Merchant Bank GSP Investment is facing a major loss, as it is owed BDT 395 crore in margin loans from 275 clients, while the market value of shares in their accounts is only BDT 33.68 crore. This leaves the bank with a loss of over BDT 361 crore if all shares are sold. GSP Investment is a subsidiary of the financial institution GSP Finance, and the audit report for the year ending December 31, 2023, highlighted these financial concerns. The report was published on the Dhaka Stock Exchange (DSE) yesterday.

The auditors also pointed out that, despite the large losses, the merchant bank has only retained BDT 60 crore in capital. GSP Finance also faced similar issues, with its non-performing loans amounting to BDT 477.72 crore as of 2023. For these, the company was required to set aside BDT 464.33 crore in provisions but had only made provisions of BDT 235.55 crore, creating a shortfall of BDT 228.78 crore. The auditors recommended that the company should consider reducing its asset value by an equivalent amount.

Meanwhile, in the stock market, after three consecutive days of increase in the main index, most company share prices dropped yesterday. On the DSE, 92 companies saw an increase in their share prices, while 245 companies saw a decline, and 57 remained unchanged. In sector-wise trading analysis, all sectors except paper and printing saw most of their shares decline. The DSEX index fell by 25 points to 5177 points, and the total trading volume decreased by BDT 86 crore, dropping to BDT 413 crore.

After recent declines, a few shares saw a sudden rise in their prices. Among them, Bongaj Limited saw a 10% increase, reaching BDT 104.50. The stock had previously fluctuated between BDT 90 and BDT 100 since November. BD Autocar also experienced a price rise of nearly 10%, trading at BDT 92.70, up from its range of BDT 80 to BDT 90 since November.