People’s Leasing depositors want money back by December

Depositors of the People's Leasing and Financial Services Ltd today requested the Bangladesh Bank governor to arrange a faster procedure to return their money by December this year.

"We are living in miseries after liquidation of the People's Leasing. We want to get our deposit back by December," depositors told reporters after meeting Bangladesh Bank Governor Fazle Kabir.

Along with Fazle Kabir, Banking Reform Advisor SK Sur Chowdhury, Executive Director Abdul Rahim, Deputy General Manager of the Bangladesh Bank and Liquidator of the People's Leasing Md Asaduzzaman were also present at the meeting.

Earlier, the investors formed a 12-member ad-hoc committee. On behalf of depositors, Convener Anwarul Haque, Joint Conveners Kamal Ahmed and Rana Ghosh, Secretary Prashanta Kumar Paul and Member Samia Binte Mahbub met the governor.

After the meeting, Samia Binte Mahbub told reporters, "We invested in an institution licensed by the Bangladesh Bank. We even paid tax against our deposits. Who is responsible for taking care of our investments now?"

Convener Anwarul Haque said, "The governor has promised us to return the money quickly. However, he could not set a specific time for that. We expect that we will get the money back within two to three months after the audit is completed."

"The governor also told us that actions have been taken against those involved in mismanagement of the People's Leasing," he said.

People's Leasing initiated liquidation on 26 June, as per government's direction, after losing the capacity to pay the depositors back, dealing a heavy blow to creditors.

Of its total outstanding loans amounting to about Tk1,131 crore, more than 66 percent has turned non-performing.

The company could not give any dividend to its shareholders after 2014 as its financial state started to deteriorate. 

Almost 68 percent of the total share of the company lies with the general shareholders, while slightly over 23 percent is with the sponsors and directors, around nine percent with other institutions and 0.19 percent with foreign investors.