United News of Bangladesh

Administrative action will be taken against anyone disrupting customer services, said Islami Bank acting Managing Director Md. Altaf Hossain on Thursday amid reports of a symbolic work stoppage at several branches. The warning came after a section of bank officials reportedly observed a one-hour ‘pen-down’ strike at multiple branches in response to a call from the ‘Sachetan Grahak Forum’ (Conscious Customers Forum), which has been protesting for the past three days demanding removal of newly appointed Chairman Md. Khurshid Alam. The forum on Wednesday urged employees to suspend work for an hour on Thursday in solidarity with its movement. Speaking at the bank’s head office in Dilkusha, Motijheel, Altaf Hossain clarified that the management had issued no instructions for any form of work stoppage. “There is no such directive from our side. If any official refuses to provide services, administrative action will be taken against them,” he said. Customer services were partially or fully disrupted for about an hour in some locations although bank officials largely refrained from making public comments. Responding to the situation, the acting MD said the bank’s staff remain committed to serving customers. “Our officers are fully ready to serve. If customers do not come forward for services, it is not possible for us to force it. It is also difficult to monitor the real-time situation of every branch from the head office,” he said. Asked about concerns over possible withdrawal pressure amid the ongoing unrest, Hossain acknowledged increased activity but said there was no cause for alarm. “If all depositors rush to withdraw their money in a single day, any bank in the world would collapse. That is a basic financial reality. But practically that never happens,” he said. He added that the bank has seen a rise in withdrawal pressure due to the prevailing situation, but it remains within manageable limits. “There is definitely some increased pressure due to the current situation, but it is still tolerable. There is no reason for panic. If any critical situation arises, it will be visible to everyone,” he added. The unrest at the Shariah-based lender began late last month following the resignation of former Chairman Prof. M. Zubaidur Rahman and the central bank's subsequent appointment of former Deputy Governor Md. Khurshid Alam to the post.

