Move to make PKB scheduled bank

Authorities of Probashi Kallyan Bank (PKB) want to have it converted into a specialised scheduled bank with a view to expediting collection of its loan instalments, officials have said.
Besides, the bank authorities have also taken an initiative to provide the remittance service, according to the sources.
Minister for Expatriates' Welfare and Overseas Employment Nurul Islam B Sc sent an official letter to Finance Minister Abul Maal Abdul Muhith on July 30, 2015 to take necessary steps for converting the bank into a specialised one.
About Tk 3.0 billion (300 crore) additional fund has also been sought to increase its paid-up capital for its switching over to a specialised bank. The paid-up capital of the bank is Tk 1.0 billion, the letter has mentioned.
Expatriates who received loans from the bank could not send their instalments for its not being a specialised scheduled bank. As a result, the rate of recovery of the loans has been decreasing gradually, the minister has said in the letter.
He expressed hope that the rate of recovery of the existing loans would be cent per cent if it is converted to a specialised bank.
In response to the letter, the finance minister made the comment that the Banking Division can place a prudent remark in this connection. The PKB cannot become an agency under any ministry. It must be a commercial bank.
The ministry of finance applied to the Bangladesh Bank (BB) to open a clearing house to facilitate remittance home in late 2013. The PKB also sent a letter to get membership of the clearing house. The Prime Minister and the BB governor had discussion on the developments in a cabinet meeting held on February 2, 2015.  
The Prime Minister also gave her consent for converting the PKB into a scheduled bank under the Bank Companies Act, central bank sources said.
According to clause 4 (6) of the Probashi Kallyan Bank Act 2010, the bank will be able to carry out commercial and banking activities.
Besides, clause 4 (7) of the Probashi Kallyan Bank Act 2010 has mentioned that the PKB can be converted into a scheduled bank with approval of the BB.
Till date, the state-run PKB disbursed Tk 750 million (75 crore) collateral-free loans to 7,500 people going abroad for employment.  PKB was established by the government in 2010 to provide collateral-free loan to workers going abroad for employment, also to returnees from abroad to help them out for employment within the country and facilitate sending remittances by the wage-earners to invest in the country.
Managing director of PKB Md Mosharraf Hossain Chowdhury could not be reached despite several attempts made over phone for his comment.
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