Photo : Collected
Islamic Finance and Investment Ltd, a financial sector company listed in the capital market, is suddenly sinking into losses. The company, which has been doing good business for a long time, suffered a big downturn in business in 2023. A large portion of the disbursed loans has become classified. That is why the company needs to build large reserves (provisions). But the amount is so high that it will take five years to adjust.
The downturn has already plunged the company into losses in 2023. At the same time, after 15 years, the incident of the company not paying any dividend to the shareholders happened.
Islamic Finance and Investment Ltd Company Secretary Ramzan Hossain told The Daily Messenger, “The nationwide financial crisis has also affected our company. We are trying to do better.”
According to the Dhaka Stock Exchange (DSE), the country's main capital market, there are 23 leasing companies in the country's capital market. Among them, only two to four companies were making profits and giving dividends and one of those was Islamic Finance. But this company is also now in the process of going to the list of bad leasing company due to loan default.
The auditor said that the company has a deficit of Tk 155 crore 18 lakh against the investment or loan and lease given. It applied to Bangladesh Bank seeking time for adjustment. In the light of that, Bangladesh Bank has approved it and given five years’ time. In continuation of this, a deficit of Tk 31 crore 4 lakh was adjusted in 2023. Still the company has a reserve deficit of Tk 124 crore 14 lakh.
The amount of loan and lease given by this company on December 31, 2023 was Tk 1 thousand 75 crore 27 lakh. Of this, Tk 367 crore 72 lakh is classified. Among the classified loans, Tk 297 crore 6 lakh or 80.78 per cent is non-performing loans. In this deplorable state of debt, the company suffered a loss of Tk 1.64 per share in 2023.
In 2005, the paid-up capital of Islamic Finance was Tk 140 crore 33 lakh. Of this, 67.17 per cent ownership is held by investors belonging to various categories (other than entrepreneurs/directors). The company's shares were traded at Tk 9.30 on Thursday.
Messenger/Fameema
