Sikder Insurance Company Ltd’s financial management has come under scrutiny after its auditor raised concerns over investments, deposits in financially weak banks and the delayed use of funds raised through an initial public offering (IPO).

According to the company’s 2025 financial statements, Sikder Insurance held FDRs worth Tk22.17 crore with various banks and financial institutions at the end of the year, compared with Tk22.26 crore a year earlier. A portion of the deposits was placed with banks facing financial difficulties.

The largest FDR, worth Tk10.81 crore, was held with National Bank. The company also had deposits of Tk2.47 crore with EXIM Bank, Tk1.39 crore with Islami Bank Bangladesh, Tk97 lakh with Social Islami Bank, Tk1 crore with Southeast Bank, Tk10 lakh with Union Bank, Tk50 lakh with AB Bank and Tk9 lakh with Bangladesh Commerce Bank.

The auditor drew attention to management’s assessment regarding whether the amounts placed in these deposits would ultimately be recoverable.

The auditor also raised concerns over the company’s compliance with the Non-Life Insurance Asset Investment and Preservation Rules, 2019, saying Sikder Insurance had not invested its assets in accordance with the regulations. The auditor also expressed reservations about the accounts related to loans and advances.

The company had investments in 16.17 crore shares in the stock market at the end of 2025, with a reported cost of Tk110.43 crore. Their market value stood at around Tk84.60 crore, resulting in a shortfall of approximately Tk25.83 crore against the investment cost.

Concerns were also raised over the company’s Workers’ Profit Participation Fund (WPPF). No new provision was made for the fund in 2025, while the previously accumulated Tk79 lakh remained undistributed. The company said discussions between the Insurance Development and Regulatory Authority (IDRA) and the relevant ministry over the application of the WPPF in the insurance sector were ongoing.

The auditor also noted that the company had raised funds through an IPO in the previous year but failed to use the proceeds within the stipulated three-month period.

The combination of regulatory concerns over investments, significant FDRs with financially weak banks and the delayed utilisation of IPO proceeds has raised questions over Sikder Insurance’s financial management. Attempts to contact the company secretary, Abdur Razzaq, for comments were unsuccessful.