Exim Bank posts Tk566cr loss following board reshuffle

Export Import (Exim) Bank posted a significant Tk566 crore loss for the July-September quarter, following a recent restructuring of its board, according to its stock exchange disclosure.

The news of the loss led to the bank's share price dropping by 9.64% to Tk7.50 at the Dhaka Stock Exchange (DSE) yesterday.

As per the un-audited financial report, its consolidated loss per share was Tk3.91, compared to earnings of Tk0.37 per share during the same quarter last year. In the first nine months of this year, the bank's consolidated loss per share was Tk2.77.

The bank is also suffering a severe operating cash crisis. It reported that its net operating cash flow per share became negative at Tk16.62 during the January-September period.

In its price-sensitive statement, the bank attributed the loss to increased provisions for investments, a rise in customer investments, and a drop in deposits.

Exim Bank's newly elected chairman, Nazrul Islam Swapan, told The Business Standard that the previous chairman left a substantial amount of toxic debt—loans and other debts with a low likelihood of repayment. 

"We wrote off loans that were deemed unrecoverable, leading to a significant increase in provisioning, which contributed to our losses," he explained.

Addressing the situation of the bank, he said, "The bank has suffered a lot under the previous board. We are trying to fix the issues but we need time for this."

"We are actively working to recover irregular and defaulted loans left by the former board, and recovery is progressing well," he added.

On 29 August, Bangladesh Bank dissolved Exim Bank's board, appointing five new members and removing former chairman Md Nazrul Islam Mazumder and his wife, Nasreen Islam, from their positions. 

The restructured board includes SM Rezaul Karim, a former executive director of Bangladesh Bank, and chartered accountant Khandaker Mamun, both appointed as independent directors. 

Additional members are Md Nazrul Islam Swapan, holding a 3.54% share in the bank, Md Nurul Amin with 2%, and Anjan Kumar Saha, also holding 2%. 

On 30 August, the new board elected Nazrul Islam Swapan as chairman.

In 2023, Exim Bank paid a 10% cash dividend and posted a net profit of Tk338 crore.