Shareholding limit for sponsors of NAGAD Digital Bank relaxed

Ministry of Finance (MoF) relaxed the shareholding limit for the sponsors of the NAGAD Digital Bank, which is waiting for operation in Bangladesh.

As per the law, no single person or institution can own more than 10 percent of a bank's shares as stipulated in the Bank Companies Act.

Nagad Digital Bank Plc, which is waiting to start operations, is owned by seven entrepreneurs.

Six of them are companies and one is an individual entrepreneur.

Among these seven entrepreneurs, three companies have more than 10 per cent shares each.

But the government says the legal ban on holding no more than 10 per cent stake will not apply to them.

That is, more than 10 per cent of shares of Nagad Digital Bank can be held by a single person or organisation.

In view of Bangladesh Bank's application, the Financial Institutions Department of the Ministry of Finance wrote to Bangladesh Bank on March 27 and expressed the government's consent in this regard.

According to the Memorandum of Association, Nagad Digital Bank has a total of 125 million shares of Tk 10 face value each. The paid-up capital of the company is Tk 1.25 billion.

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