Dhaka Bank to auction Deshbandhu Polymer's assets to recover Tk52cr debt

Infographics: TBS

Dhaka Bank PLC has announced an auction to sell the mortgaged land, factory machinery, and other assets of Deshbandhu Polymer Limited to recover outstanding dues amounting to Tk52.10 crore.

The move comes as the listed company, a manufacturer of woven polypropylene bags, continues to struggle with a severe liquidity crisis and a near-total collapse in its production and sales performance.

According to an auction notice issued recently by the bank's local office, Deshbandhu's total liability stood at Tk52.10 crore as of 21 April 2026, including accumulated interest.

The bank is proceeding with the sale of the mortgaged properties under the authority of the Artha Rin Adalat Ain, 2003 (Money Loan Court Act), after the borrower failed to settle its liabilities despite multiple opportunities.

Dhaka Bank officials stated that Deshbandhu had availed various credit facilities, including letters of credit (LCs), term loans, and cash credit (hypo) from the bank since 2007.

However, the company failed to maintain its repayment schedule. Furthermore, the borrower could not benefit from debt rescheduling facilities as it was unable to provide the mandatory down payments required by the central bank's policy.

Golam Rahman, managing director of Deshbandhu Polymer, did not answer calls despite repeated attempts for the comments.

The assets scheduled for auction include several parcels of land totaling 129 decimals, situated in Kuyadi Mouza under the Polash Police Station in Narsingdi.

The bank has also put up for sale all fixed and floating assets of the company. This includes the entire plant and machinery, spare parts, heavy equipment, and existing stocks currently stored at the factory premises in Charsindur, Palash.

The bank has invited interested individual and institutional bidders to submit sealed tenders to its local office at Adamjee Court, Motijheel, by 2pm on 14 May.

The bids are scheduled to be opened at 2:01pm on the same day in the presence of the bank authorities and available bidders.

The bank said the auction is being conducted based on a registered power of attorney provided by the company against the credit facilities. Successful bidders will be responsible for all costs related to registration, stamp duty, and applicable taxes.

Deshbandhu's struggles

Deshbandhu Polymer, which was listed on the country's stock exchanges in 2011, is currently enduring one of the most difficult periods in its history.

The company's business has deteriorated drastically over the last year. According to its latest financial disclosures, the company's revenue plummeted by 80% during the July-March period of the 2025-26 fiscal year, falling to just Tk2.51 crore.

This resulted in a massive nine-month net loss of Tk17.77 crore.

The situation was even bleaker in the third quarter (January-March 2026), where revenue crashed by 81% to a mere Tk0.60 crore, leading to a quarterly loss of Tk6.77 crore.

As of 31 March 2026, the company's cumulative loss per share for the fiscal year stood at Tk2.89. Due to its dismal performance, the company was unable to recommend any dividend for FY25, during which it posted a net loss of Tk24 crore.

In its financial statements, the management of Deshbandhu Polymer attributed the decline to a significant drop in production and sales.

The company said an inadequate power supply and the ongoing US dollar crisis had crippled its operations. Being unable to open LCs for essential raw materials, the company was forced to source inputs from the local market at much higher costs.

This inefficiency prevented the company from utilising its production capacity and securing purchase orders from its key buyers. Additionally, surging interest rates imposed by lenders further escalated finance costs, pushing the company deeper into the red.

Currently, Deshbandhu Polymer is being traded under B category. Its share price edged down by 0.56% to close at Tk17.60 at the Dhaka Stock Exchange today (5 May).

Out of its total shares, sponsors and directors hold 33.54% shares, institutional investors have 18.02% and the remaining 48.44% is held by the public, according to the monthly shareholding report for March.