B Mirror Report: Peoples Leasing and Financial Services has started the process of recovering from a protracted crisis. The organization is getting ready to restart full operations under the court’s and Bangladesh Bank’s supervision. The company said in a letter to the Ministry of Finance that the recovery process may be accelerated if it were to get Tk 750 crore in government support to close the gap between recoverable assets and total liabilities.
Earlier, the institution fell into severe financial trouble due to various irregularities between 2003 and 2014. Although the High Court at one stage ordered the liquidation of the company, that directive was suspended in 2021, allowing the formation of a new board of directors. Since assuming responsibility, the new board has been taking several steps to restructure the company’s finances and restore normal operations.
According to company information, from July 2021 until now, nearly Tk 200 crore has been recovered from defaulted borrowers. During the same period, a total of Tk 84 crore has been returned to about 1,900 depositors. As part of cost-cutting measures, the company has relocated its head office to its own floor, saving approximately Tk 1 million in rent every month.
In addition, as part of restoring corporate discipline, seven Annual General Meetings (AGMs) that had remained suspended from 2019 to 2025 have been completed. Through this process, the company has attempted to bring its administrative operations back into a regular and compliant framework in line with the instructions of regulatory authorities.
To revive the institution, a reform plan has also been proposed. Under this plan, existing liabilities may be converted into interest-free installments within a specified period. At the same time, the possibility of converting a portion of depositors’ claims into company shares is being examined. There are also plans to relaunch loan operations in the small and medium enterprise (SME) sector. Additionally, proposals are being considered to confiscate the shares of former directors involved in financial irregularities and issue them to new investors.
Managing Director of Peoples Leasing, Md. Sagir Hossain Khan, said that protecting the interests of depositors under the supervision of the High Court and Bangladesh Bank remains their top priority. He added that if the proposed Tk 750 crore assistance is received, the institution could return to normal operations by 2026. At that stage, by maintaining the required Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR), the company could be transformed into a stable and profitable financial institution.
