United News of Bangladesh

The external auditor of United Commercial Bank PLC (UCB) has raised serious concerns over the bank’s financial health, highlighting a provision shortfall of nearly Tk 5,595 crore and a significant capital deficit in its audit report for the year ended December 31, 2025. According to a disclosure published by the Dhaka Stock Exchange (DSE) on Tuesday, the auditor issued a qualified opinion on UCB’s financial statements, citing inadequate provisions against classified loans and other assets. The audit report said UCB’s total loans and advances stood at Tk 61,789.01 crore at the end of 2025, including classified loans amounting to Tk 9,576.23 crore. Against the required provision of Tk 7,679.42 crore, the bank maintained only Tk 2,524.38 crore, leaving a shortfall of Tk 5,155.04 crore. The auditor also identified a provision shortfall of Tk 439.89 crore against other assets, including an impairment loss of Tk 438.02 crore related to UCB Fintech Company Limited, a subsidiary in which UCB holds a 99.99 percent stake. The report noted that despite the subsidiary incurring cumulative losses of Tk 438.02 crore, no impairment loss was recognized in the bank’s standalone financial statements. However, the auditor noted that Bangladesh Bank allowed the bank to finalize its 2025 financial statements without adjusting the total provision shortfall of Tk 5,594.93 crore. The report further revealed that UCB faced a reported capital shortfall of Tk 2,659.64 crore against the Basel III requirement as of December 31, 2025. Had the full provision shortfall been recognized, the capital deficit would have widened to Tk 5,975.52 crore. The auditor also said the bank’s Capital to Risk-Weighted Assets Ratio (CRAR) stood at 8.42 percent, well below the regulatory requirement of 12.50 percent. Without regulatory forbearance and after accounting for the identified provision gaps, UCB would have posted an aggregate loss of Tk 3,278.88 crore and its CRAR would have dropped to just 0.93 percent on a standalone basis. In an emphasis of matter paragraph, the auditor drew attention to Tk 196.88 crore in fixed deposits placed with several non-bank financial institutions (NBFIs), of which Tk 155.48 crore had matured long ago and were considered doubtful of recovery. No provision was maintained against these deposits, resulting in an additional provision shortfall of Tk 155.48 crore. The auditor nevertheless stated that its opinion was not modified in respect of the matters highlighted under the emphasis of matter section.

ICB Islamic Bank Limited is facing significant uncertainty over its ability to continue as a “going concern” due to mounting accumulated losses, a large capital shortfall and a high volume of classified investments, according to a disclosure issued by the Dhaka Stock Exchange (DSE) on Tuesday. The disclosure highlighted an “Emphasis of Matter” paragraph included in the auditor’s report for the year ending on December 31, 2025, drawing attention to several financial indicators that raise substantial doubt about the bank’s future operations. Bangladesh Bank ED appointed as MD of ICB Islami Bank According to the auditor, the bank's accumulated loss stood at Tk 21,80.61 crore at the end of 2025, while its negative equity reached Tk 14,62.39 crore. The bank also reported a capital adequacy ratio of negative 291.87 percent against the regulatory minimum requirement of 12.50 percent. The auditor further noted that profit-paying deposits amounted to Tk 6,80.44 crore, exceeding the bank's profit-earning investments of Tk 6,32.6 crore. In addition, 84.29 percent of the bank’s total investments were classified as of December 31, 2025. “These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the bank’s ability to continue as a going concern,” the auditor said, adding that the audit opinion was not modified in respect of the matter. The auditor also raised concerns over the verification of fixed assets. Although the bank reported fixed assets worth Tk 15.41 crore on a written-down value basis, their existence could not be verified due to an incomplete fixed asset register lacking identification numbers and location details. The DSE published the disclosure to inform investors of the auditor’s observations regarding the bank’s financial position and operational sustainability.

