The telecom regulator has decided to allocate 10 MHz from the highly valuable 700 MHz band to state-owned Teletalk, despite the operator owing around Tk 5,500 crore in spectrum fees and already holding significant unused or underused spectrum.

The decision was taken at a recent Bangladesh Telecommunication Regulatory Commission (BTRC) meeting, according to documents.

The 700 MHz band is considered globally valuable for wide coverage, strong indoor signal, low rollout cost, and suitability for rural-urban networks, including 5G. In Bangladesh, 45 MHz of the band is allocated for mobile use, while 20 MHz remains unused due to a legal dispute.

TIMELINE OF GOVT, REGULATORY ACTIONS

On February 8, just before the national election, the interim government, through the telecom ministry, sent a letter to BTRC instructing it to allocate 10 MHz of spectrum to Teletalk.

A day later, Teletalk applied for the spectrum.

On February 16, the ministry informed the regulator that Teletalk had proposed converting its unpaid dues -- including licence and spectrum fees -- into government equity, now under finance division review.

On April 9, BTRC sought guidance from the ministry on how Teletalk would pay for the allocation. On April 24, the ministry directed the regulator to proceed with the allocation, citing the need to reduce customer inconvenience in line with the government’s election manifesto.

The price was set at Tk 237 crore per MHz, matching the rate paid by Grameenphone for 10 MHz in January as the sole bidder in the auction.

The move means the government may forgo at least Tk 2,000 crore in revenue in the near term.

Only 5 MHz of available spectrum in this band will remain for Banglalink and Robi, both of which have large customer bases. The two operators did not join the latest auction, saying prices were too high.

Spectrum is a limited and valuable resource that countries manage carefully, as it is important for improving telecom services and generating government revenue. In Bangladesh, there have been concerns about spectrum management, particularly regarding Teletalk.

LARGE DUES AND UNUTILISED SPECTRUM

Teletalk holds 55.2 MHz across the 900, 1800, 2100, and 2300 MHz bands and serves around 68 lakh subscribers, giving it about 0.81 MHz per lakh users.

By comparison, Grameenphone has 137.4 MHz for 8.44 crore subscribers (0.16 MHz per lakh), Robi has 124 MHz for 5.74 crore users (0.22 MHz per lakh), and Banglalink has 80 MHz for 3.74 crore users (0.21 MHz per lakh).

Despite higher spectrum per subscriber, Teletalk’s voice and data service quality has been weaker than peers in BTRC quality tests over the years, and it has added only about 1 lakh subscribers in five years.

The operator has also not used 30 MHz in the 2300 MHz band acquired in the 2022 auction, despite rollout obligations, which is considered a breach of spectrum utilisation rules.

Teletalk’s total liabilities include Tk 120 crore in licence fees, Tk 102 crore in revenue sharing, Tk 5,506 crore in spectrum fees, and around Tk 62 crore in other charges.

EXPERT CRITICISM

“Private operators are required to follow strict rules, but public companies often do not face the same obligations, which creates a market imbalance,” said Khondaker Golam Moazzem, research director at the Centre for Policy Dialogue.

He added that large unpaid dues raise doubts about such firms’ ability to survive in a competitive market, noting they often rely on government support rather than efficiency.

TIM Nurul Kabir, a telecom expert, said, “Spectrum is a valuable resource and allocating it to an operator that cannot ensure good service or generate revenue is a poor regulatory decision.”

“The government needs a different approach to revive Teletalk rather than using up valuable resources. Such decisions are also anti-competitive,” he added.

Md Emdad ul Bari, chairman of BTRC, said the allocation was approved on the condition that spectrum charges would be converted into government equity.

He said this would not cause revenue loss, as funds would shift between state entities as equity investments.

Top 11 banks held Tk 52,034 crore of non-performing loans (NPLs), accounting for about 71.67 per cent of total default loans in the CMSME sector, highlighting a high concentration of credit risk in a handful of lenders.

According to Bangladesh Bank data as of December 31, 2025, total loan disbursement by 60 scheduled banks in the cottage, micro, small and medium enterprise (CMSME) sector stood at Tk 3,01,397 crore, representing 16.58 per cent of overall outstanding loans of Tk 18,17,736 crore. Countryspecific content

However, recovery from the sector is better compared with the other industries. Banks’ total NPL ratio stood at 30 per cent in December, 2025.

Default loans in the segment were Tk 72,600 crore, or 24 per cent of total CMSME lending.

CMSME refers to small-scale business activities ranging from cottage industries and micro enterprises to small and medium-sized firms.

The CMSME sector is widely regarded as the backbone of Bangladesh’s economy, contributing around 25 per cent to GDP and supporting millions of entrepreneurs, traders and small manufacturers.

These businesses typically operate with limited capital but play a central role in job creation, rural industrialisation and income distribution.

Despite its importance, the sector remains vulnerable due to limited access to finance, weak financial literacy and dependence on informal networks.

Banks are expected to fill this gap.

Due to poor lending by several state-run banks and weak shariah-based banks, NPL in the sector surged.

Among the major defaulters, Islami Bank Bangladesh PLC alone had Tk 9,761 crore in bad loans against Tk 29,759 crore disbursed, with an NPL ratio of 33 per cent in the CMSME sector.

