LankaBangla Finance PLC, one of the country’s leading non-banking financial institutions, has announced plans to expand its business by introducing Islamic Shariah-based financing.
The decision was taken during the company’s 153rd Board of Directors meeting held today and now awaits approval from all relevant regulatory authorities.
The introduction of Islamic finance will require amendments to the company’s Memorandum and Articles of Association.
As part of the process, LankaBangla Finance has already called for an Extraordinary General Meeting (EGM) to gain approval from its shareholders.
The EGM is scheduled to be held on 14 October via a digital platform, with the record date set for 18 September.
Today, the company’s share price closed at Tk20.70 on the Dhaka Stock Exchange, representing a 12% decline from Tk23.50 within seven working days.
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Out of the company’s total shares, sponsors and directors jointly hold 33.55%, institutional investors 23.93%, foreign investors 0.61%, and general investors 41.91% as of 31 July.
In the April to June quarter this year, the company’s consolidated profit after tax was Tk2.58 crore, a significant decrease from Tk10.03 crore in the same period of the previous year.
Despite this, the company’s net interest income for the quarter increased to Tk66.18 crore, up from Tk38.35 crore a year ago.
However, the company’s earnings per share (EPS) dropped to Tk0.05, compared to Tk0.17 in the same period of 2023.
This decline in EPS was mainly due to decreased income from share investments, reduced fee, exchange, and brokerage income, as well as increased operating expenses compared to the previous year.
The company has three subsidiaries named – LankaBangla Securities, LankaBangla Investment, and LankaBangla Asset Management Company Limited.