Janata Bank incurs record Tk3,066cr loss in 2024
Special Correspondent :
State-run Janata Bank PLC has reported a staggering loss of Tk 3,066 crore for the year 2024, marking one of the largest financial setbacks in the history of Bangladesh’s banking sector. The loss comes as a sharp reversal from a modest profit of Tk 62 crore recorded in 2023.
According to the bank’s recently published financial statements, the loss per share (LPS) stood at Tk 132.51 in 2024, a drastic decline from the earnings per share (EPS) of Tk 2.68 in the previous year. The financial blow is primarily attributed to a dramatic fall in net interest income, which dropped from Tk 282.32 crore in 2023 to a net interest loss of Tk 3,042 crore last year.
The bank’s net operating cash flow per share also worsened significantly, falling to negative Tk 102.87 from negative Tk 31.21 a year earlier.
In response to the heavy loss, Janata Bank’s board of directors has decided not to declare any dividend for 2024.
Founded in 1972 and later corporatised as Janata Bank PLC in 2007, the bank is the second-largest commercial bank in Bangladesh in terms of deposits and assets. However, mounting default loans and governance concerns have pushed the institution into financial instability in recent years.
Economists and financial analysts have pointed to a severe erosion of fiscal governance, with many blaming the prolonged tenure of the previous Awami League government for fostering corruption and mismanagement in state-run institutions like Janata Bank.
“This situation reflects the darker side of financial governance,” said one analyst. “Immediate reforms are essential-not only to restore the bank’s profitability but also to rebuild trust among domestic and foreign investors.”
Stakeholders are calling for swift action to turn around the bank’s fortunes. Enhancing internal controls, recovering defaulted loans, and attracting foreign investment are being cited as critical steps toward stabilizing Janata Bank and ensuring its future as a profitable institution.
As of now, no official restructuring plan has been announced by the bank or the central government.