ICB posts record loss of Tk1,213cr in FY25

Business Desk :

The Investment Corporation of Bangladesh (ICB), the state-owned financial institution, has reported a historic loss of Tk1,213 crore for the fiscal year 2024-25, marking the first time in its more than four-decade-long history that it has recorded such a deficit. The figures were disclosed at a board of directors meeting held on Tuesday.

Officials attributed the massive loss to a combination of higher provisioning, lower capital gains from the capital market, and the adverse effects of elevated interest rates. Analysts note that the rising cost of borrowing has put additional pressure on ICB’s investment portfolio.

Due to the financial setback, the corporation has announced that it will not declare any dividends for its shareholders for the fiscal year. This decision is likely to affect thousands of individual and institutional investors who rely on ICB’s dividend payments as a source of income.

Financial experts say the loss highlights the challenges faced by investment corporations in a volatile market. “ICB’s performance reflects broader economic pressures, including tightening monetary policy, interest rate hikes, and slower capital market activity,” said an investment analyst. “Recovering from such a loss will require strategic restructuring and careful portfolio management.”

The corporation has assured stakeholders that it is taking steps to stabilize operations, optimize investment strategies, and improve profitability in the coming fiscal year. Observers, however, remain cautious, pointing out that the recovery may take time given the current market conditions.