The external auditor of Rupali Bank has qualified the state-owned lender’s 2025 financial statements after identifying an unrecognised loan-loss provisioning shortfall of Tk14,014.48 crore, saying the omission materially affected the bank’s reported profit, liabilities and shareholders’ equity.
In its audit report for the year ended 31 December 2025, the auditor said the bank had not recognised the required provisions relating to loans and advances and other specified assets.
According to the report, Bangladesh Bank allowed Rupali Bank to prepare its financial statements without recognising the provisioning shortfall because the bank lacked sufficient profits to absorb it. The auditor, however, said the treatment was not consistent with the applicable International Financial Reporting Standards (IFRS).
The audit report also drew attention to several regulatory and capital-related weaknesses, although these did not modify the audit opinion.
It said the bank held Tk679.99 crore in share money deposits that should be converted into share capital within six months under Financial Reporting Council requirements.
The auditor also noted that Rupali Bank’s paid-up capital stood at Tk487.93 crore at the end of 2025, below the Bangladesh Bank’s minimum regulatory requirement of Tk500 crore.
Capital adequacy also remained well below regulatory thresholds. The bank reported capital-to-risk-weighted assets ratios of 2.88 per cent on a solo basis and 2.94 per cent on a consolidated basis, against the minimum regulatory requirement of 12.5 per cent, including the capital conservation buffer.
The report further noted issues relating to lease accounting under IFRS 16, saying rental agreements that met the definition of leases had been disclosed alongside lease liabilities of Tk17.28 crore, right-of-use assets of Tk43.23 crore and rent expenses of Tk51.03 crore.
The auditor also said the bank should retranslate foreign currency balances using the exchange rate prevailing at the reporting date, as required under IAS 21, and reconcile suspense balances accordingly.
It further noted that Rupali Bank was still implementing Bangladesh Bank’s revised loan classification framework in its core banking system and had yet to explain manual interventions in loan classification reports and subsequent changes to reported data.
While highlighting these matters, the auditor said its opinion remained unmodified in respect of the emphasis of matter paragraphs.
