4 NBFIs looted by PK Halder in dire straits

Four non-banking financial institutions (NBFIs) looted by Prashanta Kumar Halder, infamously known as PK Halder, are now in dire straits.

The process to recover the money looted still seems to be a far cry.

Those four ailing NBFIs – People’s Leasing, International Leasing, FAS Finance and BIFC - came into the discussion again after PK Halder had been arrested from Ashok Nagar area in West Bengal of India recently.

The country’s Enforcement Directorate (ED) apprehended six people, including Halder, his brother Pritish Kumar Halder and his accomplice Pranesh Kumar Halder.

All of them fraudulently obtained Indian citizenship papers, the ED said in a statement. Halder had been living in West Bengal posing as an Indian citizen under the name of Shibshankar Halder.

The scam-hit four NBFIs failed to return the money to the depositors due to their ailing financial health caused by massive irregularities in approving loans, embezzlement by directors and shareholders, violation of company rules and lack of internal control and compliance.

Halder was directly and indirectly involved in those activities. He fled the country back in 2019 after being charged for amassing illegal wealth, embezzling thousands of crores of taka and laundering those abroad.

The NRB Global Bank’s (renamed later as Global Islami Bank) former managing director swindled out at least Tk3500 crore from those four NBFIs as per the Bangladesh Bank’s probe report.

Those ailing NBFIs could not turn around without mergers and acquisitions, said Bangladesh Bank former governor Salehuddin Ahmed.

He suggested that those NBFIs should merge with a good and strong bank or NBFI.

The cases against the defaulters should have to be settled as early as possible and their asset should be forfeited, the economist pointed out.

People’s Leasing and Financial Services Ltd (PLFSL)

PLFSL, the first non-bank financial institution in the country faced liquidation in 2019 due to the PK Halder scandal.

Around Tk2029 crore was swindled out of the company in the name of 30 entities by PK Halder, found BB report.

Then, the initiative to liquidate the PLFSL affected the entire financial institution sector, forcing the government to backtrack on its decision to wind up the NBFIs.

Following a writ petition by 201 depositors against liquidating the company, the High Court on June 28 last year formed a new board to reform the scam-hit non-bank financial institution.

There is no visual progress in returning the depositor’s money and loan recovery from defaulters since June 28 of last year when HC formed the new board for the ailing company.

Contacted, PLFSL Managing Director Mohammad Jalaluddin did not want to say anything about their present activities.

International Leasing and Financial Services Ltd (ILFSL)

International Leasing and Financial Services Ltd had been doing well till 2015 but its condition started worsening since then due to PK Halder scandal.

The company’s net profit was Tk12.25 crore in 2015 and Tk11.42 crore the following year. But in 2019, it went into the red. By the end of 2018, its loss stood at Tk 41.42 crore.

At the end of September 2019, its stood at Tk593 crore, which rose to Tk3210.36 crore by December 2021 due to huge irregularities and fund embezzlement.

However, a court on July 6 last year appointed five independent directors to the ailing non-bank financial institutions for their rescue.

International Leasing Managing Director (CC) Md Mashiur Rahman said there was no visual progress till now but ‘we are trying to revive the company’.

The number of total depositors of the company stood at 4,019 till December last year. Of them, 3,071 were individual depositors and 948 corporate depositors.

The NBFI has already paid back 1,892 depositors on humanitarian grounds, as per its officials.

Bangladesh Industrial Finance Company Ltd (BIFC)

The non-performing loans of BIFC stood at 95.93 percent now due to huge irregularities and scam.

At the end of last year, the total non-performing loans of the company stood at Tk760.79 crore, which was 95.93 percent of the total disbursed loans, as per the central bank data.

In the year of 2015, there was a big change in the ownership in the company and the ownership of the NBFI went to PK Halder associates. Pritish Kumar Halder, brother of PK Halder had become the chairman of the board of directors of the company, as per industry insiders.

The Bangladesh Bank in 2016 dissolved the board of the finance company due to huge irregularities.

The Business Post correspondent tried to reach BIFC Managing Director (Current Charge) A. K. M Ashfaqur Rahman Chowdhury till filing of this report but he did not respond the phone call.

FAS Finance & investment Ltd

The total outstanding loan of FAS Finance stood at Tk1927.93 crore at the end of last year. Of it, Tk1714.33 crore was defaulted, as per the latest data from the Bangladesh Bank. The defaulted loan is 88.92 percent of the total disbursed loan due to huge irregularities and scam.

The Anti-Corruption Commission (ACC) found the involvement of PK Halder in embezzling around Tk523 crore from FAS Finance and Investment.