Dhaka Bank Faces Growing Liquidity Pressure Despite Profit

Dhaka Bank PLC, one of the country’s oldest private-sector banks, remained profitable in the first half of 2026, but its unaudited January-June financial statements show pressure on several key financial indicators. Deposits fell by more than Tk 700 crore, operating cash flow turned negative, borrowing from other banks increased sharply, while shareholders’ equity and retained earnings declined. According to the financial statements, total deposits stood at Tk 33,826 crore at the end of December 2025 but fell to Tk 33,126 crore by June 2026, a decline of more than Tk 700 crore in six months.

Meanwhile, borrowing from other banks and financial institutions rose from Tk 3,313 crore at the end of 2025 to Tk 5,000 crore by June, an increase of nearly Tk 1,700 crore. Banking experts say the increase indicates growing pressure on liquidity management and that continued reliance on borrowing cannot provide a sustainable long-term solution. Operating cash flow also deteriorated sharply. Cash flow from operating activities stood at negative Tk 1,102 crore in the first six months of 2026, compared with positive Tk 2,441 crore during the same period a year earlier. Net operating cash flow per share fell from Tk 23.09 to negative Tk 10.43.

The position indicates substantial cash outflows linked to declining deposits, increased lending and changes in other liabilities. Shareholders’ equity declined from Tk 2,510 crore at the end of 2025 to Tk 2,479 crore by June. Retained earnings also fell, putting additional pressure on the capital base. The bank’s earnings per share (EPS) declined from Tk 1.09 to Tk 0.95 compared with the same period a year earlier. In a separate financial statement, EPS fell from Tk 1.04 to Tk 0.88.

Investment in government and other sectors fell from Tk 12,162 crore to Tk 11,693 crore, although the financial statement does not explain the decline. Total assets increased slightly to Tk 45,636 crore, while lending also increased.  Observers warn that higher lending alongside declining deposits and negative operating cash flow could make liquidity management increasingly difficult. The bank earned more than Tk 1 billion in net profit during the first six months and recorded modest asset growth.

Analysts, however, say profitability alone does not determine financial health. Deposit growth, cash flow, capital strength, asset quality and loan performance also require close monitoring. The bank’s key challenges will be restoring deposit growth, reducing dependence on borrowing and returning operating cash flow to positive territory. Investors and regulators will also monitor non-performing loans and capital strength.