Oriental Bank's bidding deadline expires today

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The deadline for submission of Expression of Interest (EoI) to buy the problem-ridden Oriental Bank expires today (Sunday) with a number of local and foreign investors showing interest to have its shares, reports UNB.
"A number of local and foreign investors have shown keen interest to buy the shares of the bank, and take over its assets and liabilities to run it under a new management," an executive from one of the interested parties said.
He said, the interested parties are likely to submit their proposals on the last day (Sunday).
He said, he is aware of a group of expatriate Bangladeshis who would bid for buying shares of the bank, while a consortium of local banks and financial institutions also has a plan to participate in the bidding.
A UK-based leading international firm - East Invest Private Equity Limited - has also shown its interest in taking over the bank.
The Oriental Bank 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 a serious financial and liquidity crisis, the central bank dissolved the bank's board of directors, sacked its managing director, and appointed an administrator to run the bank for the time being.
The central bank had announced a bailout scheme on August 2 to sell 57 per cent share of Oriental Bank through an open tender. The new scheme envisages a rise of the bank's paid-up capital to Tk 7.0 billion from the existing Tk 570 million. The scheme stipulates Tk 4.0 billion as sponsor shares, and the remaining Tk 3.0 billion as general shares.
The British company, East Invest, having a track record of investing 10 billion GBP mainly in financial institutions in different countries of Europe, Africa and the Middle East, has already announced its plan to participate in the bidding.
The company's director for South Asian operation, MM Roni said, the East Invest has already submitted its investment proposals to the Bangladesh Bank as well as communicated with the Board of Investment (BoI).
If East Invest is chosen to award the Oriental Bank, he said, his firm would operate the bank on the basis of corporate management maintaining international banking standard.
"East Invest Private Equity Ltd wants to diversify the line of business through obtaining a banking license in any part of Asia, and Bangladesh is our top choice," Roni said.
He said, his company is also willing to set up a micro-finance institution in Bangladesh to provide credit to small-scale investors through credit card system.
"Under the plan, initially 0.5 million credit cards will be issued to small investors so that they could draw money from outlets anytime they need," he said.
"We want to introduce the project in line with our operational experience in other countries," he added.