ICB Islamic Bank, a listed second generation private bank, has an accumulated loss of Tk 19.23 billion while the bank's negative equity stood at Tk 12.05 billion for the year ended on December 31, 2021.
The bank's capital adequacy ratio is minus 137.41 for the year ended on December 31, 2021, as against minimum of 12.50, according to auditor's report posted on Dhaka Stock Exchange (DSE) website on Tuesday.
The bank's profit paying deposits aggregates to Tk 8.76 billion as against the profit earning investment of Tk 1.61 billion as of 31 December 2021, said the report.
Overall 80.80 per cent of investment of the bank is classified, according to the auditor report.
In 2020, the bank's accumulated loss was Tk 18.84 billion, negative equity was Tk 11.65 billion and capital adequacy ratio was minus 133.16 as against minimum of 12.50.
"These events or conditions, along with other matters indicate that a material uncertainty exists that may cast significant doubt on the bank's ability to continue as a going concern," the auditor opined.
Owing to deepening losses, the bank failed to declare dividends for many years. Accordingly, the bank's shares traded far below from its face value of Tk 10 each over the years.
The bank's per share price closed at Tk 4.80 on Tuesday, remaining unchanged over the previous day. Its shares traded between Tk 3.50 and Tk 7.40 in the last one year.
Six legal cases have been initiated by the previous promoters in connection with forfeiture of their shares, the present majority shareholders of ICB Islamic Bank are awaiting the outcome of these cases which are still pending in the Appellate Division of the Supreme Court for hearing, according to the report.
The management is optimistic about the cases that the final ruling of the court will be in favour of Bangladesh Bank which will pave the path for injecting fresh capital, it said.
"The initiatives taken by the Bank are cost optimization, profit maximization through increasing loans and advances, launching new products, etc".
The Bank is considering various options and plans to address the issue of working capital deficiency.
"We had applied to Bangladesh Bank on November 1, 2021 for the next five years moratorium. We are waiting for the response of Bangladesh Bank for the moratorium on frozen deposits," according to the auditor's report.
The bank was formerly known as the Oriental Bank Ltd which was incorporated in 1987. ICB Islamic Bank got listed on the DSE in 1990.
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