Social Islami Bank Reports Record Loss of Tk 1,704 Crore in Nine Months

In the first nine months of the 2025 fiscal year (January-September), Social Islami Bank PLC has incurred a record loss of over Tk 1,704 crore. The bank, which has been listed on the stock exchange since 2000, has never before faced such a large-scale loss. In comparison, during the same period in the 2024 fiscal year, the bank reported a net profit of Tk 51 crore. This loss is revealed in the unaudited financial statements for the third quarter (July-September) of the bank.

According to the financial report, Social Islami Bank’s net loss after tax for the first nine months of the 2025 fiscal year amounted to Tk 704.48 crore. During the same period last year, the bank had posted a net profit of Tk 51.16 crore.

The primary causes of this significant loss were an increase in interest expenses and the formation of large provisions. During the January-September period, the bank had to pay Tk 2,444 crore in interest, a 32% increase compared to the same period last year. Of this amount, Tk 1,552 crore was paid to depositors, and Tk 891 crore was spent on loan interest. Additionally, the bank had to make provisions of Tk 401 crore against loans and advances. Furthermore, the bank suffered an operational loss of Tk 648 crore from its share investments, brokerage commissions, and other income sources.

Even after excluding the losses from interest income, the bank still incurred an overall loss of Tk 1,704 crore. Notably, in the first six months of the fiscal year, the bank had reported a loss of only Tk 469 crore. This indicates that in the last three months (July-September), the bank’s net loss rose to Tk 1,235 crore, compared to a loss of Tk 28.98 crore during the same period in 2024.

A senior official from the bank, speaking on condition of anonymity, attributed the severe losses to the sharp increase in funding costs. He explained that the high interest rates on deposits and loans were the main factors behind the losses. Additionally, the need to make provisions for loans at risk of becoming non-performing also contributed negatively to the situation.

In the 2024 fiscal year, the bank had posted a net loss of Tk 101.7 crore, which had prevented it from paying any dividends to its shareholders.

As of September 30, the bank’s accumulated losses, or retained earnings, stood at a negative Tk 1,809 crore.

Established in 1995, Social Islami Bank operates 180 branches, 236 sub-branches, and 375 agent banking outlets across the country. The bank also has several associate companies, including Social Islami Bank Securities, Social Islami Investment Limited, and Social Islami Foundation Hospital.

Since 2017, the bank has been under the control of the accused business conglomerate, S Alam Group. In the wake of a public uprising, the Bangladesh Bank dissolved the bank’s board in August 2024, appointing a new five-member board. According to the audited financial statements, as of December 31 of last year, the bank had a provision shortfall of Tk 20,994 crore.