B Mirror Report: Uncertainty has emerged over the recovery of Tk 193 crore in fixed deposits (FDRs) held by state-owned, listed company Padma Oil Limited, as the funds remain tied up in financially distressed private Islamic banks.

According to the company’s latest audited financial statements for FY2024–25, the deposits are placed in five Shariah-based banks that are grappling with high non-performing loans and liquidity stress. The company’s auditor has warned that the recovery of these funds now faces significant risk.

The report noted that the financial weakness of the banks, along with ongoing merger processes with other institutions, may make it difficult to realize the deposits.

Data show that Padma Oil placed a total of Tk 193 crore as FDRs in five crisis-hit banks reportedly influenced by S Alam Group. Of the total, Tk 81 crore is with EXIM Bank, Tk 79.53 crore with Global Islami Bank, Tk 55.86 crore with Union Bank, Tk 35.58 crore with First Security Islami Bank, and Tk 16.03 crore with Social Islami Bank.

Bangladesh Bank has already moved to merge these banks due to their deteriorating financial condition and rising defaulted loans. As a result, liquidity shortages have prevented the encashment of the deposits, sources said.

Padma Oil authorities have reportedly written to the concerned banks seeking repayment, but have received no response due to the ongoing cash crunch.

Auditors have cautioned that there is a high risk associated with recovering the funds and suggested that potential losses should be reflected in the company’s financial statements in line with international accounting standards.

Commenting on the issue, Company Secretary Ali Absar said the banks are now operating under new structures following mergers, and there remains a possibility of recovering the funds through future schemes. He also expressed hope that the new government is looking into the matter.

Padma Oil Limited, listed on the stock exchange in 1976, has a paid-up capital of Tk 98.23 crore, with 47.59 percent of its shares held by general investors.