Bangladesh is facing mounting economic challenges as weak revenue collection, persistent inflation, banking sector fragility and rising energy costs weigh on the economy, the Centre for Policy Dialogue (CPD) said on Thursday. Presenting the third reading of its Independent Review of Bangladesh's Development (IRBD) FY2025-26 at its office in Dhaka, the think tank said the economy is grappling with a combination of macroeconomic, financial, sectoral and social challenges despite signs of resilience in some areas. The report, titled “State of the Bangladesh Economy in FY2025-26: Multidimensional Challenges during the Transition Period,” was presented by CPD Executive Director Dr. Fahmida Khatun, who said recent developments reflect a mixed picture of resilience and vulnerability. Revenue and Public Finance Bangladesh's revenue mobilisation grew by only 6.9 per cent during July-March of FY26, against a target growth rate of 29.3 per cent. CPD said meeting the annual target would now require an improbable 84.6 per cent growth in the final quarter, calling the revenue mobilisation target “operationally unrealistic.” NBR tax collection fell short of the target by BDT 104,533 crore during July-April FY26, with growth of 10.6 per cent against a target of 34.5 per cent. Closing the gap by June would require 128.6 per cent growth in May-June, a figure the think tank described as near-impossible. ADP implementation stood at just 35.4 per cent during July-April FY26, significantly below the FY17-FY24 average of 49.8 per cent. To finance the widening deficit, the government leaned heavily on bank borrowing, which reached BDT 102,442 crore or 98.5 per cent of the full-year target by March FY26, up 20 per cent from the same period of FY25. CPD warned this could crowd out private sector credit and dampen investment. Inflation and Living Costs Inflation rose to 9.04 per cent in April 2026, up from 8.71 per cent in March, with non-food inflation reaching 9.57 per cent. The Strait of Hormuz blockade triggered sharp fuel price increases between December 2025 and May 2026: diesel rose 15 per cent to BDT 115 per litre, while octane and petrol each surged over 20 per cent. The price of a 12 kg LPG cylinder jumped 40.57 per cent, from BDT 1,341 in March 2026 to BDT 1,885 in June 2026. A CPD market survey of around 1,000 agents across 10 commodities identified green chilies, onions, pulses and brinjals as carrying the highest markups in the supply chain, driven largely by the dominant role of urban aratdars. Banking Sector The banking sector's capital adequacy ratio fell to a historic low of negative 2.93 per cent. Specialised banks collapsed to a CRAR of negative 87.9 per cent in September 2025. While the gross NPL ratio declined from 35.73 per cent in September 2025 to 32.26 per cent in March 2026, CPD said the improvement reflects rescheduling and restructuring rather than any real asset quality recovery. Private sector credit growth fell to a record low of 4.72 per cent in March 2026, constraining investment and job creation. Excess liquidity as a share of total liquid assets rose from 43 per cent in May 2025 to 55 per cent in March 2026, a sign of cautious lending and weak economic activity, CPD said. On regulatory measures, CPD flagged concern over a proposed amendment that would allow former owners of distressed banks to regain control, calling it an accountability risk that could weaken resolution credibility. It also raised concern over a Bangladesh Bank circular raising the single-borrower exposure limit from 15 per cent to 25 per cent of capital until June 2028, warning it could amplify systemic risk. External Sector Bangladesh's overall balance of payments shifted from a deficit of USD 1.1 billion in FY25 to a surplus of USD 3.6 billion in FY26 during July-March, an improvement of USD 4.8 billion. Remittances rose 19.8 per cent during July-April FY26, continuing to serve as a critical external stabiliser. Forex reserves stood at USD 34.57 billion on 23 May 2026. However, CPD cautioned that the BoP improvement was driven largely by debt-creating financial account inflows of USD 3.2 billion, not a genuine improvement in the current account. Exports fell 2.02 per cent during July-April FY26, far below the 14 per cent target. RMG exports declined 2.8 per cent, with knitwear falling 3.7 per cent. Bangladesh lost ground in both the US and EU markets, while Vietnam gained. External debt stood at USD 113.2 billion as of June FY25. Debt servicing costs have more than doubled in five years, from USD 3.2 billion in FY20 to USD 7.2 billion in FY25. The IMF in January 2026 moved Bangladesh to moderate risk from low risk, while Fitch revised its outlook to negative in May 2026. Labour Market CPD said factory closures since August 2024 left between 100,000 and 300,000 workers unemployed. Real wages declined throughout January 2025 to April 2026, with industrial workers bearing real wage contractions of up to 2.1 per cent. Wage-related labour unrest incidents rose from 59 in 2023 to 204 in 2025. Workplace deaths stood at 1,190 in 2025, with at least 186 recorded in the first quarter of 2026 alone. Overall unemployment is expected to remain at 3.8 per cent in 2026, while youth unemployment is projected to rise from 9.1 per cent to 9.7 per cent. Energy Crisis and Haor Floods The Strait of Hormuz blockade exposed Bangladesh's deep vulnerability to imported fuel dependency. CPD estimated that the government will need BDT 31,122 crore in additional subsidies for the energy sector by the end of FY26. The Haor floods of April 2026 damaged an estimated 49,000 hectares of boro cultivation, affecting 236,811 farm households. CPD's own estimate placed rice losses at 339,449 metric tonnes, significantly higher than the official DAE revised figure of 214,000 MT. The government's compensation of BDT 7,500 per farmer, CPD said, covers only 14-18 per cent of per-household production loss. Measles Outbreak CPD characterised the 2026 measles outbreak as a case study in health sector governance failure. Between 15 March and 2 June 2026, the outbreak produced 74,572 suspected cases, 9,191 lab-confirmed cases and 601 deaths. About 72 per cent of cases were among zero-dose children. CPD attributed the outbreak to vaccine stockouts in 2024-2025, the absence of a nationwide MR campaign since 2020, and procurement failures. Recommendations CPD called for broad structural reforms, including expanding the tax base, curbing illicit financial flows and improving ADP implementation. It urged stricter loan classification, greater transparency in rescheduled loans and an end to political influence in banking. The think tank also recommended accelerating gas exploration, expanding rooftop solar, digitising the fuel supply chain, improving agricultural loss assessments, increasing compensation for flood-hit farmers and providing a 12-month loan moratorium. “Bangladesh's recovery requires credible governance reform beyond macroeconomic stabilisation,” said Fahmida Khatun, stressing the need for stronger institutions and accountability to achieve the government's development goals.

