADB loans or direct financial assistance. It also advised anyone approached by individuals or groups making such claims to report the matter to the appropriate authorities. The bank reiterated that it works with the Government of Bangladesh and private sector organisations to finance development projects through established and transparent business processes. “Any person claiming to represent ADB and offering loans or financial assistance directly to individuals is acting fraudulently,” the bank said. ADB has advised people seeking more information about scams involving its name, officials or offices to consult its official scam advisories.

Bangladesh Bank (BB) has extended special loan rescheduling and restructuring facilities for the borrowers of non-bank finance companies until September 30, 2026, aiming to help struggling businesses recover, reduce non-performing loans (NPLs), and improve liquidity in the financial sector. According to a circular issued on Thursday by the central bank’s Finance Company Regulation and Policy Department (FCRPD), this policy support is aligned with the benefits previously granted to the clients of commercial bank companies. Under the new directive, finance companies can now provide special rescheduling and restructuring facilities for affected borrowers based on the financial institution-client relationship. The facilities will be guided by the instructions issued under BRPD Circular No. 07 (dated September 16, 2025), BRPD Circular Letter No. 26 (dated November 24, 2025), and BRPD-1 Circular Letter No. 16 (dated May 7, 2026). The central bank emphasised that finance companies must ensure compliance with the provisions of the Finance Company Act, 2023, and relevant department circulars while executing these facilities. The entire process, including receiving applications from affected borrowers and obtaining official approval from the respective finance company's Board of Directors, must be completed by September 30, 2026. The BB stated that this initiative is part of its ongoing efforts to assist viable but financially distressed businesses, enabling them to return to profitable operations, which in turn will secure loan recovery for the financial institutions. The move is also expected to inject momentum into the country's overall economic activities.

Bangladesh Bank has introduced a structured framework to govern import transactions into Free Trade Zones (FTZs), aiming to facilitate trade while ensuring prudent risk management by banks, according to a circular issued on Thursday. The Foreign Exchange Policy Department-1 (FEPD-1) circular directs all Authorized Dealers (ADs) and Offshore Banking Units (OBUs) to follow the new instructions when providing financial services for FTZ-related transactions, in line with existing foreign exchange regulations. Under the framework, imports into FTZs can be undertaken by industrial enterprises engaged in manufacturing or export-oriented production, authorized importers on record, and licensed logistics service providers operating within the zones. Goods brought into FTZs for storage, warehousing or distribution may be imported on a consignment basis, with ownership remaining with foreign suppliers until the goods are either used in production or sold to ultimate buyers. For financing and exposure purposes, banks will not treat such goods as owned inventory of FTZ enterprises until either event occurs. The circular also sets out rules for purchase and sale transactions. Purchases of goods from FTZs by buyers in Bangladesh, including those in specialized zones or other FTZs will be treated as import transactions requiring standard IMP formalities. Where such purchases involve industrial raw materials, usance import facilities of up to 270 days will be permitted under FE Circular No. 51 of December 29, 2025. Sales of finished or semi-finished goods by FTZ enterprises to buyers in Bangladesh will be treated as export transactions for sellers and import transactions for buyers, with both EXP and IMP procedures to be followed accordingly. All such payments must be settled in freely convertible foreign currency, though FTZ enterprises may retain sale proceeds in designated foreign currency margin accounts for onward settlement of import obligations abroad. On tenor, goods imported into FTZs under consignment arrangements may remain in the zone for 48 to 60 months, subject to regulatory compliance, while usance import transactions, including those backed by buyer's or supplier's credit will carry a maximum tenor of 270 days. The circular further allows ADs to extend financing to FTZ entities in a manner similar to facilities available to enterprises in specialized zones. However, for consignment-based imports, ADs and OBUs will not recognise or assume exposure on FTZ entities for goods where ownership remains with the foreign supplier, such consignments will only be recognised as imports once ownership transfers through production use or sale, supported by documentation including a bill of entry. For usance imports, ADs may arrange buyer's or supplier's credit facilities with a tenor not exceeding 270 days, while OBUs may provide such financing in foreign currency. On risk management, the central bank instructed that all admissible financing be backed by appropriate documentation aligned with underlying transactions, and directed ADs and OBUs to conduct due diligence on FTZ clients, including assessing contracts with foreign suppliers and buyers, verifying ownership structures, and evaluating production and sales cycles. Banks have been asked to bring the contents of the circular to the notice of relevant stakeholders.

