31 banks suffer in capital market, losses of 3.5 billion taka

Special Correspondent
02 Oct 2025

The 2024 fiscal year was a year of terrible recession for the country’s capital market. In this unstable situation, the country’s banks, like ordinary investors, also had to suffer huge losses. Analyzing the published data, it can be seen that out of a total of 34 banks, listed and unlisted, 31 banks have suffered losses. The combined loss of these banks stands at around 3,629.50 crore taka. On the other hand, only three banks have been able to make a small profit, the total amount of which is only 23 crore taka—which is insignificant compared to the huge losses.

According to market analysts, the main reasons behind these huge losses of the banks are mainly the short-sighted decisions of the directors, improper use of funds in investments, inability to sell shares on time due to the floor price being in force, and risky investment in weak fundamentals or ‘junk shares’.

Professor Al-Amin, a member of the Capital Market Reform Task Force, strongly commented on this issue and said that there was no good governance in any case in the last few years and irregularities and lack of good governance can be blamed for this loss. He also identified the banks’ investments in troubled institutions like Beximco Green Sukuk Bond and ICB Islamic Bank and People’s Leasing as major causes of loss.

The total loss of the 31 loss-making banks stood at Tk 3,629.50 crore. Out of this, Janata Bank is at the top with the highest loss of Tk 4 billion. Next are Sonali Bank (398 crore), Eastern Bank (353 crore), Southeast Bank (326 crore) and AB Bank (261 crore). These five banks together have a loss of Tk 1,738 crore.

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On the other hand, among the remaining 26 banks, Exim Bank lost Tk 228 crore, National Bank Tk 217 crore, Agrani Bank Tk 216 crore, Uttara Bank Tk 172 crore, NCC Bank Tk 165 crore, Rupali Bank Tk 153 crore, NRB Commercial Bank Tk 133 crore and Shahjalal Islami Bank Tk 107 crore. In contrast, only three banks made a small profit: Mercantile Bank (Tk 12 crore), BRAC Bank (Tk 7 crore) and Prime Bank (Tk 4 crore).

Officials of the affected banks blamed the limitation of floor prices as the main reason for their losses. They said that shares could not be sold on time due to the floor price and that interest and management expenses were squeezed due to non-adjustment of margin loans.

In addition, the global economic crisis and the Russia-Ukraine war have also been cited as factors. According to Bangladesh Bank, the capital market downturn has also severely affected the banking sector, with the main index of the DSE collapsing by about 16 percent in 2024.