The once-stable Investment Corporation of Bangladesh (ICB), long regarded as the government’s most reliable and steady financial institution, is now facing the worst crisis in its history after years of reckless borrowing, inflated share purchases, and severe erosion of asset value.

The state-owned market stabiliser posted a record Tk1,214 crore loss in FY25 and an additional Tk151 crore loss in the first quarter of FY26, while nearly Tk5,000 crore in portfolio value has evaporated. ICB Chairman Abu Ahmed acknowledged that the institution “cannot survive in its current form,” blaming previous boards for borrowing heavily and buying overpriced shares to benefit vested interests, with market manipulators allegedly using ICB as a “pump-and-dump outlet.” Managing Director Niranjan Chandra Debnath said losses stem from enormous provisioning needs, deep portfolio damage, and soaring interest costs, with monthly interest payments now at Tk90 crore and 94% of ICB’s income consumed by debt servicing.

Portfolio analysis shows catastrophic losses in shares purchased mainly between 2015 and 2017, including Renata—where a Tk900 crore investment now reflects a Tk521 crore loss—and Ifad Autos, where Tk265 crore invested has shrunk by Tk211 crore.

Borrowing surged from Tk5,734 crore in 2015 to a peak of Tk13,456 crore in FY20, leaving the institution trapped under Tk13,030 crore in liabilities, including Tk12,027 crore in loans and Tk1,003 crore in unpaid interest. ICB also cannot recover over Tk1,000 crore in fixed deposits stuck with banks and non-bank financial institutions.

Former BSEC chairman Faruq Ahmad Siddiqi said the institution lacked transparency and accountability in its investments and called for investigations into possible collusion between ICB officials and market manipulators. Internal reviews found Tk2,900 crore in shares purchased under one official’s tenure are now worth only Tk1,300 crore.

Though ICB has received Tk3,000 crore in low-cost loans from Bangladesh Bank—and now seeks Tk13,000 crore in government support—it warns that without major restructuring, the institution may not survive. Several former officials are already under Anti-Corruption Commission scrutiny as the full scale of mismanagement and improper investments continues to surface.