United News of Bangladesh

Bangladesh Bank (BB) recorded a net profit of Tk 25,977 crore for the recently concluded fiscal year FY2025-26, marking an increase of Tk 3,357 crore compared to the previous fiscal despite ongoing economic challenges. The final financial statements for FY2025-26 were approved on Sunday (August 30) during a Board of Directors meeting chaired by Bangladesh Bank Governor Mostaqur Rahman at the central bank's headquarters. During the meeting, the board members also approved an incentive or 'performance bonus' equivalent to six basic salaries for central bank officials and employees. According to central bank data, Bangladesh Bank posted a net profit of Tk 22,620 crore in FY2024-25. In FY2023-24, the central bank earned a gross profit of nearly Tk 40,000 crore, with a net profit standing at Tk 15,300 crore. Despite a prevailing economic slowdown, the central bank's lending operations remained robust during the last fiscal year. Amid liquidity shortages in the banking sector, commercial banks borrowed heavily from Bangladesh Bank to meet daily operational demands, generating substantial interest income for the central bank. Furthermore, significant earnings were realized from foreign currency reserve investments made in various countries and international bonds, benefiting from elevated interest rates in global markets. However, central bank officials expressed nuanced views on the soaring profits. Speaking on condition of anonymity, a senior BB official noted that earning profits is not the primary function of a central bank. "The core responsibility of a regulatory body is to supervise the banking sector, control inflation, boost private sector investment, and generate employment," the official stated, adding that while volatility in the economy and banking sector drove the revenue surge, the central bank must remain focused on maintaining money market stability. The board meeting was informed that a major portion of the central bank's net profit will be transferred to the government exchequer to help cushion the national revenue deficit.

Wall Street will get several important updates this week about the health of the U.S. jobs market. On Tuesday, the U.S. will release its July report focusing on job openings and turnover. It provides details on job openings within specific industries and areas of the economy. It also provides details on turnover, including layoffs and people quitting their jobs. The government will release a broader and closely-watched monthly employment report on Friday. The monthly jobs report for August will provide details on job growth and unemployment for a wide range of industries, along with public sector employment. The employment report for July showed that the U.S. job market stalled unexpectedly. Employment has been a mostly resilient area of the economy even as stubborn inflation continues to squeeze businesses and households, while consumer confidence weakens. A weakening employment market could create a tough situation for Federal Reserve. The central bank has to balance fighting inflation with supporting employment and its main tool for that "dual mandate" remains interest rates. Raising its benchmark rate to fight stubbornly high inflation could further damage the jobs market. Cutting its benchmark interest rate to help support employment could worsen inflation. The Fed has been holding rates steady as it monitors the impact on inflation from the U.S. war with Iran, which has raised crude oil prices, making everything from gasoline to shipped products more expensive. That is on top of an ongoing U.S. trade war with much of the world that has made many goods more expensive.  

Bangladesh Bank has reviewed the progress of loan recovery, reconstruction, and overall operations of Sommilito Islami Bank PLC.  Prioritizing the recovery of non-performing loans to protect depositors' interests, the bank has already filed nearly 10,000 lawsuits, with the process underway to file additional cases. Governor Mostaqur Rahman chaired a review meeting with the Bank Resolution Department (BRD), held at the central bank headquarters on Thursday. The meeting reviewed the bank's merger and reconstruction process, board and management restructuring, human resource integration, branch rationalization, and IT system integration, all being implemented under the central bank's direct supervision and monitoring. To protect depositors' interests and recover non-performing loans, Sommilito Islami Bank has filed nearly 10,000 lawsuits, with additional cases currently in process. Alongside formal legal action, the bank has adopted compromise-based settlement mechanisms, including an Exit Policy and Alternative Dispute Resolution (ADR). Additionally, a forensic audit is in its final stage to identify individuals responsible for past irregularities, corruption, loan fraud, and asset misuse under the bank's previous ownership and management. Key measures executed and monitored over the past six months include: i) The board of directors was reconstituted with a majority of independent directors, and a Chief Executive Officer (CEO) was appointed on July 16, 2026. ii) Organizational structures, roles, and designations for approximately 16,000 officers and employees have been aligned. Integration of IT infrastructure—including Core Banking System (CBS), SWIFT, and RMA—is underway to merge operations across five banks. A common interface will soon be introduced to enable depositors to withdraw funds from any branch of the five constituent banks. iii) Rationalization and operational integration are ongoing for 780 branches and 1,500 business units based on location, business potential, customer service, and operating costs. Launched as the country's largest state-owned Shariah-compliant bank with a capital base of Tk 35,000 crore, Bangladesh Bank reaffirmed that ensuring transparency, accountability, and good governance in Sommilito Islami Bank's asset and deposit management remains a top priority. The central bank expects these consolidated measures to enhance governance, operational efficiency, and financial capacity while reducing administrative costs and redirecting recovered funds back into productive economic sectors.

