When other financial institutions (FIs) have been moving cautiously since the eruption of the corona pandemic, the country’s leading financial institution ‘BD Finance’ has expanded its horizon.
BD Finance has shown tremendous success over the last six months in its efforts to reduce bank exposure and non-performing loan (NPL), get more big clients and new depositors, and spur lending growth and credit rating.Md. Kyser Hamid, managing director and CEO of BD Finance, shared his insights about the company’s present situation, growth, and future plans in an exclusive interview with the Daily Sun.
“We are passing a difficult time indeed, but I must say we are moving forward to a different way. While others are moving cautiously, we have collected huge deposits, improved liquidity collection, and onboarded big customers despite the challenging time,” said Kyser Hamid.
Referring to the steps taken by the BD Finance management in recent times, he said they have reduced around Tk 150 crore bank exposures during the last five months.
BD Finance has been able to raise around Tk 70-80 crore deposit every month from the general customers, especially small retailers, he said adding that such growth has helped bring this financial institution into a lending position.
“In terms of NPL, we have reduced it to 3.22 per cent from 4.58 per cent. We not only reduced NPL in percentage but in volume. Besides, we have set a target of reducing NPL to 2.5 per cent by 2021,” said Md. Kyser Hamid, adding that they are putting all possible efforts to decrease provisioning and making the balance sheet stronger than ever.
“Taking the chance of other FIs contraction mode, we have onboarded big clients like Akij Group, Baraka Power, PRAN RFL, Runner Group, Bangla Trac, Aziz Group, Ifaad Autos, Zaber & Zubair, etc. in our client list. It could have been difficult for us to be partnered with such big groups earlier,” said BD Finance managing director.Mentioning the reformation of BD Finance, Kyser Hamid said they have brought huge changes in the leadership in all departments by recruiting skilled manpower.
Considering the overall improvement, BD Finance has improved in credit ratings with earning (Double A) ‘AA’ band from (Single A) ‘A’ band.
“Only 4-5 financial institutions have (Double A) AA band in the country which means that BD Finance is one of the top FI in Bangladesh,” Kyser Hamid noted.
He also informed that they have obtained ‘Islamic Financing Wing’ licence which opens a new horizon of development for them.
With the addition, BD Finance is now the only listed FI which has both the Islamic and Conventional wing licence, he added.
BD Finance is going to rebrand itself very soon, Kyser Hamid said.
BD Finance is going to be renamed as ‘Bangladesh Finance’ representing the national spirit of Bangladesh in the 50th anniversary of the Liberation War, he said.
Explaining the background of the rebrand, he said the word BD has no emotion with the mass population of the country and does not connect with the real spirit of Bangladesh.
“From the sense of connecting with the real national spirit and connect people, we want to represent Bangladesh Finance as the Financial Institute of all people of the country,” explained Kyser Hamid.
He said they have already got the central bank’s primary consent and BD Finance board has already approved the new name. After completing other legal procedures, the company will come up with a new look and a new slogan.