Protests against the appointment of Khurshid Alam as chairman of Islami Bank Bangladesh PLC entered a third consecutive day on Wednesday, with hundreds of depositors and  shareholders vowing to prevent him from assuming office and threatening an indefinite blockade of the bank’s headquarters if he attempts to enter. Under the banner of the 'Sachetan Grahak Forum' (Conscious Customers Forum), hundreds of protesters consisting of depositors, shareholders, and representatives from various professional groups brought out a protest march on Wednesday. The procession was held in front of the bank’s head office in Dilkusha, Motijheel and culminated in a rally outside the National Press Club. Speaking at the rally, Conscious Customers Forum Convener Nurun Nabi Manik warned that demonstrators would resist any attempt by Khurshid Alam, a former deputy governor of Bangladesh Bank, to take office as chairman of Islami Bank, saying they were prepared to ‘lay down their lives’ to stop him. On Monday, law enforcement personnel deployed batons, tear gas, water cannons, and sound grenades to disperse demonstrators, resulting in several injuries.  On Wednesday, the area remained under a tight security blanket with armored personnel carriers (APCs) and water cannons kept on standby. Protesters allege that a  ‘conspiracy’ orchestrated by the central bank and quarters within the government aims to hand control of the Shariah-based lender back to an opportunistic "looting clique." Speaking to reporters, Bangladesh Bank Executive Director and Spokesperson Arif Hossain Khan rejected the demands of the agitators, maintaining that the central bank will not reverse its decision. "The chairman of a bank will not be changed based on street agitations. Bangladesh Bank stands firm on its decision," the spokesperson said, adding that political or group interference in bank management is unacceptable. Addressing allegations floating against the newly appointed chairman, the central bank spokesperson dismissed them as "baseless."  He clarified that Khurshid Alam holds no personal outstanding loans with First Security Islami Bank, though he acknowledged that a loan registered under his wife's name is currently classified as defaulted.

ICB Islamic Bank Limited is facing significant uncertainty over its ability to continue as a “going concern” due to mounting accumulated losses, a large capital shortfall and a high volume of classified investments, according to a disclosure issued by the Dhaka Stock Exchange (DSE) on Tuesday. The disclosure highlighted an “Emphasis of Matter” paragraph included in the auditor’s report for the year ending on December 31, 2025, drawing attention to several financial indicators that raise substantial doubt about the bank’s future operations. Bangladesh Bank ED appointed as MD of ICB Islami Bank According to the auditor, the bank's accumulated loss stood at Tk 21,80.61 crore at the end of 2025, while its negative equity reached Tk 14,62.39 crore. The bank also reported a capital adequacy ratio of negative 291.87 percent against the regulatory minimum requirement of 12.50 percent. The auditor further noted that profit-paying deposits amounted to Tk 6,80.44 crore, exceeding the bank's profit-earning investments of Tk 6,32.6 crore. In addition, 84.29 percent of the bank’s total investments were classified as of December 31, 2025. “These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the bank’s ability to continue as a going concern,” the auditor said, adding that the audit opinion was not modified in respect of the matter. The auditor also raised concerns over the verification of fixed assets. Although the bank reported fixed assets worth Tk 15.41 crore on a written-down value basis, their existence could not be verified due to an incomplete fixed asset register lacking identification numbers and location details. The DSE published the disclosure to inform investors of the auditor’s observations regarding the bank’s financial position and operational sustainability.