Daily transactions through Bangla QR have surged dramatically, exceeding Tk 110 crore in monetary value following the implementation of the mandatory "One Country, One QR" framework across the national payment ecosystem. According to official figures, daily transactions via Bangla QR have nearly doubled in volume and almost tripled in value since Bangladesh Bank mandated replacing all proprietary QR codes with a single unified Bangla QR effective July 1, 2026. At the start of July, Bangla QR recorded an average of 178,000 daily transactions worth approximately Tk 37.33 crore. Over the past week, the daily transaction volume jumped to around 303,000, while the average daily transaction value rose sharply to Tk 110.38 crore. Merchant adoption has also seen exponential growth. As of July 21, 2026, the number of registered merchants utilizing Bangla QR expanded to over 30 lakh, up from approximately 16 lakh prior to the mandate. Both private commercial banks and state-owned financial institutions are driving the widespread rollout. Central bank authorities expect the rapid adoption of Bangla QR to accelerate the country's transition toward a cashless society while providing a more efficient, accessible, and inclusive digital payment framework for consumers and small vendors alike.

Bangladesh Bank (BB) has formed a Tk 10,000-crore refinance scheme to boost agricultural production, generate employment, and ensure national food security. The three-year scheme came into effect on June 8, 2026, offering credit to end-borrowers at a maximum interest rate of 8 percent. A total of 42 commercial banks have already signed participation agreements with the central bank to disburse loans under this facility. Under the scheme, farmers and rural entrepreneurs can access financing across crops, agricultural machinery, livestock, fisheries, and various rural income-generating activities. According to the central bank guidelines, the maximum loan limit for a single borrower is set at Tk 30 lakh for crop cultivation, Tk 15 lakh for rural income-generating activities, Tk 20 lakh for agricultural machinery, and Tk 1 crore for fisheries and livestock sectors. To support small, marginal, and sharecroppers, the scheme allows collateral-free crop loans of up to Tk 5 lakh per borrower against crop hypothecation alone. Bangladesh Bank expects the initiative to enhance credit flow to the agricultural sector, boost rural incomes, create new employment opportunities, and play a vital role in safeguarding national food security.

Bangladesh Bank (BB) has granted permission to release the remaining portion of an approved foreign currency syndicated loan for power generation company SS Power-I Limited. The thermal power plant is a concern of S. Alam Group of Industries, located in Banshkhali, Chattogram. Under the decision, the central bank permitted the release of nearly US$ 3.2 million, which constitutes the remaining portion of the syndicated loan under Rupali Bank PLC. It also waived the application of a specific provision of the Bank Company Act, 1991 regarding the opening of Letters of Credit (LC) for the company. The Banking Regulation and Policy Department-2 of the central bank issued a notification on Wednesday (August 19) in this regard. A circular letter was subsequently sent to the managing directors and chief executive officers of all scheduled banks to take necessary action. According to the central bank notification, Section 27ka ka (3) of the Bank Company Act, 1991 will not apply to SS Power-I Limited for releasing Rupali Bank PLC's remaining $3,197,561.28 ( around $32 million) foreign currency syndicated loan and for opening LCs. However, the central bank attached a crucial condition to this permission. Bangladesh Bank stated that no financial liability will be created for the central bank against this loan facility. Rupali Bank cannot claim any financial assistance or support from Bangladesh Bank against this loan in the future. Central bank officials noted that this special permission clears the way for Rupali Bank to disburse the remaining balance of the previously approved syndicated loan to SS Power-I Limited and creates the opportunity to open the necessary LCs for import activities. The notification specified that the decision was taken under the powers vested in Bangladesh Bank by Section 121 of the Bank Company Act, 1991.

