ICB gets till 2021 to keep provision

The Bangladesh Securities and Exchange Commission (BSEC) has given Investment Corporation of Bangladesh (ICB) until 2021 to maintain provisions against its unrealised losses to increase the investment, financial and institutional capacity.

Earlier, in January 2020, merchant banks were given two years to keep provisions against their unrealised losses.

In a press release on Thursday, the capital market regulator said the deadline would be extended to December 31, 2021.

Due to the collapse of the market, the state-owned ICB, like other institutions, had suffered losses at its own and clients' expense. ICB's investment capacity in the capital market will increase due to the concession in maintaining provisions.

According to the BSEC notification, in the light of ICB's application, the optional benefit of keeping provisions against unrealised losses due to revaluation of shares held in its own portfolio will be valid till December 31, 2021 only.

The ICB has released its financial statements for the third quarter of the 2019-2020 financial year. In the third quarter from January to March 2020, ICB has made a profit of Tk102.33 crore.

However, from July 2019 to March 2020, the loss during the nine months has been Tk47.80 crore.