BASIC Bank showed one of the worst asset qualities, with Tk 6,168 crore in defaults out of Tk 8,839 crore disbursements, translating into a 70 per cent NPL ratio.

State-owned Janata Bank and Sonali Bank reported Tk 5,947 crore and Tk 4,948 crore in default loans respectively, while Agrani Bank had Tk 4,474 crore in NPLs.

Among private banks, First Security Islami Bank recorded an alarming 96 per cent NPL ratio with Tk 4,884 crore in defaults against Tk 5,107 crore in loans in CMSME, while Padma Bank showed a similar trend with a 95 per cent NPL ratio in the CMSME sector.

Other banks with significant exposure include Al-Arafah Islami Bank (Tk 3,891 crore NPL), Social Islami Bank (Tk 3,241 crore), EXIM Bank (Tk 3,058 crore) and United Commercial Bank with Tk 2,449 crore.

In contrast, several banks maintained relatively strong asset quality.

BRAC Bank, the largest CMSME lender with Tk 30,570 crore in disbursement, reported only Tk 670 crore in defaults.

Pubali Bank and City Bank also kept NPLs low at Tk 484 crore and Tk 322 crore respectively.

As a result high NPL, credit flow to small businesses slows down, affecting expansion, employment and production.

Persistent defaults also raise borrowing costs. Banks tend to charge higher interest rates to offset risks, making financing less affordable for genuine entrepreneurs.

In a sector already constrained by limited resources, this can discourage new investments and weaken overall economic momentum.

At Tejturi Bazar in the capital’s Tejgaon area, ridge gourd was selling at Tk 70–80 per kg and tomatoes at Tk 50–60 per kg yesterday, Thursday. Just a week earlier, both vegetables were Tk 10–15 cheaper per kg. The rise in prices has been driven by rainfall and higher transport costs.

Over the past week, prices have also increased for onions, cucumbers, aubergines, chillies and green papaya. Broiler chicken and eggs have also become more expensive. Among grocery items, the prices of sugar, coarse lentils and polao rice have gone up. Although the price of bottled soybean oil has been raised, supply in the market has yet to return to normal.

Traders said rainfall over the past few days has disrupted the regular supply of vegetables. Higher fuel prices have also pushed up transport costs. Together, these factors have driven up vegetable prices. These details emerged from visits yesterday to Mohammadpur Krishi Market, Town Hall Market and Tejturi Bazar, as well as conversations with buyers and sellers.

A market survey found that the prices of at least nine vegetables have increased over the past week. Cucumber recorded the sharpest rise. Hybrid cucumber prices jumped by Tk 30 per kg and were selling yesterday at Tk 80–100 per kg. Locally grown cucumber was priced slightly higher. Prices of aubergine, sponge gourd, snake gourd, ridge gourd and tomatoes also rose by Tk 10–15 per kg. Green papaya and chillies increased by Tk 20, reaching Tk 80–100 per kg.

According to the Department of Agricultural Marketing, compared with last month, cucumber prices have risen by 111 per cent, green papaya by 87 per cent, local tomatoes by 25 per cent and aubergines by 7 per cent.

Onion prices have also gone up by Tk 5 per kg over the past week, with local onions now selling at Tk 40–45 per kg. However, onions had remained unusually cheap for a long period this year, limiting farmers’ profits. The recent price rise may improve their returns.
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What is driving the price hike

Heavy rainfall hit the country last Sunday. After a two-day pause rain resumed on Tuesday night. Although the capital remained dry throughout yesterday, the meteorological office has forecast intermittent rainfall across the country for the next three days.

Aminul Haque, a vegetable trader at Karwan Bazar, told Prothom Alo that fewer vegetable trucks had arrived at the market over the past two days. In many areas, heavy rain has caused waterlogging in vegetable fields, preventing farmers from harvesting produce. This has pushed up prices for some vegetables. He added that buyer numbers were also lower as it was the month-end.

Meanwhile, the government has increased retail prices of all types of fuel in response to rising global oil prices. Diesel prices have risen by Tk 15 per litre, kerosene by Tk 18, octane by Tk 20 and petrol by Tk 19. This has also affected commodity prices.

Imran Master, president of the Bangladesh Kachamal Arot Malik Samity, told Prothom Alo that truck fares for transporting vegetables from Dhaka, Chattogram and Sylhet have risen by Tk 5,000–7,000 since fuel prices increased. Combined with lower supply caused by rain over the past three days, this has pushed vegetable prices higher.

Traders said rainfall over the past few days has disrupted the regular supply of vegetables. Higher fuel prices have also pushed up transport costs. Together, these factors have driven up vegetable prices.

Broiler chicken and eggs remain expensive

Farm eggs were selling yesterday at Tk 120–130 per dozen. Prices have remained at this level for more than two weeks. Earlier, eggs sold for Tk 100–110 per dozen. Higher transport costs have also contributed to the rise in egg prices. There is also some supply shortage, according to Mohammad Amanat Ullah, former president of the Tejgaon Egg Traders’ Association.

Broiler chicken prices also remain elevated. Broiler chicken is selling at Tk 190–200 per kg, compared with Tk 150–160 around six weeks ago.

Sonali chicken prices, however, have eased slightly. Yesterday, Sonali chicken was sold at Tk 350–360 per kg in three markets of the capital. Colourbird, or hybrid Sonali chicken, sold at Tk 320–330 per kg. Two weeks ago, Sonali chicken was Tk 30 higher per kg, while prices exceeded Tk 400 after Eid-ul-Fitr.

