6 local, foreign investors show interest in Oriental stakes

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FE Report
Six potential investors, from both home and abroad, have submitted their expression of interest (EoI) to the Bangladesh Bank (BB) for purchasing shares worth Tk 4.0 billion of the troubled Oriental Bank Limited, official sources said.
The interested parties include: BRAC Bank, Summit Group, Domestic Investor Consortium, a forum comprising local commercial banks and non-banking financial institutions, the United Kingdom-based East Invest Private Equity Limited, ICB Financial Group Holdings of Switzerland and Hatton National Bank of Sri Lanka.
Sources, however, said the central bank will prepare a short-list of the interested investors from among those who submitted the EoIs on the basis of BB's 'Fit and Proper Test.'
The short-listed bidders will then be contacted for purchasing tender documents to participate in the financial bidding process, the sources added.
The Shariah-based Oriental Bank Limited is now running under an administrative arrangement by the central bank, which recently invited the interested parties to submit their EoIs by September 23 along with their financial track and technical records of running a financial institution.
After facing severe financial crisis, the central bank dissolved the bank's board of directors, removed its managing director, and appointed an administrator to run the bank temporarily.
"A committee will be formed soon to evaluate the EoIs and prepare a short list of the interested buyers," a BB senior official told the FE Sunday.
He also said the central bank has planned to complete the implementation of a restructuring scheme after installing a new management of the bank by January 25, 2008.
Under the scheme, approved by the government earlier, the paid up capital of the bank will reach Tk 7.0 billion while the general shareholders, including its depositors, will hold Tk 3.0 billion in terms of shares. Each share will have a face value of Tk 1000.
"The moratorium limiting the activities of the bank will not be extended any further in line with the existing rules and regulations," the BB official noted.
On June 27 last, the government extended the moratorium on certain banking activities for six more months to protect depositors' interest and facilitate its restructuring.
On January 25 last, the finance ministry imposed a six-month moratorium restricting withdrawal of cash above Tk 10,000 by the depositors. In the case of new accounts, there was no restriction on withdrawal of money during the period.
The central bank took over the overall management of the bank and appointed an administrator on June 19, 2006 to protect the depositors' interest.
On August 6, 2006 the central bank ordered the removal of the managing director of the bank and suspended the board of directors for a period of one year.
The Oriental Bank Limited, a private commercial bank, started its operation on May 20, 1987 under the name of Al Baraka Bank Bangladesh Limited.
The bank is now running its business through 30 branches across the country where a total of 713 employees are engaged at different levels.