The New Nation - Internet Edition

BUSINESS REPORT

Industrial Promotion and Development Company of Bangladesh Limited (IPDC) yesterday approved five per cent cash dividend and 10 per cent stock dividend for the year 2007 at its 26th annual general meeting (AGM) held at the BDR Darbar Hall in the city.

Secretary to the Ministry of Industry and IPDC Chairman Dr Md Nurul Amin attended the AGM as the chief guest and approved the cash dividend and bonus share for the outgoing year.

Managing Director and Chief Executive Official (current charge) of IPDC Mominul Islam, Director Altaf Hossain and Company Secretary Mousumi Yasmin also spoke on the occasion.

Besides, a huge number of shareholders of the company were present at the meeting.

Addressing the AGM, Dr Nurul Amin said the company's operating profit for 2007 increased by 78 per cent because of the new investments and better cost management. The net profit for the company, however, decreased by 21.5 per cent due to the absence of one-off non operating income made in 2006 and higher level of reserve created against the loans and advances, he said.

"With a higher level of reserve, the company's quality of assets has improved significantly and thus the future risks are now more covered than previous years. This ultimately means that the company is now better positioned for long term growth and profitability," he said.

He said the IPDC was still not interested to go to the secondary market.

It is not true that a company owned or partially owned by the government could not make high profit, he observed.

He also mentioned that the company would be placed under a good management soon after overcoming various obstacles and problems.

Managing Director (cc) Mominul Islam said IPDC disbursed Tk 1,050 million in 2007, up from Tk 275 million only from the preceding year. The new investment would help to increase its revenue in 2008 and beyond, he added.

He said the gross revenue has decreased since 2006 by 17.45 per cent due to divestment from some riskier portfolio and regular repayment by the borrowers.

The Managing Director also said IPDC launched its first ever branch in July 2007 at Dhanmondi with an aim to expand the retail business.

IPDC of Bangladesh Ltd is the first private sector financial institution in the country owned by the Government of Bangladesh (22 per cent share), the Aga Khan Fund for Economic Development (51 per cent share) and general public (27 per cent share) with an aim to foster private sector industrialisation of the country.

The company commenced its operation in 1983 and issued public share in 2006.