Most of the listed non-bank financial institutions have managed to increase their net profit in the first half of the year 2014 compared with that in the same period of the previous year mainly due to relaxed loan rescheduling policy of the central bank.
In December last year, Bangladesh Bank had relaxed loan rescheduling policy for the NBFIs till June 30 this year following demands from different trade bodies.
Out of the 23 listed non-banking NBFIs, 20 institutions have so far disclosed their half-yearly
financial report as per the listing rules.
Of the 20 NBFIs which have disclosed their financial statements for the period of January-June, 14 institutions managed to increase their profit and five institutions made less profit in the period.
The NBFIs which made increased profit during the period are IDLC Finance, Phoenix Finance and Investments, Bay Leasing & Investment, Prime Finance & Investment, United Leasing, National Housing Finance, Islamic Finance & Investment, Fareast Finance & Investment, GSP Finance Company (Bangladesh), Uttara Finance, Bangladesh Industrial Finance, Union Capital,
FAS Finance & Investment, Bangladesh Finance and Investment and International Leasing & Financial Services.
The companies which made less profit are: LankaBangla Finance, First Lease Finance and Investment, Industrial Promotion and Development Company of Bangladesh, People’s Leasing and Financial Services, Premier Leasing & Finance.
International Leasing & Financial Services Limited is the lone company which incurred losses during the period.
Loss of the ILFSL, however, declined to Tk 6.64 crore during the January-June period of the year compared with Tk 13.20 crore losses in the same period of the previous year.
Delta Brac Housing Finance, ICB and MIDAS Financing are yet to disclose their half-yearly financial statements.
Net profit of most of the NBFIs increased during the first half of the year following the relaxed loan rescheduling policy offered by the central bank following the countrywide political unrest before the national polls, experts in the financial sector said.
If the facility of loan rescheduling was not offered, then the salutation might be different as private sector credit growth was dissatisfactory during the period, they said.
Relaxed policy on loan rescheduling might have played an important role behind the increased profit of the NBFIs in the first half of the year, Akter H Sannamat, managing director of the Union Capital, said while talking to New Age recently.
He also said the relaxed facility on loan rescheduling was now unavailable and that might
impact on the NBFIs’ profit in the coming days.
According to the BB data, the year-on-year credit growth rate in the private sector was 11.39 per cent in May against 11.86 per cent in April this year.
Credit flow to the private sector was Tk 4,94,720.50 crore in May 2014 against Tk 4,44,153.40 crore in the same month of 2013.
The private sector credit growth hit a 14-and-a-half-year low at 10.60 per cent in December 2013 compared with that of 16.61 per cent in the same month of 2012 due to the political unrest over the general elections.
The political uncertainty is still persisting among the businesspeople as the majority of the country’s political parties rejected the ‘one-sided national elections’ held on January 5 and are demanding fresh polls.
-With New Age inpput