In a major boost to financial inclusion and disaster recovery, Bangladesh Bank (BB) on Tuesday directed all scheduled banks to prioritize marginal and landless farmers holding "Farmer Smart Cards" and those recently hit by pouring summer rains for low-interest loans. The central bank issued a comprehensive circular on the matter to the managing directors and chief executive officers of all commercial banks. The directive, signed by Md. Iqbal Mohsin, Director of the Financial Inclusion Department (FID) of BB, aims to streamline the disbursement of credit under the central bank's ongoing refinancing scheme tailored for low-income professionals, marginal farmers, and small businesses holding Tk 10, Tk 50, or Tk 100 bank accounts. The central bank's move aligns with the government’s recent "Farmer Smart Card Policy-2025," an initiative spearheaded by the Department of Agricultural Extension (DAE) to bring the nation's farmers under an integrated digital database. According to the new circular, banks must offer preferential treatment to card-holding marginal and landless farmers when opening Tk 10 bank accounts and processing loans under the refinancing framework. Financial analysts note that blending this digital database with the formal banking system will significantly enhance transparency in targeted agricultural subsidies, incentives, and government aid, making it easier to weed out middlemen and identify genuine smallholders. However, the regulator cautioned banks against creating an artificial barrier, explicitly stating that eligible, impoverished farmers who are yet to receive their smart cards must not be excluded from the credit facility. The central bank’s directive also addresses immediate climate vulnerabilities following abnormal summer downpours that decimated standing crops across the country, particularly the ripe Boro paddy in wetland ecosystems. Recognizing the severe financial shock to rural households, the central bank ordered immediate, hassle-free credit flows to help affected farmers recover and prepare for the upcoming cropping cycle. The circular placed a special emphasis on the hard-hit ‘haor’ (wetland) districts, explicitly naming Sylhet, Sunamganj, Habiganj, Kishoreganj, Netrokona, and Mymensingh for immediate rehabilitation assistance, while keeping the window open for affected smallholders in other districts. Central bank officials warned that any delay in credit deployment could jeopardize national agricultural productivity, trigger rural distress, and impact food security. The specialized refinancing scheme serves as a crucial regulatory bridge for populations traditionally locked out of commercial banking due to a lack of collateral. By offering low-interest funds to banks, the central bank effectively absorbs sectoral risks, incentivizing financial institutions to cater to small-ticket borrowers. Policy experts view this latest double-barreled policy modification—linking digital identity cards to agro-credit and mandate-driven climate resilience funding—as a mature milestone in Bangladesh's financial inclusion journey, vital for maintaining macroeconomic stability amid growing environmental challenges.

A section of Islami Bank customers continued demonstration in front of the bank headquarters at Dilkusha in Motijheel area for the second consecutive day on Tuesday, demanding the resignation of newly appointed chairman Khurshid Alam and all members of the bank’s board of directors. The protesters under the banner of Islami Bank Conscious Customers Forum gathered in front of the bank’s headquarters around 9 am with placards. They alleged irregularities in the recent changes in the bank’s top management and called for immediate withdrawal of the board including the chairman to ensure transparency and protect customer interests. The demonstration continued till the filing of this report. Police deployed water cannons, armoured vehicles, and extra personnel to maintain order. The demonstrators accused Khurshid of having ties to the Chattogram-based S Alam Group and called for his immediate dismissal. Police used water cannons, tear gas shells and sound grenades to disperse protesters outside Islami Bank head office on Monday, triggering a clash that left demonstrators and policemen injured.  

Asian stock markets mostly advanced on Wednesday, tracking record gains on Wall Street, while global oil prices slipped amid easing market concerns. South Korea’s Kospi index led regional gains, jumping nearly 5% to a record high as strong buying in technology and semiconductor stocks continued. Taiwan’s main index also surged, driven by optimism around artificial intelligence (AI) demand. In Japan, the Nikkei 225 rose 1.3% to 65,816.62, briefly crossing the 66,000 mark during intraday trading for the first time. Shares of major chip-related companies such as Tokyo Electron and Advantest rose sharply. The rally in Asian tech stocks followed a strong performance in the United States, where Micron Technology jumped nearly

Hours after the resignation of Professor M Zubaidur Rahman, Bangladesh Bank (BB) has appointed its former Deputy Governor, Md. Khurshid Alam, as the new Chairman of Islami Bank Bangladesh PLC. The central bank communicated the decision via an official letter sent to the private sector bank late tonight (Sunday). Bangladesh Bank eases refinancing terms for state-owned, specialized banks to boost CMSME loans However, the appointment has triggered deep resentment and widespread questions among Islami Bank officials over corporate governance. Officials pointed out that Alam was forced to step down from the central bank in August 2024 following pressure from central bank staff due to his controversial role during the previous Awami League regime. "Khurshid Alam enjoyed numerous privileges during the Awami League's tenure and facilitated controversial business groups. How can the central bank ensure good governance by placing such an individual at the helm of Islami Bank?" an official questioned on condition of anonymity. When contacted, Khurshid Alam confirmed the development, stating that he initially received a phone call from the central bank before being formally served the appointment letter. Central bank sources revealed that the appointment was made under direct instructions from BB Governor Mostakur Rahman, following a recommendation from a certain quarter of the government. Defending the decision, Bangladesh Bank Spokesperson Arif Hossain Khan said, "He was forced to resign back then through 'mob justice' following the regime change. However, no formal allegations orfinancial irregularities were found against him. Therefore, he has been appointed as the Chairman of Islami Bank." Khurshid Alam was initially appointed as the Deputy Governor of Bangladesh Bank on a three-year contract in February 2024 by the then government. Following the political transition in August 2024, he, along with three other top central bank officials, was forced to resign. Alam completed his post-graduation and MBA from the Faculty of Business Studies at the University of Dhaka and joined Bangladesh Bank as an Assistant Director in 1988. Over his long career, he worked in vital departments of the central bank, including Banking Regulation and Policy, Bank Inspection, Financial Institutions and Markets, Off-site Supervision, and the SME & Special Programmes Department. He hails from Bancharampur upazila of Brahmanbaria district.

