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Sonali Investment Limited, a subsidiary of state-owned Sonali Bank, has come under scrutiny over its alleged poor performance, lack of fresh investment and failure to capitalise on opportunities in the country's capital market.
Questions have also been raised about the company's management, investment strategies and the qualifications of its senior officials, particularly Chief Executive Officer (CEO) Ashraful Haider Chowdhury Pinku, who also serves as its general manager.
According to allegations raised by concerned quarters, Pinku has considerable influence over the company's operations. Critics claim that his appointment and continued tenure have raised questions about the recruitment and deployment of officials in the subsidiary.
Allegations have also been made regarding his family and political connections during the previous Awami League government. He is reportedly a cousin of former Feni-1 lawmaker Alauddin Nasim Chowdhury. However, the allegations of political influence, irregular lending and involvement in money laundering require independent investigation and verification.
The company's financial performance has also drawn criticism amid the current government's efforts to revive the country's struggling capital market.
Sources concerned with the capital market said Sonali Bank has a portfolio worth more than Tk7,000 crore, while Sonali Investment's portfolio stands at around Tk300 crore. Despite the substantial financial resources available to the parent bank, the subsidiary's investment in the capital market reportedly remains limited to around Tk600–700 crore.
Questions have also been raised about the company's failure to make fresh investments. According to allegations, Sonali Investment has not purchased shares or made new investments through its own portfolio over the past year. It has also reportedly refrained from extending margin loans to new investors.
Instead of expanding its investment activities, the company has allegedly been selling previously purchased shares whenever it makes even a marginal profit. This approach has reportedly discouraged some investors, with several withdrawing their investments from the institution.
Market insiders have attributed the company's poor performance partly to its human resource structure. A significant number of its officials and executives are reportedly on deputation from Sonali Bank, with some having served in the subsidiary for 13 to 14 years.
Critics argue that many of these officials lack adequate knowledge and practical experience in the capital market, raising concerns about the company's ability to operate as a modern merchant bank.
Another concern is the company's operating expenditure. According to the allegations, Sonali Investment incurs monthly expenses exceeding Tk1 crore, while its income-generating activities remain limited. These expenses are reportedly borne by Sonali Bank, raising questions about the subsidiary's financial sustainability.
There are also allegations that Pinku has discouraged fresh investment in the capital market. However, these claims could not be independently verified.
Following the political changeover in 2024, Pinku was appointed CEO of Sonali Investment Limited by Sonali Bank's current Managing Director, Shawkat Ali Khan, according to the information provided by concerned sources.
Against this backdrop, stakeholders believe that significant administrative and structural reforms are necessary to restore the company's performance and reputation.
They have called for replacing officials serving on deputation with professionally qualified personnel recruited directly by the subsidiary. Such a move, they argue, would help establish Sonali Investment as a modern, skilled and profitable merchant bank.
The government's stated objective of building a modern, smart and reliable capital market has further highlighted the importance of strengthening institutional investors. The Prime Minister, Finance Minister, Bangladesh Bank Governor and Bangladesh Securities and Exchange Commission (BSEC) leadership have emphasised the need to develop the capital market as an alternative source of financing alongside the banking sector.
Several promising companies are currently exploring opportunities for investment and share-market participation. Market analysts believe that a professionally managed Sonali Investment could play a significant role in financing these companies while generating returns for itself and its parent institution.
They say that with an experienced workforce, effective investment strategies and greater accountability, Sonali Investment could contribute to restoring investor confidence and strengthening the country's capital market.
https://thedailyexpress.news/news/business/1f1ddc35-574b-6870-af44-6c2a830edb06