Fresh move taken for full Rupali Bank divestment

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FHM Humayan Kabir
The government has taken a afresh move to offload its stake in the Rupali Bank Ltd, after failing in its first bid to sell the same to a Saudi buyer.
The Private Commission (PC) is likely to be assigned again for full divestment of the bank, a finance ministry official told the FE.
"The finance ministry will seek approval of the council committee on economic affairs next Tuesday to appoint the PC once again for the divestment of the bank," he said. A meeting of the committee is scheduled to be held today (Tuesday).
Earlier in 2006, the PC selected a Saudi buyer through an international bid floated for the sale of the Rupali Bank. The Saudi buyer offered $450 million to take over the entire 93.26 per cent government stake in the bank. A memorandum of understanding was also signed to this effect.
But the PC had to scrap the deal following foot-dragging by the Saudi buyer.
The International Monetary Fund (IMF), which once advised the government to divest bank through international bidding, has recently suggested full privatization of the bank by offloading the government's stake through the local stock exchanges.
The financial health of the Rupali Bank has been poor for over a long time. The bank is now facing acute manpower shortage because of voluntary retirement of a good number of officials and employees under a World Bank's financed separation programme.