MIDAS Financing Limited

MIDAS Financing Limited (MFL) an associate organization of Micro Industries Development Assistance and Services (MIDAS). It was registered as a public limited company on 16 May 1995 under the ‘Companies Act 1994’ and received licence from Bangladesh Bank under the ‘Financial Institutions Act 1993’ on 11 October 1999 as a non-bank financial institution. MFL started its operations on 1 January 2000 and was enlisted with Dhaka Stock Exchange and Chittagong Stock Exchange Limited in October 2002 and July 2004 respectively. At present, the organization is operating its businesses through 16 branches across the country, including the head office at Dhanmondi, Dhaka. Its authorised capital is Taka 2 billion, while the paid-up capital is Taka 1,356 million.

The cumulative deposits and loans cum advances status of MIDAS Financing Limited as a percentage of the amounts in overall non-bank financial institutions sector during 2019 were 1.4 per cent and 1.5 per cent respectively. The deposits in MFL declined by 16.5 per cent during the year and stood at Taka 6,222.40 million. On the other hand, the loans and advances decreased by 7.5 per cent during 2019 to stand at Taka 9,519.40 million. The average interest rate spread between deposits and loans was 3.6 per cent during the year.

The sector-based loans and advances status of MFL at the end of 2019 was as follows: (a) trade and commerce – 19.6%; (b) industries – 42.80%; (c) construction – 0.3%; (d) agriculture, fisheries and forestry – 1.30%; (e) transport and communication – 0.20%; (f) other loans – 35.80%. The cumulative industrial loans accounted for 28 per cent of the total loans, while micro-loans accounted for 26.80 per cent at the end of the year. Loans for large industries accounted for 45.1 per cent, while SME loans carved out 46.1 per cent of the cumulative industrial loans. The status of loans extended under green banking was Taka 495.60 million, while the female entrepreneurs received Taka 80.10 million as loans during the year. The amount spent during 2019 for CSR (corporate social responsibility) stood at only Taka 0.02 million.

This non-bank financial institution took cautious steps during 2019-20 to disburse loans among debtors having good standing by taking into account risks and deposits. Besides, measures were taken for product diversification, strengthening of monitoring system, and bringing down classified loans below the 8 per cent threshold. [Helal Uddin Ahmed]

References Banking Almanac: Banks and Financial Institutions of Bangladesh 2016. Dhaka: Shikkha Bichitra, December 2016; Report on Financial Institutions 2018-2019. Dhaka: Financial Institutions Division, June 2020; Website of MIDAS Financing Limited.