The Investment Corporation of Bangladesh (ICB), a significant player in the nation’s capital market and non-bank financial institutions, faces a deepening financial crisis due to floor price restrictions preventing the sale of its shares. The ICB reported a substantial loss of Tk236 crore in the first quarter of the current fiscal year, an unprecedented occurrence for the state-owned entity. The primary cause is the lack of buyers for Tk15,000 crore worth of shares stuck at floor prices. The ICB struggles to return funds to customers, including matured fixed deposits, further exacerbating its financial challenges.
Abul Hossain, Managing Director of the ICB, emphasizes that the removal of floor prices is crucial to improving the situation. He acknowledges the difficulty in meeting customer obligations due to diminished capital gains resulting from the inability to sell shares at favorable prices. Hossain mentions that the ICB is selling shares as soon as buyers are found, citing recent sales of shares in listed banks.
The financial report for the first quarter of FY24 reveals a 90% drop in capital gains to Tk15.78 crore, compared to Tk157 crore in the same period last fiscal year. Profits have been steadily decreasing, with a 49% drop to Tk77 crore in FY23. The ICB’s financial struggles extend to repayment difficulties as it faces challenges acquiring new funds from various sources.
The ICB’s outstanding debts, including Tk89 crore to BSCIC and funds stuck at non-bank financial institutions, have prompted warnings of legal action. The corporation is seeking the assistance of the central bank to recover funds stuck at NBFIs, and efforts to find buyers for shares in Padma Bank are underway.
