Struggling non-bank financial institution Midas Financing PLC is facing a severe liquidity crunch to meet depositors’ requirements, highlighting an urgent need for adequate liquidity arrangements to restore customer confidence, according to its statutory auditor.
In the auditor’s report for the year ended 31 December 2025, AKM Kamrul Islam, managing partner of Islam Aftab Kamrul & Co, Chartered Accountants, highlighted critical financial distress under an “Emphasis of Matter” paragraph.
The report revealed that Midas Financing holds lease, loan, and advance portfolios totalling Tk788.82 crore. Of this amount, non-performing or classified loans stand at Tk432.47 crore – accounting for over 54% of its total loan book – while unclassified loans account for Tk356.35 crore.
To cover potential losses, the Bangladesh Bank mandated a provision shortfall of Tk25.98 crore against 41 individual lease, loan, and advance accounts, along with Tk6 crore in other general provisions.
Following an appeal by the non-bank financial institution, the central bank issued a letter on 22 June 2023, allowing Midas Financing to adjust the provision shortfall over five years starting from 2022.
The financial statement highlights significant capital and operational erosion. For 2025, the institution reported a net interest loss of Tk46.87 crore, a total operating loss of Tk46.36 crore, and a massive net loss after tax reaching Tk335.29 crore.
Furthermore, its Capital to Risk-Weighted Assets Ratio faces a shortfall of Tk350.07 crore, leaving shareholders’ equity in the negative at Tk266.01 crore as of 31 December 2025.
The auditor also noted a compliance lapse regarding Tk9.61 lakh presented under unclaimed dividend payables, which contradicts Bangladesh Securities and Exchange Commission directives requiring unclaimed dividends to be reported as a separate line item.
