International Leasing aims to get back to normal in a year: Managing Director  

Scammed International Leasing and Financial Services Ltd (ILFSL) is aiming to regain regular business operations as a non-bank financial institution (NBFI) by the end of 2023, its Managing Director (MD, Current Charge) Md Mashiur Rahman said on Thursday after its 26th Annual General Meeting (AGM).

"If we succeed in converting around Tk2,000 crore of our debts and deposits into equity, a decent balance sheet would allow us to have a much stronger cash flow and eventually to regain the confidence of clients," he told The Business Standard.

International Leasing, once a respected brand in the NBFI industry, is struggling to pay back over Tk4,000 crore to its depositors and lenders due to the scam loans during the 2015-19 period under control of bank looter PK Halder and his associates.

The MD hopes to accomplish the equity conversion program by the first quarter of 2023 and that would pave the way to regaining normalcy in operations by the end of that year.

"We have made huge and adequate provisions against non-performing loans and sued clients for non-repayment of over Tk2,600 crore. Our two capital market subsidiaries are doing better business nowadays and the courts have also handed over control of some businesses owned by our clients in default," he said in explaining his hope to revive ILFSL.

ILFSL, with its court-appointed board of directors led by former bureaucrat Md Nazrul Islam Khan, is expediting efforts to recover assets, clear liabilities, and regularise operations.

"With a positive attitude and rapid decision making, we will recover loans and pay back depositors' money" Khan told shareholders at the AGM as  quoted in the company's latest annual report.

Talking to reporters at the ILFSL head office in the capital's Paltan after the AGM on Thursday, he elaborated on the barriers the company is facing — legal action from clients, non-cooperation of borrowers, raids by government agencies, and some harsh behaviour with ILFSL officials, despite their hard work to rebuild the firm.

The ILFSL independent director and chairman called for stakeholder cooperation during the entire revival phase.

Independent Directors -- banker Syed Abu Naser Bukhtear Ahmed, retired judge Md Shafiqul Islam, Brigadier General Md Meftaul Karim, Barrister Md Ashraf Ali, and chartered accountant Md Enamul Hasan, were present at the AGM.

Managing Director Mashiur Rahman said overall expenditures of the company were reduced by 21% in 2021, interest income was almost at the same level but would go up soon, while the overall loss reduced by 70% compared to a year ago.

"We are recovering and growing, and we are working to reconstitute our balance sheet."

"Our long term credit rating has improved to BBB+," Rahman said.

The firm owes around Tk2,500 crore to its lenders, around Tk1,000 crore to corporate depositors, and the remaining Tk700 crore to individual depositors, according to its financial statement.

ILFSL shares with a face value of Tk10 apiece, closed 3.2% lower at Tk6 on the Dhaka Stock Exchange on Thursday, relative to the previous session.