Jamuna Oil, Meghna Petroleum see billions stuck in cash-strapped banks

State-run Jamuna oil and Meghna Petroleum are at 'high credit risk' as their investments in fixed deposit receipts (FDRs) equivalent to Tk 16.95 billion are stuck with banks facing acute liquidity crises.
The banks are Global Islami Bank, Union Bank, First Security Islami Bank, Social Islami Bank, National Bank, Padma Bank, and Bangladesh Commerce Bank. Of them, the first four banks are undergoing a merger process, while National Bank, Padma Bank, and Bangladesh Commerce Bank have been enduring losses due to high non-performing loans.
Both companies have written to those banks for encashment of the investment instruments, but have not received any response, said the auditors of the firms in qualified opinions published on Monday.
The auditors also warned that both companies should acknowledge the credit loss.
Having raised the red flags, they noted that the financial statements had been prepared in conformity with the International Financial Reporting Standards (IFRSs), and that the reports give a true and fair view of the financial position of the companies as of June this year.
Meghna Petroleum holds FDRs worth Tk 5.48 billion in First Security Islami Bank, Global Islami Bank, Union Bank, and Padma Bank.
Jamuna oil holds FDRs amounting to Tk 11.47 billion in First Security Islami Bank, Global Islami Bank, Union Bank, Social Islami Bank, National Bank, and Bangladesh Commerce Bank. It also has another Tk 3.94 billion placed in SND (Special Notice Deposit) account in First Security Islami Bank.
Recently, the central bank officially started the merger process of five troubled Islamic banks-Global Islami Bank, Union Bank, First Security Islami Bank, Social Islami Bank and Exim Bank. The Islamic banks will be combined into a new bank, Sammilito Islami Bank.
The state-run fuel marketing companies, including Jamuna oil and Meghna Petroleum, have maintained remarkable income growth even in an adverse business climate, largely due to a sharp rise in non-operating income from bank deposits amid rising interest rates.
Jamuna oil posted a record annual profit of Tk 6.48 billion in FY25, driven by higher sales of petroleum products and substantial non-operating income from bank deposits. It registered a 46.75 per cent year-on-year profit growth in FY25.
Meghna Petroleum also posted a record annual profit of Tk 6.64 billion in FY25 for the same supportive factors, registering a 22.50 per cent year-on-year profit growth.
In both cases, non-operating income jumped higher year-on-year, compared to operating income.
In such a context, investors would feel deprived of their share of profits earned if the money kept in FDRs disappears from the distressed banks.

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