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Dhaka Tribune

Stock fund diverted to Commerce Bank

Update : 26 Dec 2013, 06:22 PM

The government has diverted a portion of Tk900 crore stock market refinance scheme to Bangladesh Commerce Bank Ltd (BCB).

The fund remained idle amid poor response from the small investors affected by the stock market debacle in late 2010.

Of the amount, Tk67.5 crore was invested in Bangladesh Commerce Bank Limited that issued one rights share of Tk100 against existing ones to increase its paid up capital, officials said. The government has 51% stake in the bank with a paid up capital of Tk200 crore at present.

The Budget Division of finance ministry disbursed the amount from the refinancing scheme fund that remained with the division idle, said a senior official of the budget division.

Of the total fund, Tk300 crore has already been released in favour of appropriate authorities for distribution among the prospective beneficiaries, but Tk600 crore remain idle in the budget division.

The official said only 1% of the affected investors applied to the Merchant Banks for taking credit for reinvestment in stock market under the scheme.

Bangladesh Commerce Bank Limited (BCBL) was established in 1997 and incorporated on June 1, 1998. The Bank formally started operation from September 16, 1999 with the slogan titled “A People’s Bank with a Mission.”  

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