Company · Analysis · 03 Nov 2026
Mercantile Bank: classified loans at 15.19%, a Tk2,139 crore provision shortfall carried under Bangladesh Bank forbearance, and net interest income of BDT 199m in 2025, negative for 9M 2026
Mercantile Bank, a private commercial bank listed since 2003, kept growing deposits through 2024-2025, but its classified-loan ratio jumped from 6.08% to 17.25% in 2024 and its spread business has almost disappeared. Profit now comes from government securities, and the 2025 accounts leave out Tk2,139.31 crore of required provisions with BB's permission. This note sets out the filings.
Updated 3-Nov-2026: added the business model and industry forces; five years of import, export and remittance volumes with printed yield on advances and cost of deposits; how the 2025 write-offs were funded from provisions and interest suspense; the 31 large borrowers; interest paid by type,…