Private banks allowed to open 350 branches

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FE Report
The central bank has given permission to 27 private commercial banks (PCBs) for opening around 350 branches throughout the country. Of the total, 110 will be dedicated for small and medium enterprises and agricultural loans by this calendar year.
"We've given the permission to the PCBs for opening their branches aiming to bring more people under the financial system through expanding banking network across the country," a senior official of the Bangladesh Bank (BB) told the FE Monday.
He also said the central bank will cancel such permissions if the banks fail to open their branches by December 31.
The central bank of Bangladesh has provided licences, for the first time, to the PCBs for opening SME/Agriculture branches to gear up financing to the SMEs and farmers.
A total of 30 PCBs are now running their businesses in the country.
"The SME/Agriculture branches will be allowed to provide all kind of banking services to their clients excepts foreign exchange transactions," the BB official said, adding that the central bank has already taken a series of measures to facilitate SME and agriculture sectors.
On March 25 last, the central bank announced, for the first time, an SME credit policy and programmes for a disbursement target of around Tk 240 billion during the ongoing calendar year.
"We've given the permissions to the PCBs considering their overall financial performances," the official said, adding that the demand for opening new branches has increased gradually, indicating expansion of banking network in the country.
"The total number of bank branches may cross 7,500 by the end of this calendar year," the central bank official said.
Currently, all 47 scheduled banks are operating their business through around 7,187 branches across the country. The number of bank branches increased from 6,886 in 2008 to 7,187 in 2009 owing mainly to opening of new branches by the PCBs during the period.
Besides, the central bank is converting SME service centres, which are located outside of divisional headquarters, into SME/Agriculture branches to provide better services to their clients.
The banks are now providing services through over 200 SME service centres across the country.