NBFI depositors demand refunds
Hundreds of depositors of struggling non-bank financial institutions (NBFIs) have demanded the return of their savings, recounting years of hardship as funds remain trapped in firms now under liquidation.
One such depositor, AKM Ansar Uddin, a former official of Bangladesh Petroleum Exploration and Production Company Limited (Bapex), had invested Tk 16 lakh of his retirement savings in People’s Leasing and Financial Services Limited, hoping for steady returns.
The money was meant for his children, including the marriages of his two daughters. However, upon maturity, he received neither the principal nor any interest.
As his health declined, he was unable to access the funds for treatment and passed away in November last year.
His family later arranged the daughters’ weddings under financial strain and without ceremony. At a press conference held at the Jatiya Press Club, his widow Akhtari Begum broke down while describing their torment.
Their youngest son sat beside her as she spoke of their uncertain future.
The programme was organised by the Alliance of 6 NBFIs Depositors Recovery Committee, representing clients of six institutions now in liquidation FAS Finance, Premier Leasing, Fareast Finance, Aviva Finance, People’s Leasing and International Leasing.
Over the years, several NBFIs collapsed due to mismanagement, weak governance and a high volume of non-performing loans.
Delayed regulatory action by Bangladesh Bank further worsened the crisis, ultimately leading to liquidation. Speakers at the event said many families have been pushed into severe financial distress, with around 2,000 households affected.
Many depositors have neither recovered their principal nor received any returns.
Nashid Kamal, who coordinated the press conference, said some depositors died without proper treatment after being unable to access their savings.
Others shared similar stories of hardship, including families who had invested funds meant for medical care but have been unable to withdraw money since 2024.
A representative of the Khaled Mansur Trust, a charitable organisation, said funds invested in several NBFIs were used to support education, healthcare and welfare programmes. With those funds now stuck, their humanitarian activities have been severely disrupted.
The depositors’ platform called for urgent government intervention, including a clear and time-bound roadmap to repay deposits within three to six months, stronger recovery efforts, and legal action against those responsible for financial irregularities.
They also demanded that deposit protection measures similar to those in the banking sector be extended to NBFIs, arguing that all depositors deserve equal safeguards regardless of where they invest.
“We have been suffering for years due to mismanagement and delayed action,” the group said, urging authorities to restore confidence in the financial system and ensure justice for affected families.
Earlier this year, Bangladesh Bank decided to liquidate six of the country’s 35 NBFIs due to their poor financial condition, as part of ongoing reform efforts.
