Non-bank financial institution IPDC Finance PLC has received in-principle approval from Bangladesh Bank to launch Islamic Shariah-based financing services through a dedicated Islamic Finance Wing.
The approval, however, is subject to fulfilment of conditions set by the central bank, IPDC said in a disclosure to the Dhaka Stock Exchange (DSE) on Sunday.
To comply with regulatory requirements, the company will amend its Memorandum and Articles of Association and form an independent Shariah Supervisory Committee.
IPDC will establish a separate Islamic Finance Division, maintain segregated Islamic funds and introduce separate policies, an operational manual and accounting arrangements for the new business.
After completing the required steps, the company will seek final approval from Bangladesh Bank to begin operations under the Islamic financing model.
The move comes as financial institutions continue to expand Shariah-based products to meet growing demand as Islamic Finance is outgrowing the traditional segment in Bangladesh.
IPDC shares, with a face value of Tk10, closed 0.86 per cent higher at Tk35.10 on the DSE on Sunday.
