Sonali Bank PLC has eliminated its capital shortfall and delivered a record operating profit in 2025, alongside lower non-performing loans (NPL) and sharply higher recoveries, according to provisional accounts disclosed at a press briefing on Tuesday.
The bank’s Managing Director and Chief Executive Officer Md Shawkat Ali Khan said the capital shortfall, which stood at Tk5,949 crore at the end of 2024, was reduced to zero by the end of 2025, placing the state-owned lender in a surplus position and strengthening its financial base.
Operating profit rose to Tk8,017 crore in 2025 from Tk5,694 crore a year earlier. Over the same period, total deposits increased to Tk1,79,878 crore, while loans expanded to Tk1,04,723 crore.
The bank also reported progress in asset quality. Classified loans declined to Tk16,250 crore in 2025 from Tk18,058 crore a year earlier, bringing the non-performing loan ratio down to 15.52 per cent from 18.20 per cent. Cash recovery reached Tk1,195 crore during the year, double the amount recovered in the previous year.
Sonali Bank has outstanding dues of Tk6,925 crore from state-owned sugar mills, against which provisions of Tk 2,913 crore have been maintained. Dues related to letters of credit for the Rooppur Nuclear Power Plant stand at Tk31,985 crore, which officials said would further strengthen overall profitability once realised.
Bank officials attributed the turnaround to tighter management, a tougher recovery stance and financing of large state projects.
“We are strengthening loan recovery and encouraging lending to small and medium entrepreneurs. We are also using digital technology to reach the grassroots,” Md Shawkat Ali Khan said, adding that steps to operate as a strong bank were being implemented, resulting in higher income.
To reduce excessive loan concentration, the bank is implementing branch-specific action plans under an understanding with Bangladesh Bank. Large loan disbursements have been halted at five branches, with lending routed through other branches.
“Our loan exposure became high at some concentrated branches. As per Bangladesh Bank’s instructions, new lending there has been stopped,” he said. “The claim that loan concentration at five branches is 44 percent is incorrect; the actual figure is 37 percent. We have an MoU with Bangladesh Bank and are working under a time-bound action plan.”
Responding to questions, the managing director said about Tk745 crore has been recovered so far from the top 20 defaulters, whose total classified loans amount to around Tk3,000 crore. Recoveries are continuing, and detailed figures will be provided to journalists in writing.
On deposits, he said public confidence in the bank remains strong. “It is a blessing for depositors. We do not need special drives to attract deposits. People voluntarily keep money here for safety,” he said, noting that lending growth takes time due to heightened scrutiny. “Especially after the Hallmark scam, we are exercising extra caution in large loan disbursements.”
At the briefing, the chief financial officer said that 109 wilful defaulters have been identified and processed in line with central bank circulars.
Officials said deposits grew by 9 percent while loans increased by 5.5 percent, creating temporary pressure on net interest margins due to higher deposit costs. Overall performance is expected to improve further next year.
On recovery of mortgaged assets of the Hallmark Group, Showkat Ali Khan said legal proceedings are ongoing. “Tk300 crore has already been recovered from Hallmark,” he said.
