IPDC shines against all odds
IPDC Finance, Bangladesh's first private sector non-bank financial institution (NBFI), witnessed higher profits in the first half of 2020 despite headwinds brought about by the ongoing coronavirus pandemic.
Over the past six months, the IPDC's revenue surged 24.9 per cent compared to the same period in 2019.
The NBFI has registered net profits of Tk 31.6 crore during the period, which is 1 per cent higher than what it was for the same period a year before.
The IPDC has remained in profits despite the Covid-19 outbreak thanks to its innovative lending system, said Managing Director and CEO Mominul Islam.
The company emphasises on technology-based and socially responsible business models geared towards cottage, micro, small and medium enterprises.
Besides, the models also focus on women and young entrepreneurs and the lower middle-income households outside Dhaka and Chattogram.
"This was the cornerstone for sustained growth and profitability even during this very difficult period," Islam added.
The IPDC has held its default loan rates steady at 1.59 per cent, which is one of the industry's lowest, while maintaining a capital adequacy ratio of 17.28 per cent.
The company also reached the half-year mark with a liquidity cushion of Tk 665 crore.
Islam presented this data at the IPDC's half-yearly investors' meeting, where the company's financial highlights, benchmarks and key strategies for the future are discussed.
Fahmida Khan, chief financial officer, also spoke during the session, held virtually on Sunday.
Established in 1981, the IPDC had previously launched a "Manobota" deposit scheme alongside a host of other CSR activities amid the Covid-19 crisis.
By 2015, the IPDC had developed a five-year strategic plan by realigning its focus towards the youth, women and underserved areas.
This innovative lending approach continuously bears fruits for the IPDC, Islam added.
Over the last five years, the NBFI's half-yearly net profits have grown 3.8-fold while its total revenue has grown 4.9-fold.
Currently, the IPDC has 12 branches in operation across the country.
The NBFI recently introduced Southeast Asia's first digital supply chain finance platform, called Orjon.
It also established the country's sole retail financing platform, "IPDC Dana", that provides working capital for retailers in a bid to facilitate financing in an easy, low cost, collateral-free and structured manner.
As of yesterday, stocks of IPDC Finance were traded at Tk 24.40 per unit.
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