Non-Bank Financial Institutions (NBFIs) in Bangladesh play a crucial role in the country’s financial landscape. These institutions are non-banking entities that offer a wide range of financial services, filling gaps that traditional banks might not cover. NBFIs include various types of organizations, such as leasing companies, investment companies, insurance companies, and microfinance institutions.
NBFIs have gained significance in Bangladesh due to their ability to extend financial services to segments of the population that may not have easy access to traditional banking services. This includes providing microloans to small businesses, offering investment opportunities, facilitating insurance coverage, and enabling asset financing.
The regulatory framework for NBFIs in Bangladesh falls under the authority of the Bangladesh Bank, the central bank of the country. This regulatory oversight aims to maintain stability in the financial sector and ensure consumer protection.
NBFIs have evolved to become vital contributors to economic growth by fostering entrepreneurship, supporting capital formation, and enhancing financial inclusion. Their ability to cater to specialized financial needs and address market gaps makes them an essential component of Bangladesh’s financial ecosystem.
Here is the ranking of the Top 5 NBFIs in Bangladesh 2023.
Please Note: The InCAP offers this list of the Top 5 NBFIs in Bangladesh. It’s an analysis of the International Corporate Association of Professionals (InCAP), so there is no opportunity for debate centering on this ranking.
IPDC Finance Limited (previously known as Industrial Promotion and Development Company of Bangladesh Limited) is a private-sector financial institution in the country. This is a public limited company and is listed in both Dhaka Stock Exchange and Chittagong Stock Exchange. Established in 1981, IPDC is the first private-sector financial institution in the country. The company’s products and services range from corporate finance and advisory services in the corporate sector, middle market supply chain finance in the SME sector to retail wealth management and retail finances in the retail sector. The company is headquartered in Dhaka and has operations in Chittagong, Sylhet, Gazipur, Narayanganj, Bogra, Jessore, Mymensingh, Uttara, Dhanmondi, and Motijheel.
IPDC Finance was established on November 28, 1981, by a distinguished group of shareholders namely the International Finance Corporation (IFC), USA, German Investment and Development Company (DEG), Germany, The Aga Khan Fund for Economic Development (AKFED), Switzerland, Commonwealth Development Corporation (CDC), UK and the Government of Bangladesh. It’s a public limited company incorporated in Bangladesh under the Companies Act 1913 (now the Companies Act 1994), listed with the Dhaka and Chittagong Stock Exchange Limited since December 3, 2006. Licensed as Financial Institution under the Financial Institutions Act 1993 on February 7, 1995.
IPDC was first conceived as a result of an IBRD/IFC Industrial Sector mission to Bangladesh in 1978. Subsequently, a detailed feasibility study and strategic policy dialogue among the Government, IFC, and other international partners resulted in the establishment of IPDC as an alternative development finance institution in the private sector. The Company in 1981 became the first private sector Development Finance Institution (DFI) in Bangladesh.
Sector: Finance Companies
Industry: Financial Services
Address: Hosna Center (4th Floor), 106 Gulshan Avenue, Dhaka – 1212
Website: https://www.ipdcbd.com/
IDLC Finance Limited, formerly known as Industrial Development Leasing Company of Bangladesh Limited (IDLC), is a multi-product non-banking financial institution with headquarters in Dhaka, Bangladesh. It offers financial services in the form of small and medium enterprise (SME) finance products, supplier and distributor finance, corporate finance, structured finance, retail finance, deposits and treasury products. The IDLC group also provides merchant banking, stockbroker and asset management services via its three subsidiaries, IDLC Investments Limited, IDLC Securities Limited and IDLC Asset Management Limited, respectively.
IDLC was established in 1985 by the initiation of the IFC of the World Bank. The company was formed via collaboration of the International Finance Corporation, German Investment and Development Company, Korea Development Financing Corporation, Aga Khan Fund for Economic Development, Kookmin Bank, IPDC Finance Limited of Bangladesh and Sadharan Bima Corporation. It has since emerged as a fully locally owned financial institution.