The price of packaged polao rice has increased by another Tk 15 per kg, taking the new retail price to Tk 190 per kg. Traders, however, are selling it at Tk 180–185, while older stock remains available at Tk 165–170. Loose polao rice is priced at Tk 150–160 per kg.

Two weeks ago, loose sugar prices rose by Tk 5 per kg to Tk 105–110, which remained stable there yesterday. Coarse lentils have also increased by Tk 5, now selling at Tk 90–95 per kg.

Soybean oil supply still disrupted

On Wednesday, the government increased prices of bottled and loose soybean oil by Tk 4 per litre. The price of one litre of bottled soybean oil was raised from Tk 195 to Tk 199, while loose soybean oil rose from Tk 176 to Tk 180. As a result, the maximum retail price of a five-litre bottle now stands at Tk 975.

The market has been facing a shortage of bottled soybean oil for nearly three months. During this period, companies had been demanding a price increase, citing rising global edible oil prices, while supply of bottled soybean oil remained low. Although the government had resisted the move for some time, the Ministry of Commerce approved the price hike on Wednesday.

However, a market visit one day after the increase showed that the supply shortage remains unchanged. Humayun Kabir, a grocer at Mohammadpur Krishi Market, said the supply of bottled soybean oil could improve within the next two to three days following the price increase. Dealers of three edible oil companies had informed them of this, he added.

OPEC+ agreed on ‌Sunday a modest oil output hike for June, an increase that will remain largely on paper as long as the Iran war continues to disrupt Gulf oil supplies through the Strait of Hormuz.

Seven OPEC+ countries will raise oil output targets by 188,000 barrels per day in June, the third consecutive ​monthly increase, OPEC+ said in a statement after an online meeting. The increase is the same as that agreed ​for May minus the share of the United Arab Emirates, which on May 1.

The ⁠move is designed to show the group is ready to raise supplies once the war stops and signals that OPEC+ is ​pressing on with a business-as-usual approach despite the departure of the UAE from OPEC+, OPEC+ sources and analysts said.

"OPEC+ is sending a ​two-layer message to the market: continuity despite the UAE's exit, and control despite limited physical impact," said Jorge Leon, an analyst at Rystad and former OPEC official.

"While output is increasing on paper, the real impact on physical supply remains very limited given the Strait of Hormuz constraints. This is ​less about adding barrels and more about signaling that OPEC+ still calls the shots."

Top OPEC+ producer Saudi Arabia's quota will rise ​to 10.291 million bpd in June under the agreement, far above actual production. The kingdom reported actual production of 7.76 million bpd to ‌OPEC in ⁠March.

The seven members who met on Sunday were Saudi Arabia, Iraq, Kuwait, Algeria, Kazakhstan, Russia, and Oman. With the UAE leaving, OPEC+ includes 21 members including Iran. But in recent years only the seven nations plus the UAE have been involved in monthly production decisions.

HIKE REMAINS LARGELY SYMBOLIC UNTIL HORMUZ RE-OPENS

The Iran war, which began on February 28, and the resulting closure of the ​Hormuz strait have throttled exports from ​OPEC+ members Saudi Arabia, ⁠Iraq and Kuwait, as well as from the UAE. Before the conflict, these producers were the only countries in the group able to raise production.

Even when shipping through the Strait of Hormuz ​reopens, it will take several weeks if not months for flows to normalise, oil executives from ​the Gulf and ⁠global oil traders have said.

The supply disruption has propelled oil prices to a four-year high above $125 per barrel as analysts begin to predict widespread jet fuel shortages in one to two months and a spike in global inflation.

Crude oil output from all OPEC+ members ⁠averaged 35.06 ​million bpd in March, down 7.70 million bpd from February, OPEC said in ​a report last month, with Iraq and Saudi Arabia making the biggest cuts due to constrained exports.

The seven OPEC+ members will meet again on June 7, ​the statement said.

Bangladesh received $3.12 billion in remittances in April, a 13.5% increase from the same month a year earlier, according to data released by Bangladesh Bank today (3 May).

In April last year, expatriates sent $2.75 billion in remittances.

However, inflows retreated from March's record high of $3.75 billion, with bankers attributing the surge largely to a seasonal spike in transfers ahead of Ramadan and Eid-ul-Fitr.

Despite the monthly decline, remittances have remained above the $3 billion mark for five consecutive months. Bankers see this as a positive sign for the economy, pointing to greater use of formal channels and stronger earnings by migrant workers.

In the current fiscal year 2025-26, remittances have maintained robust growth, helping to bolster foreign exchange reserves. Between July and April, total inflows reached $29.33 billion, up 19.5% from $24.54 billion in the same period a year earlier.

Economists say the rising inflows could help ease pressure on the external sector, support exchange rate stability and strengthen overall macroeconomic conditions if the trend holds in the coming months.

They expect remittances to increase further in May, driven by the upcoming Eid-ul-Adha at the end of the month.

Bankers noted that a narrowing gap between exchange rates in the informal market and official banking channels has encouraged expatriates to send money through formal means.

Bangladesh Bank has been purchasing US dollars from commercial banks through auctions, buying more than $4 billion so far in the 2025-26 fiscal year as of early February, in a bid to stabilise the foreign exchange market and build reserves.