The Bangladesh Energy Regulatory Commission (BERC) has reduced the price of privately supplied liquefied petroleum gas (LPG) for June, lowering the retail price of a 12kg cylinder by Tk 55 to Tk 1,885. The new prices came into effect from 6pm on Tuesday, according to a BERC notification issued as part of its monthly price adjustment mechanism. Under the revised rates, the retail consumer price of privately marketed LPG has been fixed at Tk 157.06 per kilogram. LPG price to remain steady for May Accordingly, the price of a 5.5kg cylinder has been set at Tk 864, while a 12.5kg cylinder will cost Tk 1,963. Prices for larger cylinders have been fixed at Tk 2,356 for 15kg, Tk 2,513 for 16kg, Tk 2,827 for 18kg, Tk 3,141 for 20kg, Tk 3,455 for 22kg, Tk 3,927 for 25kg, Tk 4,712 for 30kg, Tk 5,183 for 33kg, Tk 5,497 for 35kg and Tk 7,068 for 45kg cylinders. BERC said the revised rates were determined based on the Saudi Aramco Contract Price (CP) for June 2026, which was set at US$760 per metric tonne for propane and US$820 per metric tonne for butane. Considering a propane-butane mix ratio of 35:65, the average Saudi CP stood at US$799 per metric tonne. The regulator also took into account a freight and trader premium of US$200 per metric tonne and an average exchange rate of Tk 122.81 per US dollar while calculating the new prices. For LPG supplied in liquid form through reticulated systems, the price has been set at Tk 153.31 per kilogram. Gas supplied in vapour form through such systems will cost Tk 0.3407 per litre or Tk 340.70 per cubic metre. BERC also reduced the price of autogas to Tk 86.93 per litre from Tk 89.52 per litre in May. The commission said prices of state-owned LPG would remain unchanged. Under an order issued on February 23, the consumer price of a 12.5kg cylinder sold through dealer or retailer points of government-owned companies will continue at Tk 776.93. The latest reduction follows BERC’s decision in May to keep the price of a 12kg LPG cylinder unchanged at Tk 1,940. Earlier, on April 19, the regulator increased the price of a 12kg cylinder by Tk 212 to Tk 1,940. Before that, on April 2, it raised the price from Tk 1,341 to Tk 1,728, an increase of Tk 387. As a result, the price of a 12kg cylinder rose by a cumulative Tk 599 within just 17 days between April 2 and April 19 before easing slightly in June. According to BERC, the revised rates have been implemented under Order No. 2026/19 with effect from Tuesday evening.

Agitating depositors of Islami Bank Bangladesh PLC under the banner of “Islami Bank Sachetan Grahak Forum” (Conscious Depositors' Forum) on Tuesday vowed to continue their protest until their seven-point demand, including the resignation of newly appointed Chairman Md Khurshid Alam, is realised. At a press conference held in front of the Islami Bank Tower at Dilkusha in the capital, they announced a rally for tomorrow (Wednesday) at Dilkusha at 11:00am to press for their demands. Speaking at the press conference, Convener of “Sachetan Grahak Forum” Nur-Un-Nabi said they sent the list of their demands to Bangladesh Bank Governor Md Mostaqur Rahman for immediate execution. The agitating depositors continued their sit-in programme in front of the bank's head office for the second consecutive day on Tuesday. The other demands are reinstatement of Omar Faruk Khan to the post of managing director, exclusion of anyone linked to past financial plundering from the bank’s Board of Directors, repeal of Section 18(A) of the Bank Resolution Act, recovery of looted funds by liquidating the seized domestic assets and ownership stakes held by the controversial S Alam Group, implementing legal barriers to ensure S Alam Group can never regain control of Islami Bank or any other financial institution, and bringing all individuals involved in looting Islami Bank and the wider banking sector to justice with exemplary punishment. The leadership crisis at Islami Bank intensified on the final working day before the Eid holidays when the central bank-appointed independent director and then-chairman M Zubaidur Rahman abruptly resigned. Hours later, at around 9:00pm that night, Bangladesh Bank appointed its former Deputy Governor Md Khurshid Alam as the new chairman of the bank. Khurshid Alam previously stepped down from his deputy governor post following the fall of the Awami League government on August 5, 2024. At the press conference, the forum leaders strongly condemned recent remarks made by Bangladesh Bank Spokesperson Arief Hossain Khan, labelling his statements as "deeply political and incorrect." On Monday, Arief Hossain told reporters that members of a specific political party were instigating instability surrounding Islami Bank, asserting that central bank decisions will not be altered by street protests. Reacting sharply to the remark, the agitating depositors said such a political statement coming from a responsible official of the regulatory body is highly unfortunate. Describing them as genuine depositors, they said they took to the streets to place their legitimate demands solely under their identity as clients.

