B Mirror Report : Bangladesh Bank has given four financially distressed non-bank financial institutions (NBFIs) three months to meet five key conditions aimed at restoring their financial health, warning that failure to comply will result in resolution proceedings under the Bank Resolution Act, 2026.

The institutions are Prime Finance & Investment Limited, GSP Finance Company (Bangladesh) Limited, Bangladesh Industrial Finance Company (BIFC) Limited, and Premier Leasing & Finance Limited.

According to Bangladesh Bank sources, the central bank has already sent letters to the four institutions outlining the required measures.

Under the directives, the institutions must raise fresh capital through their boards of directors and sponsor shareholders, ensure adequate liquidity, dispose of assets where necessary, intensify recovery of overdue loans, reduce non-performing loans (NPLs) to acceptable levels, and repay deposits owed to both individual and institutional depositors within the three-month period.

The central bank said it would immediately initiate resolution proceedings under the Bank Resolution Act, 2026 if the institutions fail to meet the conditions within the deadline.

To monitor progress, Bangladesh Bank has instructed the institutions to submit monthly progress reports to its Bank Resolution Department by the seventh day of every month.

Official data show that all four NBFIs are in a fragile financial position.

BIFC has an NPL ratio of 97.3 percent and accumulated losses of Tk 480 crore.

Premier Leasing & Finance Limited has Tk 984 crore in defaulted loans, representing nearly 75 percent of its total loan portfolio, while its accumulated losses have reached Tk 941 crore.

GSP Finance Company (Bangladesh) Limited has Tk 515 crore in non-performing loans, accounting for 59 percent of its total loans, and accumulated losses of Tk 339 crore.

Prime Finance & Investment Limited has Tk 534 crore in defaulted loans, equivalent to 78 percent of its total loan portfolio, with total accumulated losses standing at Tk 351 crore.

The move is part of Bangladesh Bank’s efforts to address persistent weaknesses in the non-bank financial sector and protect depositors by requiring troubled institutions to undertake corrective measures within a fixed timeframe.