Alliance Finance marks 8yrs with low default loan ratio

At a time when much of Bangladesh’s financial sector is struggling with high default loans, Alliance Finance PLC, a joint venture financial institution with Sri Lankan investment, has managed to keep its non-performing loans below 1 per cent, which the company attributes to prudent risk management.

Speaking at an event marking the company’s eighth anniversary at a city hotel on Saturday, Chief Executive Officer Kanti Kumar Saha said Alliance Finance had no default loans during its first four years of operation.

People’s Leasing and Finance, a subsidiary of Sri Lanka’s largest state-owned bank, People’s Bank, holds a major stake in Alliance Finance.

The institution’s local sponsors include Summit Group, Rangs Group, Alliance Holdings Limited, Green Delta Insurance Company Limited and Concept Knitting, alongside individual sponsors.

According to its annual report, Alliance Finance’s loan book stood at more than Tk468 crore as of December 2024, while total deposits exceeded Tk432 crore.

At a time when many non-bank financial institutions are struggling to survive amid significant losses, the net asset value per share of Alliance Finance stood at Tk11.54 at the end of 2024.

He added that the company had already created a platform for collecting and disbursing payments through mobile financial service operators, allowing deposit clients to pay instalments and borrowers to repay EMIs quickly through mobile phones.