DBH Finance PLC, one of the country's leading and specialized housing finance institutions, received the final approval from Bangladesh Bank to launch its Islamic financing wing.
According to a statement on Thursday, the non-bank financial institution will introduce Shariah-based products and services from all of its 14 branches located in major cities throughout the country.
The operation of the Shariah-compliant business will run simultaneously with existing operations.
DBH Finance, formally known as Delta Brac Housing Finance Corporation, is exclusively focused on home loans and has a good track record for paying handsome dividends every year among the listed non-bank financial institutions.
The company declared 15% cash and 2% stock dividends for 2022.
DBH Finance has made a profit of Tk102 crore in 2022, down slightly from Tk104 crore in 2021.
The company has a solid capital adequacy ratio (CAR) of 28.37% and return on equity (ROE) stands at 13.34% as on December 2022.
DBH has always been able to keep the operational cost down and mobilize funds at a relatively lower cost due to its excellent market reputation which enabled the company to remain competitive.
Since its inception in 1996, the company has aided in creating home ownership in the country.
DBH is the only AAA-rated financial institution for the last seventeen years in Bangladesh.
Listed in 2008, the stock remained stuck at the floor price Tk57.80 since September 15 last year.
There are 35 NBFIs in the country.
Of them, Islamic Finance and Investment, Hajj Finance and Aviva Finance have full-fledged Shariah-based operations.
Recently, IDLC Finance also received the central bank's approval to launch its Islamic financing window.
