IPDC Finance has come through another quarter of profit growth in July-September period.
The fastest growing listed non-bank financial institution (NBFI) secured Tk22 crore in quarterly net profit after tax which is 18.2% higher than that over the same quarter a year ago and 7.1% higher than the previous quarter this year.
As the third quarter was in line with the year's previous two ones, IPDC's operating profits grew 24.2% over the January-September period from the same nine months of 2020, while its net profit for the first nine months grew 25.4% to Tk63 crore.
Earnings per share (EPS) grew to Tk0.59 for the third quarter and Tk1.7 for the nine months.
In line with its strategic shift to depend less on bank borrowing and increase customer deposits, IPDC's customer deposits grew to Tk4,650 crore at the end of September which was 33.9% higher than that three months ago and almost 10% higher than that a year ago.
Meanwhile, over the third quarter its loan disbursement was slightly lower than the previous quarter which saw a jump in lending to the small and medium enterprises IPDC focuses most.
"In the third quarter, we had some days in strict lockdown and as the economic activities slowed down then, our loan disbursement was slightly less than that over the second quarter," Fahmida Khan, the chief financial officer of IPDC.
At the end of June this year, IPDC's total loan portfolio grew to over 6,202 crore from Tk5,361 at the end of 2020. At the end of September the loan book stood at Tk6,136 crore.
Shrink in the loan book also reflects a good recovery of loans over the third quarter.
However, due to central bank policy regarding NBFI's loan classification amid pandemic, IPDC had to classify more loans than it did in the previous quarter this year, said the CFO.
Its non-performing loans stood at 1.64% of the total loans at the end of September, which was 1.12% at the end of June and 1.38% in March this year.
However, the non-performing loans ratio of IPDC is still one of the lowest in its industry.