LankaBangla Finance awaiting SEC nod to start asset management company
FE Report | Wednesday, 4 June 2008
LankaBangla Finance Ltd, a leading non-banking financial institution (NBFI), is in the process to establish an asset management company.
"Our proposed asset management company (AMC), if approved by the Securities and Exchange Commission (SEC), will start operation soon to consolidate our presence in the stock market," managing director of LankaBangla Finance, Mafizuddin Sarker told the FE in an interview.
He said the proposed AMC will launch mutual funds to help increase the depth of the stock market.
Currently, the stock market lacks adequate number of mutual funds despite a strong demand from the investors.
LankaBangla Finance achieved a strong growth in terms of business volume, diversification of products and services, revenue and profit in 2007.
"The year 2007 was a significant year of operation for our company as the net profit after tax showed a whopping 214.98 per cent rise to Tk 210.47 million," Mr. Sarker said.
Merchant banking and capital market operations emerged as the highest growth and most profitable business area of the company in 2007.
LankaBangla Securities Ltd, a subsidiary company of LankaBangla Finance became top among all the brokerage houses in Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) in 2006 and 2007.
The turnover of LankaBangla Securities jumped 303.24 per cent in 2007 to Tk 65.97 billion.
Mr. Sarkar said a good number of products and services were launched in 2007 to cater to customers' needs, which includes work-order finance, domestic factoring, real estate developer's finance, house financing, investment banking and corporate finance activities like syndication of leases/loans, corporate advisory services, etc.
"We have also customised products and services modifying our existing products and services in 2007, which helped us attract a good number of reputed business houses as our new customers," he added.
On the capacity building of the professionals working in the company, the LankaBangla chief executive said a comprehensive ICT policy and its implementation is underway to give the company a complete automated environment for ensuring faster services and state-of-the-art management information system.
The company's human and other physical resources, work-flows, business and operational processes were restructured and recast in 2007.
The company held its 11th annual general meeting (AGM) May 19 and approved 15 per cent cash and 10 per cent stock dividend for the year ended December 31,2007.
In spite of intense and increasing competition, the company registered an impressive business growth in lease and term finance of 71.23 per cent in 2007 against 2006.
Lease and term finance disbursement made in 2007 was Tk 2,000 million against that of Tk 1168 million in 2006.
The company operating since 1997 has now 25.71 per cent public shareholders, 34.29 per cent foreign shareholders and 40.00 per cent local shareholders.
LankaBangla went public in 2006 and its shares are traded on both DSE and CSE.
The company share closed Tk 181.10 against the face value of Tk 10 Monday on the DSE, a 3.13 per cent up against the previous day.
Regarding the realisations of the loan disbursed by the company to the stock market investors, the chief executive said the company always advises the investors not to invest in over-priced issues.
"We always make the investors aware of the situation prevailing in the market," the LankaBangla chief executive said.
"Our proposed asset management company (AMC), if approved by the Securities and Exchange Commission (SEC), will start operation soon to consolidate our presence in the stock market," managing director of LankaBangla Finance, Mafizuddin Sarker told the FE in an interview.
He said the proposed AMC will launch mutual funds to help increase the depth of the stock market.
Currently, the stock market lacks adequate number of mutual funds despite a strong demand from the investors.
LankaBangla Finance achieved a strong growth in terms of business volume, diversification of products and services, revenue and profit in 2007.
"The year 2007 was a significant year of operation for our company as the net profit after tax showed a whopping 214.98 per cent rise to Tk 210.47 million," Mr. Sarker said.
Merchant banking and capital market operations emerged as the highest growth and most profitable business area of the company in 2007.
LankaBangla Securities Ltd, a subsidiary company of LankaBangla Finance became top among all the brokerage houses in Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) in 2006 and 2007.
The turnover of LankaBangla Securities jumped 303.24 per cent in 2007 to Tk 65.97 billion.
Mr. Sarkar said a good number of products and services were launched in 2007 to cater to customers' needs, which includes work-order finance, domestic factoring, real estate developer's finance, house financing, investment banking and corporate finance activities like syndication of leases/loans, corporate advisory services, etc.
"We have also customised products and services modifying our existing products and services in 2007, which helped us attract a good number of reputed business houses as our new customers," he added.
On the capacity building of the professionals working in the company, the LankaBangla chief executive said a comprehensive ICT policy and its implementation is underway to give the company a complete automated environment for ensuring faster services and state-of-the-art management information system.
The company's human and other physical resources, work-flows, business and operational processes were restructured and recast in 2007.
The company held its 11th annual general meeting (AGM) May 19 and approved 15 per cent cash and 10 per cent stock dividend for the year ended December 31,2007.
In spite of intense and increasing competition, the company registered an impressive business growth in lease and term finance of 71.23 per cent in 2007 against 2006.
Lease and term finance disbursement made in 2007 was Tk 2,000 million against that of Tk 1168 million in 2006.
The company operating since 1997 has now 25.71 per cent public shareholders, 34.29 per cent foreign shareholders and 40.00 per cent local shareholders.
LankaBangla went public in 2006 and its shares are traded on both DSE and CSE.
The company share closed Tk 181.10 against the face value of Tk 10 Monday on the DSE, a 3.13 per cent up against the previous day.
Regarding the realisations of the loan disbursed by the company to the stock market investors, the chief executive said the company always advises the investors not to invest in over-priced issues.
"We always make the investors aware of the situation prevailing in the market," the LankaBangla chief executive said.