NBFIs Deposit Accounts Drop by 17%

The Bangladesh House Building Finance Corporation (BHBFC) has increased interest rates on all types of housing loans by 1%, effective from January 1, 2024. The new rates range from 8% to 10%, up from the previous 7% to 9%.

Bangladesh Bank has aligned its recruitment policy with a recent government ordinance, raising the maximum age limit for entering jobs at non-bank financial institutions (NBFIs) to 32. Previously, the age limit for such positions was 30. This change comes after the Ministry of Law, Justice, and Parliamentary Affairs issued an ordinance extending the age limit for direct recruitment in government jobs and related institutions, including autonomous, semi-autonomous bodies, and public corporations, to 32 years.

Mesbah Uddin Ahmed has been appointed as the managing director of IDLC Investments Limited, effective immediately. With over 29 years of corporate experience, including 25 years in banking, Ahmed has held various leadership roles, most recently as deputy managing director and head of retail business at IDLC Finance PLC. He has been with IDLC since 2010, where he made significant contributions, particularly in structured finance and corporate affairs for the Dhaka region.

Premier Leasing & Finance Limited faces significant financial challenges, with its auditor raising serious concerns about its ability to continue operations. Over the past four years, the company has incurred cumulative losses of Tk 8.71 billion, driven by a high volume of classified loans (72.5% of total loans), a negative capital adequacy ratio of -41.14%, and excessive liabilities.

Deposits in Bangladesh’s non-bank financial institutions (NBFIs) decreased by Tk 68 crore in the July-September period, falling to Tk 47,838 crore. This decline, attributed to a lack of customer trust, follows issues like loan irregularities, capital erosion, and mismanagement.