Finance minister pushes professionalism as ICB seeks Tk10,000cr rescue fund

Finance Minister Amir Khasru Mahmud Chowdhury has urged the state-owned Investment Corporation of Bangladesh (ICB) to become more market-oriented, competitive and professional, saying it must match the efficiency of private-sector institutions.

Speaking at an event marking ICB's golden jubilee in Dhaka today (1 October), the minister said the corporation needed to rethink its strategy after five decades of operation and transition to a fully digitalised system.

"The private sector is smart, intelligent and operates closely with both global and local markets. ICB must reach that level – you have to be market-based, competitive, efficient and professional," he said.

He also rejected the idea of seeking tax waivers for ICB while other businesses pay taxes.

The minister said the government would discuss ICB's capital restructuring proposals, without elaborating on the issue.

He also said deregulation of the capital market would continue as Bangladesh aligns its regulatory framework with global best practices. He noted that the timeline for direct listing had been reduced from 18 months to three months under the newly appointed securities regulator.
ICB seeks Tk10,000cr low-cost fund

At the event, ICB sought government support, including a Tk10,000 crore low-cost fund, to restructure its capital and ease its financial pressure.

ICB Managing Director Niranjan Chandra Debnath said the corporation had formulated a 10-year plan to overcome its crisis, with the proposed fund to be used partly to repay high-cost loans and partly for investment in the capital market.

ICB currently has around Tk14,000 crore in high-interest borrowings, he said.

The government has already provided Tk4,000 crore, part of which was used to repay debt and part invested in the stock market, generating returns for ICB, he added.

Niranjan said lower interest costs after debt repayment would help ICB return to profitability from the second year. He also outlined plans for capital restructuring, business expansion and recovery of nearly Tk1,000 crore stuck with various financial institutions.

BSEC Chairman Masud Khan said ICB's contribution to industrialisation and the capital market was undeniable but urged it to improve its professionalism to compete with private asset management companies.

He stressed better reporting, governance, portfolio rebalancing and adherence to international standards.

He further said stock market investments involve both gains and losses, making them cyclical. He stressed the need for a loss-averse approach, saying investors should rebalance their portfolios when stock prices fall to avoid missing opportunities to invest in quality stocks.

Financial Institutions Division Secretary Nazma Mobarek said ICB was currently in distress, partly because of investments made without adequate market analysis and heavy reliance on high-cost borrowing.

She said the corporation needed to assess the viability of capital restructuring and focus on rebalancing its investment portfolio.

ICB Chairman Professor Abu Ahmed said high-interest borrowing before 2024 had contributed significantly to the corporation's current crisis.

He said severe portfolio erosion, including losses linked to "pump and dump" operations, had weakened the institution and reiterated the call for Tk10,000 crore in low-cost government funding.

He added that the government assistance will ensure the survival of this institution established during the tenure of President Ziaur Rahman.

The event was organised at Hotel Purbani International to mark ICB's golden jubilee. Established in 1976, ICB has played a key role in developing Bangladesh's capital market and providing financing and other financial services.

Among others, Finance Division Secretary Dr Md Khayeruzzaman Majumder, former ICB Managing Director and former BSEC official Ziaul Haque Khondker, former ICB chairmen and managing directors, and senior officials from the Finance Ministry, Bangladesh Bank and BSEC attended the event.