The financial position of three state-owned oil marketing companies Jamuna Oil, Padma Oil, and Meghna Petroleum has come under serious threat. Their auditors have expressed deep concern after fixed deposits (FDRs) totaling Tk 2,340 crore, kept in five troubled banks, became stuck. According to the audit report for the fiscal year 2024–25, several FDRs have already matured, but the banks’ severe liquidity crisis has made it impossible to release the funds.
The FDRs are stuck in First Security Islami Bank, Exim Bank, Global Islami Bank, Social Islami Bank, and Union Bank all of which have recently been merged and are now operating under the name Combined Islami Bank. Jamuna Oil faces the highest exposure, with Tk 1,460 crore stuck. This includes Tk 720 crore in First Security Islami Bank, Tk 432 crore in Global Islami Bank, Tk 289 crore in Union Bank, and additional amounts in other banks. Meghna Petroleum has Tk 540 crore stuck, while Padma Oil has Tk 339 crore trapped.
These FDRs, earning 10–12.5% interest, had long been the main source of profitable non-operating income for the companies. Now, they have turned into a major financial threat. Audit reports from several top firms noted that the banks were merged because of a severe liquidity crisis, yet there has been no real progress in returning the principal amounts of the oil companies’ FDRs. Auditors have warned that these investments now fall under the high-risk category, and without making credit-loss provisions as per international financial reporting standards, the companies’ assets may appear overstated.
A review of the stuck deposits shows: Jamuna Oil Tk 1,460 crore; Meghna Petroleum Tk 540 crore; and Padma Oil Tk 339 crore, all uncertain in terms of recovery. Company officials said that since these troubled banks have now been merged under government oversight, the recovery of funds depends largely on government decisions. They also noted that previous management under political influence and lobbying had placed massive FDRs in these banks, for which the current management is now bearing the burden.
Market analysts believe the state-owned oil companies have become overly dependent on interest income instead of their core business, creating a weak and risky business model. Placing huge deposits in high-risk banks without proper risk assessment could affect future profitability and their ability to pay dividends.
Meanwhile, the newly formed Combined Islami Bank has begun operations with a paid-up capital of Tk 35,000 crore, of which Tk 20,000 crore is being provided by the government and the remaining Tk 15,000 crore is coming from converting deposits into shares. Bangladesh Bank has assured that depositors’ money is protected, with the first Tk 2 lakh guaranteed under the Deposit Protection Ordinance. However, the question remains: when will the oil companies be able to recover their huge stuck funds?
