State-owned Rupali Bank PLC reported a net loss of Tk168 crore for the July–September quarter of 2025, a sharp reversal from the Tk6 crore profit in the same period a year earlier.

The loss highlights the bank’s worsening financial health amid surging default loans and rising operating costs, according to officials familiar with the matter.

As per its unaudited financial statement, the bank’s loss per share stood at Tk3.44, compared with an EPS of Tk0.13 in the corresponding quarter of 2024.

During the first nine months of 2025, Rupali Bank posted a cumulative loss of Tk158 crore, down from a profit of Tk49.80 crore a year earlier. Its net asset value per share was reported at Tk32.17, while net operating cash flow per share came in at Tk128.19.

In a price-sensitive disclosure on the Dhaka Stock Exchange, the bank attributed its declining profitability mainly to a drop in interest income driven by a sharp rise in classified loans. The lender’s net interest income turned negative at Tk1,160 crore during January–September 2025, reflecting higher interest expenses than income.

The bank also incurred Tk550 crore in salaries and allowances, further straining its financial position. Following the earnings announcement, Rupali Bank’s share price plunged 9.84% to close at Tk17.40, erasing around Tk93 crore in market value in a single day.

Auditors MABS & J Partners and A Wahab & Co previously revealed that Rupali Bank had failed to recognize provisions worth Tk15,375 crore against bad loans in 2024. They warned that the shortfall materially distorted the bank’s profit, liabilities, and shareholders’ equity.

Although Bangladesh Bank allowed the state-owned lender to prepare its 2024 financial statements without fully recognizing the provision deficit, auditors noted the move was inconsistent with international accounting standards. As a result, Rupali Bank did not declare any dividend for 2024.

By the end of 2024, the bank’s non-performing loans (NPLs) surged 113% year-on-year to Tk21,357 crore, representing 41.6% of its total loan portfolio — one of the highest in Bangladesh’s banking sector.

The audit report also identified Blue Planet Group as the top defaulter with Tk1,029 crore in unpaid loans, followed by Beximco Group with Tk986 crore, and the Bangladesh Sugar and Food Industries Corporation with Tk907 crore.