Islami Bank Bangladesh PLC suffered a massive net loss exceeding ৳3,286 crore during the first nine months (January–September) of 2026, driven by surging non-performing investments, soaring profit expenses on deposits, and a severe corporate leadership crisis.
According to the bank's unaudited financial statements for the third quarter (July–September), its Loss Per Share (EPS) stood at ৳20.41 for the nine-month period, a sharp reversal from the positive EPS of ৳0.62 recorded in the same period last year. In the July–September quarter alone, the per-share loss was ৳12.24.
Read nextGas Supply Will Not Be Fully Shut Down, But Reduced for 4 Days Due to FSRU Maintenance: PetrobanglaThe bank's financial deterioration is closely tied to its governance vacuum. On June 14, Bangladesh Bank dissolved the bank's board of directors, placing central bank executive Mohammad Zahir Hossain in charge, while Additional MD Md. Altaf Hossain has been serving as acting Managing Director since April. The absence of a full board has delayed large-scale loan approvals, credit limit reviews, and letter of credit (LC) issuances, disrupting critical industrial and RMG clients. Consequently, customer deposits plummeted by nearly ৳24,000 crore—from ৳1.85 lakh crore at the start of the year down to ৳1.61 lakh crore. Meanwhile, default loans surged to ৳98,914 crore, accounting for 52.15% of total loans by the end of June.
On the Dhaka Stock Exchange (DSE), Islami Bank shares slumped to a 6-year low of ৳19.50, while its net asset value (NAV) dropped to ৳3,584 crore from ৳6,963 crore a year earlier. Economists and central bank officials emphasize that restoring institutional stability will require aggressive loan recovery, transparency, and the swift appointment of an independent, fully empowered board of directors and a permanent Managing Director.
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Reported by Staff Reporter • Edited by the Daily Best News desk. Send corrections to [email protected].
