Dutch-Bangla Bank to auction Aftab Auto assets to recover Tk234cr default loans
As of March 2025, Aftab Auto has liabilities of Tk1,518cr to several lenders including Dutch-Bangla Bank
Dutch-Bangla Bank has announced that it will auction off the mortgaged assets of Aftab Automobiles Limited to recover defaulted loans amounting to Tk234.55 crore, including accrued interest up to 3 August 2025.
The move comes as the country's lone distributor of Hino-branded passenger buses struggles with mounting debts and continued financial losses across its group companies.
The bank published an auction notice on Thursday through national newspapers, inviting bids by 9 September.
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According to the notice, 20.86 decimals of land located in Munshiganj — mortgaged by Aftab Auto's Managing Director, Saiful Islam — will be sold to recover the dues.
The loans in default were not only taken by Aftab Automobiles but also by its subsidiary concerns – Navana Batteries and Navana Electronics, all of which face severe liquidity stress.
Aftab Auto, once a prominent name in the local automobile industry, now finds itself burdened with liabilities of Tk1,518 crore as of March 2025.
Its largest lenders include IFIC Bank, which has exposure of Tk360 crore, Agrani Bank with Tk200 crore, Bank Asia with Tk133 crore, Phoenix Finance with Tk100 crore, and Dutch-Bangla Bank itself with Tk187 crore. Despite attempts to secure fresh financing, the company's worsening balance sheet has forced lenders to take stricter measures.
A senior Dutch-Bangla Bank official, on condition of anonymity, said the auction decision was taken after repeated delays in repayment. "Aftab Auto has been a long-time client of the bank. However, due to mismanagement and a lack of effective leadership, most of the group's companies are now operating at a loss, leading them to default on their loans," he explained.
The official added that while the bank has moved forward with the auction process, there still remains an opportunity for the borrowers to repay their dues and exit default status.
Efforts to reach Aftab Auto's Managing Director, Saiful Islam, for comment were unsuccessful.
On Thursday, its shares fell by 1.08% on the Dhaka Stock Exchange, closing at Tk36.70.
The company remains in the Z category for failing to disburse its approved 10% cash dividend for fiscal year 2023-24, a year in which it posted a net loss of Tk14.83 crore.
In the first nine months of FY25, the company's consolidated revenue saw an impressive 80% rise to Tk57.92 crore compared to the same period last year. However, high finance costs overshadowed this growth, resulting in a loss of Tk10.69 crore.
The management has said that despite challenges in delivery schedules, demand for Hino bus chassis remains strong. It also highlighted steps to stabilise imports and supply chain operations, which it believes will aid recovery efforts in the coming months.
