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initially proposed liquidating nine NBFIs -- Bangladesh Industrial Finance Company, Premier Leasing, GSP Finance, Prime Finance and the aforementioned five institutions.

The decision followed an assessment by BB, which identified 20 NBFIs, including Phoenix Finance and First Finance, as being in critically weak financial health due to high defaulted loans and depleted capital. These firms were placed in the “red” category.

Together, the nine institutions accounted for 52 percent of total defaulted loans in the NBFI sector, which stood at Tk 25,089 crore at the end of last year. This reflects years of weak lending practices and capital erosion.

Seven of the nine institutions have an average net asset value of negative Tk 95 per share, meaning there is little chance of meeting obligations without state support. In simple terms, if assets are sold and debts are cleared, there is likely to be nothing, or very little, left for ordinary shareholders.

However, the recent rise in share prices has surprised market analysts. A senior brokerage official, speaking on condition of anonymity, said some investors are buying these shares based on rumours that they may still receive some returns from these institutions.

He added that there is no realistic prospect of shareholders getting anything back from these NBFIs.