Embattled Uttara Finance discloses years of losses after BB intervention

Distressed non-bank financial institution Uttara Finance and Investments Limited revised down its financial results of 2019 from a profit of Tk 1.18 billion to a loss of Tk 3.1 billion, revealing its true status on orders from the central bank.

The NBFI also reconfirmed its loss of Tk 4.7 billion in 2020 and disclosed for the first time a loss of Tk 3.1 billion in 2021.

Even after the delayed earnings disclosure on the Dhaka Stock Exchange on Monday, investors of the firm are yet to know the results for the period of 2022-2025.

Uttara Finance had stopped publishing its financial results after 2019.

Later, Bangladesh Bank conducted a special audit and found a serious case of fund embezzlement. Media reports suggested fund misappropriation of Tk 40 billion to Tk 60 billion.

In 2022, the central bank removed the NBFI's managing director, SM Shamsul Arefin, over involvement in fund embezzlement.

The BB also abolished the board of the NBFI and deployed independent directors to run the company. The board was reconstructed again in February this year.

Automobile distribution giant Uttara Group had a substantial stake in Uttara Finance and Investments.

Representatives of the group were removed from the board as the audit found that the board lent money to the NBFI's directors without paperwork, the chairman of the NBFI took out cash without specifying any reason, and the managing director withdrew money at will.

Until 2019, Uttara Finance was a profit-making company and a consistent dividend payer.

After the latest disclosure, the company's share price stood at Tk 13.40 on Monday, unchanged from the previous day.

farhan.fardaus@gmail.com