Union Bank Faces IPO Proceeds Misuse, Audit Finds Major Irregularities

Union Bank PLC has failed to properly utilise a significant portion of its IPO proceeds, with auditors detecting misuse, delays, and fund transfers to non-designated accounts, according to a report released by the Chittagong Stock Exchange (CSE).The audit, conducted by G. Kibria & Co., revealed that as of December 31, 2024, the bank had unutilised IPO funds amounting to Tk 653 crore, for which no reconciliation was provided.Auditors noted that while the bank fully utilised funds earmarked for SME financing, project finance, and government securities, serious discrepancies were found in its capital market investment.The bank invested Tk96.98 crore through Time Securities Ltd, but later withdrew Tk 1 crore and transferred it to a Sonali Bank account that was not designated for IPO proceeds. As of December 2024, the market value of this investment had fallen by 47.32%, auditors said.The report further observed that Union Bank failed to utilise the IPO ...

• 06 Sep 2025