BB gives 3 months to 4 sick NBFCs to recover

The Bangladesh Bank (BB) has given four ineffective non-bank financial companies (NBFCs) a three-month lifeline to make themselves viable by improving their financial condition under the provisions of the Bank Resolution Act 2025.

The four companies are Prime Finance & Investment Limited, GSP Finance Company (Bangladesh) Limited, Bangladesh Industrial Finance Company Limited (BIFC), and Premier Leasing & Finance Limited.

According to a notice issued by the central bank on Wednesday, the decision was made by the Board of Directors under Section 15 of the new law.

The extension is intended to provide the institutions with a final opportunity to implement recovery measures and return to a viable financial position.

During the three-month period, the companies have been directed to secure fresh capital from sponsors and shareholders, arrange the required funding, recover default loans, dispose of assets and collateral through auctions or settlements, and repay the liabilities owed to ordinary and individual depositors in accordance with applicable laws.

The banking regulator emphasised that the institutions must comply with the prescribed financial conditions within the stipulated timeframe.

The failure to meet even one or more of the required conditions could lead to formal resolution proceedings under the Bank Resolution Act 2025, to be initiated by the Bank Resolution Department of the central bank.

The move reflects the central bank's efforts to stabilise the country's struggling financial institutions while safeguarding the interests of depositors and maintaining confidence in the financial sector.

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