Six out of 22 non-bank financial institutions listed with the stock exchange incurred losses in the January-March quarter due to poor investment opportunities
and prolonged downtrend in the stock market.
Eight NBFIs made lower profits while eight others saw increase in profit in the quarter compared with that in the same quarter of the previous year, the latest Dhaka Stock Exchange data showed.
Bankers said a large number of potential investors decided to make delay in starting their projects as they had found difficulties in doing their existing business due to the ongoing political turmoil across the country.
In the situation, loan disbursement target of the companies was not achieved and that is why a number of NBFIs are struggling to run their business in the market as they have incurred losses, while only few companies have managed to get increased profit, they said.
Most of the NBFIs had invested a major portion of their capital in the stock market before the debacle and due to huge fall in share prices in late 2010-2011 most of the organisations failed to withdraw their funds from the market which is a major reason for their present condition, they said.
Loss of Midas Finance Limited increased to Tk 9.08 crore in the January-March quarter while it was Tk 4.80 crore in the same period of the previous year.
Union Capital incurred loss of Tk 2.47 crore in the first quarter of the year while it made profit of Tk 2.22 crore in the January-March quarter of the previous year.
‘An unfriendly business condition at that time deterred the performance of not only NBFIs but also banks,’ managing director and chief executive officer of Union Capital Akter H Sannamat told New Age.
‘The prolonged down trend in the capital market also affected badly the profit of NBFIs as most of the organisations invested a major portion of their fund in the capital market,’ he said.
‘Large numbers of borrowers failed to repay their loans in time due to various reasons which increased the classified loans and provisioning of the organisations,’ he said.
He also said that provisioning against losses in the stock market also affected the profits of the organisations.
International Leasing & Financial Services incurred loss of Tk 7.21 crore in January-March against its profit of Tk 3.25 crore in the same period of the previous year, while Islamic Finance and Investment made fresh loss of Tk 3.82 crore against profit of Tk 5.26 crore.
Loss of Bangladesh Finance and Investment Company decreased to Tk 6.39 crore in the January-March period from Tk 7.42 crore in the same period of the previous year and that of Bangladesh Industrial Finance Company to Tk 3.14 crore from Tk 6.78 crore.
FAS Finance & Investment Limited managed to get profit of Tk 1.14 crore in the first quarter of the year against loss of Tk 2.41 crore in the previous year and IPDC made profit of Tk 1.42 crore from loss of Tk 4.69 crore.
The profit of National Housing Finance and Investments dropped to Tk 0.054 crore from Tk 1.57 crore, that of Bay Leasing & Investment to Tk 3.00 crore from Tk 4.98 crore, that of Phoenix Finance and Investments to Tk 7.44 crore from Tk 9.74 crore, that of LankaBangla Finance to Tk 7.47 crore from Tk 21.71 crore, that of IDLC Finance to Tk 10.26 crore from Tk 21.12 crore, that of Peoples Leasing and Fin Services to Tk 6.06 crore from Tk 17.76 crore, that of Premier Leasing and Finance to Tk 2.60 crore from Tk 2.79 crore and that of Prime Finance and Investment to Tk 2.17 crore from Tk 10.66 crore.
-With New Age input
