Pragati Insurance moves into credit bureau sector

Pragati Insurance PLC, one of Bangladesh's leading general insurers, is set to diversify its investment portfolio by entering the emerging private credit bureau sector, according to a price sensitive disclosure issued on the Dhaka Stock Exchange (DSE).

In a board decision, the insurer approved an investment of Tk3 crore in the proposed First National Credit Bureau Limited (FNCBL), which will give the company a 30% ownership stake. 

The credit bureau is currently awaiting a formal operating licence from Bangladesh Bank.

The move marks a significant strategic shift for the insurer as it seeks to capitalise on the central bank's initiative to modernise the country's financial infrastructure. 

Following the disclosure, shares of Pragati Insurance PLC saw a marginal correction on the DSE, declining 0.83% to close at Tk71.90.

The First National Credit Bureau Limited is among five entities that received Letters of Intent (LoIs) from Bangladesh Bank in September 2025. Out of 22 applicants, the central bank shortlisted FNCBL alongside BD Credit Bureau, TransUnion Credit Bureau, bKash Credit Bureau, and City Credit Bureau.

For decades, Bangladesh has relied solely on the central bank's Credit Information Bureau (CIB) under Bangladesh Bank. While the CIB tracks borrower repayment histories, industry stakeholders have long argued that its coverage is limited and does not fully capture borrower behaviour.

The new private bureaus are expected to bridge this gap by collecting data from diverse sources and providing detailed credit scores, enabling more comprehensive credit scoring systems.

According to central bank guidelines issued last year, the initiative is designed to reduce information asymmetry, improve lending decisions, strengthen competition among financial institutions, and ultimately help lower default rates and borrowing costs.

Pragati Insurance PLC, which is owned by business tycoon and Environment, Forest and Climate Change Minister Abdul Awal Mintoo and his family, currently has Tabith Awal and Tajwar M Awal serving on its board.

For the first quarter of 2026 (January–March), the insurer reported an earnings per share (EPS) of Tk1.63, a significant jump from the Tk1.05 recorded in the same period last year. This growth was driven by an uptick in operating and other income.

The company has also recommended a 27% cash dividend and 3% stock dividend for the 2025 financial year, during which it maintained steady earnings performance and a healthy balance sheet. As of 31 March 2026, its net asset value per share stood at Tk59.61.