In a landmark achievement for Bangladesh’s financial sector, Sonali Bank PLC has successfully transformed a multi-billion Taka capital shortfall into a surplus, bolstered by the recovery of 300 crore BDT from the infamous Hallmark Group. During a press conference at the bank’s headquarters on Tuesday, 13 January 2026, Managing Director and CEO Md Shawkat Ali Khan presented the bank’s stellar performance for the 2025 calendar year, marking an end to years of fiscal instability.

From Deficit to Surplus: A Strategic Turnaround

For over a decade, the shadow of the 2012 Hallmark scam—the largest in the nation’s history—loomed over Sonali Bank, resulting in persistent capital inadequacies. However, through aggressive recovery drives and a shift toward high-yielding government securities, the bank has finally turned the tide.

Managing Director Shawkat Ali Khan confirmed that the bank’s operating profit surged to 8,017 crore BDT in 2025, a significant 40.79% increase from the 5,694 crore BDT reported in 2024. Most notably, the bank erased a staggering 5,949 crore BDT capital deficit, ending the year with a 83 crore BDT surplus.

“For too long, the capital shortfall was a badge of dishonour for state-owned banks. Today, Sonali Bank stands free of that deficit. This achievement is a testament to our strengthened recovery efforts and the growing public trust in our institution.” — Md Shawkat Ali Khan, MD & CEO

2025 Performance vs 2026 Financial Roadmap

The bank has achieved its lowest Non-Performing Loan (NPL) ratio among state-owned lenders, with a clear trajectory set for the coming years.

Recovering the Hallmark Debt

The recovery of 300 crore BDT from Hallmark Group in 2025 was a pivotal component of the bank’s cash collection strategy. The bank is currently liquidating the group’s remaining physical assets, including machinery and property, to settle the outstanding liabilities. Beyond Hallmark, the bank successfully recovered funds from its top 20 defaulters, contributing to the overall improvement in asset quality.

Sovereign Dues and Future Risks

Despite the recovery, the bank continues to navigate complex financial obligations involving major national projects. Currently, the government owes Sonali Bank 1,500 crore BDT in unpaid commissions for the Rooppur Nuclear Power Plant Letter of Credit (LC) operations. Furthermore, a pending bond issuance for loans to the Bangladesh Sugar and Food Industries Corporation requires an additional 300 crore BDT in provisioning.

Looking ahead to 2026, the bank plans to shift its focus from government securities to quality commercial lending, with a specific emphasis on Cottage, Micro, Small, and Medium Enterprises (CMSMEs). By diversifying its portfolio and maintaining rigorous borrower selection, Sonali Bank aims to ensure that no new “Hallmark-style” crises emerge in the future.