The exchange rate has recently hovered between Tk122.75 and Tk122.90, as authorities seek to prevent excessive appreciation of the taka while supporting remittances and export earnings.

Earlier, despite a decline in exports, rising imports and the onset of war, the exchange rate remained stable at Tk122.75 per US dollar.

Foreign exchange reserves currently stand at $35.10 billion, or $30.47 billion under the IMF's BPM6 method.

Following a payment of $1.37 billion to the Asian Clearing Union (ACU) on 9 March, reserves had fallen to $34.10 billion, with the BPM6 measure at $29.38 billion.

Bangladesh's reserves had reached a historic high of more than $48 billion in August 2021.

They later dropped to $20.48 billion under the BPM6 method and $25.92 billion in gross terms by the time of the fall of the Awami League government. During the 18-month tenure of the interim government, reserves have increased by $10 billion.

Sri Lanka raised fuel prices by nearly 4% today (3 May), further fuelling inflation, which more than doubled last month due to the Middle East war.

Since March, Sri Lanka has raised fuel prices by more than 35%, while gas and electricity rates have also increased by a similar amount.

The island has also rationed fuel following supply disruptions.

Today, the state-owned Ceylon Petroleum Corporation increased the price of kerosene -- used by agricultural machinery -- to 265 rupees ($0.85) a litre, up 10 rupees.

Petrol rose 12 rupees to 410 rupees ($1.32). Diesel was up 10 rupees to 392 rupees.

Higher energy prices pushed inflation to more than double, reaching 5.4% in April, according to official data.

Fuel and electricity tariffs drove up transport costs as well as food prices, the Department of Census and Statistics said.

The island has been slowly emerging from the 2022 economic meltdown, when it ran out of foreign exchange reserves to pay for essential imports such as food, fuel and medicines.

However, it was hit hard in November by a cyclone that killed at least 643 people and affected more than 10% of the island's 22 million population.

The storm caused an estimated $4.1 billion in direct physical damage to buildings and agriculture, according to the World Bank.

The country has been stabilising its fragile economy with the help of a $2.9 billion IMF bailout agreed in early 2023, but high energy prices have seriously challenged recovery efforts.

Bashundhara Paper Mills, a concern of Bashundhara Group, has incurred a loss of Tk422 crore in the first nine months of the current fiscal year, mainly due to a shortage of raw materials and a rise in utility costs.

During the July-March period of FY26, the company's loss widened significantly from Tk184 crore in the same period a year earlier, according to its financial statement ended in March.

Its year-on-year revenue also plunged by 56% to Tk223.22 crore, down from Tk507.67 crore in the corresponding period of the previous fiscal year.

Despite the sharp decline in revenue, the cost of sales stood at Tk420.59 crore at the end of March 2026, compared to Tk482.11 crore in the same period a year ago.

The company reported an operating loss of Tk523.43 crore, up from Tk230 crore in the July-March period of the previous fiscal year.

Explaining the losses, company officials said operating profitability declined due to the unavailability of raw materials, increased utility costs, a sharp rise in input prices, and higher borrowing costs following interest rate hikes.

As a result, the company's earnings per share (EPS) deteriorated significantly, with per-share loss rising to Tk24.27 from Tk10.60 in the previous period.

However, net operating cash flow per share rose slightly to Tk8.95 during the July-March period of FY26, compared to Tk8.75 in the same period a year earlier. The net asset value per share declined to Tk33.60 as of 31 March.

The company said the improvement in cash flow was mainly due to reduced payments to suppliers and other operating creditors, which strengthened its overall operating cash position.

In FY25, Bashundhara Paper Mills incurred a loss of Tk329.91 crore, with a per-share loss of Tk18.98. Due to continued losses, the company did not declare any dividend for its shareholders for FY24.

The company's shares closed on Sunday at Tk26.30 on the Dhaka Stock Exchange, down 1.87% from the previous trading session.

The price of a 12kg cylinder of liquefied petroleum gas (LPG) remains unchanged at Tk 1,940 for May.Business Policy Updates
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The Bangladesh Energy Regulatory Commission (BERC) announced the decision on Sunday, which would take effect from 6 pm. Bangladeshmarket report

The LPG prices were adjusted twice last month.

On April 2, the price of the 12kg cylinder was raised by Tk 387 to Tk 1,728. Later, on April 19, BERC hiked the price by Tk 212, setting it at Tk 1,940.

The private sector can sell LPG in various cylinder sizes-5.5kg, 12.5kg, 15kg, 16kg, 18kg, 20kg, 22kg, 25kg, 30kg, 35kg and 45kg-to consumers at proportional price in May.

The price of LPG supplied through a reticulated system or centralised storage system also remains unchanged at Tk 351 per cubic metre for May.

Meanwhile, the consumer-level price of autogas has been slightly increased by 2 paisa for May, setting the new price at Tk 89.52 per liter, including value added tax (VAT).

Autogas prices were also adjusted twice last month.

On April 2, the price was raised by Tk 17.94 to Tk 79.77 per liter. On April 19, BERC increased the price by Tk 9.73, fixing it at Tk 89.50 per liter.

The Cabinet has approved a set of tax measures for the import of completely new electric vehicles, including buses and trucks.