The Chattogram Custom House has announced an online auction of 102 containers of unclaimed and auctionable goods as part of efforts to ease container congestion at Chattogram Port and enhance its operational efficiency. According to a press release issued on Tuesday, the auction will be conducted through the electronic auction (E-Auction) system under E-Auction-6/2026, following National Board of Revenue (NBR) Special Auction Order. Chattogram Custom House to auction 6,000 containers to ease port congestion A total of 102 containers grouped into 44 lots will be put up for sale during the auction scheduled for June 2026. The items include various types of chemicals, machinery and spare parts, paper products, freezers, generators, limestone, fabrics, transformers, quartz powder and household goods. The Custom House said no reserved value has been fixed for any of the consignments, allowing bidders to compete freely for the goods. Officials said the initiative is aimed at improving port productivity and capacity, reducing the existing container backlog, ensuring physical and financial security, safeguarding lives and property, and preventing wastage of state resources. To ensure transparency and accountability, the entire auction process will be conducted digitally. Prospective bidders will have the opportunity to inspect the goods physically before submitting bids online. Interested buyers can register and submit bids through the Bangladesh Customs’ official e-auction portal. However, pay orders for security deposits and other required documents must also be submitted physically in the designated tender box. Successful bidders will be required to clear the goods in compliance with the applicable provisions of the Import Policy Order 2021-2024, the release added. The tender box for E-Auction-6/2026 will be opened at 11:00 am on June 18.The Custom House urged interested bidders to visit the e-auction portal for detailed information regarding the auction. It also said that such auction activities would continue in the future as part of ongoing efforts to free Chattogram Port from container congestion and improve overall port management.

Bangladesh’s banking sector has hit an unprecedented crisis point as non-performing loans (NPLs) and wider classified assets surged to historic highs in the first quarter (Q1) of 2026, posing a severe structural threat to the macroeconomic stability. According to the Bangladesh Bank’s classified loan and provision report revealed on Tuesday for March 2026, total classified loans—which include NPLs and unclassified distressed assets—skyrocketed by Tk 31,487 crore in just three months, reaching a staggering Tk 5.88 lakh crore. This brings the ratio of classified loans to an unprecedented 32.26 percent of the country's total banking credit ecosystem, meaning nearly one out of every three Taka disbursed by the banking sector is now severely compromised. While overall classified assets reached 32.26 percent, the central bank's tight definition of pure default loans (NPLs) alone stood at Tk 5.64 lakh crore at the end of March 2026, commanding 30.92 percent of total outstanding loans. This reflects a sharp quarterly rise from December 2025's figure of Tk 5.49 lakh crore (29.92 percent). More alarmingly, on a year-on-year basis, NPLs ballooned by an astronomical Tk 2.06 lakh crore from the Tk 3.57 lakh crore recorded in March 2025. Toxic Debt: 94 percent Declared 'Bad/Loss': A deeper dive into the metrics reveals that the quality of classified assets has deteriorated to fatal stages. A massive Tk 5.51 lakh crore or 93.69 percent of all problem loans has migrated into the ‘Bad or Loss’ category. Financial experts note that recovery prospects for assets in this bracket are statistically nominal, meaning these losses will severely eat into the capital base of the banks. Compounding this pipeline of toxic debt is the sharp rise in Special Mention Accounts (SMA) loans showing early signs of distress. SMA assets jumped by 27.8 percent in three months to Tk 1.32 lakh crore, serving as a leading indicator that NPL volumes will experience further upward pressure in the upcoming quarters. Tk 2.05 lakh crore provisioning shortfall: The sheer magnitude of defaults has left the banking sector dangerously under-cushioned. Against a regulatory required provision of Tk 4.61 lakh crore to cover potential loan losses, the industry has managed to preserve only Tk 2.56 lakh crore. This has dragged the systemic provisioning shortfall to Tk 2.05 lakh crore, escalating from Tk 1.91 lakh crore in December 2025. This massive deficit impairs the net profitability, capital adequacyratios, and global credit ratings of local commercial banks. State Banks Bleed, Foreign Banks Stable:  The systemic rot remains highly concentrated in state-run entities, though private commercial lenders are showing a highly concerning downward spiral: State-Owned Commercial Banks (SoCBs): Standing at the epicenter of the crisis, SoCBs recorded a classified loan ratio of 45.85 percent, with Tk 1.50 lakh crore out of their Tk 3.27 lakh crore portfolio flagged as distressed. Their pure NPL ratio sits at 45.21 percent. Private Commercial Banks (PCBs): Holding the largest absolute volume of toxic debt, PCBs saw their classified loan ratio rise from 28.25 percent to 30.11 percent in Q1 2026, with total classified assets reaching Tk 4.16 lakh crore. Specialized Banks: These state-backed development lenders (focused on agriculture and specific sectors) posted a classified loan ratio of 40.72 percent (Tk 19,175 crore out of Tk 47,086 crore). Foreign Commercial Banks (FCBs): Consistently outperforming domestic peers through rigorous risk management and governance, FCBs maintained a classified loan ratio of just 4.82 percent (Tk 3,263 crore out of Tk 67,628 crore) and an NPL ratio of 3.99 percent. The central bank's latest disclosures flash a critical red flag for policy-makers. With nearly a third of the country's credit locked up in unproductive or toxic assets, the capacity of commercial banks to fund new manufacturing, infrastructure, and job-creating ventures is severely restricted, said M. Masrur Reaz is a economist and public policy expert who served as Senior Economist and Program Manager at the World Bank Group. He warns that if immediate structural reforms, aggressive asset recovery measures, and absolute political neutrality in credit management are not enforced, the resulting liquidity strain, capital erosion, and dent in depositor confidence could significantly derail Bangladesh’s mid-term economic recovery.  

