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IPDC's 'iridescence to widen financial inclusion'

Company's MD tells FE

Special Correspondent | December 21, 2017 00:00:00

Mominul Islam

IPDC Finance Ltd has achieved resounding successes in all segments of its businesses in the outgoing calendar year and vows to perform better in the coming months with a re-branded image of the company, country's first private sector DFI.

In December 2016, the company changed its name to 'IPDC Finance Ltd' and re-launched its brand to remain vibrant in corporate, SME and retail segments.

"Our performance in 2017 was excellent in all business parameters due to the robust presence of our newly re-branded image and our latest products feature iridescent values to our core clients," Mominul Islam, managing director & CEO of the company told The FE recently.

He said the diligence and professionalism of the working human resources were the main reason for the rip-roaring success of the company and asserted that the country's whole financial complexion will be changed riding on the concerted efforts from all stakeholders.

As of September 30, 2017, the company's total deposit portfolio and total loan portfolio were Tk 27.44 billion and Tk 31.82 billion respectively.

The company earned Tk 886 million as revenue and Tk 220 million as profit till September 30, 2017.

The company earned Tk 841 million and Tk 303 million as revenue and profit respectively in the whole year of 2016.

The company's latest figure shows the classified loan ratio stood at 0.8 per cent.

"Under our strategic roadmap, we like to craft stories in the areas of home loan, automated supply chain finance, creating entrepreneurs, providing factoring finance and breaking glass ceiling," Mr Mominul Islam said.

Under the roadmap, the company will enable 50,000 families to get a dream home and cover 25,000 MSEs to be under the automated supply chain finance.

"We will enable 10,000 women to build financial and non-financial assets, create 2,000 new entrepreneurs, enable families of tier 2 and tier 3 cities to avail retail finance and provide home convenience goods to 0.1 million families under our visionary roadmap which will ultimately make us the top consumer financial brand in the country," the IPDC MD disclosed.

The company has now 12 branches across the divisional cities of the country and six of them were opened in last one year.

Established in 1981, IPDC Finance Ltd was previously known as Industrial Promotion and Development Company of Bangladesh Ltd.

The founding shareholders of the company are Government of Bangladesh, Aga Khan Fund for Economic Development, International Finance Corporation, German Investment and Development Company and Commonwealth Development Corporation.

Later, BRAC, Ayesha Abed Foundation, RSA Capital Ltd and general public became the shareholders of the company.

General public owns 12.24 per cent shares of the company which was listed on the Dhaka Stock Exchange in 2006.

Commenting on developing the overall corporate sector of the country, he said the government should move proactively to launch a robust bond market.

"The tax regime should be reduced to attract the clients in the bond market and the government will hopefully consider this proposal with utmost sincerity to ensure proper and cheap financing from bond market for the long-term investment," the IPDC MD opined.

According to Policy Research Institute of Bangladesh, the country needs to spend $20-30 billion a year on infrastructure development. Now it spends $8.0 billion.

"Similarly, the country needs huge amount of money to finance long-term projects in energy, power and other core areas and a robust bond market could be a very good source to finance such costly projects at a comparatively lower cost," the IPDC MD said.

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