Janata Bank has reported loan defaults by two subsidiaries of publicly listed companies under the Navana Group. Navana Batteries Ltd (Aftab Automobiles) owes Tk72.94 crore, and Navana LPG Ltd (Navana CNG) owes Tk25.79 crore. Legal proceedings have been initiated, with court hearings scheduled for July 17 and 20. The Navana Group, led by founder Shafiul Islam Kamal, has overlapping boards and management across these entities. Despite revenue growth in FY24—Tk34.58 crore for Navana Batteries and Tk220 crore for Navana LPG—Navana Batteries posted a modest profit of Tk39 lakh, while Navana LPG recorded a loss of Tk1.60 crore. Parent companies showed mixed results in FY25. On the Dhaka Stock Exchange, Aftab Auto shares rose 9.54% to Tk37.90, and Navana CNG shares increased 2.65% to Tk23.20, though both remain in the Z category for unpaid FY24 dividends.
Janata Bank reports that Navana Batteries Ltd, a subsidiary of Aftab Automobiles, has defaulted on loans totaling Tk72.94 crore as of 21 January, with Navana LPG Ltd, under Navana CNG, carrying a debt of Tk25.79 crore.
Two subsidiaries of publicly listed companies — Aftab Automobiles and Navana CNG — have defaulted on loans totaling nearly Tk100 crore from Janata Bank, leading the state-owned lender to initiate legal proceedings.
Navana Batteries Ltd, a subsidiary of Aftab Automobiles, defaulted on loans amounting to Tk72.94 crore as of 21 January, while Navana LPG Ltd, under Navana CNG, owes Tk25.79 crore to Janata Bank, according to an insider at the state-owned lender.
In response to the defaults, Janata Bank has initiated legal proceedings against the chairmen and directors of both companies. A Money Loan Court in Dhaka has summoned the board members of Navana Batteries for a hearing on 17 July, and those of Navana LPG on 20 July. Summons notices were published in newspapers on Tuesday, with the court warning it may deliver verdicts in absentia if the parties fail to appear.
Earlier this year in February, Agrani Bank attempted to auction off Navana Batteries’ assets to recover Tk125 crore in defaulted loans. The auction failed to attract any buyers, prompting Agrani Bank to file a case in the Money Loan Court, a bank official said on condition of anonymity.
Financial disclosures show that Aftab Automobiles owns a 99.95% stake in Navana Batteries, while Navana CNG holds 99.99% of Navana LPG. These firms share overlapping boards and management teams.
Efforts to reach Aftab Auto’s Managing Director, Saiful Islam, and Navana CNG’s Managing Director, Sajedul Islam, were unsuccessful. Shafiul Islam Kamal, the founder of Navana Group, serves as the chairman of all these entities.
A senior Janata Bank official, speaking anonymously, said, “Navana Group has been a long-standing client of the bank. But due to poor leadership and mismanagement, most of its companies are now incurring losses, resulting in widespread loan defaults.”
He added that the bank has adopted a tougher stance on loan recovery, with lawsuits now underway against two Navana Group entities. “Even after litigation begins, there remains an opportunity for repayment and resolution. However, continued default will lead to severe consequences, including losing access to banking facilities,” he warned.
Navana Batteries reportedly has outstanding loans of around Tk500 crore, primarily from Dutch-Bangla Bank, Agrani Bank, and Southeast Bank. Navana LPG, meanwhile, owes about Tk700 crore, mainly to City Bank and Shahjalal Islami Bank.
As per their FY24 financials, both companies received short-term working capital loans from Janata Bank. Despite its debt load, Navana Batteries saw its revenue grow 75% year-on-year to Tk34.58 crore in FY24, swinging back to profitability with a modest net profit of Tk39 lakh. Navana LPG also posted revenue growth to Tk220 crore but continued to suffer losses, recording a net loss of Tk1.60 crore.
Their parent firms saw mixed results during the first nine months of FY25. Aftab Automobiles reported a net loss of Tk10.69 crore, while Navana CNG posted a profit of Tk71 lakh.
On the Dhaka Stock Exchange, shares of Aftab Auto rose 9.54% on Tuesday to close at Tk37.90 — marking a 39.33% gain since the rally began on 24 June. Despite this rise, the company remains in the Z category for failing to distribute its approved 10% cash dividend for FY24.
Similarly, Navana CNG’s share price climbed 2.65% to Tk23.20 on Tuesday, reflecting an 18% gain since 3 July. It too remains in the Z category for non-payment of its FY24 declared dividend.
