Dear valued Shareholders,
Distinguished Members of the Board of Directors, Honorable Guests, Ladies and Gentlemen, Assalamu Alaikum,
I welcome you to the 21st Annual General Meeting of Bangladesh Industrial Finance Company Limited (BIFC). You may please be aware that BIFC has been passing through a crucial and challenging time. 2015 was a testing time for BIFC and the company suffered serious setback due to incidents like breaking out of a fire in the Head Office at Dilkusha and serious irregularities in respect of loan accounts relating to Sunman Group;
During 2016 all out efforts were made to revive the financial as well as image crisis of the Company. The Board of Directors was reconstituted. The Executive Committee and Audit Committee were reformed. The new Managing director was appointed. A special audit on the affairs of the company was carried out. Measures were taken to reconstruct the documents/files fully/partially destroyed by fire. As the all loans relating to Sunman Group (which constitutes about 85% of total loan port folio of BIFC) were classified as Bad & Losses as per rules and regulations Bangladesh Bank. Interest income from loans reduced abnormally and huge provisions had to be made. As a result, all financial indicators of the company showed dismal look at the end of the year 2016.
BIFC has taken 2017 as a year of revival. After taking over as Chairman of BIFC, we have taken a number of steps to give the Company its desired shape. Status of each and every loan account has been identified. With the objective of speeding up recovery of loans, segregation of duties among Business Department, Recovery Department and Legal Department has been made. Strong Monitoring and Recovery Teams have been formed and specific loan accounts have been assigned to them. They are closely monitoring the loan accounts through on site visit and off site supervision. As per instructions of Bangladesh Bank, legal action has been initiated against defaulting firms/companies relating to Sunman Group. The Board has taken a very strong stand regarding compliance culture in the Company. Six Guidelines including four Core Risks have been approved by the Board and respective departmental heads have been made Compliance Managers for the Guidelines to ensure compliance of the instructions of the guidelines properly under the supervision of Deputy Managing Director.
We have also taken initiatives to form a dedicated deposit mobilization team to attract deposits from the potential core depositors for a sustainable funding base side by side with credit lines and deposits from different Banks/FIs.
We may have to wait for a reasonable time for the resultant effect of these initiatives, but we are sure that we will overcome in the long run towards reducing our non performing asset portfolio at an acceptable level, make a strong deposit base, revive good governance and turn the company into a vibrating one.
I, on behalf of the Board, would like to express my appreciation to the Governor of the Central Bank of Bangladesh and the officials at the Department of Financial Institutions and Markets, for their consultative approach, cooperation and assistance extended to us throughout the year, I would also like to express my sincere gratitude to officials of the Bangladesh Securities and Exchange Commission, Dhaka Stock Exchange and Chittagong Stock Exchange for their continued direction and support. I express my sincere thanks to our shareholders, clients, my colleagues on the Board for their unstinted support and cooperation. My gratitude goes to the Management team for their leadership skills and expertise, to our employees for their efforts and dedication and to all our stakeholders for their trust and continued support.
In conclusion, I am confident that your Company will continue its journey of growth and add value to all its stakeholders in the years to come.