International Leasing losses lessen in 2021

Net losses of International Leasing and Financial Services Limited (ILFSL) - a non-bank financial institution (NBFI) - decreased in 2021, compared to 2020, thanks to the significant drop in its provision for leases, loans and advances.

The NBFI incurred a loss of Tk205.39 crore in 2021, which was Tk694.26 crore in 2020. In 2021, the net loss per share stood at Tk9.26, which was Tk31.30 in 2020.

The company decided to not pay any dividends to its shareholders for 2021. It has failed to pay any dividend to its shareholders since 2018.

According to a disclosure filed to the stock exchanges on Sunday by ILFSL, the net profit increased by Tk488.02 crore due to a decrease in interest and operating expenses, and less provision. Interest expense decreased by Tk91.55 crore, compared to the previous year, due to increase in the cost of funds. Operating expenses decreased by Tk3.31 crore.

The provision for leases, loans and advances was reduced to Tk404.99 crore.

The company faced several major debt scandals in 2019, including former director Prashanta Kumar (PK) Halder's one.

The allegation of embezzlement against PK Halder surfaced after the Anti-Corruption Commission launched an inquiry into the wealth of illegal casino owners last year.

Halder and his accomplices misappropriated around Tk3,500 crore from ILFSL.

In a bid to save the dying financial institution, the court appointed Khandaker Ibrahim Khalid, former governor of the Bangladesh Bank, as the chairman, but he later resigned.

Then, the central bank appointed former Secretary Md Nazrul Islam Khan as the company's chairman. The High Court appointed five independent directors to the company.