IDLC gets nod to operate Islamic finance window

IDLC Finance Ltd, Bangladesh’s leading non-bank financial institution (NBFI), received the go-ahead from the Bangladesh Bank on Tuesday to begin Shariah-compliant financing business.

This decision was made after amending the relevant clauses of the company’s memorandum and articles of association. The Islamic finance window will be operated simultaneously with the company’s existing operations.

The NBFI reported a 9.5 per cent year-on-year drop in net profit for the year 2022. The decrease was due to lower returns from its subsidiaries in the capital market.

IDLC Finance’s consolidated net profit was over Tk 191.45 crore in 2022, compared to Tk 211.60 crore in the previous year. The profits of its three subsidiaries, IDLC Securities, IDLC Investments, and IDLC Asset Management, fell by 46 per cent year on year.

An IDLC official noted that the capital market is one of the major sources of income for financial institutions. Despite the drop in net profit, IDLC Finance alone recorded a net profit of Tk 161.96 crore in 2022, up from Tk 157.62 crore in the previous year.