Bangladesh Bank has sought Tk 27.06 billion from the government to repay depositors of nine non-bank financial institutions (NBFIs) facing financial difficulties due to irregularities and loan fraud.

Of the total amount, the central bank has requested Tk 14.50 billion on an urgent basis to repay depositors of four institutions, while another Tk 12.57 billion will be required for the remaining five institutions.

The central bank recently sent a letter to the Finance Division under the Ministry of Finance seeking the funds.

According to the letter, Bangladesh Bank’s board of directors has approved a deposit repayment framework to protect depositors’ interests. Under the framework, deposits of up to Tk 1 million will be repaid in full, while the repayment rate will gradually decline for larger deposits.

On October 27, Bangladesh Bank’s board decided to bring nine troubled financial institutions under the resolution process in accordance with the Bank Resolution Ordinance, 2025.

Of these, four institutions International Leasing, Aviva Finance, FAS Finance and Far East Finance have been brought under the resolution process, excluding People’s Leasing, whose liquidation case is pending before the court.

Administrators and assistant administrators have been appointed to oversee the four institutions.

Meanwhile, Bangladesh Bank has given three months to Prime Finance, GSP Finance, Bangladesh Industrial Finance Company (BIFC) and Premier Leasing to demonstrate their business viability by taking corrective measures.

According to Bangladesh Bank estimates, Tk 14.50 billion is required to repay depositors of the four institutions. Of this amount, Tk 11.67 billion is earmarked for individual depositors, Tk 1.90 billion for provident and employee welfare funds, Tk 423.5 million for trust funds and Tk 502.9 million for cooperative funds.

Among the four institutions, Aviva Finance requires the highest amount at Tk 7.45 billion, followed by International Leasing at Tk 5.51 billion. FAS Finance and Far East Finance require Tk 849 million and Tk 693.4 million, respectively.

The remaining five institutions will require approximately Tk 12.57 billion.

Of this amount, Tk 7.12 billion will be needed to repay depositors of People’s Leasing. A separate proposal for fund allocation will be submitted after the institution receives a favourable court verdict.

The other four institutions, which have been given three months to implement corrective measures, may require an additional Tk 5.45 billion for depositor repayments in the future.

Prime Finance may need Tk 3.77 billion, GSP Finance Tk 588.2 million, Premier Leasing Tk 577.2 million and BIFC Tk 518.7 million.

Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan said most loans provided by these institutions had been disbursed under fictitious names or through questionable arrangements.

He added that the institutions had insufficient collateral against their loans, limiting opportunities to recover significant amounts by selling assets or office properties. However, legal proceedings to recover loans and assets would continue.

As repayment of depositors’ money is an urgent priority, the central bank has initially sought the entire amount from the government. Any funds subsequently recovered through loan collection and asset sales will be adjusted against the government allocation, he added.