IPDC’s Investments Face Major Loss Risks

IPDC Finance PLC has deposits in several weak banks and financial institutions, including five Islamic banks that are set to be merged. The company also has deposits in financial institutions that may be liquidated by Bangladesh Bank. IPDC has around Tk 88 crore deposited in two banks that are being merged and two financial institutions that may be dissolved. Because these deposits are held in vulnerable banks and financial institutions, uncertainty has arisen over whether they can be recovered, putting the company’s depositors at significant risk of major financial loss.

According to IPDC Finance’s 2024 annual financial report, the company has Tk 627 crore deposited across various banks and financial institutions. Of this, short-term placements include Tk 2.85 crore with Peoples Leasing and Financial Services and Tk 88.38 lakh with International Leasing and Financial Services.

Recently, Bangladesh Bank decided to close nine financial institutions. The governor of Bangladesh Bank confirmed the decision to the media, saying that the government has given policy-level consent for the closures. Peoples Leasing and Financial Services and International Leasing and Financial Services are among the nine institutions on this list.

Confirming that nine institutions have been marked for closure, Bangladesh Bank spokesperson Arif Hossain Khan told Banijya Protidin that the shutdown process has not yet begun. “The bank merger process has started. Once the mergers progress, decisions regarding these financial institutions will be made,” he said. He added that these NBFIs will not be abandoned, but the formal procedure has not yet started. “They have been identified for closure, but no official announcement has been made.”

At the same time, IPDC Finance has fixed deposits in several banks. Among these, Tk 84.50 crore is deposited in EXIM Bank and Social Islami Bank, both of which are being merged. According to the financial statement, IPDC has Tk 44 crore in EXIM Bank and Tk 44.50 crore in Social Islami Bank as fixed deposits. Concerns have emerged regarding the recovery of these deposits.

According to Bangladesh Bank, the banks selected for merger will receive government funding support, after which the process of returning depositors’ money will begin. Depositors with Tk 2 lakh or less will be allowed to withdraw their full amount at once. Others will receive their money in phases. In addition, depositors with larger balances may be offered shares in the newly merged bank, as Bangladesh Bank has planned to convert 20 percent of larger deposits into shares.

Samiul Hashim, Company Secretary and Head of Legal Affairs at IPDC Finance, said: “We will act according to Bangladesh Bank’s guidelines. We will follow whatever instructions the central bank provides. The rules apply equally to everyone; we are no exception.”

On this matter, Bangladesh Bank spokesperson Arif Hossain Khan told Banijya Protidin: “It has already been stated that no one’s deposit will be lost. But it is not possible to return everyone’s money immediately. Smaller amounts — Tk 1 lakh or Tk 2 lakh — can be paid now. The rest cannot be paid at this moment, but that does not mean their deposits are being refused. Everything will be returned, but it will take time. Whether institutional or individual, large deposits will follow the same procedure.”