Conventional banks outperformed Islamic banks in deposit collection, investment, and asset growth over the past year, mainly due to instability in the Islamic banking sector following the July 2024 uprising.

According to a recently released report by the Bangladesh Bank, deposits in conventional banks rose from Tk 15.22 lakh crore in April 2025 to Tk 17.16 lakh crore in April 2026, marking a year-on-year growth of 12.73 percent.

In contrast, deposits in Islamic banks increased from Tk 4.41 lakh crore to Tk 4.81 lakh crore over the same period, showing a moderate growth of about 8.98 percent.

“This steady growth in deposits in conventional banks can be primarily attributed to an unstable situation in the Islamic banking sector after the July 2024 uprising, which shifted depositor confidence towards conventional banks,” the BB report said.

The report added that following the July uprising, BB’s measures -- such as providing liquidity support, identifying weaknesses in banks and appointing administrators to improve management -- may help restore depositor confidence.

It also found that depositors mainly rely on Mudaraba-based deposits, which account for around 87.21 percent of the Islamic banking deposit base. As of April 2026, the deposit base is largely driven by the private sector, which makes up about 90.2 percent of total deposits.

In terms of assets, conventional banks recorded stronger and more consistent growth over the same period. Their assets rose from Tk 32.93 lakh crore in April 2025 to Tk 37.78 lakh crore in April 2026, a year-on-year increase of about 14.72 percent.

Islamic banks’ assets grew more slowly, increasing from Tk 9.14 lakh crore to Tk 9.56 lakh crore over the same period, reflecting a 4.58 percent rise.

The overall banking sector in Bangladesh saw strong investment growth between November 2023 and April 2026, with total investments increasing from Tk 18.99 lakh crore to Tk 24.45 lakh crore, a rise of 28.71 percent.

Within this, investments by conventional banks grew from Tk 16.73 lakh crore to Tk 18.53 lakh crore between April 2025 and April 2026, an increase of 10.71 percent.

Islamic banks’ investments rose from Tk 5.57 lakh crore to Tk 5.92 lakh crore over the same period, reflecting growth of about 6.26 percent.

“The year-on-year growth indicates gradual expansion, supported by rising demand for Islamic financing products, especially profit-and-loss sharing modes,” the report said.

From a sectoral perspective, the report added that Islamic banks’ investments were distributed across different areas of the economy, with the largest share going to industry and trade and commerce, highlighting their role in supporting productive and commercial activities.

Berger Paints Bangladesh Limited and its wholly-owned subsidiary, Jenson and Nicholson (Bangladesh) Limited, have decided to jointly invest Tk10 crore in a newly formed entity, Jenson and Nicholson Packaging Limited (JNPL).

According to a price-sensitive statement filed with the Dhaka Stock Exchange (DSE) recently, the country's leading multinational coatings manufacturer is expanding its footprint into the packaging sector to support its core operations and leverage emerging industrial opportunities.

The statement said Berger Paints will inject Tk5.10 crore in JNPL and the remaining Tk4.90 crore will be contributed by Jenson and Nicholson (Bangladesh) Limited.

Earlier, Berger Paints formed Jenson and Nicholson Packaging by acquiring a 51% stake through an investment of Tk5.10 crore, while Jenson and Nicholson (Bangladesh) invested Tk4.90 crore to acquire the remaining 49% stake in the packaging company.

JNPL is set to establish a manufacturing plant within the National Special Economic Zone to produce various plastic-based packaging products.

Berger officials noted that the company currently requires both metal and plastic containers for its paint products. While Jenson and Nicholson (Bangladesh) already manufactures metal containers for both internal use and commercial sale, the new venture will specifically address the growing demand for plastic-based packaging.

To facilitate the project, the Berger board has earlier approved an amendment to its land lease agreement with the Bangladesh Economic Zones Authority (Beza). Under the revised arrangement, 1.16 acres of land will be allocated to the new subsidiary, JNPL, while 38.25 acres will remain under the parent company out of the total 39.41 acres leased from Beza.

The company stated that setting up the plant within a special economic zone allows the venture to benefit from government-mandated tax holiday facilities. While the initial production is intended to meet Berger's internal requirements, the management envisions potential commercial expansion in the future.

The strategic move comes on the heels of a strong financial year for the paint giant. For the fiscal year ended 31 March 2026, Berger Paints Bangladesh reported a consolidated net profit of Tk372 crore, up 10% year-on-year. Buoyed by this robust performance, the company's board has recommended a 525% cash dividend – equivalent to Tk52.50 per share – for its shareholders.

Berger Paints Bangladesh Limited has recommended a 525% cash dividend for the financial year ended 31 March 2026, subject to shareholder approval.

The proposed dividend means shareholders will receive Tk52.50 per ordinary share of Tk10.

The recommendation was approved at a meeting of the company's board of directors today (15 June), alongside the audited financial statements for the year.

According to the financial statements, Berger Paints posted a consolidated net profit of Tk372 crore during the financial year. Its consolidated earnings per share (EPS) stood at Tk76.83.

The company has scheduled its Annual General Meeting (AGM) for 24 August to seek shareholder approval for the dividend and the audited financial statements.

The record date has been fixed for 7 July. Shareholders whose names appear in the company's records on that date will be eligible for the dividend and entitled to participate in the AGM.

Acting managing director of Islami Bank Md Altaf Hossain has said the bank received another Tk2,500 crore in liquidity support from the central bank today (15 June).

"We also received Tk2,500 crore in liquidity support from Bangladesh Bank yesterday. We have not yet had to use the funds received yesterday," he told reporters.

Altaf said he hopes that customers who have withdrawn their deposits will regain confidence in the bank and return.

The acting chief said the bank is already seeing signs of improving customer confidence.

"We have just received information from one of the bank's major branches showing that the number of account closures has fallen by 75% compared to previous levels," he said.

Bangladesh Bank yesterday dissolved the board of Islami Bank Bangladesh, including Chairman Md Khurshid Alam, as the bank grappled with an acute liquidity crisis fuelled by deposit flight and growing uncertainty among customers.

To stabilise the situation, the regulator appointed its executive director, Mohammad Zahir Hussain, as administrator of the country's largest shariah-based bank.

A group of Islami Bank customers today welcomed the decision to dissolve the bank's board of directors, urging the central bank to swiftly appoint a new board comprising competent, credible and politically neutral individuals.