Bangladesh’s capital market extended its post-Eid rally for a second consecutive session on Tuesday, with key indices gaining further ground and turnover on the Dhaka Stock Exchange (DSE) surpassing Tk 10 billion. The benchmark DSEX advanced 33 points, while the Shariah-based DSES and blue-chip DS30 indices rose by 2 points and 5 points respectively. The gains followed Monday’s strong performance, when DSEX climbed 36 points, DSES added 4 points and DS30 increased 13 points. Market activity also improved significantly. Total turnover on the DSE stood at Tk 10.80 billion, up from Tk 9.12 billion in the previous session. It was the first time since May 12 that daily turnoverexceeded the Tk 10 billion mark. Most listed companies ended higher, with share prices of 230 issues advancing, 116 declining and 47 remaining unchanged. Sonargaon Textiles Ltd topped the DSE gainers' list, rising nearly 10 percent, while Bangladesh Industrial Finance Company Ltd suffered the steepest fall, losing around 9 percent. The Chittagong Stock Exchange (CSE) also closed in positive territory, with its broad-based CASPI index gaining 8 points. Of the traded issues on the CSE, 128 advanced, 58 declined and 31 remained unchanged. Turnover at the port city bourse, however, fell to Tk 270 million from Tk 470 million in the previous session. Eastern Insurance PLC and New Line Clothing Ltd emerged as the top gainers on the CSE with nearly 10 percent price appreciation, while GSP Finance Company (Bangladesh) PLC was the worst performer, shedding 10 percent.  

