Islami Bank, National Bank lose Tk 6,303cr in Jan-Sep

First-generation private lenders Islami Bank and National Bank incurred Tk 6,303 crore in combined losses during January-September 2026 amid high non-performing loans and falling investment income, according to disclosures published on Friday.

Islami Bank swung to a consolidated loss of Tk 3,286 crore and a standalone loss of Tk 3,302.57 crore, including Tk 1,970.18 crore in July-September, reversing a Tk 100 crore profit a year earlier.

It cited higher deposit profit payments and unrecognised income from non-performing legacy exposures embezzled by connected parties. Third-quarter withdrawals pushed operating cash flow per share to negative Tk 36.54, prompting central bank-guided recovery steps.

National Bank's nine-month loss nearly doubled to Tk 3,016.89 crore from Tk 1,448.42 crore, including Tk 733.04 crore in July-September, taking cumulative losses since 2022 to Tk 11,914.17 crore amid classified loans and higher interest costs.

Reporting slower withdrawals, National Bank resumed full services in mid-October after receiving Tk 7,000 crore in Sonali Bank liquidity support under central bank conditions barring new loans or repaying directors' deposits.

Source: The Business Standard