The Bangladesh Bank has promised to arrange repayment to depositors following the liquidation of People’s Leasing and Financial Services (PLFS) -- a non-bank financial institution.
The assurance came at a press briefing on Wednesday, after the Bangladesh Bank made formal announcement of the liquidation of PLFS.
The liquidation will be the first ever in the history of Bangladesh’s financial sector.
“The due process of liquidation will move forward as per directive of the court. The Bangladesh Bank will protect the interest of the PLFS depositors, and pay their money back as soon as possible,” central bank spokesperson Sirajul Islam told reporters.
“The PLFS has assets worth Tk 3,239 cr and deposits amounting to Tk 2,036 cr. So, it will not be a problem for the central bank to return the depositors' money,” he added.
Present at the event, Bangladesh Bank Executive Director Shah Alam added that the central bank first received complaints about PLFS in 2014, and proof of irregularities was found during an inspection carried out in 2015.
“The Bangladesh Bank has appointed a lawyer to complete the process of liquidation,” he said.
The headquarters of PLFSL - which started its journey in 1997 - is in Motijheel with two branch offices in Gulshan and Chittagong.
Of its total Tk 1,131 crore outstanding loans, 66.14 percent has turned to non-performing loans.
Owing to deterioration of its financial health, the People's Leasing listed with the Stock Exchange could not give any dividend after 2014.
Some 67.84 percent of its total share is with general shareholders, 23.21 percent with sponsors and directors, 8.76 percent with institutions and 0.19 percent with foreign investors.