Many banks in Bangladesh are reporting half-year operating profits for the period ending in June without net accounting, with some banks showing profits up to Tk 550 crore. However, stakeholders caution that these figures could turn into losses when dues, taxes, and security reserves are accounted for.
For instance, Sonali Bank’s operating profit for the first six months of 2024 is Tk 2,260 crore, up from Tk 1,680 crore last year. Similarly, Rupali Bank reported a profit of Tk 450 crore, compared to Tk 320 crore in the same period last year. These figures may decrease significantly after accounting for other liabilities.
Economists question the reported profit growth, citing decreased imports, sluggish export and remittance growth, increasing defaulted loans, and liquidity issues. Officials emphasize that higher operating profits do not indicate a healthy banking sector. True financial health is measured by net profit after setting aside provisions and paying taxes.
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