Crisis-ridden National Bank's financial woes have deepened further, as the bank's losses increased by a massive 145 percent year-on-year in the first quarter of 2024.

The loss amounted to Tk 766.29 crore.

National Bank's financials in the January-March period paint a grim picture, with the losses growing more than 13 times over the past three years.

The bank reported a loss of Tk 311.85 crore in the first three months of 2023 and another loss of Tk 56.94 crore in the corresponding period of 2022.

In a statement published on the Dhaka Stock Exchange website yesterday, the bank disclosed its consolidated loss per share to be Tk 2.38, up from Tk 0.97 in the corresponding period last year.

"During the period, the bank could not book interest on loans due to non-recovery from defaulters," said National Bank.

The bank also said it incurred higher interest expenses on deposits and borrowings.

National Bank's consolidated net asset value (NAV) per share tumbled to Tk 4.92 in the first three months of this year from Tk 11.92 in the corresponding period of last year, as per its unaudited financial statements.

The bank attributed an operating loss to the significant decrease in its NAV.

"Nevertheless, the new board and the new management are exerting maximum efforts to improve the financial health of the bank by streamlining recovery drives and mobilisation of low-cost deposits," added National Bank.

National Bank is the first fully-owned private bank in Bangladesh that began its journey in 1983. It flourished as one of the largest and most prominent private lenders in Bangladesh

However, its financial health started deteriorating after 2009 when Sikder Group took control.

In 2022 and 2023, the bank suffered a combined loss of Tk 4,758 crore, with a high amount of classified loans regarded as one of the factors behind the abysmal performance.

Default loans of National Bank accounted for 25 percent of the loans it had disbursed at the end of 2022.

Its classified loans stood at Tk 6,658 crore in 2022, accounting for 15.76 percent of the total loans and advances of the bank.

The prospect of a merger between National Bank and United Commercial Bank sparked panic among customers about the bank's financial stability, leading to a significant withdrawal of deposits recently.

On May 6, Bangladesh Bank dissolved the National Bank's board of directors, with Parveen Haque Sikder losing the post of director.

The restructuring came after the now-defunct board split over the bank's merger with United Commercial Bank.

Three independent directors, including the National Bank chairman, resigned over the issue.