SIBL posts Tk321cr loss in Q2 amid NPL pressure, cash flow crisis

Social Islami Bank (SIBL) reported a consolidated loss of Tk321 crore for the April-June quarter of 2025, primarily due to a sharp decline in interest income amid a rise in non-performing loans (NPLs).

According to the bank's financial statement, the loss per share (LPS) for the quarter stood at Tk2.93, compared to earnings per share (EPS) of Tk0.33 in the same period last year.

At the end of the first six months of 2025, SIBL posted a consolidated loss of Tk469.41 crore, in stark contrast to a profit of Tk80 crore during the same period a year earlier. The LPS for the six-month period was Tk4.33.

The bank is also grappling with a severe liquidity crunch, reporting a negative net operating cash flow per share of Tk27.60, indicating a cash shortfall of around Tk3,000 crore.

SIBL said it lost Tk207 crore from its core banking operations during the second quarter mainly because of high borrowing costs and low earnings from loans.

Despite the financial woes, SIBL's share price edged up by 1.23%, closing at Tk8.20 last Thursday at the Dhaka Stock Exchange (DSE).

Earlier, in June, the bank has reported a provision shortfall of Tk20,994 crore as of 31 December 2024, prompting its board of directors to withhold any dividend declaration for the year.

According to the audited statement of the bank for 2024, its classified investment jumped by 13 times to Tk23,633 crore compared to the previous year.

The bank was required to keep provisions against investment was Tk22,359.72 crore, but it maintained only Tk1,366 crore.

Earlier in August last year, the Bangladesh Bank dissolved the board of directors of the Social Islami Bank and formed a new five-member board.

Since 2017, the bank had been controlled by the S Alam Group, a business conglomerate with a history of alleged irregularities and corruption.