The state-owned Investment Corporation of Bangladesh (ICB) reported a loss of Tk 1.54 billion for the first quarter of FY26, more than double the loss incurred in the same period last year.
The poor financial results came as no surprise to investors, as last month the investment bank declared a record annual loss of Tk 12.14 billion for FY25 after making full provisions that had previously been deferred.
The loss per share stood at Tk 1.77 for Q1 of FY26, up from a loss of Tk 0.87 per share for the same quarter a year ago, according to a filing on Thursday.
The ICB had long been hiding its true financial health, but it decided to reveal its actual financial position after the 2024 political changeover.
Earlier, ICB Chairman Prof. Abu Ahmed told The FE that public funds had been misused by individuals linked to the previous regime, resulting in unproductive loans and investments.
He noted that under the former administration, the ICB had invested in junk stocks yielding no return and borrowed costly funds exceeding 12 per cent interest.
The current management has decided to reveal the institution's real financial condition, as earlier profits were overstated due to inadequate provisions for bad loans. This time, full compliance with the provision requirement has been ensured.
Prof. Ahmed said that acknowledging the true situation is essential for ICB's recovery.
Their cash generation capacity deteriorated in Q1 of FY26 to negative Tk 2.27 per share, down from negative Tk 1.8 per share a year ago.
Negative cash flow means more money is going out of the business than coming in during a given period.
The Corporation has long played a stabilising role in the capital market, using funds received from the central bank as well as its own resources. After the 2010 stock market debacle, the ICB borrowed heavily at high interest rates and invested in the volatile market to support stability.
It has also suffered losses due to poor investment decisions. It has fixed deposit receipts (FDRs) worth more than Tk 9.20 billion frozen in weak and scam-hit non-bank financial institutions. The organisation is not receiving any return from these investments.
ICB maintained a strong performance after its listing in 1977 through 2011, posting a record annual profit of Tk 5 billion. Its gradual decline began thereafter, caused by factors such as a prolonged bear market, high cost of funds, a liquidity crunch, and overdependence on the stock market for income.
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