Bangladesh Finance eyes sustainable growth with decisive financial strategy
Bangladesh Finance PLC has reaffirmed its commitment to financial stability and sustainable growth by adopting a forward-looking and transparent approach to risk management, despite persistent global and domestic economic challenges.
In a decisive move to reinforce the strength of its balance sheet, the company has undertaken comprehensive provisioning against all classified loans, leases, and investments, without resorting to any regulatory forbearance. This strategic step reflects its continued dedication to financial integrity and responsibility toward stakeholders.
As of 31 December 2024, Bangladesh Finance reduced its Non-Performing Loan (NPL) ratio to 9.26%, down from 11.20% in 2023. The company also maintained a provision coverage ratio of 786.93%, ensuring strong readiness to absorb potential financial shocks in the future.
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Responding to sustained economic headwinds and lingering post-pandemic effects on corporate clients, Bangladesh Finance adopted a conservative provisioning stance—fully covering all risk exposures, including negative equity positions in margin loans, without depending on regulatory leniencies.
During the 2024 financial year, the company made provisions of BDT 7,846.77 million and transferred BDT 1,233.06 million to its interest suspense account, thereby insulating its financials from foreseeable risks. As a result, the company posted a consolidated net loss after tax of BDT 7,937.86 million, compared to BDT 1,042.47 million in the previous year.
While this conservative approach has had a short-term impact on its profitability, the management of Bangladesh Finance expressed strong confidence in the strategy's long-term benefits, stating that the groundwork laid will foster future recovery and sustainable growth.
The audited financial statements for the year ending 31 December 2024 were formally approved by the company's Board of Directors at its meeting held on 17 April 2025.
Looking ahead, Bangladesh Finance has laid out a strategic roadmap focused on asset quality improvement, portfolio diversification, and strengthened collections. The institution is actively expanding into SME, retail, and Shariah-compliant financing, while also enhancing credit risk controls and operational efficiency through technology-driven solutions.
To further bolster recovery efforts, Bangladesh Finance is pursuing a multi-pronged approach involving legal actions, client engagement, out-of-court settlements, and collaborations with third-party collection agencies.
Although the provisioning strategy has temporarily impacted capital adequacy and equity, the company affirmed its unwavering focus on preserving liquidity and restoring financial strength through strategic recoveries, cost optimisation, and improved asset management. The aim is to position Bangladesh Finance as a resilient, future-ready financial institution.
