Phoenix Finance and Investments has reported a staggering loss of Tk1,323 crore from 2021 to June 2024, essentially attributed to the fallout from mortgage scams that plagued the non-bank financial institution, based totally totally on the firm insiders.
In 2021, the firm reported a loss of Tk35 crore, which escalated to Tk138 crore in 2022 and extra surged to Tk705 crore in 2023.
At the tip of the closing one year, its earnings per portion used to be Tk42.52 negative, which used to be Tk8.36 negative a one year in the past.
This one year, the firm has already incurred a loss of Tk444 crore in the important half, representing a 99% amplify in comparison with the the same duration closing one year.
Within the important half of this one year, its loss per portion stood Tk26.74, which used to be Tk13.47 a one year in the past at the the same time.
On account of the mounting losses, its board of directors would possibly maybe per chance well furthermore now not counsel any dividend to its shareholders for the closing one year, based totally totally on the worth-sensitive assertion filed on the Dhaka bourse.
A senior officer from the firm, speaking on condition of anonymity, shared with TBS that the firm once loved a stable popularity in the industry under the leadership of its unhurried promoter, Deen Mohammad. All the plot in which thru his tenure, the firm obtained the present Global Star Award for Quality (ISAQ) in the gold class from Industry Initiative Directions, an spectacular change organisation based totally mostly in Madrid, he mentioned.
“Alternatively, Deen Mohammad passed away in 2021, and sooner than his death, he used to be unable to steer Phoenix Finance because of declining health,” he mentioned.
The officer powerful that his successor has now not been ready to fetch his shoes, which in the fracture led the firm’s damaged-down managing director, Intekhab Alam, to allegedly change into interested by mortgage scams. “This has resulted in a mounting burden of defaulted loans and a severe deterioration in the firm’s financial health,” he mentioned.
In December of closing one year, the Bangladesh Bank removed Intekhab from his situation on payment of violations of lending guidelines. Furthermore, the central bank imposed restrictions on his abroad commute.
Per the central bank letter, Intekhab used to be came across to be inquisitive in regards to the mortgage irregularities, which hampered depositors’ trust.
Mortgage irregularities at Phoenix Finance absorbing borrower firms SA Oil Refinery and Aman Cement Mills Unit-2, Monospool Paper Manufacturing Company, Mahin Enterprises Restricted, Mc Steel Industries alongside with particular particular person borrowers — Najma Parveen and Farhan Musharraf —prompted the central bank to characterize Phoenix Finance to habits a thorough interior investigation and take decisive administrative and true circulation in opposition to those implicated, mentioned the letter.
For the time being, Phoenix Finance is governed by two shareholder directors and one self sustaining director. Mohammed Mohsin serves as the chairman of the firm, whereas Meherun Haque represents Phoenix Insurance protection as a nominated director.
Mohsin rapid TBS that the firm’s default loans elevated because of astronomical borrowers failing to impact their repayments. This has resulted in major losses as the firm is required to retain excessive provisions, he mentioned.
Phoenix Finance shares are classified under the Z class, recurrently customarily known as the junk class. On Thursday, its portion designate elevated by 5.56%, reaching Tk5.70 on the Dhaka Stock Change.
