Trading of shares of 3 NBFIs suspended after BB declares them non-viable

Dhaka Stock Exchange (DSE) has suspended trading of three non-bank financial institutions (NBFIs) after Bangladesh Bank (BB) declared them non-viable and started liquidation proceedings to protect depositors and restore discipline in the financial sector.

The central bank yesterday announced four NBFIs—Aviva Finance Ltd, Fareast Finance and Investment Ltd, FAS Finance and Investment Ltd, and International Leasing and Financial Services Ltd—as non-viable and appointed its own officials as administrators and associate administrators to oversee the process.

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Of them, only Aviva is not listed with the DSE, the main bourse.

The BB appointed administrators after dissolving the boards of directors of these NBFIs and declaring the posts of managing directors vacant.

The BB said its board had taken the decision following a comprehensive review of the financial health and recovery prospects of the four companies.

The BB cited acute capital shortfalls, alarming levels of classified loans and investments, persistent liquidity failures, sharp deterioration in earnings, and a total inability to honour obligations to depositors and creditors as the primary triggers for the intervention.

On August 9, the last day before the suspension of trading, shares of these three NBFIs were below Tk 2.5 each, well below their face value of Tk 10 each.