City Bank Ltd on Tuesday said it was going to invest Tk27.78 crore in a proposed digital bank as a sponsor shareholder.
The private commercial bank said its board approved the proposal for being a member of a consortium of a few banks and most likely a telecom company for the proposed digital bank, according to a disclosure on the Dhaka Stock Exchange on the day.
City Bank plans to become a sponsor shareholder by way of investing a maximum of Tk27.78 crore, 11.12% of the paid-up capital of the proposed digital bank.
In June, the Bangladesh Bank invited applications from entrepreneurs interested in establishing digital banks.
Bank Asia, bKash, Pragati Life Insurance, ACI Ltd, Padma Bank and Crystal Insurance are among the companies that have applied for digital banking licences, with a few more expected to follow suit.
Mobile network operator Banglalink has decided to apply for a digital banking licence as it looks to leverage its vast pool of customers to serve a population increasingly using technologies to make and receive payments.
