Corporate
National Bank under provision deficit and intense financial crisis
Private Commercial National Bank has been suffering from severe financial crisis for two years. The bank is now planning to raise 100 million dollars or 1000 crores of funds from foreign sources through foreign bond issue to fulfill the regulatory capital requirements.
Meanwhile, Bangladesh Bank is planning to appoint an administrator to the bank, which is facing a provision deficit and financial crisis.
According to the data of Bangladesh Bank, the bank’s capital deficit at the end of June this year stood at Tk 300 crore and due to high non-performing loans, the bank also faced a huge provision deficit of Tk 7,115 crore in June. Provisions are funds set aside by banks to compensate for future losses.
According to information published on the Dhaka Stock Exchange (DSE) website on Sunday, the board of directors of the bank has decided to issue seven-year bonds worth $100 million in foreign currency subject to the approval of regulatory authorities.
National Bank will be the first private bank to issue foreign currency bonds to raise funds from foreign investors.
Managing Director of the bank. Mehmood Husain, when contacted, said the fund had to be raised due to high non-performing loans eroding the bank’s capital.
Mehmood Husain said that they are trying to collect funds from US and UK-based investors. Foreign funds are not just banks; He commented that it will be good for the country.
The board of directors of the bank has approved the foreign currency bond as we have received preliminary assurances from the foreign investors after informing them about the high non-performing loans and the current financial situation, he said. The main reason behind the investment by foreign investors is that the bank’s asset base is quite strong.
He said that he wants to reorganize the bank’s business strategy by focusing on the SME sector to get out of the dependence on corporate loans.
As part of this, the bank plans to strengthen its capital by raising funds from domestic and foreign sources. Earlier in May, the bank announced to raise Tk 500 crore from domestic sources by issuing subordinated bonds to meet regulatory capital requirements.
National Bank’s capital adequacy ratio (CAR) for risk-weighted credit exposure stood at 9.38pc in June, which is required to be at least 10pc as per the regulatory body’s conditions.
According to Bangladesh Bank, the bank’s capital deficit at the end of June this year stood at Tk 300 crore. Increasing defaults due to huge loan non-conformities squeeze the bank’s capital.
The bank’s non-performing loan ratio stood at 23.24pc in June, the second highest among private sector banks. The bank also faced a huge provision deficit of Tk 7,115 crore in June as a result of high non-performing loans.
Provisions are funds set aside by banks to compensate for future losses. High NPLs require banks to maintain higher provisioning, which is collected from profits.
A growing provisioning deficit erodes banks’ capital which constricts banks’ ability to lend, putting public money at risk.
The bank posted a loss of Tk 190 crore in the first six months of this year under the pressure of growing provision deficit and capital loss.
Even after Bangladesh Bank appointed an observer to the board of directors of the bank in 2014, the financial condition of the National Bank has been deteriorating for the past two years. The bank’s share price on DSE has remained below the face value of Tk 10 for the last two years due to deteriorating financial indicators.
Bangladesh Bank identified the bank as one of the 10 weakest banks after new governor Abdur Rauf Talukder took charge. In a recent press conference, the governor said about identifying 10 weak banks, the central bank will sit with them one-on-one to improve the condition of the banks.
Banks are classified on the basis of their capital shortfall, NPL ratio, provisioning and loan-deposit ratio.
The governor has already held a meeting with the owners and top management on the financial performance of the National Bank. The central bank is now planning to appoint an administrator to the bank, a Bangladesh Bank source said.
Bangladesh Bank suspended the loan operations of the bank in May last year in the context of liquidity crisis caused by huge loan irregularities.
The moratorium was later lifted in December when liquidity conditions improved. But even after the long moratorium, the central bank was forced to go into moratorium again in May this year due to the continued irregularities in the bank loans. However, this time Bangladesh Bank limited the credit sector by giving a partial suspension.
Corporate
Sanming University carries out unique winter vacation social practice activity in Southeast China’s Fujian Province
China Correspondent: To facilitate a profound comprehension of China’s esteemed traditional culture among international students and teachers and to promote cultural exchanges between China and other nations, Sanming University initiated a distinctive winter vacation social practice program titled “Drawing Wisdom from Classics of Chinese Thought and Telling Chinese Stories Well.”
From January 20 to 21, 2025, the School of Overseas Education (School of Foreign Languages) of Sanming University, in collaboration with the International Cooperation and Exchange Office, organized this event in Youxi County, Sanming City, Fujian Province, China. During the event, the delegation visited Guifeng Ancient Village, the Confucian Temple, the Zhuzi Cultural Garden, and other significant sites to gain hands-on experience and deepen their understanding.
The social practice team arrived at Guifeng Ancient Village in Youxi County on January 20. In the ancient village, the well-preserved ancient structures from the Ming and Qing dynasties are dispersed in an orderly fashion, each one containing a profound historical and cultural heritage. All participants walked along the ancient stone road and had the opportunity to explore traditional landmarks, including the Cai Clan Ancestral Hall and the Stone Seal House. They also gained insights into ancient family culture and architectural techniques. Furthermore, by interacting with the locals, they experienced the unique folk customs of Youxi and enjoyed its distinctive cuisine.
While exploring the ancient dwellings of Guifeng, Makhmudova Mushtariybegim, an international student from Uzbekistan, expressed a deep fascination with the daily life of the past. She shared that experiencing these historical residences firsthand provided her with valuable insights into the living conditions of ancient times. “The traditions here are truly captivating, offering a culture that feels both familiar and new to me,” she remarked.
