IFIC Bank

IFIC Bank PLC, commonly known as IFIC Bank, is a first-generation private commercial bank in Bangladesh. The institution was created in 1976 at the initiative of the Government of Bangladesh as a joint venture involving the state and private-sector sponsors. Its original mandate was broader than conventional retail banking: it was intended to operate as a finance company in Bangladesh and to help establish joint-venture banks and financial institutions abroad. This international-development orientation was reflected in its early overseas activities, including the establishment of Nepal Bangladesh Bank in Nepal, in which IFIC held a substantial ownership position. The bank's legal and operating model changed in 1983, when Bangladesh permitted private-sector banks to operate as full commercial banks. IFIC was consequently converted into a fully fledged commercial bank. Over time, its activities expanded across corporate and commercial banking, retail and consumer banking, trade finance, remittances, cards, digital channels, treasury services, and lending to businesses and individuals. Like other commercial banks in Bangladesh, it operates within the regulatory framework of Bangladesh Bank and serves customers through branches and other banking channels. IFIC Bank's ownership has included the Government of Bangladesh, local and foreign institutions, and general shareholders. The government has retained a significant minority interest and has been represented on the board by nominated directors. The reference material states that the government and its directors held 32.75% of the bank's share capital, while the remainder was held by institutional and general shareholders. The bank's board structure has also included independent directors appointed or constituted in accordance with regulatory requirements. The institution's history includes a number of governance, credit-recovery, ownership, and regulatory episodes. Bangladesh Bank identified alleged irregularities involving fraudulent inland bills in 1998, with the reported exposure involving companies linked to BEXIMCO interests. IFIC later pursued recovery proceedings against Beximco Holdings. Other regulatory and legal matters included scrutiny of share purchases, challenges to a shareholders' meeting, criminal convictions of employees for theft, and court-related attempts to recover loans secured against a resort property. These episodes form part of the bank's documented institutional history, but the available material does not establish that all allegations resulted in final findings against every person named. In the 2010s and early 2020s, IFIC continued to manage its cross-border interests while strengthening its capital position. Bangladesh Bank authorized a transfer of funds to Nepal Bangladesh Bank in 2017. In 2022, IFIC announced and completed a divestment of its stake in Nepal Bangladesh Bank, selling the interest to an entity associated with Nabil Bank. The bank also announced capital-raising measures, including perpetual bonds and other instruments, to support compliance with Basel III requirements. In June 2022, it issued bonds valued at BDT 5 billion according to the reference material. IFIC Bank remains an active Bangladeshi banking brand with a heritage rooted in public-private financial cooperation, commercial banking, international joint ventures, and domestic financial intermediation. Its present profile is that of a regulated private commercial bank rather than a specialized finance company, although its original cross-border and development-finance orientation remains an important part of its historical identity.

IFIC Bank was established in 1976 as International Finance Investment and Commerce Bank Limited through cooperation between the Government of Bangladesh and private-sector sponsors. Its creation reflected an early policy objective of building domestic financial capacity while encouraging Bangladesh-linked financial ventures abroad. Rather than beginning solely as a conventional deposit-taking bank, the institution was initially intended to operate as a finance company within Bangladesh and to participate in the formation of joint-venture banks and financial institutions in other countries. A major institutional turning point came in 1983, when Bangladesh authorized private-sector banks. IFIC was converted into a full commercial bank, allowing it to develop a broader banking franchise serving companies, institutions, and individual customers. Its business subsequently came to encompass lending, deposits, trade finance, remittances, cards, payments, treasury operations, and other banking services. IFIC's international role was particularly associated with Nepal Bangladesh Bank, a Nepalese joint-venture bank established in 1994 with IFIC holding 50% ownership at formation. The relationship later became an important subject of capital and regulatory management. In February 2017, Bangladesh Bank authorized IFIC to transfer US$12.28 million to the Nepalese institution. In January 2022, IFIC announced its intention to divest its Nepal Bangladesh Bank investment. The reference material reports that it sold a 40% stake for BDT 4.39 billion to Sarika Chaudhary, identified as the wife of businessman Binod Chaudhary. The divestment marked a shift away from one of IFIC's best-known overseas banking interests. The bank's history also contains significant governance and credit-related controversies. In January 1998, Bangladesh Bank reported finding evidence of fraudulent inland bills allegedly used to divert BDT 1.55 billion to companies, including entities linked to Salman F. Rahman and Sohel F. Rahman. In 2004, IFIC brought a case against Beximco Holdings to recover approximately BDT 1.37 billion. The proceedings also named several individuals. The available reference does not provide a definitive outcome for every aspect of that dispute. In 2007, Bangladesh Bank identified alleged irregularities in the acquisition of IFIC shares by Mosaddak Ali Falu through Bel Construction SDN BHD, a Malaysia-registered company. The central bank cited possible breaches of foreign-exchange and anti-money-laundering laws. In 2009, the High Court temporarily halted the bank's annual general meeting following a shareholder's challenge concerning eligibility to contest a board election. These events illustrate the interaction between shareholder rights, bank governance, and regulatory supervision in the institution's development. Operational and legal controversies continued in later years. In 2014, two IFIC officials received five-year prison sentences in a case involving the theft of BDT 2.5 million in Chittagong. In 2015, Bangladesh Bank ordered the removal of Mohammad Lutfar Rahman Badal from the board after allegations connected him with political violence. In 2018, IFIC attempted to auction DuSai Resort as part of loan recovery proceedings, but the resort owner obtained a court stay. IFIC also pursued capital strengthening in response to regulatory requirements. In 2021, the bank announced a plan to raise BDT 10 billion through perpetual bonds, supplemented by BDT 9 billion from private placement and BDT 1 billion from a public offering, with the stated objective of meeting Basel III requirements. The bank subsequently issued bonds valued at BDT 5 billion in June 2022, according to the reference material. Ownership has remained mixed. The Government of Bangladesh, including government-appointed directors, has held a significant minority shareholding, while local and foreign institutions and general shareholders hold the balance. The reference material gives the government's shareholding as 32.75%, though ownership percentages can change and no current official capital table is supplied here. The bank continues to operate as an active Bangladeshi private commercial bank under Bangladesh Bank supervision.

