Sonali Investment Limited, a subsidiary of state-owned Sonali Bank, is facing questions over its investment strategy, management efficiency and prolonged weak performance in the capital market, prompting calls for a major overhaul of its management structure.
Ashraful Haider Chowdhury Pinku, currently serving as General Manager and Chief Executive Officer (CEO) of Sonali Investment, has come under scrutiny over allegations of management inefficiency, limited investment activity and decisions that have allegedly undermined the company's performance.
According to allegations raised about the company's operations, Pinku had considerable influence over Sonali Bank during the previous Awami League government, allegedly benefiting from his family connection with former Feni-1 lawmaker Alauddin Nasim Chowdhury, who is described as his paternal cousin. The allegations also raise questions about the influence of political connections in the bank's lending and investment decisions during the period from 2009 to 2026.
However, the allegations of irregular lending, financial misconduct and overseas money transfers require independent investigation and verification.
Following the 2024 mass uprising, Pinku was appointed CEO of Sonali Investment by Sonali Bank Managing Director Shawkat Ali Khan. The appointment has reportedly raised questions about the selection of senior executives and the role of seconded officials in managing the subsidiary.
Meanwhile, concerns have intensified over Sonali Investment's performance at a time when the country's capital market is showing signs of recovery following the formation of the new government in 2026.
Sonali Bank reportedly has an investment portfolio of more than Tk7,000 crore in the capital market, while Sonali Investment's portfolio stands at around Tk300 crore. However, allegations suggest that the bank's actual investment in the market remains significantly below its potential.
Despite the recent market recovery, Sonali Investment has reportedly failed to generate positive returns. While many investors and institutions have been able to achieve returns of 20 to 30 per cent during the period, the subsidiary's portfolio has remained in negative territory.
It is also alleged that the company has made no fresh purchases or investments in its own portfolio over the past year and has not extended margin loans to new investment accounts. Instead, some existing investors have reportedly withdrawn their funds, while the company has continued selling previously acquired shares whenever they generate even marginal profits.
Industry observers have raised concerns that such a conservative approach could undermine the subsidiary's role in supporting the capital market and mobilising institutional investment.
Another major concern is the company's dependence on officials seconded from Sonali Bank. A significant portion of its officers and executives reportedly come from the parent bank, with some remaining on deputation for 13 to 14 years. Questions have been raised about whether these officials possess the specialised knowledge and practical experience required to operate a modern merchant bank.
The company's operational expenses are also reportedly substantial, with monthly expenditure said to exceed Tk1 crore, while its income generation remains limited. The costs are largely borne by Sonali Bank, raising concerns about the subsidiary's financial sustainability.
Market stakeholders believe that Sonali Investment needs a comprehensive management and operational restructuring to reverse its declining performance.
They have called for replacing long-serving deputed officials with professionally qualified employees recruited directly by the company, particularly those with expertise in portfolio management, investment banking, research and capital market operations.
Such a restructuring, they argue, could help transform Sonali Investment into a modern, profitable and competitive merchant bank.
The government's stated ambition to develop a modern, smart and reliable capital market has also created an opportunity for state-owned financial institutions to play a stronger role in market development. With several promising companies and investment opportunities emerging in the market, a professionally managed Sonali Investment could generate returns for itself while contributing to the financial performance of its parent bank.
A stronger institutional investment strategy could also help diversify corporate financing beyond traditional bank lending and strengthen the country's capital market.
Stakeholders believe that the relevant authorities, including the Finance Ministry, Bangladesh Bank and Bangladesh Securities and Exchange Commission (BSEC), should examine the company's management, investment decisions, financial performance and staffing structure.
They argue that ensuring professional leadership, accountability and an experienced workforce is essential to restoring Sonali Investment's credibility and making it a profitable institution capable of contributing to the development of Bangladesh's capital market.
