Selective growth and disciplined decision-making helped United Finance PLC protect its portfolio quality during a difficult 2025 for non-bank financial institutions, said its Managing Director Mohammad Rafiqul Islam.
The year was marked by low private sector credit growth, persistent inflation, subdued domestic consumption and political uncertainty, creating pressure across the financial sector and forcing institutions to reassess risk appetite, explained the year-round challenges in business in an interview with TIMES of Bangladesh.
“Given this backdrop, we adopted a cautious and disciplined approach for resilience rather than expansion,” said Islam.
“Our priority was selective growth while protecting portfolio quality,” he said, adding that United Finance delivered close to what a well governed NBFI could achieve under such macroeconomic stress and that he expects the final numbers to reflect that resilience.
He said the environment was far tougher for the wider industry, with many NBFIs struggling with liquidity pressure and deterioration in asset quality, apart from a few relatively strong institutions.
The liquidation of nine NBFIs, though necessary, weighed on depositor confidence and overall sentiment, he said, but argued that decisive action was unavoidable.
“Timely corrective action is far better than prolonged uncertainty,” he said, stressing that strengthening governance and enforcing discipline are essential to building a robust and credible NBFI sector.
On reforms, Mohammad Rafiqul Islam said one year is too short to address deep-rooted economic and financial weaknesses, but noted encouraging steps by key institutions.
He pointed to actions taken by the Ministry of Finance, Bangladesh Bank and the Bangladesh Securities and Exchange Commission to enforce compliance and correct past mismanagement, alongside a growing role for market forces in exchange rate and policy rate management.
“This shift is healthy, and we are already seeing early signs of stabilisation in several macro indicators,” he said.
At the same time, he cautioned against short-term solutions, saying many structural weaknesses will require sustained, multi-year efforts focused on institution building and corporate governance.
He made a clear call for policymakers and regulators to give focused attention to the NBFI sector, highlighting its importance to the broader economy.
“NBFIs have historically played an important role in economic expansion, job creation and financial inclusion,” he said, adding that strengthening the sector at this turning point could significantly support national recovery and growth.
Looking ahead to 2026, Mohammad Rafiqul Islam said expectations are tied to a more stable environment as Bangladesh prepares for the 13th National Election.
“I am hopeful that market driven reforms will continue, leading to higher employment, both locally and abroad, stronger domestic production and a more resilient financial system,” he said.
He also said expected amendments to the Bank Company Act could move the banking sector towards better governance and greater accountability.
Against this backdrop, he said United Finance is reshaping its strategy to align with evolving economic needs, with a focus on SME financing and affordable housing as two segments with strong potential for inclusive growth.
The company is working closely with the International Finance Corporation on advisory support to strengthen capacity, credit models and risk frameworks, while investing in building a more efficient, productive and future-ready team.
He said the mobile app UMA has already improved service delivery through digital efficiency, and that the focus in 2026 will be on delivering better customer experience, faster turnaround times and a leaner, more agile operating structure.