Under the banner of the "Islami Bank Sachetan Grahok Forum," they congratulated Bangladesh Bank on the move and called for the restoration of sound governance at the bank.

They also urged the regulator to reconstitute the board with experienced individuals who were involved in the bank's management before its takeover by the S Alam Group, saying that such a move will help rebuild depositor confidence and strengthen the institution's governance framework.

Newly appointed Islami Bank administrator Zahir said today that efforts are underway to form a "completely neutral" board to strengthen governance and restore depositor confidence.

Speaking after assuming charge, he said his appointment is for a limited period and assured customers that banking operations and transactions will continue uninterrupted, urging them to carry on their banking activities without concern.

The crisis emerged quickly after Bangladesh Bank appointed former deputy governor Khurshid Alam as chairman of Islami Bank on 24 May, just hours after the previous chairman stepped down and immediately before the start of a week-long Eid-ul-Adha holiday.

The move raised swift concerns among stakeholders.

Following the holidays, protests broke out on 1 June outside the bank's Motijheel head office in Dhaka, where demonstrators under the banner of the Islami Bank Sachetan Grahok Forum demanded cancellation of Khurshid's appointment.

The entire Board of Directors of embroiled Islami Bank Bangladesh PLC, led by its new chairman, stands dissolved in a latest regulatory move aimed at safeguarding interests of the bank, its depositors and the public.Regional business directory

According to a statement issued Sunday, the central bank exercised its authority under Sections 45 and 47(3) of the Bank Company Act 1991 to cancel the appointments of all directors of the country's largest Shariah-based bank.

"The decision has been taken in the interest of the bank, depositors and overall public interest," says the Bangladesh Bank (BB) statement.

Under the Act, Mohammad Zahir Hossain, an Executive Director of the central bank, has been entrusted with exercising "all powers and carrying out all responsibilities of the Board of Directors".

A senior BB official told The Financial Express (FE) that Mr. Hossain will perform all functions and responsibilities of the Board of Directors until a new board is formed.

Earlier in the day, the Bangladesh Bank injected Tk 25 billion into the cash-strapped Islami Bank in a special loan to help mitigate its severe liquidity crunch after the Eid vacation.

This sum happens to be the first tranche of Tk 100 billion the Islamic lender last week sought in liquidity assistance from the banking regulator for overcoming the liquidity starvation, Islami Bank officials have said.

The central bank disbursed the financial support to the country's largest Shariah-based bank on Sunday, according to BB spokesperson Arief Hossain Khan.Personal finance e-book

The unconventional bank plunged into a severe trouble in terms of managing liquidity following days of unrest that erupted after the Eid-ul-Azha holiday over the appointment of its new chairman Md. Khurshed Alam.

A group of people who claimed to be clients of the bank started the protest on June 01 under the banner of 'Islami Bank Sachetan Grahok Forum (Islami Bank Conscious Customers' Forum)'.

The continuous agitation triggered panic among many of the depositors who keep withdrawing funds from the beleaguered bank.

As a matter of fact, Islami Bank's liquidity position deteriorated sharply in recent days, resulting in a struggle to meet growing withdrawal demands.

In spillover effect, the bank also reportedly failed to maintain the requisite Cash Reserve Ratio (CRR) with the central bank.

Later in the day, a delegation from Islami Bank met BB governor Md. Mostaqur Rahman at the central bank headquarters briefing him on the bank's current liquidity situation.Investment guide

The delegation comprised Islami Bank's managing director (current charge), two additional managing directors, and six deputy managing directors.

Seeking anonymity, an Islami Bank official says they informed the central bank governor that the trend of cash withdrawal keeps intensifying, leading to the struggle.

Despite the crisis, they managed to settle the cash-withdrawing demand. "That's why we appealed for the central bank, the lender of the last resort."

About the cash withdrawals, the Islami bank official says they have observed the net volume of cash withdrawal having reached around Tk 12 billion a day in the last couple of days.

"And the governor, during the meeting, wanted to know how the bank is using the funds provided to the bank in the meeting and they informed him in detail."

The Bangladesh Bank yesterday appointed a new observer at Islami Bank Bangladesh PLC amid deepening unrest at the country’s largest private bank.
The observer, Md Ashraful Alam, is also a BB executive director. He was appointed under powers vested in it by the Bank Companies Act, 1991, the central bank said.
Mohammad Shahriar Siddiqui, director and assistant spokesperson of BB, confirmed the development, saying the appointment had been made to closely monitor the bank’s overall operations, safeguard the interests of the institution, protect depositors and ensure the greater public interest.

As an observer, Alam will participate in board meetings and other relevant activities, and report his observations on the bank’s operations back to the central bank, added Siddiqui.

Earlier, in December 2022, BB had first appointed an observer at the country’s largest shariah-based bank.

Siddiqui said the banking regulator remains committed to ensuring stability, good governance, transparency, and accountability in the banking sector.

Alam’s appointment is expected to further strengthen confidence and discipline in Islami Bank’s operations, he added.

The development comes as unrest, triggered by the appointment of Md Khurshid Alam as Islami Bank chairman, has gripped the bank. Since the protest started, customers withdrew over Tk 4,240 crore in deposits from the bank within seven days.

Due to the ongoing turmoil, the bank, which had staged a turnaround during the interim government’s tenure, is facing mounting pressure from deposit withdrawals.

On Monday, the bank sought a special liquidity support facility of Tk 10,000 crore from Bangladesh Bank as the country’s largest Shariah-based lender reeled from a surge in deposit withdrawals.

Earlier in the day, the Association of Bankers, Bangladesh (ABB), a forum of bank executives, met with BB Governor Md Mostaqur Rahman over the issue.

After the meeting, Mashrur Arefin, chairman of ABB, said the growing unrest at Islami Bank had taken on a political dimension, raising serious concerns among bankers about its potential impact on the wider financial sector.

He said the situation was eroding confidence in the banking industry and could pose risks to overall financial stability.

On May 24, the eve of the nearly week-long Eid-ul-Azha holiday, the BB appointed Khurshid Alam, a former deputy governor, as chairman of Islami Bank, just hours after the previous chairman resigned.

Khurshid was among the senior BB officials who were forced to leave the central bank by more than 100 protesting officials on August 6, 2024, a day after the fall of the Sheikh Hasina government in the face of a mass uprising.

