Mominul Islam is the Managing Director & CEO of IPDC Finance Limited. Prior to that, he was the Deputy Managing Director of the Company from 2008 to 2011. He had joined IPDC in 2006 as Head of Operations. During his tenure at IPDC, he has played pivotal role in reshaping the organization through strategic planning, organizational restructuring and automation, process re-engineering, control and compliance, and service quality, and so on.
You have obtained the Six Sigma Black Belt training and worked on several Six Sigma projects. What have you learned from your time there? How have you incorporated it into your working methodology?
During my time in the Six Sigma training, I realized that organizations need to determine an appropriate sigma level for each of their most important processes and strive to achieve them. As a result of this goal, it is obligatory on the management of the organization to prioritize areas of improvement. The term “Six Sigma” comes from statistics and is used in statistical quality control, which evaluates process capability. Originally, it referred to the ability of manufacturing processes to produce a very high proportion of output within its specifications. It uses a set of quality management methods, mainly empirical, statistical methods, and creates a special infrastructure of people within the organization who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has specific value targets, for example: reduce process cycle time, reduce pollution, reduce costs, increase customer satisfaction, and increase profits.
Managing Director and CEO
IPDC Finance Limited
IPDC is the first private company in the nation to provide financial services and products for various sectors. Could you elaborate upon the company’s journey? Why are these services essential in the progress of the nation?
IPDC Finance Limited is the first financial institution of Bangladesh, which was established in 1981. Since then, the company has played a pivotal role in financing several major industrial projects in Bangladesh. It has continuously been the major driving force behind the industrial development of Bangladesh in the private sector. The economy of our country has undergone numerous changes in recent times. In its effort to revamp its operation in Bangladesh and in alignment with its key vision to be an active partner in the development of our economy, IPDC has changed its name from ‘Industrial Promotion and Development Company of Bangladesh Limited’ to IPDC Finance Limited. It has made some major changes to ensure efficient organizational management and maximum risk management in its operations. Modern day investors can now build their business upon a more solid foundation. With a broad plan and futuristic approach towards these challenges, IPDC Finance Limited has plans to become one of the key aggregators in the financial industry of this country. Due to the rapid socio-economic development, there is an increased demand for housing solutions amongst the people in our country. Yet there is little to no investment in this sector outside of Dhaka and Chittagong. Most of the people from our country can only afford to build a house during the final stages of their lives. Now IPDC Finance Limited has emphasized on home loans to help ensure affordable housing solutions for the middle and low-income families of the country. We have brought some specialties in our loan schemes. If our lessee departs, becomes permanently handicapped or becomes terminally ill, the person will not have to bear the responsibility to repay the debt. Special insurance will cover the debt expenses. The insurance premium will be covered by IPDC. IPDC Finance Limited will cover these expenses under its corporate social responsibility. Our primary target is to cover from a minimum of Tk 5 lacs to Tk 25 lacs of loans to our clients. We will also give Tk 50 lacs or more loans if necessary. People who are interested in building their own house or apartments can take loans under this scheme. The interest rate on these loans will be decided according to the market situation. The monthly installments will be decided as per negotiations with the client. IPDC has also emphasized its plan on the empowerment of the women in its efforts to mark a positive impact as the working-class women are a major driving force of the economy of this country.
Your company’s profile has a very diverse clientele. What are the challenges in maintaining such an eclectic portfolio?
Since its inception, IPDC Finance Limited has played a pivotal role in developing country’s industrial landscape. IPDC has been a partner in several milestone projects that were the first of its kind in Bangladesh. For this reason, we have a strong and diverse base of corporate clientele amongst the financial institutes which are in operation at the moment. Some of our long-term clients are IDLC Finance Limited, Fantasy Kingdom Theme Park, Holcim, Summit, DBH, Apollo Hospitals Dhaka, Westin, National Housing, Ekushey TV, Scholastica and much more. The major challenge to become a successful financial institute is to provide customized solutions to meet the needs of these varied ranges of clients. To continue financing the growing demands for both the Corporate and SME clients we are determined to bring more customizable financial solutions and for that reason, we have shared our stakes with some of the major bodies in the context of Bangladesh.
BRAC, Ayesha Abed Foundation, RSA Capital, Aga Khan Fund for Economic Development, RSA Capital Limited, the general public and the Government of the People’s Republic of Bangladesh are now the shareholders of this institution. These activities mark our promise and commitment towards our eclectic base of clients to provide one-stop financial solutions right to their doorsteps.
“In its effort to revamp its operation in Bangladesh and in alignment with its key vision to be an active partner in the development of our economy, IPDC has changed its name from ‘Industrial Promotion and Development Company of Bangladesh Limited’ to IPDC Finance Limited.”
Why has the company particularly focused on private sectors? What contributions do you believe these firms can make in progressing the nation?
In the context of the transformation of our industry, it is important to affirm our purpose, what we stand for, and what we aspire to be. We believe that to become the most passionate financial brand in the country we need to eye our focus on youth, women, and underserved areas. Investing in the private sectors will help generate more jobs and opportunities for the hardworking people of our country. IPDC Finance Limited is planning to work on youth unemployment which is one of the major challenges at the moment in Bangladesh. Focusing on the private sector will help create more sustainable opportunities and jobs for the youth of our country. All these activities will help IPDC create a positive impact on the development of Bangladesh. We believe our vision and goals are in clear alignment with the mandate of our current government. In 2017, we have plans to open nine more branch offices across the country to bring 70% of the total population under our financial wing. Apart from our own offices, we have started giving out home loan solutions from ten BRAC offices. To expedite this scheme we are looking forward to signing an MOU with one of our major shareholders, BRAC. We are planning to bring people from remote regions in Bangladesh under our loan schemes.
IPDC has created a loan for Green Financing that will allow companies to upgrade their machinery to be more environmentally friendly. Why is the green initiative so paramount to the company?
Green finance is a broad term that refers to capital raising and financial investments flowing into projects, products, and companies that support the development of a more sustainable, low-carbon and climate resilient economy. Green financing is a standing commitment at IPDC and forms an integral part of the Company’s activities. IPDC’s contribution to social sector development includes several pioneering interventions to pro-actively support meaningful socio-economic development in Bangladesh and enable a larger number of people to participate in and benefit from the country’s economic progress. We are currently in the process of activating our green financing operations with some local companies especially in the disaster prone areas of Bangladesh. We have more plans to initiate more actionable green financing activities in the near future.