The decision was taken at a Cabinet meeting - chaired by Prime Minister Tarique Rahman - held in the Cabinet Room of the National Parliament at 6:45pm on Sunday (3 May), according to a statement from the Cabinet Division.

Under the decision, a notification will be issued to maintain the Value Added Tax (VAT) at 15% for electric buses with a minimum of 17 seats, for use in sectors other than student transportation.

At the same time, these imports will be exempted from customs duty (CD), regulatory duty (RD), supplementary duty (SD), advance tax (AT) and advance income tax (AIT), subject to certain conditions.

According to Cabinet Division sources, the National Board of Revenue will soon issue a notification in this regard. The facility will remain in effect till 30 June 2026 - i.e. the end of the current fiscal year of 2025-26.

It follows an earlier decision to allow the duty-free import of electric buses for educational institutions to promote safe and environmentally friendly transportation for students.

A similar notification will also be issued for the import of trucks with a capacity of five tonnes or more, the statement added.

The initiative was proposed by the Internal Resources Division, the statement said.

United Commercial Bank (UCB) secured a whopping 198 per cent year-on-year increase in consolidated profit to Tk 238 million in 2025 as it reaped handsome returns from investment income.
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Investment earnings, including income from Treasuries, subordinated bonds, other private sector bonds, and investments, more than doubled to Tk 15.2 billion in 2025, according to the company's latest financial statement.

However, net interest income declined due to a sharp rise in interest expenses in a high-rate environment.

Deposits surged 23 per cent year-on-year to a historic Tk 683.9 billion, more than double the sectoral average growth.

UCB added nearly 678,000 new accounts during the year, including a large number of savings and current accounts, strengthening its retail base, which now accounts for 59 per cent of total deposits.

Agent banking also contributed steadily, with higher average deposits per outlet.

Stronger deposit inflows improved liquidity, bringing down the advance-deposit ratio to 83 per cent from over 91 per cent a year earlier.

Excess liquidity was channelled into low-risk government securities, pushing such investments up by 69 per cent year-on-year in 2025 to more than Tk 148 billion. Total assets expanded by 14.5 per cent to more than Tk 884 billion.

Loan growth remained measured at 8 per cent, reflecting a cautious approach focused on asset quality.

While the classified loan ratio stood at 15.5 per cent, the company's management indicated ongoing efforts to reduce stressed assets.

UCB made notable progress in digital transformation. Around 65 per cent of total transactions were processed through digital channels in 2025.

The bank's credit rating remained 'AA' in the long term with a negative outlook, reflecting ongoing pressure from capital and provisioning requirements.

No dividend has been declared for 2025 due to restrictions linked to provisioning shortfall.

Overall, UCB ended the year on a stronger footing, with improved liquidity, expanding digital operations, and steady earnings growth despite a challenging interest rate environment.

The Dhaka Stock Exchange (DSE) witnessed a significant retreat today (3 May) as a massive sell-off in the banking sector, triggered by the formal downgrade of ten more lenders to the "Z" category, dragged down the benchmark index.

The premier bourse felt the immediate impact of investor panic as nearly 42% of the country's listed banking sector shifted into the "junk" stock segment, a move that severely eroded market sentiment and tightened liquidity across the floor.

The benchmark DSEX index plunged by 21 points, or 0.40%, to settle the session at 5,265. While the blue-chip DS30 index managed to edge up by a marginal 0.09% to reach 2,018, the broader market breadth remained negative. Out of the 396 issues traded, 180 declined, 165 advanced, and 51 remained unchanged.

Market participation also saw a slight contraction, with daily turnover edging down by 4% to Tk829 crore compared to the previous session.

The day's downturn was almost entirely dictated by the banking sector. Market sources confirmed that ten banks – AB Bank, Al-Arafah Islami Bank, IFIC Bank, Mercantile Bank, NRB Bank, NRBC Bank, One Bank, Premier Bank, Rupali Bank, and United Commercial Bank – were moved to the "Z" category on Sunday.

This followed their failure to declare any dividends for two consecutive years, a direct consequence of persistent financial irregularities and mounting bad loans. This latest wave of downgrades follows a similar move on 30 April, when Islami Bank, Standard Bank, and SBAC Bank were also pushed into the junk category for the same reasons.

Among the newly downgraded entities, Mercantile Bank suffered the most brutal correction, with its share price crashing by 18.18% to close at Tk7.20. AB Bank followed with an 11.32% decline, ending the day at Tk4.70.

Other notable losers included Premier Bank, which shed 8.89% to settle at Tk4.10, and IFIC Bank, which dropped 6.12% to close at Tk4.60. Al-Arafah Islami Bank, NRB Bank, and One Bank also saw their share values erode by more than 4% each. Even the state-owned Rupali Bank recorded a 2.91% price fall.

Consequences of Z category

Analysts said the primary reason behind this unprecedented sector-wide dividend drought is a massive provision shortfall against classified loans and investments. Under Bangladesh Bank regulations, lenders suffering from provision deficits are strictly prohibited from declaring dividends.

To maintain a semblance of regulatory compliance and prepare audit reports, several of these banks have reportedly availed deferral facilities from the central bank. While this allows them to postpone their immediate financial obligations, it does nothing to improve their actual profitability or their ability to reward shareholders, effectively trapping them in the junk category.

