STAR BUSINESS REPORT

Despite financial distress and liquidation risks facing several non-bank financial institutions (NBFIs), shares of some of these troubled companies still featured among the top gainers in yesterday’s stock market.

People’s Leasing and Financial Services rose the most, climbing 8.33 percent to Tk 1.30. Fareast Finance also gained 8.33 percent. Phoenix Finance increased by 5.4 percent, while First Finance rose by 4.87 percent. Four of the top five gainers were struggling NBFIs.

Stock investors of People’s Leasing have received no returns over the past decade, as the company has not paid any cash dividend since 2015 due to a large volume of non-performing loans. Investors in three other NBFIs are in a similar situation, according to Dhaka Stock Exchange sources.

Recently, the Bangladesh Bank (BB) decided to liquidate five NBFIs -- FAS Finance, Fareast Finance, Aviva Finance, People’s Leasing and International Leasing.

The central bank has also started a process to return deposits trapped in these institutions using government funds. Under this plan, individual depositors will initially receive up to Tk 10 lakh each.

These institutions have been severely affected by very high levels of defaulted loans, with most exceeding 90 percent. Four of them were previously linked to alleged financial fraud involving PK Halder, while Aviva Finance was associated with businessman S Alam.

Under the interim government, the However,