The appointment has sparked unrest at the bank since June 1, and the situation remains unresolved.

Yesterday, a delegation led by the Conscious Customers’ Forum went to the Ministry of Finance to submit a memorandum demanding the resignation of Khurshid Alam.

Bangladesh’s air conditioner market is experiencing a subdued summer season this year. Frequent rainfall in April and May, coupled with fewer heatwaves than in previous years, has weakened demand for cooling appliances, according to industry stakeholders.

Sales remained below expectations during what is traditionally the peak period for AC purchases.

While demand persists, lower-priced brands have outperformed premium models as inflation continues to squeeze household budgets, market insiders said.

Nearly half of all annual sales are typically generated during the April-May period. Among household buyers, 1.5-tonne inverter AC units remain the most sought-after models
Demand rose modestly ahead of Eid-ul-Azha at the end of May, but the increase was insufficient to significantly lift overall market activity. Rising prices of essential goods have prompted consumers to curb discretionary spending on products such as air conditioners, they added.

According to Md Bazlur Rashid, a meteorologist at the Bangladesh Meteorological Department (BMD), temperatures during April and May remained below seasonal norms, while rainfall in April was more than 76 percent above the historical average.

However, he noted that elevated humidity levels made conditions feel considerably hotter.

Average temperatures this season ranged between 34°C and 35°C, the meteorologist said, which is not unusually high except in the Rajshahi region.

Frequent rainfall helped prevent widespread heatwave conditions, although temperatures have risen slightly over the past week. BMD officials also forecast 8 to 10 heatwaves over the next three months through August.

Industry estimates put annual AC demand at 550,000 to 600,000 units, with nearly half of total sales typically generated between April and May. Among household buyers, 1.5-ton inverter ACs remain the most popular choice, followed by 2-ton units.

“AC sales have fallen by around 30 percent this season compared with the same period last year due to unfavourable weather conditions and persistently high inflation,” said Md Nurul Afser, deputy managing director of Electromart.

Traditionally, AC sales surge between March and June, accounting for nearly half of annual demand, he said. However, frequent rainfall in April and May significantly dampened sales, particularly among first-time buyers.

Afser added that rising prices of essential goods have eroded the purchasing power of middle-income households, affecting discretionary spending.

Despite keeping prices unchanged from last year and offering discounts, sales have yet to meet expectations.

“If the monsoon is delayed, the market could still recover some lost sales this year. Otherwise, prospects for the industry will remain weak,” he said.

Mahmudul Islam Raz, brand manager at Rangs eMart, said sales increased slightly ahead of Eid-ul-Azha, but overall demand remained largely unchanged throughout April and May.

“Consumers are prioritising essential spending over discretionary purchases. If people struggle to meet daily expenses, they are unlikely to spend on products such as ACs,” said Salim Ullah Salim, director (marketing) of Jamuna Electronics & Automobiles Ltd.

Md Rashedul Islam, head of business at Transcom Digital, said AC sales during April and May exceeded 2025 levels but remained below those recorded in 2024.

Transcom sold around 4,500 units during the period, compared with 4,000 units a year earlier and 7,000 units in 2024. He attributed the improvement primarily to operational efficiencies rather than stronger underlying demand.

Inflation continues to weigh on consumer spending, while demand for lower-priced Chinese brands has outpaced that for premium Japanese brands as buyers become increasingly price-sensitive, he said.

According to him, many consumers who would normally consider premium brands are now opting for more affordable alternatives to manage household expenses.

Walton, however, reported a different trend.

“Demand for air conditioners has increased in recent weeks as temperatures have risen across the country,” said Md Tanvir Rahman, chief business officer of Walton Air Conditioner.

He said showroom footfall, online enquiries and orders have increased compared with the same period last year. Growth has been particularly noticeable among middle-income households, while instalment facilities have encouraged more consumers to make purchases despite broader economic pressures.

Rahman said flexible financing options have become an increasingly important factor in purchasing decisions, allowing customers to spread payments over several months.

As temperatures continue to rise, he expects demand to remain strong in the weeks ahead.

Global digital operator Veon has expressed interest in exploring a strategic combination with Bangladesh’s state-owned mobile operator Teletalk as part of a broader plan to expand its digital footprint and investments in Bangladesh.
In a letter sent to Prime Minister Tarique Rahman recently, Veon said it was prepared to significantly increase its investment in Bangladesh and sought discussions on potential collaborations involving strategic public assets.
The proposal includes a possible strategic combination with Teletalk Bangladesh Limited and the acquisition of Nagad from the Bangladesh Post Office.“Veon and Banglalink believe Bangladesh has the potential to become one of Asia’s most dynamic digital economies and are committed to supporting that vision,” said Johan Buse, CEO of Banglalink, a wholly owned subsidiary of Veon.
Veon said it was prepared to significantly increase its investment in Bangladesh and sought discussions on potential collaborations involving strategic public assets
“Building on more than $2.5 billion invested in Bangladesh over the past 21 years, we are keen to make significant investments in the near term, supported by a conducive and predictable regulatory environment,” he said.

“As a digital operator, we are focused on making lives better and simpler by expanding access to connectivity, digital services, affordable devices, and innovative solutions in areas such as healthcare, education, and agriculture, helping accelerate digital transformation and sustainable economic growth,” said the CEO of the Banglalink, which currently has 3.74 crore customers as of April.
Veon’s proposal comes as several other foreign companies -- including Malaysia’s Axiata, as well as Japanese and South Korean firms -- have also expressed interest in investing in or acquiring a stake in Nagad, according to sources.

Several local companies have also explored potential acquisition opportunities.
The mobile financial service provider’s large customer base and significant transaction volume have made it a lucrative target for both domestic and international investors.However, no company has submitted a formal financial offer so far. Sources said uncertainties surrounding Nagad’s ownership structure, allegations of illegal e-money creation, and its substantial liabilities have discouraged both local and foreign investors from making concrete proposals.

Veon said it has already applied for a digital bank licence and received a no-objection certificate from Bangladesh Bank to operate as a payment service provider.

Building on its digital banking and mobile financial services experience in multiple markets, the company said it was ready to deploy more than $100 million in immediate investment in Bangladesh.

