CVC Finance rejoinder and our reply
CVC Finance Limited has said the report "Scam-hit banks, NBFIs take lead in defaulted industrial loans" published in The Business Standard on 3 October is "inflated" and "misleading".
In a rejoinder, it said, "What the reporter has presented seems to be wrong, inflated and misleading data which has defamed our business reputation.
"Like the entire NBFI industry in Bangladesh we are completely aware of the current situation of rising NPL (nonperforming loan) trend since the beginning of 2022 as an impact of Covid-19 pandemic in the last two financial years in the different business segments. You will be relieved to know that we are alert and have taken all possible necessary steps to bring down the NPL number to single digit by the end of this year."
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Our reply
The TBS report said most of the institutions mentioned in the report were involved in scams, but it did not say anywhere that the CVC Finance Limited was particularly involved in any fraudulent activities.
The report only mentioned the average rate of defaulted industrial loans of CVC Finance Limited.
Besides, CVC Finance has in its rejoinder admitted that their NPL is rising.
At the end of June this year, the company's total industrial loan was Tk302 crore, out of which, defaulted loans were Tk138 crore or 45.64%.
CVC Finance is a new generation company incorporated in 2015 and its default loan rose unusually to 38.37% in June this year – just in six and a half years since it began its journey.
The company's defaulted loans increased by more than five times in a year from 7.97% in June last year, according to the Bangladesh Bank data.
