Union Bank PLC once tightly controlled by the scandal-ridden S Alam Group — has reported an unprecedented loss of Tk25,794 crore for 2024, marking the largest annual financial collapse ever recorded by a bank in Bangladesh.
The audited results, disclosed to the Dhaka Stock Exchange today, expose the extent of damage accumulated through years of concealed toxic lending, inflated asset reporting and financial manipulation. The staggering loss has pushed the bank’s net asset value (NAV) deep into negative territory, effectively wiping out shareholder equity and raising dire questions about the institution’s solvency.
According to bank insiders, Union Bank’s loss per share surged to Tk248.91 in 2024, a dramatic rise from Tk2.82 in the previous year. The audit — conducted by Syful Shamsul Alam & Co under direct instruction of Bangladesh Bank — shows the bank’s NAV per share collapsing to negative Tk237.44, equivalent to nearly Tk24,600 crore in negative equity. In 2023, NAV had been positive at Tk11.66.
Banking analysts note that a negative equity level of this magnitude is a clear indicator of insolvency, meaning the bank’s liabilities far exceed its total assets. Even a full liquidation would fail to protect depositors, leaving the bank’s shareholder equity effectively worthless.
Operational performance has also deteriorated sharply. Net operating cash flow per share fell to negative Tk22.09 — around Tk2,290 crore — nearly 80 times deeper than the previous year. Such severe negative cash flow signals that the bank is spending far more on deposit costs, interest expenses and overhead than it can recover through lending or investments.
Although the bank has not yet released its full 2024 annual report, its September 2024 quarterly statement showed Tk27,876 crore in outstanding loans against Tk28,718 crore in total liabilities.
Humayun Kabir, the bank’s former managing director who joined in March 2025 before resigning after an administrator was appointed, told The Business Standard that non-performing loans exceeded 97% during his tenure. He said auditors likely recalculated provisions, resulting in the massive losses, but declined to comment on the final figures.
Union Bank administrator Mohammad Abul Hashem told TBS, “We identified the actual loss considering all required provisions against bad loans and investments as the bank is going to merge.”
The collapse follows extensive revelations uncovered after the fall of the Sheikh Hasina government in August 2024. A Bangladesh Bank investigation later confirmed that Union Bank — licensed in 2013 under political influence — had for years concealed its true financial health, artificially reducing default rates while issuing extraordinary volumes of loans to S Alam Group.
Regulatory findings reveal that S Alam Group and its affiliates borrowed Tk20,634 crore through 283 companies, accounting for 72% of Union Bank’s total lending — most of which remains unpaid.
The crisis deepened when the new board challenged the 2023 audit, which had falsely shown Tk160 crore profit and recommended a 5% cash dividend. A re-audit later revealed the bank actually incurred a Tk288 crore loss that year, further exposing systemic manipulation.
Earlier this month, the Bangladesh Bank declared Union Bank ineffective, appointed an administrator and announced its merger with four other Islamic banks — Social Islami Bank, Exim Bank, First Security Islami Bank and Global Islami Bank. Trading of Union Bank’s shares remains suspended.
At the 5 November merger announcement, Bangladesh Bank Governor Ahsan H Mansur said shares held by directors and general investors of the five Islamic banks now hold zero value.
“Shareholders will not get compensation as net asset value against Tk10 face value became negative — up to Tk450 per share for some banks,” he said.
