• Wednesday, Dec 01, 2021
  • Last Update : 04:06 pm

BB tells Padma Bank to seek investment from abroad

  • Published at 08:19 pm October 10th, 2021
Bangladesh Bank BB head office HQ
Mehedi Hasan/Dhaka Tribune

Padma Bank applied for raising capital from foreign investors with the help of California-based Dale Morgan & Company

Bangladesh Bank (BB) has rejected Padma Bank's merger proposal with the government banks and advised it to seek investment from abroad.

In this regard, Bangladesh Bank says the state-owned banks themselves have problems. 

Apart from defaulted loans and capital deficits, they are also not in a favourable position on other financial indicators. 

“In this situation, it would be better for Padma Bank to take initiatives to bring in investment from abroad than to merge with the state-owned bank,” the central bank said. 

Asked about the content of the letter sent by Bangladesh Bank Executive Director and spokesperson Serajul Islam said: "We have accepted the first of the two proposals that they (Padma Bank) had in the letter where they informed us, they are already getting investment from abroad.”

“If they manage to secure the funds from foreign sources, we will approve it. We have agreed to allow them to bring in funds from abroad,” he said. 

Bangladesh Bank sent this letter to the Financial Institutions Division (FID) of the Ministry of Finance on October 5.

Initially, on July 8, Padma Bank sent a letter to the Finance Ministry saying that it wants to merge with a state-owned bank. 

Later the FID forwarded the merger proposal letter to the central bank on August 25, confirmed Rukhsana Hasin, joint secretary of the Financial Institutions Division. 

On September 29, Finance Minister AHM Mustafa Kamal said the merger of Padma Bank with other banks might take place once a law is passed in this regard.

According to the existing Banking Companies Act, there is an opportunity to formulate a merger program on the basis of government approval and instructions from the central bank.

If Bangladesh Bank thinks, they can take full control of the distressed bank or merger with any other bank or may take liquidation.

According to the rules of the Banking Companies Act, depositors, creditors and shareholders should have equal opportunities to benefit from such mergers.

The banks have to apply to the High Court with a certificate from Bangladesh Bank having to say that the creditors, shareholders and depositors of the respective banks will not be harmed by the merger.

It is learned that on June 15, Padma Bank applied for raising capital from foreign investors with the help of California-based Dale Morgan & Company in the United States. 

Even Bangladesh Bank also gave policy approval to the bank on August 2 in this regard.

Afterwards, the chairman of Padma Bank held a meeting with the representatives of Dale Morgan & Company. 

The company has also made promising progress in attracting foreign investment.

Knowing this information from Padma Bank, the central bank has informed and given advice to the Financial Institutions Department.

Facebook 54
blogger sharing button blogger
buffer sharing button buffer
diaspora sharing button diaspora
digg sharing button digg
douban sharing button douban
email sharing button email
evernote sharing button evernote
flipboard sharing button flipboard
pocket sharing button getpocket
github sharing button github
gmail sharing button gmail
googlebookmarks sharing button googlebookmarks
hackernews sharing button hackernews
instapaper sharing button instapaper
line sharing button line
linkedin sharing button linkedin
livejournal sharing button livejournal
mailru sharing button mailru
medium sharing button medium
meneame sharing button meneame
messenger sharing button messenger
odnoklassniki sharing button odnoklassniki
pinterest sharing button pinterest
print sharing button print
qzone sharing button qzone
reddit sharing button reddit
refind sharing button refind
renren sharing button renren
skype sharing button skype
snapchat sharing button snapchat
surfingbird sharing button surfingbird
telegram sharing button telegram
tumblr sharing button tumblr
twitter sharing button twitter
vk sharing button vk
wechat sharing button wechat
weibo sharing button weibo
whatsapp sharing button whatsapp
wordpress sharing button wordpress
xing sharing button xing
yahoomail sharing button yahoomail