Page 36 - IBT December 2020

Financial Industry
Your
Friend in
Financing
IDLC began as a single product
lease finance company back in
1985 with 5 staff members. cities and 40 branches, serving
Thirty-five years down the line,
it emerged as the largest just in the financing business
multi-product multi-segment instead they strive to help
Non-Banking Financial people achieve their dreams. As
Institution in the country. As
one of the most respected Limited has been at the
financial brands in the industry,
IDLC Finance Limited holds a
strong and diversified footing in
Corporate, SME, Retail and the raging pandemic.
34
Nation
In a journey of 35
years, IDLC has left
no stones unturned
to live up to the
commitment it
made to its
esteemed clients.
By Marjiya Baktyer Ahmed
Capital Market segments. With
a marked presence in over 20
over 45,000 clients, IDLC is not
industry leaders, IDLC Finance
forefront of innovation working
determinedly to propel the
sector to new heights amidst
Builders
COPING THROUGH
THE CRISIS
Many of the non-banking
financial institutions are
struggling with their
profitability. Not only NBFI’s,
the whole economy is suffering
due to this pandemic. Almost
every business organization
was closed for a long period of
time. This hampered the whole
economy. IDLC has managed to
overcome this quite well
because of enough liquidity
and timely prudential
investment strategies.
Depositor’s trust has also
played a vital role here. IDLC
has a long reputation for good
governance, compliance, and
experience of thirty-five years.
THE AWARD-WINNING
INTEGRITY OF IDLC
INVESTMENTS
IDLC Investments is one of the key
performing subsidiaries of IDLC
Finance Limited. They assist their
clients throughout the IPO process,
and enable fast and easy portfolio
along with sustained market support
management for individuals to ease
them into the capital market.
IDLC Investments has been awarded
by Euromoney for its ability to adapt
and tailor its offerings in adverse
conditions, superior financial
performance compared to peers,
unique deals, its legacy of delivering
tailored and innovative solutions to
local and international clients across
a range of products and services.
IDLC’s strength lies in its adaptability
to change and also its commitment to
creating a lasting impact on the
financing overall from a low base.
However, its impact and
effectiveness could be enhanced
by reviewing past and present
financing schemes and
institutions.The Bangladesh Bank
should refocus its attention on
the most constrained among the
MSMEs. In addition, the
Bangladesh Bank’s policy
emphasis on banks does not
appear to be fully internalized.
Indeed, the banks’ response can
best be characterized as one of
passive compliance.The reasons
appear to be based on persistent
underlying financial
infrastructure weaknesses and
banks’ risk perceptions.
society through various business ENSURING HEALTH
efforts. Winning this award for AND WELLBEING
the third time in a row reiterates The key strengths of IDLC is its
their merchant bank’s continued open and transparent governance,
leadership in the investment customer’s trust and empowered
banking landscape of the country. workforce. Their team members
IDLC has recently launched the are some of the best in the bunch.
IDLC has a very robust process in
an issue size of BDT 5,237 million place that allows them to be
IPO of Robi Axiata Limited, with
faster and better. They are also
which is the biggest ever IPO in
introducing technology at a faster
Bangladesh and also launched the
rate with the aim to provide the
IPO of Mir Akhter Hossain Limited
best service to customers.
with an issue size of BDT 1,250
million. During this unprecedented time,
the primary focus of IDLC was
MSME: THE ENGINE
ensuring health and wellbeing of
OF AN ECONOMY
its employees as well as its
customers without hampering its
Small and Medium Enterprises
(SME) are put in the frontline of business. Keeping that in mind,
they introduced a digital platform
an economy as they carry out the
for deposit collection to safeguard
connotation of “the engine of an
their liquidity to ensure
economy”. Being an intrinsically
organizational stability during
challenging sector, it brings a
People have grown the
the financial inclusion net by
chunk of unbanked people under this crisis period.
creating job opportunities. consciousness that now is the
Access to formal finance by time to consider saving up for
MSMEs in Bangladesh is limited unforeseen events. This pandemic
compared to the average for the has been a jarring wake-up call.
South Asia region. Despite CASTING A WIDER
significant knowledge gaps, FINANCIAL NET
MSMEs are undoubtedly the
backbone of non-farm job creation Being a financial institution IDLC
in Bangladesh. A study prepared takes care of most of the
by the World Bank Group and the financing needs of their
Policy Research Institute of customers, from large
Bangladesh (PRI) showed that the corporations who want to set up a
Bangladesh Bank’s efforts appear large factory to small businesses
to have increased MSME requiring working capital, they
finance them all. IDLC has always
been keen to commit its resources
not only to maximize its own
profitability, but also to offer better
quality of life to both its internal
and external stakeholder groups.
Green Banking: IDLC promotes
sustainable business practices
among its stakeholder groups,
especially its clients and
employees. As part of sustainable
business practices, IDLC is
committed to contribute towards
greater environmental and social
sustainability by undertaking
various initiatives.
Women Empowerment: IDLC has
introduced a comprehensive
package for women empowerment
in 2008 titled ‘Women
Entrepreneur Loan’. This product
not only offers loan facility with
lower interest rates it also
facilitates the women in obtaining
regulatory documents and licenses
Corporate Social Responsibility:
essential to conduct a business.
Community development has
always been an integral part of
IDLC. Their CSR initiatives are
focused on reducing inequalities in
the society through investing in
education, health, livelihood
development and environmental
challenges.
Financial Inclusion of Unbanked
Population: In 2019, IDLC Finance
created access to finance for about
450 Kitchen Market Vegetable
Retailers as part of its vision of
financial inclusion. Traditionally,
enterprises. This is a profitable
business where non-performing
loans are very low at 3.13%.
A CREATIVE AND
COMPREHENSIVE
POLICY APPROACH
There can be multiple creative
approaches that can be induced by
policymakers. For example,
encouraging Kiosk based
(self-service or assisted
self-service) Service Delivery
Centers for rural/unbanked
populations to expand financial
inclusion, implementing a
comprehensive plan to improve
interoperability of technology
platforms among central bank,
election commission, NBR, and
others. Regulators can also
encourage direct connectivity
among technology platform of
banks and NBFI for faster and
accountable online transactions.
IDLC FINANCING
HAPPINESS
IDLC works with the slogan
"Financing Happiness". They
believe in contributing to the
grassroots for a greater change in
society. To create a long-term
these kitchen market vegetable impact on society, IDLC takes on
issues related to health, the
retailers do not have access to
environment, and education. They
formal credit mainly due to lack of
feel that these three sectors have
proper documents and financial
the capability to mold society's
records. To fulfil their financial
needs, they avail loans from local future as they leave a long-lasting
impact. One of the recent examples
lenders at a very high interest rate,
is the project of boat ambulance in
which is deterrent to their business
Rangabali which was launched in
growth. The objective of this
January 2020. The ambulance was
initiative is to contribute to the
well. In a 26-foot long and
their financial needs.
growth of this section by meeting designed by the foundation as
Affordable Home loan: Affordable eight-foot-wide boat ambulance,
housing refers to housing units they managed to keep a space for
that are affordable by that section an emergency delivery.
of society whose income is below Another project is named Oditiya.
the median household income. In this project, they offer
IDLC’s Affordable Home Loan scholarships to underprivileged
provides housing loans for the low women who are the first in their
and middle income (monthly families to reach the honors level
income within the upper ceiling of of education. They collaborate with
BDT 60,000) households, a a vernacular Bangladeshi daily and
currently untapped segment in the Asian University for Women for the
country’s housing finance sector. project. They bear the educational
MSME: IDLC has invested 46% of expenses of the women at the
its portfolio in small and medium honors level.