B Mirror Report:  Shares of Bangladesh Industrial Finance Company (BIFC), a non-bank financial institution (NBFI), surged 633% in just over two months, according to Dhaka Stock Exchange data. The stock climbed from Tk0.9 on 14 January to Tk6.6 on 17 March, the last trading day before the Eid vacation.

This recent rally brought BIFC shares back to levels last seen nine months ago, when the stock was traded in the Tk6-7 range.

BIFC’s shares had plummeted below Tk1 for the first time in the history of the capital market due to prolonged financial weakness and investor concerns over potential liquidation by Bangladesh Bank. By mid-2025, discussions had begun on liquidating weak and scam-hit NBFIs to protect depositors’ interests, prompting continuous sell-offs. The stock eventually dropped to Tk0.9.

After Bangladesh Bank allowed BIFC three months to improve its financial condition, the share price began a sharp recovery, rising for nearly 22 consecutive trading days from Tk0.9 to Tk3.9. Following a brief correction, the stock resumed its upward trend, climbing to Tk7.2 before moderating and closing at Tk6.6 on 17 March.

The company’s auditor reported that BIFC has been incurring losses for several years, accumulating a total loss of Tk1,425.45 crore as of December 2024. Its total liabilities exceeded assets by Tk1,269.68 crore. The auditor noted that a material uncertainty exists regarding the company’s ability to continue operations unless capital is raised or liquidity is improved through equity support or long-term loans.

The auditor also highlighted non-compliance with regulations, stating that BIFC failed to maintain a required 1.5% cash reserve ratio on term or fixed deposits, excluding deposits from banks and financial institutions.