BB appoints administrator at troubled Premier Leasing
The central bank yesterday appointed an administrator at Premier Leasing & Finance Ltd (PLFL) carrying out a court order, the first such maneuver targeted at a non-bank financial institution in Bangladesh.
The Bangladesh Lender has appointed its Executive Director AKM Mohiuddin Azad as the administrator at the beleaguered NBFI, said Md Serajul Islam, a spokesperson of the central bank.
The central bank has taken your choice to comply with a higher Court order, he said. BB Governor Fazle Kabir permitted the appointment on Tuesday.
The court order came after among the depositors of the NBFI had filed a case over PLFL's failure to pay back deposits on time.
Defaulted loans in the NBFI possess surged alarmingly in the recent period, regarding to data from the central bank.
Non-performing loans stood at Tk 384 crore, accounting for 30.53 % of its outstanding loans by June.
The company has didn't preserve provisioning against defaulted and unclassified loans aswell. The provisioning shortfall stood at Tk 78.34 crore by June.
A good number of NBFIs just lately faced troubles to settle depositors due to widespread financial scams.
The government earlier made a decision to liquidate People's Leasing and Financial Services following the central bank detected a large-scale scam. The NBFI has also didn't repay depositors.
