Janata Bank Reports Rising Losses

State-owned Janata Bank has posted a substantial financial loss of Tk3,931 crore for the year 2025, reflecting a 28 per cent increase compared with the previous year, according to its audited financial statements. The result highlights continued strain on the bank’s overall earnings performance and balance sheet position.

The financial statements show that the bank’s net asset value per share has further declined into negative territory, standing at Tk108.51 per share. Net asset value per share represents the difference between total assets and total liabilities attributable to each outstanding share. A negative figure indicates that liabilities exceed assets on a per-share basis, signalling significant capital pressure.

A major factor behind the widening loss was a sharp deterioration in net interest income, which stood at a negative Tk5,903 crore. Net interest income is a core measure of banking performance, calculated as interest earned from loans and investments minus interest paid on deposits and borrowings. A negative outcome indicates that interest expenses have exceeded interest income, placing sustained pressure on operational profitability.

The bank also reported a sharp rise in classified loans, which reached Tk72,800 crore by the end of 2025. Classified loans refer to lending exposures that have been identified as impaired or at risk of default, typically categorised as substandard, doubtful, or bad. An increase in such loans generally leads to higher provisioning requirements, which reduces reported profits and can affect capital adequacy.

Earnings performance on a per-share basis also weakened further. The loss per share increased to Tk169.90 in 2025, reflecting the extent of net losses attributable to each outstanding share of the bank. This indicator is commonly used by stakeholders to assess the impact of financial performance at the shareholder level.

The key audited financial indicators for 2025 are summarised below:

The audited results indicate continued stress in key areas of banking performance, particularly asset quality and interest margin management. The combination of rising classified loans and negative net interest income has contributed significantly to the overall loss position.