DBH Finance gets approval to launch Islamic finance window

DBH Finance PLC – the country’s largest and specialist housing finance institution – has received the final approval from Bangladesh Bank (BB) for opening of its Islamic Financing Wing.

The non-bank financial institution received the go-ahead from the central bank on Tuesday to introduce the Shariah-based products and services from all of its 14 branches located at all major cities of the country, said a statement issued on Thursday.

 “This is a milestone achievement, there is a huge demand for Shariah based products,” said Nasimul Baten, managing director & CEO of DBH Finance.

Mr Baten said they have completed all preparations under the guidance of a competent Shariah supervisory committee and are ready to offer Shariah compliant deposit and housing financing products to cater the growing demand of its clients.

 “This will open a new avenue for us and we are committed to deliver the services to our customers in the most compliant manner,” said Mr Baten.

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 per cent cash and 2 per cent stock dividends for 2022.

DBH Finance has made a profit of Tk 1.02 billion in 2022, down slightly from Tk 1.04 billion in 2021.

The company has a solid capital adequacy ratio (CAR) of 28.37 per cent and return on equity (ROE) stands at 13.34 per cent as on December 2022.

DBH has always been able to keep the operational cost down and mobilize funds at relatively lower cost due to its excellent market reputation which enabled the company to remain competitive in the market.

Since the inception in 1996, the company made commendable growth in creating home ownerships 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 — Tk 57.80 – 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 as the Shariah-compliant business in Bangladesh is growing at a steady pace in the Muslim-majority country.

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