Islami Bank Bangladesh PLC and Mastercard jointly organized an award distribution ceremony for the winners of their 'Spend and Win' campaign at Islami Bank Tower on Tuesday (August 18). Islami Bank's Managing Director (Acting) Md. Altaf Hossain attended the program as the chief guest, while Zakia Sultana, Country Manager of Mastercard, was present as the special guest. The bank's Additional Managing Director, Engr. Mohammed Jamal Uddin Mazumder, highlighted key aspects and details of the joint campaign during the event. Prizes were handed over to the top three campaign winners: Md. Nurul Islam from Dhaka, Md. Abdul Hannan from Chattogram, and Mohammad Mahdee Hasan from Chattogram. Islami Bank Additional Managing Director Dr. M. Kamal Uddin Jasim, along with Deputy Managing Directors Mahmudur Rahman, Md. Rafiqul Islam, Muhammad Sayid Ullah, and Md. Maksudur Rahman was also present at the ceremony. Earlier, Executive Vice President and Head of Digital Banking Wing Md. Mosharraf Hossain delivered the welcome address. Senior officials from both Islami Bank and Mastercard were in attendance at the function, according to a press release.

Bangladesh Bank has raised the agricultural credit disbursement target by nearly 54 percent for the current fiscal year 2026-27, setting it at Tk 60,000 crore. Under the updated guidelines, all commercial banks are now mandated to disburse at least 4 percent of their total loan portfolio to the agriculture sector, up from the previous minimum requirement of 2.5 percent. BB consolidates foreign exchange rules for import trade In the previous fiscal year, the agricultural disbursement target stood at Tk 39,000 crore. BB Deputy Governor Dr Md Habibur Rahman announced the new Agricultural and Rural Credit Policy during a press conference held at the central bank headquarters on Monday. Out of the total Tk 60,000 crore target for FY27, Tk 20,495 crore has been allocated to state-owned commercial and specialised banks, while private and foreign banks have been tasked with disbursing the remaining Tk 39,505 crore. According to the central bank, the primary objective of the policy is to boost agricultural production and contain inflation by ensuring adequate credit flow to the sector. To strengthen supervision and monitoring of the programme, a specialised "web-based agricultural credit MIS software" has been developed. The Bangladesh Bank introduced several new measures in this year's policy framework. For loans up to Tk 5 lakh in the fisheries and livestock sectors, traditional immovable property collateral is no longer required. Instead, banks can accept personal, social, or group guarantees, making credit accessible to women and marginal farmers. Group-based financing has been expanded for crops, fisheries, and rural income-generating activities, with relaxed limits on group membership size. Credit coverage has been extended to new sub-sectors, including fish and poultry chick production in hatcheries, camel farming, blueberry cultivation, shimul root (cotton tree root), ashwagandha, and organic fertiliser production using eggshells. Genuine farmers can be identified through certificates provided by local agriculture, fisheries, or livestock officers, or via Farmers’ Card. The mandatory requirement for possessing a passbook to obtain a loan has been abolished. A new provision allows banks and farmers to mutually agree on introducing insurance coverage to mitigate climate change risks. The central bank expressed optimism that the timely policy measures will play a crucial role in reducing poverty, generating new employment opportunities, and maintaining overall macroeconomic stability in Bangladesh.

