Loss-Hit Institution: Stop fresh funds for ICB gets mounting pressure
Muhammad Ayub Ali :
The Finance Ministry has decided to stop providing fresh debt repayment funds to the state-owned Investment Corporation of Bangladesh (ICB), intensifying pressure on an institution already burdened by years of mounting losses.
The ministry’s decision came after reviewing ICB’s financial performance, particularly its record Tk 12,000 crore loss in the 2024–25 fiscal year.
The government injected into around Tk 3,000 crore to the ICB in December last year, two-thirds went towards repaying loans, while the remainder was used for market investments.
In its latest appeal, ICB sought Tk 13,000 crore in new funds as a final attempt to stabilise its finances.
The Investment Corporation of Bangladesh (ICB) posted a consolidated loss of Tk153.22 crore in the July–September quarter of the current fiscal year, largely due to steep drops in interest income, dividend earnings and capital gains from securities sales.
Once a consistently profitable state-run investment agency, ICB had already reported a Tk75.29 crore loss in the same quarter last fiscal year.
However, the ministry has formally declined the request, saying the corporation must now rely on market-based earnings and investment returns to manage its operations.
ICB Managing Director Niranjan Chandra Debnath told the media, “The Finance Ministry’s message is very clear no more funds are coming. The Tk 3,000 crore we received earlier helped us settle all lender dues, but with new support now halted, the path ahead has become even more challenging.”
He added that ICB currently pays Tk 900 crore in monthly interest, nearly double the previous amount. Meeting this obligation solely from stock market earnings, dividends, and returns from older investments has become increasingly difficult. With government support now unavailable, ICB will have to shoulder the entire debt burden on its own.
Officials acknowledge that the chances of ICB receiving fresh funds in the near future are slim. ICB’s current leadership attributes its financial collapse to the former board’s mismanagement poor investment choices, funding of weak companies, and inflated subsidiary expenses. The new board insists that such misuse of funds will not be repeated.
A major structural challenge for ICB stems from its loan mix: large volumes of low-interest government loans combined with high-interest borrowings from commercial banks. This combination has left the corporation spending an enormous amount on interest payments each month.
Experts warn that without new capital support, ICB’s situation may worsen. They recommend shifting to market-driven investments, aggressive cost-cutting measures, and restructuring of subsidiary operations to prevent further deterioration.
“We will try to recover with our own capabilities,” the MD said. “The government will observe our progress, and only then will further decisions be considered.”