Once a success story, Provita Group sinks under Tk3,300cr loan burden

Infographic: TBS

Highlights:

• Provita Group was dealt with a blow during Covid-19 pandemic.
• The company enjoyed a period of growth from 2001 to 2019
• Banks withdrew their support when Provita Group tried to revamp their operations

Provita Group – a leading player in the poultry industry – enjoyed nearly two decades of steady growth from 2001 to 2019. Buoyed by its robust business performance, banks extended support to its drive to expand its footprint by acquiring land and undertaking numerous upscale projects nationwide. 

However, the Covid outbreak in 2020 dealt a major blow to its operations. The sharp decline in chicken demand, coupled with the controversial chick burning, led to significant losses and a severe working capital crisis. 

When the group attempted a fresh start post-pandemic, banks withdrew support. This led to halted raw material imports and deteriorating bank loans. Despite its efforts, Provita Group failed to recover even after five years.

The company is now burdened with Tk3,300 crore in loans, according to creditor banks and non-bank financial institutions (NBFIs). Unable to recover, its debts to 20 banks and financial institutions have begun to default. In response, banks have started initiating legal proceedings against the group's high-ups.

According to lenders and courts, at least 20 cases – two for loan default and 18 for cheque bounce – have been filed against Provita Group Managing Director Nurun Nabi Bhuiyan, his wife and group Chairman Sulekha Ibrahim, and their son, director Ridwanul Haque Bhuiyan.

On 8 January, the Chattogram money loan court imposed a travel ban on the trio in a case filed by Bank Asia to recover a loan of Tk173 crore. The bank filed the case on 12 November last year.

Subir Pal, manager of Bank Asia's Khatunganj branch, told The Business Standard that Provita Group's owners have not repaid the Tk173 crore invested in its four companies – Provita Feed, Provita Breeders, Provita Chicks and Provita Hatchery – for a long time. 

"As a result, a loan default case has been filed to recover the money. Some 4,000 decimals of land in Noakhali and Chattogram have been mortgaged, with a market value of up to Tk 88 crore," he added. 

Earlier, the bank filed five cheque bounce cases against the group's owners in 2024. 

The top five creditors are United Commercial Bank with Tk416 crore, Standard Bank with Tk367 crore, One Bank with Tk324 crore, Pubali Bank with Tk257 crore and Al Arafah Islami Bank with Tk219 crore.

The other lenders are National Bank, South Bangla Bank, Mercantile Bank, Shahjalal Islami Bank, BRAC Bank, Islami Bank, Union Bank, City Bank, Trust Bank, and Social Islami Bank, Aviva Financial, Mutual Trust Bank, Jamuna Bank, Dutch Bangla Bank, IFIC Bank, IDLC Finance and IPDC Finance.

These loans were taken out in the names of Provita Chicks, Provita Hatcheries, Provita Breeders, Provita Feed, Provita Fish Feed, Classic Provita Agro, Provita Poultry Feed, ABH Corporation, Afra Trade International, RH Corporation, Ridwan Trade International, MN Trade International and Galaxy Trading International.

Md Jamal Uddin, manager of Islami Bank's Khatunganj branch, told TBS that a Tk100 crore loan has defaulted with ABH Corporation of Provita Group. Although the company's management had proposed rescheduling the loan, the down payment was not made. 

"As a result, a loan default case is being filed to recover the dues. Additionally, eight cheque bounce cases have been filed against the company's management," he added.

An official from Mutual Trust Bank said the loan disbursed by the Jubilee Road branch to Provita Group has been rescheduled and made regular. "However, the group is not being provided with any new financing or import facilities," he told TBS on condition of anonymity.

An official of One Bank's legal wing stated that over Tk230 crore are pending from Provita at the Karwan Bazar branch. Of this, five cheque bounce cases have been filed against Provita Fish Feed for defaulting on Tk 76 crore. The collateral for the defaulted amount is only Tk4.83 crore.

In addition to the above banks, Jamuna Bank filed a default case on November 25 last year to recover Tk22.85 crore from Provita Group, Rezaul Karim, a bench assistant at the Chattogram money loan court, told TBS.

AM Saleh Uddin Qutubi, executive vice president of Social Islami Bank, told TBS, "Three companies of the group – Ridwan Trade, Provita Hatchery and Provita Feed – have Tk 90 crore overdue. We have initiated legal proceedings to recover this amount."

Officials of the creditor banks and Provita Group said Nurunnabi Bhuiyan, a resident of Lakshmipur, began the poultry feed business in Chattogram around 2001 with the help of his uncle AKM Aminul Islam. 

Initially focused on feed, Provita later expanded into various sectors, including fish feed, hatchery, day-old chicks, commercial chicken and layer chicken.

Initially operating from Rawshan Manzil in Khatunganj, the group moved its operations to Dhaka around 2015-16. 

According to investment bank officials, the group has luxury poultry projects across various locations, including Subarnachar, Chaumuhani in Noakhali, Sitakunda in Chattogram, Chakaria in Cox's Bazar and Mymensingh. 

Despite efforts to contact him via mobile phone and WhatsApp, Nurunnabi Bhuiyan was unavailable for comment on the situation.