IPDC pledges to strengthen its distribution system

IPDC Finance Limited has disclosed its financial and business performance in 2021 along with future plans in the company’s annual investors’ meet via an online session.

The continuous success of the company, financial highlights of 2021, different initiatives taken in the year, and achievements in 2021 were discussed in the event, said the company in a statement.

Speaking at the event, IPDC Finance Managing Director and CEO Mominul Islam said, “The loan portfolio of IPDC has grown by 21.9 per cent from the previous year. This growth has been possible due to the notable growth of SME and emerging corporate loan portfolio.”

In 2015, some 79 per cent contribution of total loan portfolio came from corporate loan whereas SME and emerging corporate loan and retail loan contributed only 11 per cent and 10 per cent respectively. In 2021, the contribution from SME and the emerging corporate loan has risen to 31 per cent. For retail loan, the number is 22 per cent. Considering the impact of SME loan and retail loan in the socio-economic development of Bangladesh, special focus was given to these two products. In 2021, customer deposit of IPDC has grown by 17.3 per cent.

The growth of customer deposits is reducing dependency on bank borrowing for fund collection. In 2018, bank dependency on the source of the fund was 29 per cent. It has come down to only 5 per cent in 2021 whereas the contribution of customer deposit as a source of the fund has gone up to 68 per cent. This is a sign of sustainable development for IPDC that there is now less bank dependency for the source of fund, according to the statment.

During the period, IPDC’s revenue has increased by 21.7 per cent. Even after keeping adequate amount as provision, the company has earned a net profit of Tk 881 million which is 24.9 per cent more than the previous year. At the end of 2021, IPDC has ensured a contingency liquidity reserve of Tk 1,340 million.

The IPDC CEO announced some goals for the year 2022. Strengthening the distribution system to ensure even faster service, optimising the usage of resources, process reengineering, and digitisation for better service, the official inauguration of IPDC EZ and Dana are among the major goals.

“As we have just passed the 50-year landmark of our independence, IPDC reinstates its commitment to be a partner of the socio-economic development of the country as a financial intermediary. Our special focus of the course will remain on the empowerment of women, youth, entrepreneurship, and affordable housing for the lower-middle-income families beyond the megacities of the country,” he said.