Mercantile Bank sponsor to gift 1.95cr shares worth Tk13.65cr to three children

Nasiruddin Choudhury, a sponsor of Mercantile Bank PLC, has announced plans to gift 1.95 crore shares worth about Tk13.65 crore to his son and two daughters.

According to a regulatory filing with the Dhaka Stock Exchange (DSE) yesterday, the shares will be distributed equally among his three children, who are all general shareholders of the bank.

His son Faris Nasir Choudhury and daughters Orthee Fariah Choudhury and Ovee Farah Choudhury will each receive 65 lakh shares.

The transfer will be executed off-market within 30 working days from 25 August 2026.

Following the disclosure, Mercantile Bank's share price remained unchanged at Tk7 on the DSE. At the current market price, the shares are valued at about Tk13.65 crore.

The transfer comes as the private commercial bank faces a sharp deterioration in financial performance.

According to its latest unaudited financial statements, the bank's consolidated earnings per share (EPS) turned into a loss of Tk0.07 in April-June 2026, compared with a profit of Tk0.98 in the same period last year.

For January-June 2026, consolidated EPS fell 88% year-on-year to Tk0.22 from Tk1.82.

The bank attributed the decline in profitability to lower profit before provision. Its consolidated net operating cash flow per share also fell to Tk0.74 from Tk3.60 a year earlier, due to lower net cash flows from operating activities.

As of 30 June 2026, the bank's consolidated net asset value (NAV) per share stood at Tk24.30, down slightly from Tk24.35 in December 2025, due to a decline in total shareholders' equity.

Mercantile Bank was recently downgraded to the 'Z' category on the stock exchange after failing to pay dividends to shareholders for two consecutive years.