Best Financial Institution of the Year

Mominul Islam, Managing Director & CEO IPDC Finance

When most of the financial institutions in the country are crawling in a big hole mainly because of mounting nonperforming loans and liquidity crisis, IPDC Finance Limited stands tall with many good numbers.

Classified loan ratio of IPDC is just 1.2 percent, much lower than the industry’s average over 11 percent.

Almost all the banks and non-bank financial institutions have been facing liquidity crisis for over a year, but IPDC was an exception as its deposit rose 24.61 percent year-on-year in 2018, mainly due to the confidence of the customers. The lender’s loan portfolio grew even at higher rate.

This good performance is also reflected in the company’s net profits that increased by 34.32 percent last year compared to the previous year. When share price of many of the nearly three dozen non-bank financial institutions (NBFIs) are below their face values (Tk 10), IPDC’s share was still over Tk 25 on the last working day.

But that achievements did not come smoothly despite it being the country’s oldest and first NBFI.

IPDC, previously known as Industrial Promotion and Development Company, was established in 1981 by a distinguished group of shareholders namely International Finance Corporation of the World Bank Group, German Investment and Development Company (DEG), The Aga Khan Fund for Economic Development, Commonwealth Development Corporation of the UK and the Government of Bangladesh.

Later, some changes were there in the shareholdings. Now The Aga Khan Fund for Economic Development owns 11.05 percent stakes in IPDC, where 25 percent belongs to Brac, the world’s largest NGO, 10 percent to Ayesha Abed Foundation, 5 percent to RSA Capital Ltd, general shareholders 27.07 percent while the Bangladesh government owns the rest 21.88 percent.

Today, the NBFI specialises in providing long-term and short-term financing and its funds come from equity and individual and corporate deposits.

IPDC targets to help 50,000 families get a dream home, enable 10,000 women to build financial and non-financial assets and create 20,000 new entrepreneurs.

The company’s total contribution to the government exchequer hit Tk 22.3 crore in 2016, which was Tk 11.6 crore in 2015 and Tk 6 crore in 2014.