Bangladesh Bank on Tuesday appointed five independent directors to Bangladesh Commerce Bank and The Premier Bank as both lenders struggle with serious financial weaknesses.
Md Rafiqul Islam and SM Abdul Hamid have been appointed to Bangladesh Commerce Bank’s board. The Premier Bank’s new independent directors are Brigadier General Md Zahedur Rahman, Md Mosharraf Hossain and Md Masudur Rahman Shah.
The Premier Bank reported a Tk9,799.26cr provision shortfall and a consolidated loss of Tk388.77cr in the first half of 2026, while Bangladesh Commerce Bank had a capital deficit of Tk2,157.41cr and a provisioning shortfall of Tk1,244.26cr at the end of 2025.
Bangladesh Bank also directed Mosharraf Hossain, a former independent director of United Commercial Bank, to resign from that bank’s board before joining The Premier Bank.
The Premier Bank’s audited financial statements for 2025 show a total provision shortfall of Tk9,799.26cr across loans and advances, other assets and several other accounts.
Bangladesh Bank allowed the bank to finalise its 2025 accounts without adjusting the full shortfall, according to the auditor’s report.
The auditor also identified a provision deficit of Tk1,220.67cr against other assets, alongside additional shortfalls in gratuity funds, off-balance-sheet items and investments in shares.
The bank’s financial performance deteriorated further in the first half of 2026. Its consolidated loss reached Tk388.77cr in January–June, compared with Tk136.56cr in the same period of 2025.
Net interest income turned negative at Tk315.85cr, meaning the bank’s interest expenses exceeded its interest income during the period.
Its consolidated net asset value fell to Tk1,288cr at the end of June 2026 from Tk2,532.84cr a year earlier. The bank also reported a loss of Tk992.59cr for 2025 and declared no dividend for the year.
Bangladesh Commerce Bank is facing severe capital and asset-quality problems of its own.
Its audited financial statements for 2025 show that its capital adequacy ratio fell to negative 36.84 per cent at the end of December, leaving it with a capital deficit of Tk2,157.41cr, including the capital conservation buffer.
The bank has also remained non-compliant with statutory reserve requirements since 2018.
Its classified loans and advances stood at Tk1,660.75cr at the end of 2025, against provisions of Tk383.72cr. After accounting for regulatory forbearance granted by Bangladesh Bank, the provisioning shortfall stood at Tk1,244.26cr.