“Veon stands ready to significantly expand its investment in the country and partnership with the government,” the company said in the letter.

The Dubai-headquartered company argued that a partnership involving strategic public assets could help strengthen national digital infrastructure and accelerate innovation.

“We believe Veon’s digital-first operating model, execution capability and capital strength can deliver measurable improvements in service quality, financial inclusion and long-term sector sustainability,” it said.

Veon operates in Bangladesh through Banglalink and says it has invested more than $2.5 billion in the country over the past two decades.

According to the letter, the company has also contributed over $4 billion to the national exchequer during the period.

The company said a stable and investment-friendly policy environment would be essential for unlocking the next phase of digital investment, innovation and job creation in Bangladesh.

BD Thai Food & Beverage Limited, a listed company on the stocks exchanges, has inked a manufacturing agreement with Sajeeb Group and Evergreen Beverage to produce carbonated soft drinks by ensuring full utilisation of its production capacity.

According to a stock exchange disclosure issued yesterday, Sajeeb Group and Evergreen Beverage will jointly utilise 70% of BD Thai Food's carbonated soft drink production capacity, while BD Thai Food will use the remaining capacity to manufacture its own beverages.

Under the agreement, Sajeeb Group will manufacture its "Wings" brand soft drinks and Evergreen Beverage will produce "Suncrest" brand beverages using BD Thai Food's carbonated soft drink production line.

According to the disclosure, BD Thai Food will earn manufacturing fees, which will help cover utility costs, salaries and wages, factory overheads, and financing expenses.

The company said full utilisation of its carbonated soft drink production line would enable the factory to operate at 100% capacity, boosting profitability and safeguarding the interests of shareholders and other stakeholders.

BD Thai Food, which markets juices, carbonated beverages, hard and soft candies, lollipops, and chewing gum under the Nectar brand, reported a loss of Tk13.40 crore in FY25. Owing to the losses, the company did not declare any dividend for shareholders.

In the first nine months of the current fiscal year, the company incurred a loss of Tk5.94 crore, translating into a loss per share of Tk0.73 as of March 2026.

BD Thai resumes operations after robbery

In a separate disclosure yesterday, BD Thai Food said production has resumed smoothly after a major robbery at its factory on 10 February. The robbery resulted in the theft of valuable cables and other equipment, rendering the factory inoperable.

The company subsequently invested a substantial amount to restore its electrical substation, generator and power cable network, enabling normal operations to resume. Currently, factory's production is running smoothly.

Meanwhile, the Bangladesh Securities and Exchange Commission (BSEC) on Sunday approved BD Thai Food & Beverage's proposal to raise Tk15 crore through a fixed-price initial public offering.

The company had previously raised Tk15 crore through an IPO in 2021 at a face value of Tk10 per share to support business expansion.

Shares of BD Thai Food closed at Tk26.30 each yesterday on the Dhaka Stock Exchange (DSE).

Many Bangladeshis know Alibaba Group as a giant Chinese shopping platform similar to Amazon or AliExpress. So, when they learn that Alibaba already has a growing business in Bangladesh and they visit its website to order products, they are surprised – they find they cannot shop here!

Most products – clothes, electronics or household products – on Alibaba.com are sold in bulk for wholesale buyers, importers, and international sourcing companies.

Instead of online shopping for local buyers, Alibaba connects Bangladeshi factories and suppliers with overseas buyers in more than 190 countries through its global B2B platform.

Company officials said Bangladeshi suppliers generated around $10 million in export business through Alibaba.com last year, selling products ranging from garments and home textiles to jute goods, leather items and agro-products.

The platform currently works with more than 300 Bangladeshi suppliers through four local channel partners. Unlike traditional e-commerce marketplaces, Alibaba.com does not operate warehouses, delivery networks or local shopping services in Bangladesh.

"Bangladesh is primarily a strategic global sourcing hub for Alibaba.com," Wang Qiling Vania, senior channel operation specialist at Alibaba International, told The Business Standard.

The company operates through a "platform-plus-local-partner" model. Alibaba.com provides the digital platform and global buyer network, while local partners handle exporter onboarding, training and support.

Company officials said their local partners include Tradeshi, Meidao, Skytech, and Maximo. Through the platform, Bangladeshi exporters can create online storefronts, display products in multiple languages, receive buyer inquiries and bid for international orders using Alibaba's "Request for Quotation (RFQ)" system.

The company also provides training on digital exports, product presentation, buyer communication and online sales strategies.

Despite its growing activities in Bangladesh, Alibaba.com said it has no immediate plans to launch consumer shopping, delivery services or logistics hubs in the country.

Instead, the company is considering a small representative office in Dhaka to strengthen relations with businesses, trade bodies and policymakers.

"Our investment is mainly human and technological, not infrastructure-heavy," Wang said.

Globally, Alibaba.com is one of the world's largest B2B sourcing platforms and competes with wholesale marketplaces such as Amazon Business and IndiaMART.

The company sees Bangladesh as an important sourcing destination because of its strong manufacturing sector and competitive production costs. However, officials believe the country still lags behind regional competitors in digital exports.

Regulations, banking procedures major challenges

Sonobar Maira, domestic channel manager for Bangladesh at Alibaba International, said Bangladesh's B2B e-export penetration remains below 15%, compared to over 30% in Vietnam and India.

She said foreign exchange regulations and banking procedures are major challenges for small exporters in Bangladesh. "Payment confirmation delays and outdated banking systems often create difficulties for SMEs handling smaller export transactions."

To address the issue, Maira said it is piloting localised payment solutions and discussing partnerships with banks and fintech firms, including bKash.

The initiative aims to simplify cross-border settlements and improve transaction efficiency, especially for small export orders below $1,000, she added.

"We are piloting localised payment solutions in Bangladesh to address foreign exchange and settlement delays," she further said. "The initiative is aimed at strengthening its Trade Assurance services and supporting smaller exporters, subject to regulatory approval."

Long-term goal

Sonobar Maira also reiterated Alibaba's long-term goal of helping more than 1,000 Bangladeshi exporters become digitally active in global markets over the next three years.

The company has recently expanded partnerships with several Bangladeshi business associations, including the Bangladesh China Chamber of Commerce and Industry and the Bangladesh Garment Buying House Association, Bangladesh Garments Manufacturers and Exporters Association ETC. The collaborations include exporter training programmes, onboarding support and buyer matchmaking events.

