Pubali Bank to buy troubled Bengal Group's 26-storey Swissôtel building for Tk800cr
Lender plans to relocate its head office; Bengal Group expects sale to ease its financial strain.
Pubali Bank has decided to acquire a 26-storey under-construction building from the financially troubled Bengal Group for Tk800 crore to establish its new headquarters.
The property was originally being developed by Bengal Hotels & Resorts, a concern of Bengal Group, as Swissôtel Dhaka, a five-star hotel project.
The publicly listed private commercial bank disclosed the decision through the stock exchanges today (23 July), saying it would purchase a 57.64-katha plot along with the building, known as Swiss Tower, at Tejgaon Link Road in Dhaka.
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The purchase, which includes income tax but excludes VAT, remains subject to approval from Bangladesh Bank and other relevant regulatory authorities.
According to Bengal Group's website, the hotel was scheduled to open in 2021 and was planned to feature 350 guestrooms and suites, six restaurants and bars, a 950-square-metre event space, including a 500-square-metre ballroom, and a spa with a swimming pool and other recreational facilities.
Bengal Group forced to sell amid financial pressure
A Bengal Group official told The Business Standard that the company suffered losses of around Tk1,000 crore after three of its factories in Gazipur were vandalised and set on fire following the political changes on 5 August.
The official said key executives, including the group's chairman, were unable to resume work, severely disrupting business operations.
"With fresh bank financing unavailable, we needed cash flow to sustain our remaining operations. To navigate this financial crisis, we decided to sell the under-construction hotel," the official said.
Another company official said a substantial portion of the sale proceeds would be used to repay bank loans.
Bank expects long-term cost savings
Pubali Bank's Chief Financial Officer Mohammad Liton Miah told TBS that relocating all offices under one roof is expected to eliminate rental costs while improving operational efficiency
"The decision to invest in this building was taken to enhance operational synergy and efficiency for this 67-year-old bank," he said.
The bank currently spends between Tk1.5 crore and Tk2 crore each month on rent for its head office and other premises.
The acquisition will be financed entirely from retained earnings. According to the bank's financial statements, retained earnings stood at Tk3,227 crore at the end of December 2025.
Although the structural work has been completed, the bank expects to spend an additional Tk200 crore to Tk250 crore on interior decoration and other fit-out costs, bringing the total investment to around Tk1,000 crore.
The building offers nearly 5 lakh square feet of space. Liton said the bank currently requires around 2.5 lakh square feet, while consolidating all offices would utilise approximately 3.5 lakh square feet. A decision on the remaining surplus space will be taken later.
He said the bank expects to begin operations at the new premises within two to three years after the interior works are completed. Once operational, the headquarters will be relocated from Motijheel to Tejgaon Link Road.
Search for new headquarters
According to Pubali Bank officials, the lender had been searching for land or a suitable building for its new head office for the past two to three years and had published several newspaper advertisements seeking proposals.
The owners of the under-construction building responded to the bank's latest call for property offers. After evaluating several proposals, the bank's board approved the purchase, concluding that the location and features best matched its operational requirements.
Liton said the bank currently pays Tk80 to Tk90 per square foot in rent for office space in Motijheel. Based on an estimated annual building depreciation rate of 2%, he said the investment could be recovered over roughly 50 years, while eliminating rental expenses would improve profitability.
Strong financial performance
Pubali Bank reported operating income of Tk5,166 crore in 2025, an increase of nearly Tk1,000 crore from the previous year.
The bank maintained total provisions of Tk871 crore and posted a net profit of Tk1,079 crore in 2025, up about 42% from Tk762 crore in 2024.
For 2024, the bank declared a 30% dividend, comprising 15% cash and 15% bonus shares.
Its shares closed at Tk37.10 today, down 2.11% from the previous trading session.