• 2022

  Nepal Bangladesh Bank stake divested

  [1]IFIC Banken.wikipedia.org

  IFIC announced and reportedly completed the sale of a 40% holding in Nepal Bangladesh Bank for BDT 4.39 billion.

• 2021

  Basel III capital plan announced

  [1]IFIC Banken.wikipedia.org

  IFIC announced a multi-part capital-raising program involving perpetual bonds, private placement, and a public offer.

• 2017

  Transfer to Nepal Bangladesh Bank authorized

  [1]IFIC Banken.wikipedia.org

  Bangladesh Bank approved the transfer of US$12.28 million from Bangladesh to Nepal Bangladesh Bank.

• 1998

  Bangladesh Bank reported inland-bill fraud

  [1]IFIC Banken.wikipedia.org

  The central bank reported alleged fraudulent inland-bill transactions involving BDT 1.55 billion.

• 1994

  Nepal Bangladesh Bank joint venture established

  [1]IFIC Banken.wikipedia.org

  IFIC established Nepal Bangladesh Bank in Nepal with a reported 50% ownership position.

• 1983

  Converted into a full commercial bank

  [1]IFIC Banken.wikipedia.org

  Following Bangladesh's authorization of private-sector banking, IFIC became a full-fledged commercial bank.

• 1976

  IFIC Bank established

  [1]IFIC Banken.wikipedia.org

  The institution was founded as a joint venture between the Government of Bangladesh and private-sector sponsors, initially with a finance-company and international joint-venture mandate.

A first-generation Bangladeshi private commercial bank combining domestic banking services with a historical role in cross-border joint-venture finance.

• Banking services

  Corporate and commercial banking

  Services for companies and institutions, including business deposits, working-capital facilities, term lending, cash management, and other financing arrangements. The available reference establishes IFIC as a full commercial bank but does not provide a current product catalogue or individual product names.

• Banking services

  Retail and consumer banking

  Banking for individuals, including deposit accounts, payments, cards, remittances, and consumer-oriented lending. Specific current account names, fees, and eligibility terms are not supplied in the reference material.

• International banking

  Trade finance and international banking

  Trade-related and cross-border banking services consistent with IFIC's original mandate and its history of participating in overseas joint-venture financial institutions. The category may include import, export, documentary-credit, and remittance services, but detailed current terms are not available here.

• Digital banking

  Digital and electronic banking

  Electronic channels and technology-enabled banking services supporting account access, payments, and transactions. The reference identifies a chief information officer but does not specify the bank's current digital platforms.

• 2015

  Board removal ordered by Bangladesh Bank

  Bangladesh Bank ordered the removal of Mohammad Lutfar Rahman Badal from the board amid allegations relating to political violence.

  Source

• 2014

  Officials convicted in theft case

  Two IFIC officials were sentenced to five years in prison in connection with the theft of BDT 2.5 million in Chittagong.

  Source

• 2007

  Regulatory scrutiny of share purchases

  Bangladesh Bank reported irregularities in the purchase of IFIC shares through a Malaysia-registered company associated with Mosaddak Ali Falu and partners, citing foreign-exchange and money-laundering concerns.

  Source

• 1998

  Alleged fraudulent inland-bill transactions

  Bangladesh Bank reported evidence that fraudulent inland bills had allegedly been used to divert BDT 1.55 billion to companies, including firms linked to BEXIMCO interests.

  Source

Read more

• 2022

  Divestment from Nepal Bangladesh BankM&A

  Background

  IFIC reassessed its ownership of its Nepalese joint-venture banking investment.

  Action taken

  The bank announced and reportedly completed the sale of a 40% stake in Nepal Bangladesh Bank to an entity associated with Nabil Bank.

  Aftermath

  The transaction reduced IFIC's direct ownership in one of its principal overseas banking ventures.

  Reported sale value. BDT 4.39 billion (2022)

  Source

• 2021

  Capital-raising plan for Basel III requirementsStrategy

  Background

  The bank stated that it needed additional capital to meet Basel III requirements.

  Action taken

  IFIC announced plans involving BDT 10 billion in perpetual bonds, BDT 9 billion through private placement, and BDT 1 billion through a public offering.

  Aftermath

  The reference material later reports a BDT 5 billion bond issuance in June 2022.

  Planned capital raising. BDT 10 billion in perpetual bonds, plus BDT 9 billion private placement and BDT 1 billion public offer (2021 plan)

  Source

• 1983

  Transition to full commercial bankingStrategy

  Background

  Bangladesh permitted private-sector banks to operate as commercial banks.

  Action taken

  IFIC changed from its original finance-company and joint-venture orientation into a full-fledged commercial bank.

  Aftermath

  The transition enabled the institution to broaden its domestic banking activities.

  Source

1. 1IFIC Banken.wikipedia.org