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PLFS liquidation: Depositors want money back by December

  • Published at 03:21 pm October 14th, 2019
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Depositors speak to reporters after a meeting with the governor of Bangladesh Bank on Monday, October 14, 2019 Dhaka Tribune

Due to the big losses, the listed PLSF, a non-bank financial institution (NBFI) failed to announce any dividend since 2014

Depositors of People's Leasing and Financial Services (PLFS) have said they want their money back by December this year. 

They were speaking to reporters after a meeting with Bangladesh Bank Governor Fazle Kabir on Monday. On behalf of the PLFS depositors, a five-member team sat with the governor. 

Bangladesh Bank Executive Director Md Shah Alam and Bangladesh Bank Deputy General Manager and Liquidator of PLFS Md Asaduzzaman Khan were also present in the meeting. 

A depositor, Samia Binte Mahbub, said: "We invested in an institution licensed by Bangladesh Bank. We paid tax against our deposits. Bangladesh Bank is responsible for taking care of our money.”

“Now we are leading a miserable life. We want our money back by December this year,” she demanded. 

After the meeting, depositor Anwarul Haque said: “The central bank governor has promised to return our money very quickly. However, the governor did not set a specific date for this.” 

“Hope that we will get back the money within two or three months after the audit,” he told reporters.

The depositors alleged that some existing directors of PLFS were leading a luxurious life with their money but no action was taken against them. 

Talking to Dhaka Tribune, PLFS Liquidator Md Asaduzzaman Khan said: “An audit firm has been appointed to look into the PLFS. The firm started work on September 15. They have been directed to finish work within two months. Currently audit activities are underway. Until the audit is completed, nothing can be done.” 

Earlier in September, the depositors formed a 12-member ad-hoc committee with Md Anwarul Haque as its convener. Other members include joint conveners Kamal Ahmed and Rana Gosh, and secretary Prashanta Kumar Paul.

Due to the big losses, the listed PLSF, a non-bank financial institution (NBFI), failed to announce any dividend since 2014. 

The head office of People's Leasing, which started its journey in 1997, is in Motijheel, with two branch offices — one at Gulshan in Dhaka and the other in Chittagong.

Of its total outstanding loans, amounting to Tk1,131crore, Tk748crore (66.14 percent of the total loans) of the institution turned into non-performing loans.

A total of 67.48% of its shares are in the hands of general shareholders, 23.11% for sponsors and directors, 8.77% shares for institutional investors and 1.19% shares of foreign investors. 

On June 26 this year, the government directed the central bank to liquidate People's Leasing.