The Investment Corporation of Bangladesh (ICB), once a profitable state-owned institution, is now facing a severe financial crisis, with 20% of its total investments effectively turning into ‘junk’ shares, according to ICB Chairman Professor Abu Ahmed. In a recent interview, he attributed the crisis to a decade of mismanagement, corruption, and inefficient administration, which transformed the formerly profitable organization into a loss-making entity.

Professor Ahmed said that personal interests and investments in weak, distressed companies pushed ICB to the brink of collapse. To support the market, the corporation had previously borrowed high-interest loans from various banks under the directive of the BSEC, a decision that has now become a significant burden. He also criticized the lack of accountability, noting that some responsible individuals have left the country while others face anti-corruption cases, and suggested that the government could form a special investigation committee.

To keep ICB afloat, the government recently provided BDT 1,000 crore in loan assistance, following an earlier BDT 3,000 crore in April, bringing total support under the caretaker government to BDT 4,000 crore. These loans carry 5% interest with a 10-year repayment period and a one-year grace period. Of the previous BDT 3,000 crore, BDT 2,000 crore was used to repay loans, while BDT 1,000 crore was invested in the market. The newly received funds are being invested in high-dividend, “A”-category companies.

ICB’s current debt exceeds BDT 10,500 crore. Under pressure from former BSEC chairmen Professor Khairul Hossain and Professor Shibli Rubayat Ul Islam, the corporation had to take high-interest loans to support the market, and some officials were allegedly involved in poor investment decisions. Currently, Khairul Hossain is in the United States, while Shibli Rubayat is in prison.

Approximately one-fifth of ICB’s investments are now nearly worthless, with market values far below purchase prices. The overall market downturn has worsened the situation, as even good-quality shares have declined 30–50%. The audit report for the fiscal year ending 30 June 2025 shows a provisioning shortfall of over BDT 3,459 crore, up from BDT 3,179 crore the previous year. Despite extensions granted by the BSEC, ICB has been unable to meet the provisioning requirements.

In FY 2024–25, ICB posted a record net loss of BDT 1,214 crore, and the first quarter of FY 2025–26 already shows a loss of BDT 151 crore. Monthly interest payments on high-interest loans amount to BDT 90 crore, accounting for 94% of total income. Historically, ICB was profitable, earning an average net profit of around BDT 400 crore between FY 2009–10 and FY 2017–18. In FY 2017–18, profit was BDT 416 crore, but it dropped 85% to BDT 60 crore the following year. Over the next six years, average profits fell to just BDT 81 crore, culminating in the record losses of FY 2024–25.

The report highlights how years of mismanagement, high-risk investments, and rising debt have turned one of Bangladesh’s once-reliable financial institutions into a loss-making entity struggling to survive.