Janata Bank Reports Tk3,931cr Loss

State-owned Janata Bank has reported a loss of Tk3,931 crore for the financial year 2025, marking a 28 per cent increase compared with the previous year, according to its audited financial statements. The results point to a continued deterioration in the bank’s financial performance, particularly in profitability and asset quality indicators.

The audited accounts show that the bank’s net asset value per share has declined further into negative territory, recorded at Tk108.51 per share. Net asset value per share is a measure of a bank’s underlying worth per share, calculated by dividing net assets after liabilities by the number of outstanding shares. A negative figure indicates that total liabilities exceed total assets on a per-share basis, reflecting significant pressure on the institution’s capital position.

A key factor behind the widened loss was a substantial negative net interest income, which stood at Tk5,903 crore. Net interest income represents the difference between interest earned from lending and investments and interest paid on deposits and borrowings. A negative figure indicates that interest expenses have exceeded interest income, suggesting a structural imbalance in the bank’s core earnings activity during the reporting period.

The financial strain was further intensified by a sharp increase in classified loans, which reached Tk72,800 crore by the end of 2025. Classified loans are those identified as impaired or at risk of default and are generally categorised as substandard, doubtful, or bad. A higher volume of such loans typically leads to increased provisioning requirements, which in turn reduces reported profits and places additional pressure on capital adequacy.

Earnings performance per share also reflected the worsening position. The loss per share increased to Tk169.90 in 2025, indicating the extent of net loss attributable to each outstanding share of the bank. This measure is widely used to assess the impact of financial performance from a shareholder perspective.

The key audited indicators for 2025 are summarised below:

The audited results highlight ongoing challenges in the bank’s financial structure, particularly in managing non-performing loans and sustaining positive interest margins.