Union Bank gets Bangladesh Bank nod to revise 2023 financial statement

Union Bank PLC has received approval from the Bangladesh Bank to rectify its audited financial statements for the year 2023 and obtain a revised audit report.

The central bank issued the approval through a letter dated 14 October 2025, the bank said in a disclosure today (15 October).

According to a central bank source, the financial statements for 2023 were not prepared in accordance with proper accounting standards. Therefore, a decision has been made to re-audit that year's accounts to determine the bank's actual financial condition.

Earlier, in April 2024, the bank's board recommended a 5% cash dividend for 2023. It also reported an earnings per share (EPS) of Tk1.58, net asset value (NAV) per share of Tk16.03, and negative operating cash flow per share (NOCFPS) of Tk0.27 for 2023.

But it could not disburse the declared dividend due to the failure of holding annual general meeting.

Earlier, a re-audit of Global Islami Bank's 2023 financial statements revealed a loss of Tk2,259 crore, whereas the bank had initially reported a profit of Tk128 crore for that year.

Earlier this year, the Dhaka Stock Exchange (DSE) downgraded Union Bank's category from 'B' to 'Z', citing failure to hold its Annual General Meeting (AGM) within the stipulated timeframe as required by BSEC directives.

Union Bank, once controlled by the controversial S Alam Group, is currently facing one of the worst liquidity crises in the banking sector. Its default loans jumped from Tk1,000 crore in June 2024 to nearly Tk25,000 crore by December, pushing its default ratio to an alarming 87%.

In August last year, the Bangladesh Bank restructured the board of Union Bank and dissolved the boards of seven other banks controlled by the controversial Chattogram-based S Alam Group. The central bank appointed five independent directors to oversee Union Bank.

The bank is now in the process of being merged with four other struggling Islamic banks as part of the government's move to stabilise the sector and protect depositors' interests.