The government is going to convert Probashi Kallyan Bank (PKB) into a scheduled bank to allow this specialized bank operate in a wider range with a strong financial base.
The bank in its new status with Tk 4.0 billion paid-up capital will be able to increase flow of finances to the private sector, especially the manufacturing industry, experts opined.
The Bangladesh Bank has approved a proposal for giving this state-run financial institute a status of a scheduled bank, BB sources said.
With this approval, PKB will be able to expand its business further, a central bank official told Bangladesh Post.
The decision was taken at a board of directors meeting of the central bank (BB) at its headquarters in Dhaka on Sunday. BB governor Fazle Kabir chaired the meeting.
The concerned department of the central bank will issue a notification, mentioning PKB as a scheduled bank after completing all the official formalities, he said.
He mentioned, the meeting also discussed different topics about the next monetary policy which is scheduled to be released by the last week of this month.
Another BB bank official said, “The board has approved in principle the proposal to convert PKB into a scheduled bank.”
“The Banking Regulation and Policy Department of the central bank will issue a notification in this concern,” he added.
He further said, the central bank has taken the decision as the Ministry of Finance (MoF) have earlier given its consent in favour of allowing migrants’ welfare fund to hold 95 percent stake in the specialised PKB following its upgradation to a scheduled bank.
“As per Section 121 of Bank Company Act 1991, PKB will be exempted from the subsection 14 ka (1) in holding 95 percent stake worth Tk 3.80 billion by the Wage Earners’ Welfare Board (WEWB),” the ministry said in its letter.
Besides, PKB had received Tk 200 million from MoF to replenish its paid-up capital to Tk 4.0 billion.
In Bangladesh, minimum requirement of paid-up capital as a scheduled bank is Tk 4.0 billion.
PKB started its operation in April 2011 with a paid-up capital of Tk 1.0 billion to provide collateral-free loans to overseas jobseekers as well as for rehabilitation of expatriate workers on their return home to engage them in various income-generating activities.
Recently, the Probashi Kallyan Bank is running its business with 63 branches across the country.