Asian Development Bank (ADB) Vice-President for South, Central and West Asia Yingming Yang concluded a five-day visit to Bangladesh on Thursday, advancing consultations on the bank’s next Country Partnership Strategy (CPS) and discussions on key reforms, investment priorities and the Integrated Growth Network Development (IGND) initiative. “Bangladesh is entering an important phase of its development journey, with a growing need to strengthen competitiveness, mobilise private investment, and build resilience,” Yang said. ADB delegation discusses banking sector reforms, financial stability with BB chief He said the discussions during his visit reaffirmed the strength of the ADB-Bangladesh partnership and highlighted the need to translate strategic commitments into sequenced reforms, bankable investments and effective implementation. As a government-led initiative, IGND provides a framework for aligning reforms, investments and institutions to unlock opportunities across regions, strengthen connectivity and productivity, and support Bangladesh’s long-term growth ambitions, he said. The visit followed ADB President Masato Kanda’s visit to Bangladesh in May. The government and ADB have identified an annual ADB pipeline of more than $1 billion aligned with the IGND initiative and begun investment promotion consultations with private sector representatives. Yang also discussed Bangladesh’s potential to emerge as a regional hub for transport, logistics, energy and digital connectivity through stronger regional cooperation and integration. During a meeting with Finance and Planning Minister Amir Khosru Mahmud Chowdhury, discussions focused on aligning the next CPS with the government’s medium-term reform and development framework, promoting private sector-led economic diversification and strengthening resilience to shocks. They also reviewed progress and next steps for IGND implementation, including priority growth-node planning and project pipeline readiness. Banking and capital market development, renewable energy and private investment mobilisation were also discussed. In Chattogram, Yang delivered the keynote address at a national dissemination seminar on IGND, highlighting the initiative’s potential to strengthen links among growth centres, markets and regional and global value chains. He said integrated investments in infrastructure, logistics, energy, urban development and human capital could raise productivity, attract investment, create quality jobs and expand economic opportunities across regions. Yang also held consultations with senior government officials, development partners, private sector leaders, think tanks and other stakeholders on the next CPS. The discussions focused on private sector-led diversification and resilience to external and domestic shocks, including the reforms, investments and implementation arrangements required to deliver these priorities. During his visit, Yang met Power, Energy and Mineral Resources Minister Iqbal Hassan Mahmood; Environment, Forest and Climate Change Minister Abdul Awal Mintoo; Bangladesh Bank Governor Md Mostaqur Rahman; and Prime Minister’s Adviser for Finance and Planning Rashed Al Mahmud Titumir, among others. The meetings covered banking and capital market reforms, renewable energy, private sector participation, climate-resilient investment, digital transformation and the role of Chattogram as Bangladesh’s principal maritime and economic gateway. Yang also met bilateral and multilateral development partners to discuss complementary programming, cofinancing, technical assistance and coordinated policy dialogue. He discussed using IGND as a platform to align development pipelines and address financing and implementation gaps. In meetings with private sector representatives and think tanks, he discussed reform priorities, implementation constraints, investment barriers and opportunities to mobilise private capital under IGND. The feedback will inform the next CPS and ADB’s future operations. In Chattogram, Yang also visited activities supported under ADB’s Skills for Industry Competitiveness and Innovation Program and reviewed how industry-linked training can contribute to employment, productivity and industrial competitiveness.

A delegation from the Asian Development Bank (ADB), led by Vice President for South, Central and West Asia Yingming Yang, met Bangladesh Bank Governor Md Mostaqur Rahman at the central bank headquarters on Thursday. BB Deputy Governors Md Habibur Rahman and Dr Md Kabir Ahmed, along with senior officials from the Financial Sector Support and Strategic Planning Department (FSSSPD) and other relevant departments, attended the meeting. BB consolidates foreign exchange rules for import trade The two sides held positive and constructive discussions on reforms, restructuring and recapitalisation of Bangladesh's banking sector, strengthening financial sector stability and capacity, and potential ADB support in these areas. The BB governor highlighted the central bank's firm commitment to implementing necessary reforms in the banking and broader financial sectors. Welcoming the central bank's commitment to the reform agenda, ADB Vice President Yingming Yang expressed the lender's interest in continuing its assistance and support throughout the reform process. Both sides reaffirmed their commitment to strengthening cooperation to build a more robust, stable and sustainable financial sector in Bangladesh.