BB woos investors with Oriental management offer
Tuesday, 7 August 2007
Bangladesh Bank (BB) has offered full management control of Oriental Bank to any new buyer as an incentive, according to an announcement issued Monday, reports bdnews24.com.
"We have given the offer for management control to woo competent investors who have good track-records of financial integrity," an official with the central bank said, preferring to be unnamed.
The BB offer came in an announcement that sought expressions of interest (EoI) from local and international buyers for the embezzlement-ridden bank by September 23.
Under a recapitalisation plan, Oriental's paid-up capital will be raised to Tk 7.0 billion (700 crore). Of the amount, Tk 4.0 billion (400 crore) will be raised from 'strategic' investors. The remaining part will be raised through the contributions from depositors, the central bank said.
The BB put freezes on Oriental on January 25 after it dug out a Tk 5.96 billion (596 crore) financial scam by its former management. The bank has 30 branches with Tk 22.05 billion (2,205 crore) in total assets and Tk 23.08 billion (2,308 crore) in deposits, the central bank said.
According to the announcement, interested investors for Oriental should be a bank or non-banking or investment company or a fund "duly formed under law."
Individuals or a group of individuals who have good track-records of financial integrity together with no conflict of interest will be able to submit the EoI.
The BB will shortlist competent buyers after September 23 and will ask them to take part in a bidding.
Oriental, formerly known as Al Baraka Bank, was established in 1987.
"We have given the offer for management control to woo competent investors who have good track-records of financial integrity," an official with the central bank said, preferring to be unnamed.
The BB offer came in an announcement that sought expressions of interest (EoI) from local and international buyers for the embezzlement-ridden bank by September 23.
Under a recapitalisation plan, Oriental's paid-up capital will be raised to Tk 7.0 billion (700 crore). Of the amount, Tk 4.0 billion (400 crore) will be raised from 'strategic' investors. The remaining part will be raised through the contributions from depositors, the central bank said.
The BB put freezes on Oriental on January 25 after it dug out a Tk 5.96 billion (596 crore) financial scam by its former management. The bank has 30 branches with Tk 22.05 billion (2,205 crore) in total assets and Tk 23.08 billion (2,308 crore) in deposits, the central bank said.
According to the announcement, interested investors for Oriental should be a bank or non-banking or investment company or a fund "duly formed under law."
Individuals or a group of individuals who have good track-records of financial integrity together with no conflict of interest will be able to submit the EoI.
The BB will shortlist competent buyers after September 23 and will ask them to take part in a bidding.
Oriental, formerly known as Al Baraka Bank, was established in 1987.