B Mirror Report: Peoples Leasing and Financial Services Limited is making gradual efforts to recover from a prolonged financial crisis through an ongoing restructuring process under court supervision and close monitoring by Bangladesh Bank. The company says government financial support will be crucial for a full turnaround.

In a recent explanation submitted to the Dhaka Stock Exchange (DSE), the company outlined its current progress and future plans. In the letter signed by Managing Director Md. Sagir Hossain Khan, it said that following a High Court directive issued on July 12, 2021, steps have been taken to restructure the board, safeguard depositors’ interests, and restore financial stability.

Over the past five years, the company has recovered around Tk 2 billion from defaulted loans. During the same period, about Tk 1 billion has been repaid to depositors, with the third phase of repayments currently underway.

According to the company, irregularities under previous management, weak corporate governance, and a high level of non-performing loans were the main causes of its financial crisis. A forensic audit has also identified significant liabilities against former directors. As part of its recovery plan, the company has applied for around Tk 7.5 billion in financial assistance from the government, with a recommendation already forwarded to the Ministry of Finance through Bangladesh Bank.

As part of restructuring, the company has taken various measures, including loan rescheduling, one-time settlements, legal actions for loan recovery, and cost-cutting initiatives. These steps are aimed at reducing operating expenses and restoring financial discipline. With court approval, limited business operations have resumed, and approximately Tk 250 million in fully secured loans has already been disbursed. There are also plans to expand SME and secured lending operations.

The company is also considering liability restructuring through debt-to-equity conversion, verification of shares held by former sponsors, and settlements with stakeholders. All pending annual general meetings (AGMs) from 2019 to 2025 have been completed with court approval, and the company is currently operating under strict regulatory supervision.

Managing Director Md. Sagir Hossain Khan said the company has claims of around Tk 15 billion against four former directors, as identified in the forensic audit. Legal steps have been taken to recover the funds, which he believes could significantly accelerate the company’s recovery if realized.

Market analysts say that continued restructuring efforts and ensuring transparency could help the company gradually regain investor confidence. However, sustainable recovery will depend on financial support, strong management, and effective oversight.

According to the latest financial data, the company did not declare any dividend for the year ended December 31, 2024. It last issued a 10 percent bonus dividend in 2014. As of December 31, 2025, the company reported a loss per share of Tk 14.95. Its net operating cash flow per share was negative Tk 0.22, while net asset value per share stood at negative Tk 149.50.

Listed on the stock market in 2005, the company is currently in the ‘Z’ category. Its paid-up capital stands at Tk 2.854 billion, with a total of 285.44 million shares. As of March 31, 2026, sponsors hold 18.15 percent of shares, institutional investors 9.22 percent, foreign investors 0.65 percent, and general investors 71.98 percent.

Under the Bank Resolution Ordinance, 2025, Bangladesh Bank has decided to liquidate nine weak financial institutions due to high non-performing loans, capital shortages, and failure to repay depositors, with Peoples Leasing among them.