The transition to the "Z" category carries severe operational and psychological consequences for a listed firm. These stocks are widely perceived as high-risk assets due to their weak financial health and lack of corporate governance, analysts added.

Furthermore, trading rules for junk stocks are significantly more restrictive. Unlike "A" and "B" category stocks, which follow a T+2 settlement cycle, "Z" category transactions are settled on a T+3 basis.

Additionally, these shares are ineligible for margin loans and are restricted to cash-only transactions. These barriers often lead to a sharp decline in trading volume and liquidity, making it difficult for investors to exit their positions.

With 15 out of the 36 listed banks now trading in the "Z" category, the systemic health of the banking sector has become a major concern for the capital market.

Few outliers

Among the affected lenders, only a few managed to resist the downward trend today. The share prices of UCB and Standard Bank remained unchanged, while NRBC Bank emerged as the sole outlier in the sector, managing to post price appreciation despite the broader sell-off.

The banking rout mirrored the performance of the Chittagong Stock Exchange as well. The CSCX index ended 7 points lower at 9,086, while the CASPI shed 17 points to close at 14,788. Turnover at the port city bourse saw a more pronounced decline of 14%, settling at Tk41.35 crore.

Major index draggers for the day included Mercantile Bank, Shahjalal Islami Bank, Trust Bank, NCC Bank, and Al-Arafah Islami Bank.

NBFIs gain traction

Interestingly, while established banks faced a rout, the gainers' list today was dominated by non-bank financial institutions (NBFIs), many of which are themselves grappling with high non-performing loans and governance crises.

Speculative trading appeared to drive these stocks higher, with Fareast Finance and Bangladesh Industrial Finance Company (BIFC) both hitting the 10% upper limit. Other gainers included International Leasing, Premier Leasing, FAS Finance, and Peoples Leasing.

Market observers described this as a classic case of speculative 'junk-hunting' where investors shift capital into low-priced, volatile stocks following a crash in more fundamental sectors like banking.

Islami Bank Bangladesh PLC has posted a consolidated profit of Tk136 crore for the year ended December 2025, but the earnings were overshadowed by a staggering Tk84,615 crore provision shortfall against its classified investments, highlighting continued strain in its balance sheet.

Despite the profit, the bank's financial health remains under pressure, according to a price-sensitive disclosure filed with the Dhaka Stock Exchange (DSE).

The lender's result was largely supported by a regulatory deferral facility from Bangladesh Bank, which allowed the provision gap to be spread over 20 years under a recovery plan submitted last October.

However, key indicators point to weakening fundamentals. Net operating cash flow dropped by Tk5,107 crore in 2025, while investment recovery slowed. Deposits from banks and financial institutions also declined by Tk9,662 crore, reflecting liquidity pressure.

The bank's earnings trajectory has also remained weak, falling from Tk635 crore in 2023 to Tk108 crore in 2024 before edging up to Tk136 crore in 2025.

At the end of 2025, consolidated earnings per share stood at Tk0.85, while net asset value per share rose slightly to Tk44.52 from Tk44.36 a year earlier.

A major concern, according to banking sources, remains the bank's exposure to S Alam Group, which along with its affiliates reportedly borrowed over Tk73,000 crore almost half of the bank's total investment portfolio.

Although assets worth around Tk20,000 crore linked to the group have been attached, recovery has been slow due to weak auction response.

The bank has also skipped dividend payments for the second consecutive year and has been downgraded to the 'Z' category on the stock exchange for the first time, reflecting heightened financial stress.

Following the disclosure, the bank's share price fell over 4% to Tk33.30.

The AGM has been scheduled for 25 June, with the record date set for 21 May.

Meanwhile, management reshuffles are underway, with Managing Director Md Omar Faruk Khan sent on extended leave and Md Altaf Hossain appointed as acting MD amid ongoing regulatory oversight and restructuring efforts.

The vast majority of Bangladesh’s workforce remains in marginal conditions, outside the reach of formal labour protections, experts warned yesterday, calling for a shift in policy focus beyond the garment sector.

Around 85 percent of workers are engaged in the informal sector with little regulation or protection, Syed Sultan Uddin Ahmmed, former chairman of the Labour Reform Commission, said at a May Day discussion in Dhaka.

The programme, held at the Economics Reporters Forum office, was organised by the Network for People’s Action (NPA), a newly formed political party.

At the event, Ahmmed also noted that the dominance of ready-made garments (RMG) in national and international labour discourse obscures a far wider problem.

“As an export-oriented industry, the RMG sector remains at the centre of national and international discussion. While this sector is important, it should not overshadow the broader reality,” he said.

A stronger industrial base and labour movement in large sectors could eventually benefit workers in other areas, he said, calling for a more inclusive labour perspective.

“Sanitation workers, day labourers and informal workers continue to live in precarious conditions,” said the labour policy expert.

He added, “We celebrate long holidays, but for day labourers, even a few days without work can mean going without food… Yet there is no universal social security system to protect them.”

Ahmmed also criticised existing social protection measures as charity-driven rather than rights-based. “The fact that a single rainy day can leave a labourer’s family without food rarely enters policy thinking.”

Echoing the same, Prof Selim Raihan, executive director of the South Asian Network on Economic Modeling (Sanem), said the garment sector’s export growth had not translated into proportional gains for workers.

“Productivity has increased over the decades, yet real wages have lagged. That disconnect tells us something fundamental about the structure of our growth,” he said.

