MIDAS, Premier Leasing face severe financial risks

Recent financial statements reveal severe structural risks at two non-bank financial institutions (NBFIs), with MIDAS Financing PLC reporting nearly 55% classified loans and Premier Leasing & Finance Limited holding Tk213.43 crore tied up in distressed fixed deposits (FDRs).
According to an audit review for the year ended 31 December 2025, Premier Leasing’s auditor expressed significant uncertainty over whether those FDR investments with five troubled institutions can ever be recovered.
Meanwhile, MIDAS Financing faces a worsening liquidity crunch as its mounting volume of classified loans severely hampers its ability to meet depositor withdrawal demands.
Premier Leasing, meanwhile, faces risks related to investments in financially distressed institutions, inadequate provisions, a negative capital position and substantial losses.
The auditor of Premier Leasing issued a “Qualified Opinion”, while the auditor of MIDAS Financing issued an “Emphasis of Matters”, highlighting the company’s substantial losses, capital shortfall and liquidity crisis.
A senior official of MIDAS Financing, speaking on condition of anonymity, said the company was aware of the problems and was working to overcome them and regain customers’ confidence.
“A significant portion of our funds is invested in financially distressed institutions. Once those issues are resolved, we hope to resolve all the problems quickly,” he said.
Premier Leasing’s investments at risk
Premier Leasing’s financial statements show significant risks surrounding its FDR investments. The company has invested a total of Tk213.43 crore in FDRs with five financial institutions.
Of the total, Tk21.55 crore is with Bangladesh Industrial Finance, Tk53.40 crore with FAS Finance & Investment, Tk71.86 crore with International Leasing and Financial Services, Tk46.97 crore with People’s Leasing and Financial Services, and Tk19.64 crore with Aviva Finance.
The investments represent around 12.04% of Premier Leasing’s total assets on a standalone basis.
According to the auditor, the company has not maintained any provision against these FDRs. 
Given the financial distress of the institutions concerned and various media reports about them, the auditor expressed significant uncertainty over the recoverability of the investments.
The situation could put pressure on the company’s future cash flows and expose it to financial losses, the auditor said.
The risk is not limited to FDRs. Premier Leasing also has term deposits (TDRs) with FAS Finance, International Leasing and People’s Leasing. 
The company has not received interest income from several of these investments, while the unearned interest has been transferred to interest suspense accounts.
According to the auditor, these FDRs and TDRs appear to be non-performing, potentially exposing Premier Leasing to substantial financial losses in the future.
Provision shortfall in loans and other assets
Premier Leasing has total lease, loans and advances of Tk1,296.43 crore. 
Against these exposures, the provision required under Bangladesh Bank regulations was Tk882.58 crore, while the company maintained Tk869.31 crore, resulting in a provision shortfall of Tk13.27 crore.
The company was also required to maintain Tk104.93 crore in provisions against other assets but maintained only Tk31.64 crore.
In addition, the required provision against the FDRs was Tk213.43 crore, but no provision was maintained against these investments.
Taken together, the provision shortfall against loans, leases, other assets and FDRs stood at around Tk286.72 crore.
The auditor noted that Bangladesh Bank had allowed the company a deferral facility to adjust the provision shortfall relating to 2021 over several years. 
However, in determining provisions in 2025 based on loan quality, management failed to provide adequate reasons for its qualitative judgement.
The auditor said the negative capital adequacy ratio (CAR) indicated a significant capital shortfall. With insufficient capital to absorb potential losses, the company’s operational risk has increased.
The negative capital position has also created material uncertainty over the company’s ability to continue as a going concern, the auditor said.
MIDAS Financing under severe financial pressure
MIDAS Financing has also reported significant financial weaknesses in its financial statements.
The company’s total lease, loans and advances amounted to Tk788.82 crore, of which Tk432.47 crore was classified. This means around 54.82% of its total lease, loans and advances were classified.
Unclassified loans stood at Tk356.35 crore. Against its lease, loans and advances, the company had a provision shortfall of Tk25.98 crore compared with Bangladesh Bank’s requirements. There was also an additional provision shortfall of Tk6 crore.
Tk335 crore loss
The most concerning aspects of MIDAS Financing’s financial statements are its substantial loss and liquidity crisis.
In 2025, the company incurred a net interest loss of Tk46.87 crore and an operating loss of Tk46.36 crore. Its net loss after tax stood at Tk335.29 crore.
The auditor specifically noted that the company was facing a liquidity crisis in meeting depositors’ requirements.
The auditor also observed that customer confidence could be restored if adequate liquidity arrangements were re-established.