Maira said digital sourcing platforms are becoming increasingly important as global buyers diversify sourcing destinations and rely more heavily on online procurement systems.

She also warned that Bangladesh will need faster foreign exchange approvals, clearer digital trade regulations and more efficient export payment systems to fully benefit from the rapidly growing global digital commerce market.

NCC Bank PLC is targeting diversification, digital transformation and stronger risk management to drive its next phase of growth, said Managing Director and CEO M Shamsul Arefin.

In an interview with The Daily Star on the bank’s 33rd anniversary, he outlined a roadmap centred on expanding SME and retail lending, accelerating digital banking services, strengthening asset quality, embracing artificial intelligence and increasing support for sustainable financing.

The bank began its journey as an investment company in 1985 and operated through 16 branches until 1992. It became a full-fledged private commercial bank in 1993 with a paid-up capital of Tk 39 crore. Today, that figure stands at Tk 1,154 crore. Arefin said the lender’s transformation from a merchant bank into a commercial bank, coupled with its strategic move into larger corporate clients and trade finance, has been instrumental in shaping its growth trajectory.

GROWTH PRIORITIES

“In its early years, the bank focused primarily on SME financing and mid-sized corporate clients, which helped build a loyal customer base and establish a strong customer-centric culture. However, over the last seven to eight years, NCC Bank has strategically repositioned itself by venturing into large-scale corporate clients, export-oriented industries, trade finance, and a broader range of business segments,” he said.

While maintaining its presence in corporate and export-oriented sectors, NCC Bank plans to place greater emphasis on SMEs, retail banking and agriculture to achieve more balanced growth and deepen financial inclusion, he said.

The lender also plans to expand its Islamic banking footprint as demand for shariah-compliant financial services continues to rise.

“The long-term goal is a modern, resilient, customer-focused bank built on strong governance, financial discipline, and sustainable growth,” he said.

DIGITAL TRANSFORMATION

Digitalisation remains central to the bank’s strategy.

“Going forward, NCC Bank will keep investing in digital infrastructure, cybersecurity, data analytics, automation, and customer-facing tech -- enhancing mobile banking, QR payments, virtual services, digital lending, and fintech integrations,” he said.

Artificial intelligence is expected to play a growing role in the bank’s operations.

“As part of its digital roadmap, the bank is exploring gradual integration of AI into areas like customer behaviour analysis, fraud detection, chatbots, predictive analytics, and credit risk monitoring,” he said.

“AI will also strengthen early warning systems and portfolio analysis.”

Meanwhile, the bank is also increasing its focus on green financing, with greater attention to renewable energy projects, energy-efficient industries and environmentally sustainable investments, he said.

STRENGTHENING ASSET QUALITY

Reflecting on the previous year, Arefin said broader economic pressures had affected asset quality across the banking industry.

“In 2024, NCC Bank faced asset quality pressure like the broader industry, with its NPL ratio rising to 7.32 per cent. This was driven mainly by external factors like inflation, energy crisis, forex volatility, liquidity stress, and slower business cash flows,” he said.

“By 2025, however, the bank significantly reduced its NPL to 4.12 percent through stronger recovery drives, improved monitoring, tighter credit underwriting, and better portfolio supervision.”

“The goal is not just to lower the NPL ratio but to build a healthier, more sustainable, and diversified loan portfolio over the medium to long term,” he said.

The lender’s performance remained resilient despite a challenging banking environment. Deposits rose by nearly 17 percent, advances increased by around 10 percent and operating profit grew by almost 18 percent in 2025. Net profit climbed to Tk 476 crore from Tk 437 crore a year earlier.

“Overall, NCC Bank’s 2024-2025 performance underscores strong governance, a customer-centric model, portfolio diversification, and disciplined risk management,” he said.

To keep bad loans under control, the lender is pursuing stricter credit appraisal, enhanced early warning systems, expanded recovery teams and greater use of technology and analytics.

NAVIGATING ECONOMIC HEADWINDS

He noted that many businesses remain cautious amid high inflation, rising interest rates, foreign-exchange volatility, elevated import costs and liquidity pressures.

“Many businesses remain cautious due to some ongoing pressures: high inflation, energy crisis, rising interest rates, forex volatility, import costs, liquidity stress, slower demand, and lower cash flow,” he said. “As a result, business houses are prioritising liquidity and balance sheet stability over expansion.”

Demand has shifted from long-term investment loans towards working-capital and trade-finance facilities, although export-oriented sectors continue to show relatively stable borrowing demand.

On governance, Arefin said the board maintains strategic oversight while management independently handles day-to-day operations.

“The board provides strategic oversight, while management independently handles day-to-day operations within approved risk and compliance frameworks. No undue pressure is exerted on lending or operational decisions -- all credit proposals undergo a rigorous evaluation and multi-level approval process,” he said.

Asked what differentiates NCC Bank from its peers, Arefin highlighted its governance standards, risk management and customer-focused culture.

“NCC Bank stands out for its stability, disciplined banking, customer-centric culture, and over three decades of credibility,” he said.

“It maintains strong governance, compliance, and prudent risk management -- even during sector challenges -- prioritising transparency and accountability over short-term gains.”

Power Grid Bangladesh PLC is set to see a significant rise in revenue following a decision by the Bangladesh Energy Regulatory Commission (BERC) to increase electricity transmission tariffs, widely known as wheeling charges.

In a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE) today (4 June), the state-run transmission company said the revised tariff will come into effect from the billing month of June 2026.

The new rates reflect an increase of nearly 23–24% across all voltage levels, marking a substantial upward revision in transmission income. Following the disclosure, its share price rose 1.45% to close at Tk35.10.

Power Grid Bangladesh estimates that the tariff revision could increase its annual transmission revenue by around Tk700 crore, although the final impact will depend on overall electricity generation and demand conditions, the disclosure said.

The company generates the bulk of its revenue by transmitting electricity through the national grid to distribution companies. The revised wheeling charges will therefore have a direct impact on its earnings, as these tariffs are paid by distribution utilities for using the transmission network.

Under the new structure, the wheeling charge for 230 kV lines has been raised from Tk0.3057 per kilowatt-hour to Tk0.3789, while the rate for 132 kV has risen to Tk0.3825 from Tk0.3086. Similarly, the 33 kV rate has been increased to Tk0.3897 from Tk0.3184.

