NBFI Depositors to Receive Refunds in Two Instalments

After years of financial uncertainty and instability, Bangladeshi depositors are finally set to recover their savings from failing non-bank financial institutions (NBFIs). The central bank has confirmed that nine NBFIs have been earmarked for closure or liquidation, and the process of returning deposits will commence imminently. With government funding now assured, the central bank has formally initiated the liquidation procedure.

According to estimates from the central bank, approximately BDT 50,000 crore will be required to fully reimburse depositors across these institutions. The government has formally pledged to provide these funds. Each institution will be overseen by an appointed administrator from the central bank, supported by two assistant officers. Once administrators assume control, the institutions will be formally declared closed, with all routine operations suspended.

Refunds will be disbursed in two phases, corresponding to the government’s staggered release of funds. The first instalment will be distributed as soon as government funding is received.

The nine affected institutions are: People’s Leasing, International Leasing, Bangladesh Industrial Finance Company (BIFC), FAS Finance, Aviva Finance, Far East Finance, GSP Finance, Prime Finance, and Premier Leasing. Several of these institutions—particularly People’s Leasing, International Leasing, BIFC, and FAS Finance—collapsed following large-scale financial scandals associated with PK Halder. Aviva Finance was also implicated in a major industrial finance irregularity.

Years of weak governance, inadequate oversight, and corruption had caused non-performing loans (NPLs) in the sector to skyrocket, with some institutions reporting NPLs exceeding 90 per cent of total loans. Consequently, thousands of ordinary depositors were unable to access their savings for extended periods.

The following table summarises the deposit positions of the nine NBFIs:

Once individual depositors have been repaid, administrators will gradually liquidate the institutions’ assets to satisfy institutional claims. The liquidation process will conclude under judicial supervision.

Analysts emphasise that the PK Halder scandal severely undermined public confidence in the NBFI sector. Nevertheless, the prioritisation of individual deposit refunds is widely viewed as a crucial step towards restoring financial stability and public trust.