IPDC finance to enter shariah based financing business
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IPDC Finance PLC, a company listed in the financial sector of the stock market, is set to enter the Islamic Shariah based financing business. Bangladesh Bank has granted the company in principle approval for this purpose.
IPDC Finance disclosed the matter in information published on the websites of the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) on Sunday.
The company said it will conduct Shariah based financing operations by establishing an “Islamic Finance Wing.” However, it must fulfill all conditions set by Bangladesh Bank before starting operations.
As part of the process, IPDC’s memorandum and articles of association will be amended. An independent Shariah Supervisory Committee will be formed and a separate Islamic Finance Department will be established. At the same time, funds for Islamic financing will have to be maintained separately and a separate accounting system will have to be introduced.
In addition, the company will implement the policies and procedural guidelines prescribed for Shariah based financing.
IPDC said it will seek final approval to start the Islamic Shariah based financing business after fulfilling the conditions set by Bangladesh Bank. This means the company cannot start the business immediately despite receiving in principle approval.
Through the new initiative, IPDC has created a path to offer Islamic Shariah based financing services alongside its conventional financing business.