Raihan also pointed to a persistent narrative that stronger labour rights would hurt competitiveness. “This (narrative) has often been used to discourage workers from organising or demanding more.”

He added that labour discussions in Bangladesh too often stop at minimum standards.

“We rarely move beyond ensuring the bare minimum to discussing living wages or broader social protections,” he said.

Among others, Taslima Akhter, president of the Bangladesh Garment Sramik Samhati, also spoke at the event.

The parliament yesterday (30 April) passed two separate bills removing the maximum age limits for the post of chairmen and commissioners of the Bangladesh Securities and Exchange Commission (BSEC), as well as the chairman and members of the Insurance Development and Regulatory Authority (IDRA).

Previously, the age limits stood at 65 years for the BSEC and 67 years for the IDRA. With the passage of these amendments, the government will now be able to appoint individuals of any age to lead these two key financial regulatory bodies.

Finance Minister Amir Khosru Mahmud Chowdhury, who moved the bills, argued that the amendments were intended to make the laws more time-appropriate by allowing the recruitment of highly qualified, experienced, and skilled professionals.

He said that when the securities law was originally enacted in 1993, the average life expectancy in Bangladesh was around 57 years, whereas it now stands at 72 years. He stated that retaining the earlier age limits would prevent capable individuals from contributing effectively to the financial sector.

However, the bills faced strong resistance from opposition and independent lawmakers.

Independent lawmaker Rumeen Farhana called for the bills to be opened to public scrutiny, highlighting that retail investors suffered massive losses during the 1996 and 2010 market crashes, while over Tk1 lakh crore was allegedly siphoned off over the past 15 years.

Opposition lawmaker Akhter Hossen questioned whether the amendment was genuinely intended to find capable leaders or merely to facilitate the appointment of favoured individuals. Leader of the Opposition Shafiqur Rahman alleged that lawmakers were not given adequate time to review the documents.

Despite the opposing calls to send the bills to a standing committee for further review, the bills were ultimately passed by voice vote.

India and Bangladesh are taking steps to normalise bilateral relations by moving towards the full resumption of visa services, following a period of strained ties and restricted travel.

Bangladesh has already resumed issuing visas to Indian citizens across all categories, including tourism, business and medical travel, while India is aiming for a gradual restart of its visa operations over the coming weeks, says the Indian Express.

Indian visa services for Bangladeshi nationals are currently operating at 15–20% of their pre-December 2025 capacity, with priority given to medical cases and family emergencies. In contrast, Bangladesh has issued more than 13,000 visas to Indians since restoring operations around 20 February 2026.

The move follows a period of political upheaval after the August 2024 ouster of former prime minister Sheikh Hasina. Relations are being recalibrated under the new government of Prime Minister Tarique Rahman, whose swearing-in in February 2026 was attended by an Indian delegation.

Travel between the two countries had declined sharply amid tensions and visa curbs. The number of Bangladeshi visitors to India fell from 2.12 million in 2023 to 470,000 in 2025.

Officials in both countries have indicated that efforts to restore visa services are part of broader attempts to rebuild cooperation, including through high-level political engagement and closer economic and energy ties.

India recently transported diesel to Bangladesh to help ease energy shortages linked to the war in West Asia.

The expected arrival of India's new High Commissioner to Bangladesh, Dinesh Trivedi, is seen as a step that could facilitate the return to full-scale visa operations.

The government has authorised BRAC Bank PLC and Pubali Bank PLC to act as primary dealers (PD) for government securities for a three-year term, which will officially commence from the first working day of May this year.

The appointment was formalised by the Bangladesh Bank today (30 April) following a directive from the Finance Division of the Ministry of Finance.

With this appointment, both banks will now share the bidding obligations currently performed by 24 existing primary dealer banks in the auctions for government treasury bills and bonds.

As primary dealers, these banks are mandated to participate in auctions to help finance the government's budget deficit, ensuring a steady flow of funds through the sovereign debt market.

According to the letter from the finance ministry, the authorisation was granted under the provisions of the 'Guidelines for Enlistment and Operations of Primary Dealers in Government Securities, 2025 (Amended)'.

Islami Bank Bangladesh PLC, SBAC Bank and Standard Bank have been downgraded to the Z category for failing to declare dividends for the last two consecutive years.

According to the Dhaka Stock Exchange, brokerage firms and merchant banks have been instructed not to provide margin loans against the shares of these banks.

Following the downgrade, the share prices of the three banks fell sharply in the opening session today (30 April).

Japanese Prime Minister Sanae Takaichi vowed on Saturday to strengthen bilateral ties with Vietnam, with energy cooperation and critical minerals at the forefront, during a meeting with Vietnamese Prime Minister Le Minh Hung.

The pledge came as new Japanese investment in Vietnam fell about 75% year-on-year to $233 million in the first quarter, even as bilateral trade rose 12.3% to $13.7 billion over the same period, according to Vietnamese government and customs data.

The two leaders discussed ways to deepen the Comprehensive Strategic Partnership established in 2023, focusing on energy, critical minerals, artificial intelligence, semiconductors and space.

"The two sides identified economic security as a new priority area for bilateral cooperation," Takaichi told reporters after the meeting.

"With regard to critical minerals... both sides agreed to strengthen close coordination to ensure stable supplies and reinforce supply chains," she added.

