Bangladesh Industrial Finance Company Limited

Bangladesh Industrial Finance Company Limited is a major non-bank financial institution in Bangladesh.

Bangladesh Industrial Finance Company Limited
TypePublic company
DSE: BIFC
Founded1996 (1996)
HeadquartersDhaka, Bangladesh
Area served
Bangladesh
Key people
Moyeenul Islam Chowdhury (Chairman)[1]
Websitebifcol.com

In 2021 the company got into financial troubles due to embezzlement by its former chairman Abdul Mannan.[2] The company had given large loans that were none performing to Sunman Group subsidiaries, owned by Abdul Mannan.[3]

The company is listed on the Dhaka Stock Exchange.[4] Bangladesh Industrial Finance Company Limited was one of four financial institutions targeted by Proshanta Kumar Halder; the others were People's Leasing and Financial Service Limited, FAS Finance and Investment Limited, and Reliance Finance Limited.[5][6][7]

History

Bangladesh Industrial Finance Company Limited was established on 10 August 1996.[8] It is located in Police Plaza Concord, Gulshan.[8]

Bangladesh Industrial Finance Company Limited was listed on the Dhaka Stock Exchange in 2006.[9]

In 2014, Bangladesh Industrial Finance Company Limited was declared a Z category stock on the Dhaka Stock Exchange.[9]

Bangladesh Bank appointed an observer in the board of directors of Bangladesh Industrial Finance Company Limited in 2015.[10]

From December 2012 to December 2016, defaulted loans at Bangladesh Industrial Finance Company Limited jumped from 12 percent to 90 percent.[9] In 2012 the company had 840 million loan and 2016 it was 7.8 billion taka.[9]

In November 2017, Bangladesh Industrial Finance Company Limited was on the verge of collapse.[9] Its chairman Major (retired) Abdul Mannan, who is also the chairman of Sunman Group, embezzled money from the institution.[9] The chairman was a politician of Bangladesh Nationalist Party.[10] According to Bangladesh Bank, Manan had taken 8.6 billion taka from Bangladesh Industrial Finance Company Limited.[9] Manan blamed a conspiracy by "Chittagong-based conglomerate".[10] The percentage of loans defaulted at the Bangladesh Industrial Finance Company Limited stood at 96 percent in December 2017 with the company on the verge of liquidation.[10] Proshanta Kumar Halder had also embezzled five billion taka from Bangladesh Industrial Finance Company Limited.[11]

On 9 August 2019, Anti-Corruption Commission sued the former Chairman of Bangladesh Industrial Finance Company Limited, Abdul Mannan, for embezzlement.[12]

Bangladesh High Court appointed former Justice Moyeenul Islam Chowdhury as the chairman of the board and four independent board members.[12]

Bangladesh Industrial Finance Company Limited shares on the Dhaka Stock Exchange rose sharply despite being in the negative financially in 2022.[13] It suffered its sixth year of straight loses in 2022.[14] BASIC Bank Limited defaulted on its loan from Bangladesh Industrial Finance Company Limited.[15]

References
  1. "Board of Directors – Bangladesh Industrial Finance Company Limited". Retrieved 2022-10-11.
  2. Report (2021-06-23). "Sur Chowdhury denies corruption allegations". The Daily Star. Star Business. Retrieved 2022-10-11.
  3. "6 NBFIs burdened with Tk6,916cr default loans". The Business Standard. 2021-12-27. Retrieved 2022-10-11.
  4. Report (2022-08-02). "Stock turnover soars to two-month high". The Daily Star. Star Business. Retrieved 2022-10-11.
  5. Report (2021-01-08). "Interpol issues red notice against PK Halder". The Daily Star. Star Online. Retrieved 2022-10-11.
  6. Staff Correspondent (2021-01-04). "4 describe to court grief caused by PK Halder". The Daily Star. Retrieved 2022-10-11.
  7. Khan, Mahbubur Rahman (2020-08-14). "Ex-Reliance Finance MD embezzled Tk 3,000cr". The Daily Star. Retrieved 2022-10-11.
  8. "company profile – Bangladesh Industrial Finance Company Limited". Retrieved 2022-10-11.
  9. Alo, Jebun Nesa (2017-11-14). "BIFC on the verge of collapse". The Daily Star. Retrieved 2022-10-11.
  10. Uddin, Zamir (2018-05-11). "BIFC faces liquidation". The Daily Star. Retrieved 2022-10-11.
  11. Report (2021-01-04). "BB officials harboring financial thugs: HC says in full text of Dec 17 order". The Daily Star. Star Online. Retrieved 2022-10-11.
  12. Staff Correspondent (2019-08-09). "ACC files cases against 12 including ex-BIFC chairman". The Daily Star. Retrieved 2022-10-11.
  13. Habib, Ahsan (2022-09-25). "Shares of loss-making firms rise abnormally". The Daily Star. Retrieved 2022-10-11.
  14. Report (2022-09-15). "Scam-hit BIFC suffers losses for sixth straight year". The Daily Star. Star Business. Retrieved 2022-10-11.
  15. Uddin, Zamir (2022-02-10). "Troubled NBFIs render Tk 1,000cr bank loans sour". The Daily Star. Retrieved 2022-10-11.
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