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.
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