Market observers view the development as a positive signal for the company's financial health, as higher wheeling charges are expected to strengthen cash flows and improve earnings stability.

In the first nine months of the current fiscal year, Power Grid reported revenue of Tk2,386 crore - a slight increase - along with a profit of Tk570 crore.

During the same period of the previous fiscal year, its revenue stood at Tk2,218 crore, and the company incurred a loss of Tk31 crore due to foreign currency fluctuations, as it services its foreign loans in foreign currency.

The Financial Institutions Division has directed Bangladesh Bank representatives and managing directors of all scheduled banks to take necessary steps to enrol their officers and employees in the Pragati Scheme under the Universal Pension System.

The instruction was issued at a discussion meeting chaired by Nazma Mobarek, secretary of the Financial Institutions Division under the Ministry of Finance, at the Secretariat in Dhaka yesterday.

It was noted at the meeting that the National Pension Authority (NPA) has signed memorandums of understanding (MoUs) with 48 banks and financial institutions, while 24 banks are actively involved in collecting and disbursing pension contributions.

Addressing the meeting, the secretary said separate desks should be set up at all bank branches to increase enrolment in the Universal Pension System.

She also directed banks to display banners in accordance with the MoUs and ensure that marketing officials play an active role in promoting the scheme.

Mobarek further stressed the need to bring all officers and employees of private banks under the Pragati Scheme.

Md Suratuzzaman, executive chairman of the NPA, presented a keynote paper highlighting the progress of the Universal Pension System, the features of the Pragati Scheme and its importance for private-sector workers.

He said around 18 million private-sector workers in Bangladesh lack formal retirement security, unlike government employees who are covered by state pension arrangements. The Pragati Scheme was introduced to address this gap under the Universal Pension System launched in 2023.

The meeting also discussed proposals to introduce a shariah-based pension scheme, extend lifelong pension benefits to nominees and bring outsourced workers under the Pragati Scheme. The Pragati Scheme is designed for private-sector employers and employees.

Under the scheme, employees and employers each contribute 50 percent of the monthly contribution. Monthly contributions range from Tk 1,000 to Tk 15,000, and participants receive lifelong monthly pension benefits after retirement.

The scheme also offers tax incentives, as contributions are eligible for income tax rebates while pension income remains fully tax-free. Upon reaching the age of 60, participants receive up to 30 percent of their accumulated corpus as a one-time gratuity payment. The scheme is backed by government-guaranteed investments.

As of May 30, 2026, a total of 3,77,930 people had registered under the four pension schemes, with deposits reaching about Tk 260 crore and investments standing at Tk 286 crore.

BRAC Bank PLC has signed two refinancing agreements with Bangladesh Bank.

The aim is to improve access to affordable finance for cottage, micro, small, and medium enterprises (CMSMEs). This step shows BRAC Bank's commitment to entrepreneurship and financial inclusion.

The agreements allow BRAC Bank to provide financing to entrepreneurs in different clusters across the country. Through Bangladesh Bank's Financial Sector Fund for MSMEs, the bank can offer low-cost credit support.

Through the Tk3,000 crore Cluster Finance Refinance Scheme, BRAC Bank will provide term loans and working capital. These loans support entrepreneurs in various industrial clusters. Eligible businesses can access financing at concessional rates starting from 7 per cent. This support helps expand businesses, boost productivity, and create jobs.

The second agreement lets BRAC Bank use the Tk1,500 crore Financial Sector Fund for MSMEs. MSMEs in the manufacturing and service sectors can get financing at a 7 per cent interest rate. The facility offers loans of up to Tk1 crore for microenterprises and up to Tk5 crore for small and medium enterprises.

Tareq Refat Ullah Khan and Nawshad Mustafa exchanged agreement documents at a ceremony at the Bangladesh Bank on 18 May 2026. Deputy Governor Nurun Nahar was present.

Husne Ara Shikha, Executive Director of Bangladesh Bank, and Mahbubur Rahman, Head of Cottage, Micro and Small Business and Liability and Cash Management, SME Banking, BRAC Bank, also attended.

BRAC Bank, as the country's leading SME-focused bank, continues to pioneer the expansion of access to finance for grassroots entrepreneurs, leveraging Bangladesh Bank's refinancing schemes. The bank states that these initiatives will foster business growth, job creation, and sustainable economic development across Bangladesh.

Just four years after entering mobile phone manufacturing, RFL is now expanding into local production of telecom service-related equipment, including routers and vehicle tracking devices (VTDs), under its Proton brand.

PRAN-RFL Group, one of the country’s largest conglomerates, has received preliminary approval from the Bangladesh Telecommunication Regulatory Commission (BTRC) to locally manufacture and assemble the products under its electronics arm, RFL Electronics Limited.

According to official documents reviewed by The Daily Star, the regulator has also decided to conduct an on-site inspection of the company’s manufacturing facilities before issuing a temporary enlistment certificate for telecommunication service-related equipment.

On May 3, RFL Electronics presented its manufacturing roadmap to BTRC officials, who found the proposal “primarily satisfactory,” according to meeting documents.

RFL started manufacturing Proton mobile phones in late 2022.

Industry observers say the initiative highlights a transformation within Bangladesh’s industrial sector, where local companies traditionally focused on plastic goods and household appliances are increasingly investing in technology hardware and smart devices.

The telecom equipment segment is seen as particularly promising given rising domestic demand for internet connectivity, digital services and smart monitoring solutions.

Vehicle tracking devices are witnessing increasing demand amid the rapid expansion of logistics, ride-sharing, e-commerce delivery and fleet management services in Bangladesh.

Businesses are increasingly using tracking systems to improve operational efficiency and security.

Demand for routers is also growing steadily as broadband internet penetration expands across urban and semi-urban areas. Industry estimates suggest Bangladesh now has around 1.4 crore Wi-Fi users, creating a sizable market for networking devices.

Market analysts say Bangladesh’s router market is expected to continue growing through the end of the decade, driven by remote work, digitalisation and rising household internet usage.

The market currently includes more than 200 models across different price ranges and consumer segments.

International brands such as TP-Link, Xiaomi and Huawei dominate much of the consumer market, while brands like Tenda remain popular because of affordability and strong signal coverage.

