ILFSL returns Tk 139.6cr to its 4,652 clients30 September 2022
Staff Reporter :
The new administration of the financial institution International Leasing and Financial Services Limited (ILFSL), led by its Chairman of the board of directors and former secretary Nazrul Islam Khan, has paid around Tk139.6 crore back to its 4,652 clients after resuming in the office. "We have already paid the amount back to the clients. Initially, we have targeted the small investors as the number of small investors is huge. Paying the small investors, we are trying to manage the situation. Same time, we are also trying to pay the elderly and distressed investors from the fund we are collecting from lenders. Once, the situation is improved, the authority will pay back the entire amount of money of the investors remained unpaid,"
Nazrul Islam Khan told media on Thursday while briefing about the situation of the private financial institution at its Purana Paltan Office in Motijheel.
Earlier on the day, 26th Annual General Meeting (AGM) of ILFSL was held through virtual medium at its head office will its Chairman Nazrul Islam Khan in the chair.
ILFSL Managing Director (CC) Md. Mashiur Rahman and independent directors Syed Abu Naser Bukhtear Ahmed, Md. Shafiqul Islam, Senior District and Sessions Judge (Retired), Brigadier General (Retired) Md. Meftaul Karim, Barrister Md. Ashraf Ali and Md. Enamul Hasan were also present. While presenting yearly performances in the briefing, MD Mashiur Rahman said that the financial institution was on the verge of recovering and reconstructing after the damage due to the financial scam between 2015-2019 by its former MD PK Halder and others.
Mashiur said the overall expenditures of the company have been reduced by 21 percent in 2021 over the period of 2020. The interest income was almost at the same level, but will go up soon. The overall loss income was reduced by 70pc in 2021 over the year 2020. Therefore, we are recovering and growing.
"We are working to reconstitute our balance sheet and in the meantime an agreement was signed with Sonar Bangla Capital Management for issue management services to convert our deposit and loan liability into equity which after implementation will match our overall liability with earning assets leading to return to smoother cash flow," he added.
He also informed, "Our long term credit rating has been improved to BBB+ (Triple B Plus) and outlook is under developing as we have started implementation of our rebuilding program. We are compliant under the leadership of court-appointed independent board and running operations following the rules and regulations since June, 2020. We have already brought change in our management to bring efficiency."
The IL Capital, a subsidiary of ILFSL, recorded net profit of Tk2.85 crore from net loss of Tk75 lakh in 2020. Moreover, it's growing and has paid 5pc dividend to ILFSL in June, 2022. Another subsidiary International Leasing Securities recorded improvements by reducing net loss to Tk23 million in 2021 from Tk137 million of 2020. The process of reconstruction of its balance sheet by conversion of its loan into equity has also started to make the subsidiary profitable, the MD said.
He claimed that it has four defaulted borrowers who had either profitable factories or projects, but due to inaction and absence of their present board members, the companies have shut down or nearer to closer. ILFSL has taken a creative initiative and has requested the High Court to reconstitute the boards of those defaulted companies.
The outstanding of those four defaulted companies are about Tk260 crore, but forced sales value of mortgaged property is about Tk36 crore. The High Court has already reconstituted Board of Raptile Farm and Annan Chemical Industries including their Managing Directors. The newly constituted boards and MDs have started rebuilding their own institutions towards returning to smoother cash flow for repayment of loan dues with ILFSL, he informed.