NBFIs facing a dire situation
A total of 34 non-bank financial institutions (NBFIs) are operating in the country with permission from Bangladesh Bank (BB) with authorization to receive saving in current accounts and term deposits but most of them are in trouble, according to sources in BB.
Among them 12 are in the red, 18 are yellow and four are green to mean they are solvent. As per the central bank source Bangladesh Industrial Finance Company Limited (BIFC), People's Leasing and Financial Services Limited (PLFS) and First Finance Ltd are in dire situation. They have no capacity to return clients money.
BIFC's default loan is 96 percent out of total disbursed loan. This organization's capital shortfall is Tk 70 crore out of Tk 100 crore. BIFC is incurring a monthly loss Tk 6.5 crore. People's leasing has the second highest default loan. This organization's loss is Tk 50 crore end of December this year.
First Finance's default loan is 49.65 percent of the total disbursed loan. This organization's capital shortfall is Tk 20 crore. It is not maintaining Cash Reserve Requirement (CRR) with Bangladesh Bank.
Premier Leasing and Finance Limited (Premier leasing) default loan is 28.78 percent of the total disbursed loan. Its capital shortfall is Tk 17 crore. Default loan of Fareast Finance & Investment Limited (Fareast Finance) is 24.20 percent of disbursed loans. Default loan of Prime Finance & Investment Limited (Prime Finance) is 17.85 percent. It lost Tk 16 crore last year.
National Finance Ltd default loan is 16.44 percent. FAS Finance & Investment Limited (FAS Finance) default loan is 15.41 percent. Default loan of MIDAS Finance Limited is 14.34 percent. Default loan of GSP Finance Company (Bangladesh) Ltd is 13.38 percent and that of Reliance Finance Limited is 10.26 percent of total loan.
A senior officer at Bangladesh Bank told the Daily Observer, BB's must take over the non bank financial organization. They were given permission to work in the field; but failing to refund clients money.
Md. Khalilur Rahman, president of Bangladesh Leasing & Finance Companies Association (BLFCA) told the Daily Observer, we are trying our best to give service to clients, although some of them are incurring losses.