British American Tobacco Bangladesh recorded a 14 percent year-on-year decline in domestic cigarette sales volume in the first quarter of FY2025-26, as tax-driven affordability pressures, downtrading, and competition from illicit cigarettes weighed on sales, according to an earnings update by BRAC EPL Stock Brokerage Ltd.

Domestic gross revenue fell 10.7 percent year-on-year, while net revenue dropped 21 percent as the total tax burden rose to 84.1 percent from 82 percent in the same quarter last year.

A modest 3.8 percent growth in unit revenue failed to offset the combined drag of lower volumes and higher taxes.

The Bangladesh Cigarette Manufacturers’ Association estimates that illicit cigarettes now account for 15 to 18 percent of the total market, posing a structural challenge for compliant manufacturers.

Non-core revenue offered little relief. Cigarette exports remained zero for the third consecutive quarter, while leaf export revenue fell 22.5 percent year-on-year due to a 27.1 percent decline in volume, partly offset by a 6.3 percent rise in unit price.

Revenue from third-party contract manufacturing -- now in its second quarter -- plunged 68 percent quarter-on-quarter, while no revenue was generated from semi-finished goods.

Gross profit fell 12 percent year-on-year to Tk 802 crore, although gross margin expanded by 707 basis points to 56 percent as cost of sales dropped 33.8 percent year-on-year, outpacing the 23.1 percent decline in total net revenue.

BATBC did not explain the margin improvement, which likely reflected price-mix benefits, input cost normalisation, and efficiency gains from consolidated production.

Operating expenses surged 40.7 percent year-on-year despite the revenue contraction, with no explanation offered. Salaries, IT costs, and technical assistance fees are the principal expense heads, according to the company’s 2025 annual report.

Net finance expenses eased to Tk 49.2 crore from Tk 53.9 crore a year earlier, mainly due to lower lease costs.

Total interest-bearing debt rose sharply to Tk 2,381 crore at the end of March from Tk 1,489 crore in December.

Operating cash outflow widened to Tk 1,226 crore from Tk 952 crore a year earlier, driven by lower profitability and inventory build-up.

Inventories climbed to Tk 5,386 crore from Tk 3,829 crore at year-end, prompting the company to increase short-term borrowing to manage operations.

Royal Footwear Limited, a footwear manufacturing and export-oriented company, is planning to raise Tk12 crore from the capital market through the SME platform to support its business expansion and meet rising export demand.

The company has recently re-submitted its application to the Bangladesh Securities and Exchange Commission (BSEC) to issue 1.2 crore shares under the fixed-price method through an Initial Qualified Investor Offer (IQIO).

Earlier, in 2024, Royal Footwear had applied for the same fundraising plan. However, the company later withdrew its Initial Qualified Investor Offer (QIO) proposal, citing political uncertainty, the ongoing economic slowdown, and an overall unstable business environment that was not favourable for expansion at that time.

As the business climate has improved now, the company has decided to revive its fundraising plan and move forward with the application again to support its expansion and take advantage of growing export opportunities.

As a synthetic shoe manufacturer, Royal Footwear intends to utilise the funds for business expansion, working capital, and loan repayment.

Specifically, the allocation includes, Tk2 crore for purchasing raw materials and packing materials, Tk1.67 crore for the purchase of spare parts, Tk8 crore for loan repayment, and Tk0.33 crore for IQIO expenses.

Royal Footwear Limited shares some common directors with Al-Madina Pharmaceuticals, a publicly listed company on the SME platform. In February 2023, Al-Madina Pharmaceuticals raised Tk5 crore through the SME platform to support business expansion. In FY25, the company declared a 12% cash dividend for its shareholders.

According to Royal Footwear, the company—incorporated in 2014—plans to enter the capital market to expand its operations and strengthen compliance standards. The management says that some of its international buyers have encouraged listing in the capital market, believing it would improve governance, compliance practices, and alignment with global standards.

The company mainly exports to European and Asian markets, where demand for its products continues to grow steadily. In addition, the management views capital market financing as a more sustainable long-term growth option compared to relying heavily on bank borrowing.

In FY25, Royal Footwear Limited reported revenue of Tk52.91 crore, up from Tk52.34 crore in the previous fiscal year. Its profit after tax stood at Tk2.78 crore, which was Tk3.19 crore a year ago.

Earnings per share (EPS) reached Tk0.82, which was Tk0.94 a year ago. Its net asset value (NAV) per share, after revaluation, was Tk27.54.

Prime Bank Investment Limited is acting as the issue manager for the IQIO.

According to the company prospectus, the footwear industry in Bangladesh is growing rapidly due to increasing domestic and international demand, competitive production costs and favourable government policies.

Opportunities lie in export expansion, modern technologies, and sustainable practices. However, challenges such as quality control, compliance with international standards, and workforce development persist.

Major competitors of Royal Footwear include Apex Footwear, Bata Shoe Company (Bangladesh), Bay Emporium, Lotto BD, Jenny's Shoes, Craftsman Footwear and Accessories, and MK Footwear PLC.

To remain competitive, companies are adopting advanced technologies such as CAD/CAM systems and automated machinery to enhance efficiency and quality. Many firms are also obtaining global certifications, such as the Leather Working Group (LWG) certification, to boost credibility.

Despite obstacles like limited access to finance, infrastructure gaps, and labour shortages, the industry is making strides in environmental sustainability.

Investments in eco-friendly production methods and effluent treatment plants are helping to address environmental concerns and align with international standards, further strengthening the industry's growth potential.

The government has approved a Nationwide Telecommunication Transmission Network (NTTN) licence for Bangla Phone, marking the first major telecom infrastructure licence approval since the formation of the new government. The company’s earlier bid was rejected by the interim government.

This makes Bangla Phone the seventh company in the country to receive this licence.

According to official documents, the approval was granted on May 13 after the Bangladesh Telecommunication Regulatory Commission (BTRC) sought government clearance on May 10.

Under existing guidelines, the licence allows operators to build, maintain and manage nationwide fibre-optic transmission networks and share infrastructure with telecom operators and internet service providers.

BTRC requires prior approval from the Ministry of Posts, Telecommunications and Information Technology before issuing such licences. In May last year, the regulator sought approval, but the interim government rejected the proposal.

After the new government took office, BTRC again sought approval from the ministry.