In a major boost to financial inclusion and disaster recovery, Bangladesh Bank (BB) on Tuesday directed all scheduled banks to prioritize marginal and landless farmers holding "Farmer Smart Cards" and those recently hit by pouring summer rains for low-interest loans. The central bank issued a comprehensive circular on the matter to the managing directors and chief executive officers of all commercial banks. The directive, signed by Md. Iqbal Mohsin, Director of the Financial Inclusion Department (FID) of BB, aims to streamline the disbursement of credit under the central bank's ongoing refinancing scheme tailored for low-income professionals, marginal farmers, and small businesses holding Tk 10, Tk 50, or Tk 100 bank accounts. The central bank's move aligns with the government’s recent "Farmer Smart Card Policy-2025," an initiative spearheaded by the Department of Agricultural Extension (DAE) to bring the nation's farmers under an integrated digital database. According to the new circular, banks must offer preferential treatment to card-holding marginal and landless farmers when opening Tk 10 bank accounts and processing loans under the refinancing framework. Financial analysts note that blending this digital database with the formal banking system will significantly enhance transparency in targeted agricultural subsidies, incentives, and government aid, making it easier to weed out middlemen and identify genuine smallholders. However, the regulator cautioned banks against creating an artificial barrier, explicitly stating that eligible, impoverished farmers who are yet to receive their smart cards must not be excluded from the credit facility. The central bank’s directive also addresses immediate climate vulnerabilities following abnormal summer downpours that decimated standing crops across the country, particularly the ripe Boro paddy in wetland ecosystems. Recognizing the severe financial shock to rural households, the central bank ordered immediate, hassle-free credit flows to help affected farmers recover and prepare for the upcoming cropping cycle. The circular placed a special emphasis on the hard-hit ‘haor’ (wetland) districts, explicitly naming Sylhet, Sunamganj, Habiganj, Kishoreganj, Netrokona, and Mymensingh for immediate rehabilitation assistance, while keeping the window open for affected smallholders in other districts. Central bank officials warned that any delay in credit deployment could jeopardize national agricultural productivity, trigger rural distress, and impact food security. The specialized refinancing scheme serves as a crucial regulatory bridge for populations traditionally locked out of commercial banking due to a lack of collateral. By offering low-interest funds to banks, the central bank effectively absorbs sectoral risks, incentivizing financial institutions to cater to small-ticket borrowers. Policy experts view this latest double-barreled policy modification—linking digital identity cards to agro-credit and mandate-driven climate resilience funding—as a mature milestone in Bangladesh's financial inclusion journey, vital for maintaining macroeconomic stability amid growing environmental challenges.

Asian stock markets mostly declined on Tuesday as fresh fighting raised doubts over the stability of the US-Iran ceasefire, while US futures also slipped. Japan’s benchmark Nikkei 225 fell 0.3% to close at 66,734.24, while South Korea’s Kospi dropped 0.2% to 8,772.08. Australia’s S&P/ASX 200 edged down less than 0.1% to 8,724.40. In contrast, Hong Kong’s Hang Seng index rose 2.2% to 25,956.72 and China’s Shanghai Composite gained 0.4% to 4,075.34. On Wall Street, US stocks had earlier reached new record highs on Monday. The S&P 500 rose 0.3% to 7,599.96, the Dow Jones Industrial Average gained 0.1% to 51,078.88, and the Nasdaq Composite climbed 0.4% to 27,086.81. In bond markets, the yield on the 10-year US Treasury briefly climbed to 4.52% before easing to 4.46%. Oil price movements continued to influence global markets. Airlines in the US came under pressure as fuel costs rose, with United Airlines shares falling 2.6% and Alaska Air Group down 3.3%. In Asian trading, US crude oil fell 94 cents to $91.22 per barrel, while Brent crude dropped 90 cents to $94.08. Despite the decline, prices remain significantly higher than pre-conflict levels of around $70 per barrel. Market analysts say much depends on whether Washington and Tehran can reach an agreement to reopen the Strait of Hormuz, a key route for global oil shipments from the Persian Gulf. Analyst Stephen Innes said crude shortages have already forced refiners in Asia and Europe to cut production, warning that the impact is spreading across fuel supplies including petrol, diesel, jet fuel and other products. The latest tensions follow ongoing military exchanges, with the United States saying it struck Iranian radar and drone facilities after an American drone was downed, while Iran claimed it targeted US forces in Kuwait—claims Washington says were intercepted. In currency markets, the US dollar edged up to 159.72 Japanese yen, while the euro rose to $1.1654. Meanwhile on Wall Street, Nvidia shares jumped 6.2% after new product announcements by CEO Jensen Huang, helping lift broader market sentiment.

A section of Islami Bank customers continued demonstration in front of the bank headquarters at Dilkusha in Motijheel area for the second consecutive day on Tuesday, demanding the resignation of newly appointed chairman Khurshid Alam and all members of the bank’s board of directors. The protesters under the banner of Islami Bank Conscious Customers Forum gathered in front of the bank’s headquarters around 9 am with placards. They alleged irregularities in the recent changes in the bank’s top management and called for immediate withdrawal of the board including the chairman to ensure transparency and protect customer interests. The demonstration continued till the filing of this report. Police deployed water cannons, armoured vehicles, and extra personnel to maintain order. The demonstrators accused Khurshid of having ties to the Chattogram-based S Alam Group and called for his immediate dismissal. Police used water cannons, tear gas shells and sound grenades to disperse protesters outside Islami Bank head office on Monday, triggering a clash that left demonstrators and policemen injured.