National Bank Ltd (NBL) reported a consolidated loss of Tk 763 crore in Q2 2025, more than four times higher than the Tk 180 crore loss in the same period last year, driven by mounting loan defaults and rising deposit costs. Its loss per share rose to Tk 2.37, while net operating cash flow per share fell deeper into negative territory at Tk 9.26 for the first half of 2025. With total H1 losses nearing Tk 985 crore, analysts warn that unless loan recovery and cost management improve, the bank’s financial health could further deteriorate, raising regulatory and investor concerns.
National Bank’s second-quarter performance took a major hit as mounting defaulted loans and rising interest payouts on deposits eroded its profitability.
The bank struggled to recover dues from chronic defaulters, further straining its balance sheet.
Analysts warn that unless recovery efforts improve and cost controls are tightened, the downward trend may continue in the coming quarters.
National Bank’s Losses Soar to Tk 763cr in Q2 Amid Rising Defaults and Deposit Costs
National Bank Ltd (NBL) suffered a severe financial setback in the second quarter of 2025, posting a consolidated loss of Tk 763 crore—over four times higher than the Tk 180 crore loss it recorded in the same period a year earlier. The bank’s financial troubles have deepened primarily due to its persistent failure to recover loans from defaulters and a sharp rise in interest expenses on deposits and borrowings.
According to a disclosure published on the Dhaka Stock Exchange (DSE) website today, NBL’s loss per share (LPS) stood at Tk 2.37 in the April–June period, compared to a restated LPS of Tk 0.51 during the same quarter of 2024. The growing losses underline the bank’s weakening financial fundamentals and the increasing burden on shareholders.
This marks a continuation of a worrying trend, as the bank had already incurred a loss of Tk 222.16 crore in the first quarter (January–March) of 2025. Consequently, the total loss for the first half of 2025 now stands at nearly Tk 985 crore.
The bank's consolidated net operating cash flow per share (NOCFPS) for the January–June period was negative Tk 9.26, further deteriorating from negative Tk 7.95 during the same period last year. This indicates a shrinking ability to generate cash from core banking activities, a red flag for both investors and regulators.
NBL attributed the growing losses to its inability to recognize interest income on a large portion of its loan portfolio, as a significant number of borrowers continue to default. In addition, higher borrowing costs and increased interest payments on customer deposits have put further pressure on its margins, leading to a substantial operating loss.
As of June 30, 2025, the shareholding structure of the bank reflected limited sponsor confidence, with sponsors and directors holding only 15.54 percent of total shares. Institutional investors held 38.23 percent, foreign investors 0.36 percent, and the general public owned the remaining 45.87 percent.
Financial analysts warn that unless urgent reforms are introduced—particularly in loan recovery mechanisms and deposit cost management—NBL's earnings and asset value could continue to decline, potentially triggering regulatory scrutiny and further erosion of investor confidence.