On January 21, the social practice team visited the Confucian Temple and Zhuzi Cultural Garden in Youxi County. Within the Confucian Temple, all individuals experienced the grave ambiance of Confucian culture and gained a deeper understanding of the ancient education system and its protocols. At the Zhuzi Cultural Garden, they acquired a comprehensive understanding of Zhu Xi’s life, actions, philosophies, and beliefs. Zhu Xi, the preeminent figure of Neo-Confucianism during the Song Dynasty, has had a profound influence on both Chinese and global culture. The international students and teachers attentively listened to the explanations, scrutinized the artifacts, and acquired a comprehensive understanding of Zhu Xi culture.
Cheick Amadou Tidiane Ouattara, a foreign teacher from Mali, described his visit to the Youxi County Confucian Temple and the Zhuzi Cultural Garden with his students as an unforgettable cultural experience. He was deeply impressed by the solemn atmosphere of Confucian culture and gained a greater appreciation for the strictness of ancient Chinese education and etiquette. He also mentioned that the visit provided him with a deeper understanding of Zhu Xi’s life and philosophical beliefs. “Zhu Xi’s Neo-Confucianism had a profound influence on the development of the Chinese nation and extended beyond China. Its contribution to global culture is undeniable, holding a significant place in history,” he remarked.
According to Yu Shuiqing, a teacher at the School of Overseas Education (School of Foreign Languages) at Sanming University, this social practice activity not only enables international students to integrate more effectively into Chinese culture but also offers them a platform to exchange ideas, learn, and showcase themselves. “Sanming University will continue to hold more such activities to promote the exchange and integration of Chinese and foreign cultures, collaborate and cooperatively advance the preservation and advancement of China’s exceptional traditional culture in the future,” she added.
Over 20 teachers and students from Bangladesh, Mali, Nigeria, Indonesia, Mongolia, Uzbekistan, and Russia attended this distinctive winter vacation social practice activity.
Junior Chamber International (JCI) Dhaka West has officially announced the formation of its new executive committee for the upcoming year, 2025. The organization unveiled this dynamic group of leaders during a recent general assembly held on Tuesday, December 17th in Dhaka.
At the helm of this new committee is Sujaur Rahman Emon, who has been appointed as Local President, poised to lead the chapter into a promising year ahead. Assisting him in steering the organization’s goals is Executive Vice President (EVP) Subah Afrin and Md Imam Hasan, while S M Belal Uddin takes on the role of Immediate Past Local President (IPLP).
Other board members include Vice President (VP) Md Saddam Hossain, Md Tanvir Hasan, and Audrika Eshna Purbasha, Secretary General (SG) Ibrahim Khalil Foysal, Treasurer Md Sameen Rahman, General Legal Counsel (GLC) Jiban Ahmad, Training Commissioner Masud, Directors Daud Mahmud Aovin, Jeba Maliha, Arianul Islam, Shurovy Yeasmin, Ahmed Wazedul Haque Khan, and Md Sabbir Hasan, Executive Assistant to Local President Reyel Ahmed Opu, and Committee Chair Md Robiul Islam, Abdur Rahman Khan Bappy.
Mohammad Mahmudur Rahman, 2024 National Director of JCI Bangladesh and 2023 Local President of JCI Dhaka West, served as the Election Commissioner. Before announcing the new Executive Committee of JCI Dhaka West, the organization’s fourth General Members’ Meeting (GMM) for 2024 was held.
“We will put our full effort into spreading positive impacts through sustainable development initiatives across the nation,” said newly elected Local President Sujaur Rahmaan Emon.
Junior Chamber International (JCI) is a vibrant organization, comprising individuals aged between 18 and 40, known for their unwavering dedication to community service and development. The global headquarters of JCI is situated in St. Louis, Missouri, USA, and its impact extends to over 35 local chapters throughout Bangladesh. JCI Dhaka West proudly stands as the largest and most prominent among these local organizations.
The National General Assembly of Junior Chamber International (JCI) Bangladesh, an international organization for young leaders, has formed its new National Executive Committee for 2025. Arefeen Raafi Ahmed has been elected as the Deputy National President of JCI Bangladesh.
The General Assembly took place on Friday, December 6, at Hotel Le Méridien in Dhaka. After the assembly, elections were held to select the president and other executive committee members. The election process was overseen by former JCI Bangladesh President Md. Ziaul Haque Bhuiyan.
Upon being elected as Deputy National President, Arefeen Raafi Ahmed said, “My focus will be on empowering our members. Everyone possesses unique skills, talents, and perspectives that can contribute to JCI’s growth. I am committed to providing opportunities for skill development, mentorship, and networking, enabling each member to reach their full potential within our organization. Together, we can create a positive impact on our community, empower our members, and build a stronger, more connected JCI Bangladesh.”
Arefeen Raafi Ahmed holds a Bachelor’s degree in ICT (Information and Communication Technology) from Western Sydney University, Australia. He is the Executive Director of Techno Drugs Limited and the Managing Director of Pulse Tech Limited, a leading healthcare technology company in Bangladesh. He also serves as the Managing Director of GreenTech Holidays Limited, a travel and tourism-based company. Previously, he served as the Local President of JCI Dhaka Entrepreneurs in 2021, Vice President of JCI Bangladesh in 2023, and Executive Vice President of JCI Bangladesh in 2024. He has also been honored as a JCI Senator.
Junior Chamber International (JCI) is a global organization for young people aged 18 to 40. Headquartered in St. Louis, Missouri, USA, JCI operates in more than 120 countries with over 200,000 members worldwide. In Bangladesh, JCI currently has around 40 local chapters, working to foster personal development among young individuals by enhancing their skills, knowledge, and intellect.
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