Arif Khan steps down as IDLC Finance CEO

Arif Khan has stepped down as the managing director and chief executive officer of IDLC Finance Ltd as he plans to launch his own business.

He returned to the non-bank financial institution five years ago as the CEO after serving the Bangladesh Securities and Exchange Commission (BSEC). Since then, he steered the growth of IDLC Finance and brought down non-performing loans to a minimal level at a time when the financial industry is riddled with loan scandals.

Khan said he had no disagreement with the board of IDLC Finance. Rather, he wanted to do something on his own, he said.

"I am not enjoying what I am doing now. I want to start my own business," Khan told The Daily Star.

His departure from the industry came at a time when at least 10 NBFIs are struggling to pay back depositors despite the maturity of the funds as scammers siphoned off a large amount of money from the institutions in recent years.

IDLC Finance's NPLs stood at 1.79 per cent at the end of December 2020, much lower than the ratio of default loans in the industry. The ratio of default loans stood at 13.29 per cent in the NBFI sector.

The NBFI declared a 35 per cent cash dividend for 2020 as its profits rose 49 per cent to Tk 254 crore.  

"IDLC Finance has a strong financial base, and its board is one of the best among all banks and NBFIs," Khan said. 

Officials said the disclosure that Khan had quit came yesterday, and they were unaware of his plans. Khan did not share his business plan.

Before joining IDLC as the MD and CEO, Khan served the BSEC as a commissioner. Prior to this, he served IDLC Finance for 15 years and held key positions, including the role of the deputy managing director.

Khan studied finance and banking at Dhaka University, and had his MBA from the Institute of Business Administration. He began his career in 1991 as a probationary officer of AB Bank Ltd.

He is a member of the Institute of Cost and Management Accountants of Bangladesh.

The shares of IDLC Finance closed 0.93 per cent lower at Tk 64.20 on the Dhaka Stock Exchange yesterday.

The company announced a 35 per cent cash dividend in 2019 and 2018, 30 per cent in 2017 and 2016, and 25 per cent in 2015, data from the DSE showed.