National Bank incurs Tk6,457cr losses in three years
The bank reported a consolidated loss per share of Tk5.30 for 2024, worsening from Tk4.65 in the previous year
National Bank reported a Tk1,700-crore loss in 2024, marking its third consecutive year of losses, primarily due to non-performing loans and rising borrowing costs.
The bank's board, in its 30 April meeting, approved a price-sensitive disclosure confirming it will not pay dividends for 2024, extending its dividend drought to four straight years.
According to Dhaka Stock Exchange (DSE) data, the bank has accumulated Tk6,457 crore in losses over the past three years. Reflecting this financial strain, its share price fell by 5.13% on Wednesday to close at Tk3.70 — its lowest level in a year.
The bank reported a consolidated loss per share of Tk5.30 for 2024, worsening from Tk4.65 in the previous year. It will hold its annual general meeting on 7 August, with 15 June set as the record date.
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The bank also reported that its consolidated loss per share was Tk5.30 in the last year, which was 14% higher than the previous year.
National Bank said in its price-sensitive statement, during the last year, the bank could not book interest on loans and advances due to non-recovery from defaulters. Furthermore, the bank incurred higher interest expenses on borrowings. Consequently, the year concluded with an operating loss, with significant deviations observed in profit, net asset value and net operating cash flow.
Nevertheless, the new board and the new management are exerting maximum efforts to improve the financial health of the bank by streamlining recovery drives and mobilisation of low-cost deposits, the statement reads.
At the end of 2024, its consolidated net asset value per share was Tk1.15, which was 84% lower than the previous year, while it suffered from the operating cash crisis as it posted a net operating cash flow per share of Tk19.68 negative.
On 20 August last year, the Bangladesh Bank dissolved the board of directors of National Bank due to numerous irregularities, severing its indirect ties with the S Alam Group, a conglomerate closely linked to the ousted Hasina government.
The bank, which had been controlled by the Sikder family for over a decade, was taken over by the S Alam Group in 2023.
The Bangladesh Bank has formed a new seven-member board for the bank, which includes shareholder director and BNP Vice-Chairman Abdul Awal Mintoo, who is now the chairman.
According to Bangladesh Bank data, National Bank's classified loans accounted for 60.50% of its total disbursements last year.
Following the board restructuring, the central bank has provided around Tk5,000 crore so far in liquidity support.
Abdul Awal Mintoo earlier told The Business Standard, "The previous board was involved in corruption at various levels, not just in loan disbursement irregularities but also in loan and interest waivers without adhering to rules. We need the central bank's assistance to overcome this."
