Written by The Banking Post
Dhaka, July 24: National Bank Ltd (NBL) posted a staggering Tk 7.63 billion loss for the April–June quarter of FY2025 — a 4.65-fold increase compared to the same period last year, as mounting non-performing loans (NPLs) and declining revenues deepen the bank’s financial troubles.
The bank’s loss reflects its deteriorating asset quality, with over 40% of its loan portfolio classified as non-performing, according to market analysts.
NBL’s net interest income turned negative, meaning it paid out more in interest than it earned — a key indicator of weak core banking performance.
Shrinking Revenues, Soaring Provisions
The bank is also facing a severe liquidity crunch, limiting its ability to earn from investments in government securities and equities. Other income streams also continued to shrink amid poor operational performance.
At the same time, provisioning requirements surged, driven by the sharp increase in defaulted loans.
In the six months to June, loss per share (LPS) rose to Tk 3.06, up from Tk 1.99 a year ago, reflecting the worsening financial health of the institution.
The situation has reached a critical point, with the bank’s liabilities now exceeding its assets, turning its net asset value (NAV) negative.
Market Reaction
Investors responded negatively to the results, with National Bank’s stock price falling 2.63% to Tk 3.70 on the Dhaka Stock Exchange (DSE) on Wednesday.