In a joint move, Vietnam and Japan signed six agreements encompassing infrastructure, climate action, agriculture, technology, digitalisation and space cooperation.

Japan remains one of Vietnam's largest foreign investors, with many Japanese multinationals operating large manufacturing facilities in the country.

Vietnam has been seeking support from Japan and other countries for oil supplies as conflict in the Middle East drives prices higher and disrupts supply chains.

Under the $10 billion Power Asia Initiative to support Asian countries' energy self-reliance, Japan will assist in arranging crude oil supplies for Vietnam's Nghi Son Refinery and Petrochemical Complex, Hung said.

Takaichi was also set to meet Vietnam's Party Secretary and President To Lam on Saturday afternoon and deliver a keynote speech at Vietnam National University, marking a decade since former Prime Minister Shinzo Abe introduced Japan's "Free and Open Indo-Pacific" strategy.

Her address is expected to emphasise autonomy and resilience for regional nations.

Vietnam supports Japan's regional initiatives, including the Free and Open Indo-Pacific Vision, aligned with the ASEAN Outlook on the Indo-Pacific, in accordance with international law and "contributing positively to peace, stability, cooperation and development in the region and beyond," Hung said.

Russia's Deputy Prime Minister Alexander Novak said on Thursday that the OPEC+ group of leading oil producers would continue working together despite the departure of the United Arab Emirates, Russian news agencies reported.

According to the reports, Novak said he did not expect an oil price war to emerge following the UAE's exit given a global oil deficit.

The UAE said on Tuesday it was quitting OPEC, dealing a blow to the oil producers' group as an unprecedented energy crisis triggered by the Iran war exposes discord among Gulf nations.

The UAE was the fourth-largest producer in OPEC+, which comprises OPEC and its allies, while Russia is second, behind Saudi Arabia.

"In the current situation, it is hard to talk about a price war when there is a shortage in the market. What we are seeing instead is the deepest crisis in the industry," Novak was quoted as saying by Interfax news agency.

"Large volumes of oil are not reaching the market today, while demand significantly exceeds supply. This has created an imbalance due to serious logistical disruptions, including the situation in the Middle East," Novak said according to Interfax.

Novak also reiterated that Russia will remain in OPEC+, which was formed in 2016.

Bangladesh cited gaps in readiness, incomplete core reforms, and economic fallout from the Iran war as reasons for seeking an extension of the transition period for graduation from the least developed country (LDC) category by three more years at the public hearing of the UNCDP on April 29.

Commerce Minister Khandakar Abdul Muktadir attended the virtual hearing with Chair of the United Nations Committee for Development Policy (UNCDP) José Antonio Ocampo, Additional Commerce Secretary Md Abdur Rahim Khan told The Daily Star.

Khan also said the UNCDP wanted to know the reasons why Bangladesh is seeking an extension of the transition period for LDC graduation.

Bangladesh mainly cited the country’s gap in preparedness, lower implementation of core reforms, and the fallout of the US-Israel war on Iran as the main reasons for the requested extension, the additional secretary said.

Apart from these three main reasons, Bangladesh also mentioned vulnerabilities in the financial sector, weaknesses in the banking system, an export slowdown due to volatile global supply chains, high interest rates, and an uncertain business and investment climate in support of the extension, he said.

Bangladesh is scheduled to graduate from LDC status on November 24 this year, but it has sought to delay the transition until 2029, citing domestic and external economic pressures.

The UNCDP will prepare a report on Bangladesh’s hearing and submit its recommendations to the United Nations Economic and Social Council (ECOSOC) in June.

The ECOSOC will then forward its assessment to the United Nations General Assembly (UNGA), scheduled to meet in September, where a vote will finalise the decision on the deferment.

Earlier, on February 19, the newly elected government sent a letter to the chair of the UNCDP, requesting that the preparatory period be extended until November 24, 2029, mentioning that more time is needed to ensure readiness.

Following Bangladesh’s request, the UNCDP discussed the issue at its annual meeting in February and agreed on a process to assess the proposal.

The business community of the country has also been requesting both the incumbent government and the immediate past interim government to delay the LDC graduation, as they need more time to prepare adequately. They said higher bank interest rates and political transition in the country, following massive unrest and political upheaval, have also affected the economy significantly.

A UN assessment report in March stated that Bangladesh still faces serious gaps in its readiness for graduation, as its economy continues to be affected by both domestic and international shocks, including the US-Israel war on Iran.

The report highlighted a series of disruptions between 2017 and 2026, including climate vulnerability, the Rohingya crisis, a prolonged macroeconomic slowdown that predated the regime change, the Covid-19 pandemic, the Russia-Ukraine war, inflation, and pressure on the balance of payments.

It also noted that while Bangladesh meets all three criteria for graduation, significant risks persist, including the loss of trade preferences, fiscal and financial vulnerabilities, and weak institutional coordination.

Rising import costs for fossil fuels have created operational constraints, with gas shortages worsening due to the Middle East conflict, the report said.

Economic growth slowed from 7.1 percent in FY22 to 3.5 percent in FY25, weakening momentum ahead of graduation.

Inflation has outpaced wages, pushing millions into hardship and vulnerability.

A recent UN Trade and Development assessment estimated that Bangladesh could lose more than $17.5 billion in annual exports after graduation.