Dutch-Bangla Bank PLC (DBBL) is set to purchase a 21-storey commercial building in Motijheel for Tk1,016 crore to establish its permanent head office, marking one of the largest real estate acquisitions by a private commercial bank in recent years.
According to a disclosure filed with the Dhaka Stock Exchange on Wednesday, the bank will acquire the property located in the heart of Dhaka’s financial district. The purchase, however, remains subject to approval from the Bangladesh Bank, the regulator of the banking sector.
According to the annual report for 2024, the building, known for housing DBBL’s current head office since 2019, is owned by Amina Ahmed, mother of the bank’s Chairman, Sadia Rayen Ahmed. The bank has been occupying the property under a 10-year rental agreement with her, paying around Tk3 crore per month in rent.
The acquisition will therefore not only eliminate the recurring rental expense but also secure a permanent headquarters for the country’s first mobile banking pioneer, said a senior officer of the bank.
Keep updated, follow The Business Standard’s Google news channelHe said the move to buy the building was strategic, as DBBL continues to expand its operations and consolidate its dominance in the digital banking space.
In the first half of 2025, Dutch-Bangla Bank reported a 48% year-on-year decline in net profit, which dropped to Tk105 crore. Earnings per share stood at Tk1.09, while net asset value per share was reported at Tk53.45. The bank’s retained earnings stood at Tk2,960 crore, reflecting the strain from rising costs and weakening asset quality.
One of the biggest challenges for DBBL has been the sharp rise in classified loans. As of June 2025, its non-performing loans surged to Tk4,850 crore, accounting for 11.79% of its total disbursements. This marked a steep jump from Tk3,314 crore reported in December 2024, raising concerns about risk management and recovery efforts.
Despite these setbacks, the bank has continued to pay dividends to shareholders, although at a reduced rate. In 2024, it declared a 10% cash dividend along with a 10% stock dividend, down from 17.5% cash and 17.5% stock in 2023. That year, its annual profit dropped 41% to Tk473 crore, underlining the challenges the sector is facing amid tighter liquidity and sluggish credit demand.
On the stock market, Dutch-Bangla Bank shares ended Wednesday’s session 0.95% lower at Tk41.50 each. The bank has a paid-up capital of Tk966 crore, giving it a market capitalisation of Tk4,011 crore.
Based on its unaudited half-yearly financial statements, the price-to-earnings ratio currently stands at 19.04.
Market analysts said while the acquisition of the Motijheel property is a positive long-term move for DBBL, as it provides a permanent base for the bank’s growing operations, the timing of such a large investment amid falling profits and rising default loans may invite scrutiny.
Dutch-Bangla Bank, established in 1995, has long positioned itself as a technology-driven bank, pioneering mobile financial services in Bangladesh through Rocket. It has since built one of the largest ATM networks in the country and continues to play a central role in the digitalization of the banking sector.
Industry insiders said securing a permanent head office in Dhaka’s financial hub may strengthen DBBL’s brand and operational stability, but it remains to be seen how the bank manages its asset quality and profitability in the coming quarters.
https://www.tbsnews.net/economy/stocks/dutch-bangla-bank-buy-tk1016cr-building-new-head-office-1221611