It remains unclear under which guideline the licence was approved, as there is no separate NTTN category in the telecom licensing policy.

The policy, approved by the BTRC and later endorsed by the interim government, is now under review by the current administration.

Under the licensing policy, NTTN falls under the category of National Infrastructure and Connectivity Service Provider (NICSP).

Major General (retd) Md Emdad Ul Bari, chairman of the BTRC, said the licence was issued under the legacy framework.

“When the licensing regime changes, the licence will be migrated accordingly,” he said.

Explaining why the BTRC recommended the licence for Bangla Phone, Bari said an inspection team found that the company, which has been operating in Bangladesh since 2004, already has a fibre-optic transmission network spanning more than 13,000 kilometres.

“As the country needs more transmission network infrastructure and the operator already has an extensive fibre network, the regulator recommended issuing the licence following its application and investigation,” a BTRC official said.

Bangla Phone first applied for the licence in June 2011, but the ministry rejected it in July 2014. After the company filed a writ petition, the High Court directed a review, although the ministry upheld its decision in June 2016.

The company reapplied in September 2024, prompting the BTRC to form a committee in January 2025 to assess the request.

The committee cited the need to expand affordable transmission networks nationwide, particularly in remote areas.

Considering the limitations of the country’s existing transmission network and Bangla Phone’s previously permitted infrastructure, the committee recommended issuing a new NTTN licence, according to the documents.

As per BTRC documents, the country’s other six NTTN operators currently manage a combined 148,000 kilometres of optical fibre network.

The country’s first NTTN licence was awarded to Fibre@Home in 2008, and the company now operates around 50,000 kilometres of network infrastructure.

Summit Communications operates approximately 40,000 kilometres of network, while Bahon Limited has 7,817 kilometres. Bangladesh Telecommunications Company Limited manages around 40,000 kilometres, and Power Grid Company of Bangladesh operates roughly 8,500 kilometres. Bangladesh Railway, meanwhile, has about 3,800 kilometres of optical fibre infrastructure.

In addition, the government has laid nearly 35,000 kilometres of optical fibre under projects such as Info-Sarker 3 and Connected Bangladesh, while mobile operators collectively operate around 8,200 kilometres of fibre infrastructure

Last year, Amjad H Khan, chairman of Bangla Phone, told The Daily Star that the company’s four licences, including an International Internet Gateway (IIG) licence, were cancelled during the previous government’s tenure.

He said the country still lacks adequate telecom infrastructure, creating opportunities for more players to contribute.

Techno Drugs Limited has decided to issue a coupon-bearing bond worth Tk50 crore to restructure its high-cost bank loans, as the pharmaceutical company faces declining profits alongside a sharp rise in long-term debt.

The decision was approved at the company's board meeting held on Thursday.

According to a price-sensitive disclosure, the proposed five-year bond will be structured as 25% redeemable and 75% convertible. The initiative is subject to approval from shareholders at an extraordinary general meeting (EGM) scheduled for 24 June, as well as clearance from the Bangladesh Securities and Exchange Commission (BSEC). MTB Capital Limited has been appointed as issue manager and arranger.

Company Secretary SM Abu Talha Siddik told The Business Standard that the primary objective of the bond is to manage the company's high-cost bank liabilities more efficiently.

The move comes at a sensitive time for the drugmaker, as One Bank PLC has recently filed a case in the Money Loan Court against the company and its directors to recover defaulted loans worth around Tk150 crore. The court has already issued a public notice summoning the directors in connection with the case.

Responding to the legal dispute, Siddik said the company is in discussions with the bank and hopes for a swift resolution.

The latest financing plan comes even after Techno Drugs raised Tk100 crore through an initial public offering (IPO) under the book-building method in 2024.

Audit reports show that Tk31.47 crore from the IPO proceeds was spent on machinery acquisition and construction at its Narsingdi and Gazipur facilities, while Tk30 crore was used to partially repay bank loans, including Tk25 crore to One Bank and smaller amounts to LankaBangla Finance, Alliance Finance, and IDLC Finance.

However, the company's financial position has weakened further in FY26. For the July–March period, revenue declined 11% year-on-year to Tk232 crore, while net profit fell 16% to Tk15.54 crore.

Meanwhile, long-term loans surged to Tk239.56 crore by the end of March 2026, marking a 54% increase compared to the same period last year.

bKash Limited, the country's largest mobile financial services (MFS) provider, has reported a 40% increase in net profit, reaching Tk184 crore, as revenue continued to grow strongly across successive quarters.

According to the unaudited financial statement of bKash, a subsidiary of BRAC Bank, the company's net revenue rose by 10% to Tk1,802 crore in the first quarter of 2026.

Speaking to TBS, bKash Chief Financial Officer (CFO) Moinuddin Mohammed Rahgir said, "bKash has consistently demonstrated the sustainability of its business model while continuing to support a more inclusive financial ecosystem for millions of Bangladeshis."

The company's persistent investments in technology, regulatory compliance and cyber security have helped strengthen customer trust and increase engagement across its platform. With an increasing proportion of its customer base now transacting regularly, reflecting growing confidence in digital financial services, said CFO.

This higher level of usage has contributed to growth in both revenue and profitability. Looking ahead, bKash will continue investing in a stronger financial ecosystem, digital commerce and payment solutions as Bangladesh moves toward a more cashless and digitally empowered economy, he further added.

Founded in 2010 as a joint venture between BRAC Bank and US-based Money in Motion LLC, bKash began commercial operations in 2011. It remained profitable until 2018 before facing significant losses between 2019 and 2021.

The company returned to profit in the July-September quarter of 2022 and has maintained consistent profitability since then, according to officials.

From the beginning, the company's investors have followed a "patient-capital" approach. Instead of taking dividends, they have continuously reinvested profits back into the business. This strategy has enabled bKash to build a strong technological foundation and scale its services effectively.

BRAC Bank currently holds a 51% stake in bKash, while other major shareholders include Money in Motion LLC (16.45%), Alipay Singapore E-Commerce (14.87%), International Finance Corporation (10.36%), and SVF II BEAM (DE) LLC (7.32%).

According to bKash, it currently has over eight crore customers, along with 3.50 lakh agents.

As of now, bKash charges Tk18.50 per thousand for cash out while Tk5 for each fund transfer to another account.