NCBs converted into PLCs now

---

Shakhawat Hossain
The Ministry of Finance (MoF) Monday in a gazette notification dropped Sonali, Janata and Agrani banks from the Bangladesh Bank Nationalisation Order 1972, sources said.
Thus, the country's three largest banks, which functioned as nationalised commercial banks (NCBs) for more than three decades, have now been converted into Public Limited Companies (PLCs).
The gazette notification, according to the sources, said the banks will be run under the Companies Act 1994 as they have been registered with the Registrar of Joint Stock Companies and Firms (RJSC).
In another development, a review meeting on the country's banks' overall performance has directed the Sonali, Janata and Agrani banks to draw up their respective action plans by the next three weeks to overcome their provision shortfalls with the central bank.
"We have asked them to come with the action plans as the central bank may declare them problem banks because of their provision shortfalls," Finance and Planning Adviser Mirza Azizul Islam told reporters after the meeting.
The finance and planning adviser said the banks have been given the time so that they can streamline their liquidity position to avoid being called problem banks and save the image of the government.
The meeting was told that overall capital shortfall of Sonali is Tk 37.60 billion, Janata Tk 10.25 billion and Agrani Tk 19.70 billion.
According to the gazette notification, the central bank will monitor the activities of the banks more closely although the government still holds the right to appoint their directors.
The number of directors will be minimum seven and maximum 13.
Earlier on Thursday, vendor agreements were signed to ensure transfer of assets and liabilities of the banks.
The value of each share of Sonali, Janata and Agrani banks has been fixed at Tk 100. Only government organisations are entitled to purchase those shares.
Turning the banks into PLCs is seen as a step towards their divestment in future as the government is running a project titled the Enterprise Growth and Bank Modernisation.
The donor-funded project, started in 2004, aimed at restructuring the country's nationalised commercial banks. Privatisation process of Rupali, the smallest among the NCBs, is in the final stage.