Phoenix Finance to sell half of its Motijheel property to repay depositors
The decision comes against the backdrop of staggering losses and a sharp rise in non-performing loans
Phoenix Finance and Investments Ltd has decided to sell half of its head office building in Motijheel's Dilkusha commercial area in a desperate bid to ease its prolonged financial crisis and repay part of its depositors' funds.
In a disclosure to the Dhaka Stock Exchange (DSE) on Monday, the non-bank financial institution (NBFI) said it would sell 50% ownership of Phoenix Bhaban, a commercial property the company has held for decades.
According to its 2024 financial statement, half of the property, including the land, carries a book value of around Tk100 crore.
Based on current market valuations, the sale is also expected to fetch roughly Tk100 crore, which the company plans to use partly to repay depositors and partly to reinvest in operations.
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Confirming the decision, Mohammed Mohsin, chairman of Phoenix Finance, told TBS that the board was left with no choice but to dispose of part of the company's prized asset to address the mounting pressure.
"We have decided to sell half of our Motijheel land to repay the depositors' funds. A portion of the proceeds will also be injected into the business so that we can cope with the ongoing adverse situation," he said.
Mohsin pointed out that Phoenix Finance had been a well-performing financial institution. "Unfortunately, some of our large borrowers, such as Rahimafrooz and Opex-Sinha Group, turned into defaulters, which deepened our troubles," he added.
Losses, default loans spiral out of control
The decision to offload part of the Motijheel property comes against the backdrop of staggering losses and a sharp rise in non-performing loans.
As of December 2024, Phoenix Finance had disbursed loans amounting to Tk2,593 crore, of which Tk2,299 crore — representing 88.66% of the total — had turned into classified loans.
The company's losses have spiraled in recent years. It posted a loss of Tk35 crore in 2021, which widened to Tk138 crore in 2022. The situation worsened dramatically in 2023 with Tk705 crore in losses, followed by Tk808 crore in 2024, marking a 15% year-on-year rise.
In the first half of this year, losses stood at Tk263 crore, pushing retained earnings into a negative Tk1,928 crore. The company's net asset value per share fell to negative Tk97.85, while loss per share stood at Tk15.84 in the January–June period of 2025.
Phoenix Finance's financial decline has weighed heavily on investors as well.
Listed on the capital market in 2007 with a paid-up capital of Tk165.87 crore, the company's shares have been relegated to the "Z" category for failing to declare dividends for four consecutive years.
Its stock closed at Tk2.80 per share on Monday, giving it a market capitalisation of only Tk46.44 crore.
The scale of its crisis has also triggered regulatory interventions.
In December 2023, the Bangladesh Bank removed managing director Intekhab Alam from his position after identifying breaches of lending regulations and irregularities in loan approvals.
The central bank also barred several other Phoenix Finance officials from foreign travel in connection with the irregularities. Intekhab was reassigned to the Human Resources Department after his suspension from the top executive post.
Despite such actions, insiders say the company continues to struggle with deep structural challenges stemming from large-scale loan scams and weak governance.
Phoenix Finance has accumulated losses of Tk1,817 crore between 2021 and March 2025, severely undermining depositors' trust.
As of June 2025, the company owes Tk387 crore in borrowings from banks and non-bank financial institutions, while depositors' funds amount to Tk1,725 crore.
The planned sale of its Motijheel property is one of the most significant asset disposals by the troubled NBFI in its history.
Market analysts note that while the sale may provide short-term liquidity relief, the company will need a comprehensive recovery plan and restructuring of its lending practices to restore confidence among depositors and investors.