Widespread concern and dissatisfaction have spread among common people regarding banks following a proposal that could require customers to pay additional fees to withdraw their own money from bank counters. The Association of Bankers, Bangladesh (ABB), an organization of bank executives, has proposed that if a customer withdraws cash from a bank counter more than three times a month, an additional fee ranging from Tk 100 to Tk 300 could be charged for each subsequent transaction. The association has also recommended introducing new fees for 14 other types of banking services and increasing several existing charges. These recommendations include a Tk 500 fee to reactivate long-dormant bank accounts and a multi-fold increase in loan processing fees. Banks have justified the move by citing rising operational costs and noting that such fees are standard practice internationally. They also argued that the initiative aims to encourage customers to minimize counter-based transactions and utilize ATMs, mobile banking, and internet banking instead. However, analysts and customers argue that the reality is not that simple. Amid high inflation affecting essential goods, medical care, education, and transportation, an additional fee on cash withdrawals would disproportionately burden the middle class, low-income individuals, retirees, and small businesses. Many elderly individuals and pensioners are not accustomed to digital banking and remain heavily dependent on bank counters. Furthermore, critics highlighted significant shortcomings in the alternative digital infrastructure, noting that: Sufficient ATM booths are still not available across all regions of the country. Customers frequently face harassment due to booths running out of cash or experiencing technical glitches. Mobile and internet banking services are not yet equally accessible to everyone, particularly in rural areas and small towns where many lack smartphones or comfort with digital services. Customers have questioned why banks are raising charges without addressing persistent issues like long queues, server complications, and delayed services. They warned that continuous hikes in fees could damage public trust in the formal banking system, prompting some to keep cash at home instead, which is not positive for the formal financial sector. Amid these growing anxieties, the central bank has taken a cautious stance, clarifying that it will not easily approve any decision that imposes an unreasonable financial burden on customers. Bangladesh Bank Spokesperson Arif Hossain Khan said, "Imposing extra fees could create a reluctance among the general public towards banking services.” Therefore, the interests of the customers will be given the highest priority before any decision is made, he said. He added that the central bank has advised banks to focus on increasing their revenues through loan disbursement, investments, and regular banking operations rather than solely relying on service fees. The ABB proposal currently remains a mere recommendation and cannot be implemented without formal approval from Bangladesh Bank. However, the intense public reaction underscores that citizens, squeezed by a rising cost of living, are deeply uncomfortable with the prospect of new banking charges.

Bangladesh Bank has introduced a special one-time exit facility to help finance companies recover or adjust their classified bad and loss loans, as part of efforts to shore up asset quality and liquidity in the sector. The central bank's Finance Company Regulation and Policy Department (FCRPD) issued the directive on Thursday, addressed to managing directors and chief executive officers of all finance companies operating in the country. BB eases external borrowing rules for foreign-owned industries The circular noted that borrowers across businesses, industries and projects have faced difficulties due to various uncontrollable economic factors, with some enterprises shutting down or turning loss-making. This has disrupted loan recovery for finance companies, prompting the central bank to allow a one-time settlement route for willing borrowers whose chances of regularising loans through the normal process have weakened. Under the policy, finance companies may offer the special exit—subject to board approval to customers holding loans classified as bad or loss as of June 30, 2026, based on the institution's relationship with the borrower. Key conditions set out in the circular include: Borrowers opting for the facility must clear their entire outstanding liability in a single, one-time payment. According to the circular, the principal amount of the loan cannot be waived, though interest may be waived after verification and selective scrutiny. Where relaxation of fund utilisation conditions or income-sector deviation is required for an interest waiver, the justification must be confirmed through the finance company's internal audit function, with an opinion obtained from the Head of Internal Control and Compliance (HICC). Besides loans involving fund diversion, fraud, forgery or other irregularities in disbursement will not qualify for the exit facility. Loss-classified loans that were rescheduled between August 6, 2024 and June 30, 2026 will be eligible under this circular. Priority in granting the special exit will go to short-term agricultural loans and cottage, micro and small loans under the CMSME sector. Finance companies have been instructed to notify eligible borrowers in writing about the facility and take other necessary steps to implement it. The circular will remain in force until December 31, 2026, and has been issued under the powers vested in Bangladesh Bank by Section 41 of the Finance Company Act, 2023, effective immediately.

A meeting of the Board of Directors of Islami Bank Bangladesh PLC was held at the Islami Bank Tower in the capital on Wednesday. The meeting was presided over by Mohammad Zahir Hussain, executive director of Bangladesh Bank and the sole representative of the board of directors. Md Altaf Hossain, acting managing director, and Md Habibur Rahman, company secretary of the bank, also attended the session. BB eases external borrowing rules for foreign-owned industries Zahir Hussain has been temporarily overseeing the bank's board as its sole statutory representative under the central bank's authorisation to maintain the financial institution's operational stability and ensure uninterrupted services during the transition period.