The Emerging Credit Rating Limited (ECRL) has given AAA long-term credit rating and ECRL-1 short-term credit rating to the IDLC Finance Limited
Sector: Finance Companies
Industry: Financial Services
Address: Bay’s Galleria (1st Floor), 57 Gulshan Avenue, Dhaka – 1212, Bangladesh
Website: https://idlc.com/
03. Bangladesh Finance Limited
Bangladesh Finance Limited (Bangladesh Finance), formerly known as BD Finance, is one of the most well-known financial institutions in Bangladesh, having served the people of Bangladesh since 1999.
Bangladesh Finance has played a role in the economic well-being of over 10,000 households and the growth of countless companies with various institutional investments and shareholders and is now offering financial services through more than 300 personnel, including two subsidiary companies. It offers financial services to a wide range of individuals and businesses in order to contribute to Bangladesh’s social and economic development.
In the next days, the 21-year-old company expects to see even more incredible changes. The route to becoming the country’s most renowned financial institution began with a higher credit rating, a strong client deposit base, raising bonds and foreign capital, receiving approval to launch an Islamic wing, and consistently maintaining a low NPL rate.
Bangladesh Finance, along with its two subsidiaries Bangladesh Finance Securities Limited (Bangladesh Finance Securities) and Bangladesh Finance Investment Limited (Bangladesh Finance Investment), is currently on a mission to provide a complete financial solution throughout the country.
Bangladesh Finance is ready to accompany this country as it travels at breakneck speed down the path of economic progress in a never-ending series of successes. We want to be a financial partner of the Bangladeshi people.
Sector: Finance Companies
Industry: Financial Services
Address: 27, Dilkusha (2nd Floor), Dhaka – 1000.
Website: https://bd.finance/
02. Agrani SME Financing Company Limited
Agrani SME Financing Company Limited is one of the activities to participate in the national strategy for economic growth, poverty reduction, and social development. The Agrani SME Financing Company Limited (the Company) has been incorporated as a public limited company and a subsidiary of the Agrani Bank Limited on October 27, 2010, vide certificate of incorporation No. C-87827/10. The Company has taken over the ongoing operation of the Small Enterprises Development Project (A Norway and Agrani Bank Limited funded Project of the Ministry of Finance, Bangladesh) on a going concern basis through a Vendor’s Agreement signed among the Bank & Financial Institutions Division, Ministry of Finance, Govt. of the Peoples Republic of Bangladesh, the Board of Directors on behalf of the Agrani Bank Limited and the Board of Directors on behalf of the Agrani SME Financing Company Limited on December 27, 2011, and as per the clause as delineated in the stated Vendors Agreement, December 31, 2011 is kept as the effective date of handing over the SEDP operation as to be the operation of Agrani SME Financing Company Limited.
As on December 31, 2013, the available capital of the Company is Tk 1,119,188,813 as against Tk. 1,080,657,626 of the previous year which project’s a robust financial footing for the Company.
During the year 2013, the company contributed a total amount of BDT 29,736,221 as corporate Tax to the national exchequer which is almost 41% higher than that of the previous year.
Sector: Finance Companies
Industry: Financial Services
Address: Al-Amin Centre, 25/A, 25/A/1 (6th floor), Dilkusha, Motijheel Commercial Area, Dhaka – 1000
Website: https://agranisme.org/
01. Bangladesh Infrastructure Finance Fund Limited (BIFFL)
Bangladesh Infrastructure Finance Fund Limited (BIFFL) is a 100% state-owned financial institution owned by the Ministry of Finance, Government of Bangladesh (GoB). It was established in 2011 by a resolution of the cabinet of the GoB. Since its inception, BIFFL has been actively pursuing its mandate to accelerate Bangladesh’s economic growth by financing much-needed infrastructure.
BIFFL is the biggest Non-Bank Financial Institution in Bangladesh owned by the government with an authorized capital and paid-up capital of BDT 100.00 billion and BDT 23.08 billion.
BIFFL was established as a special-purpose vehicle to mobilize the government’s PPP budget through financing infrastructure projects and building partnerships with private sector investors. Besides, BIFFL is committed to protecting the environment and adopting eco-friendly measures and considers this its foremost priority in any investment decision, thereby upholding sustainable development.
Sector: Finance Companies
Industry: Financial Services
Address: Borak Unique Heights, Level-3, 117 Kazi Nazrul Islam Avenue, Eskaton Garden, Dhaka-1217, Bangladesh
Website: https://www.biffl.org.bd
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