Chen Bank Requests Government Permission for Special Equipment
July 4, 2026, 7:30 a.m.
Last updated: July 4, 2026, 10:17 AM
National Bank is looking to lease out its new 12-storey headquarters tower in Dhaka’s Pantapas, hoping to generate revenue as it faces financial difficulties.
- National Bank seeks approval to lease Tower 2 of its headquarters.
- Banks aim to generate profits amid ongoing financial struggles.
- Current banking laws prohibit income from leasing headquarters properties.
- Central bank suggests legal exemptions to aid restructuring efforts.
- Construction is slow; Tower 2 is structurally complete but unfinished.
- National banks are grappling with non-performing loans and governance issues.
National Bank, a first-generation private lender, has officially approached the government to secure permission to lease one of its two under-construction towers in Dhaka. They aim to create additional income sources as they deal with mounting financial pressures.
The bank reached out to Bangladesh Bank in June, explaining that using both towers solely for its functions would not be sustainable once completed.
Under the Banking Companies Act, banks are permitted to own real estate for their operations but cannot earn income from leasing properties meant for their use. Given the bank’s precarious financial state, Bangladesh Bank recommended on June 29 that the government exempt it from relevant legal provisions, according to a senior finance ministry official.
Initially, the head office project was approved with the understanding that it would serve banking operations only. However, with ongoing financial restructuring, the bank’s board has suggested leasing Tower 2 to create a stable non-cash income stream and improve the balance sheet.
The central bank also noted that this proposal aligns with their broader reform initiatives, including board restructuring and efforts to restore financial stability.
National Bank is also exceeding the legal limits on fixed assets, which should not surpass 30% of its capital base according to the act.
Progress on Construction
The twin tower project was approved back in December 2013 and involves two towers with three basement levels, designed by South Korea’s Hirim. However, construction is slow, with Tower 1, intended for the bank’s headquarters, moving forward at a sluggish pace. Although Tower 2 is structurally complete, the finishing touches are still pending.
Concerns over Legal Exemptions
A senior official from Bangladesh Bank stated that the existing law doesn’t allow banks to earn rental income from their own office buildings. Another expert expressed reservations about granting such exemptions, arguing that it could set a harmful precedent given the bank’s governance failures and deteriorating financial condition.
Worsening Financial Situation
National Bank remains one of the weakest in the country. According to central bank statistics from March, over 56% of loans, amounting to around Tk 24,000 billion, were non-performing. The bank is also facing a provision shortfall of nearly Tk 20,000 crore and had a capital deficit exceeding Tk 9 billion as of December 2025.
A senior bank official pointed to years of poor governance and significant loan fraud as key reasons for the crisis. Influential companies, including those linked to the Sikder Group, have taken large loans that were never paid back, leading to a steep rise in defaults and creating the current financial struggles.
