IDLC Finance gets permission to launch Shariah products

IDLC Finance has received the final approval from the Bangladesh Bank (BB) for opening an Islamic financing wing to diversify its operations.
Now, it will be able to run Shariah-compliant business under 'Islamic Finance Window' through all its branches, according to a stock exchange filing on Thursday.
"This is a milestone. There is a huge demand for Shariah-based products," said company secretary Abul Fazal Mohamed Rubayat.
One of the leading non-bank financial institutions, IDLC Finance said, it had completed all preparations under the guidance of a supervisory committee and was ready to offer Shariah-compliant deposit and housing financing products to cater to the growing demand of clients.
"This will open a new avenue for us and we are committed to delivering services to our customers in the most compliant manner."
The operation of the Shariah-based business will run in parallel to the existing operations.
The Shariah-compliant financial services are growing at a steady pace in the Muslim-majority country. Currently, around 25 per cent of those, who would prefer Shariah-based services, are out of the existing system.
IDLC Finance saw a 23 per cent profit decline year-on-year to Tk 1 billion in the first nine months through September last year due to a drop in interest and investment income as well as low income from commissions.
Meanwhile, the stock price rose 7 per cent to close at Tk 41.40 per share on Thursday on the Dhaka Stock Exchange.
[email protected]