Bangladesh Bank (BB) has relaxed the participation criteria for state-owned commercial and specialized banks under its refinancing facilities, a move aimed at accelerating the flow of credit to the Cottage, Micro, Small, and Medium Enterprise (CMSME) sector. The SME and Special Programmes Department of the central bank issued a circular to this effect today (Sunday). According to the circular, the decision was taken to enhance the contribution of the CMSME sector to national economic growth and to expand employment opportunities at the grassroots level. Bangladesh Bank unveils Tk 60,000cr stimulus package to revive economy, create 2.5m jobs Under the new directive, state-owned commercial and specialized banks can now enlist as participating financial institutions to access the central bank's CMSME refinancing funds. To facilitate this, the central bank has exempted these state banks from two mandatory conditions that previously restricted their eligibility. The relaxed conditions include the obligation to maintain the non-performing loan (NPL) or classified investment ratio within a maximum cap of 20 percent, mandatory adherence to Bangladesh Bank’s prescribed Capital Adequacy Ratio (CAR), Cash Reserve Ratio (CRR), and Statutory Liquidity Ratio (SLR). By waiving these stringent capital and asset-quality thresholds, the central bank aims to utilize the vast rural and semi-urban network of state-run banks to channel low-cost funds directly to small and marginalized entrepreneurs across the country, BB officials said.

The government has taken comprehensive measures to ensure security and smooth trading at cattle markets across the country ahead of Eid-ul-Azha, including the installation of counterfeit currency detection machines and on-site banking services, Fisheries and Livestock Minister Mohammed Aminur Rashid said on Sunday. Speaking to reporters after inspecting the Diabari cattle market in the capital, he said fake note detector machines have been installed at cattle markets to prevent the circulation of counterfeit currency during the busy Eid trading season. The minister said dedicated banking services have also been arranged at markets, enabling sellers to deposit their earnings safely or open bank accounts instantly to secure their money. Responding to a question, he said the country has an adequate supply of sacrificial animals and this year's Eid demand can be fully met through locally reared livestock. “The number of cows, goats and buffaloes produced by domestic farmers and ranchers is more than sufficient to meet national demand.” Addressing concerns over missing or stolen animals at cattle markets, Aminur said administration officials, law enforcement agencies and volunteer teams are working round the clock at major markets. He said measures such as announcements through loudspeakers, strict monitoring and dedicated assistance cells have been put in place, adding that in most cases missing animals are being quickly traced and returned to their owners. On the issue of illegal cattle inflow through borders, the minister reiterated the government's zero-tolerance stance in this regard. He said necessary directives had already been issued to border guards, local administration and law enforcement agencies during an inter-ministerial meeting held ahead of the Eid season. When asked about cattle prices, Aminur said the country's livestock trade still largely depends on bargaining based on an animal's health, size, build and appearance, which often leads to price variations among similar-looking animals. He suggested introducing a live-weight pricing system in the future to make transactions more transparent and standardised. The minister also ruled out the possibility of market manipulation, saying the large number of buyers and sellers participating in cattle markets makes it difficult to form any artificial syndicate. “Animal prices are determined by market competition and the forces of supply and demand.” He further said adequate personnel have been deployed to maintain discipline, security and smooth transactions at cattle markets in the capital and elsewhere in the country, and that the measures will remain in force until Eid day. Director General of the Department of Livestock Services Md Shahzaman Khan and Director Dr Md Bayzer Rahman were present during the visit.