No headway still in sell-off of Rupali stake in Pakistan's Summit Bank

Rezaul Karim
There is still no headway in withdrawing the state-run Rupali Bank's stake in Pakistan's Summit Bank, officials said.
Different complexities have hindered the process despite taking a move three years ago to that end.
The board of directors of Rupali Bank had formed a high-powered four-member committee to withdraw the shares and realise all other dues.
But later the committee had been recast on two or three occasions due to some of the members' promotion, pre-retirement leave (PRL), etc., the officials said.
The Rupali Bank has long been seeking instructions from the finance ministry for taking the next course of action in this connection.
In the absence of any instructions the committee could hold no meeting yet, the officials said.
"The State Bank of Pakistan is very slow. We have some funds in our account. But we are yet to bring back the funds from that country," a senior official told the FE in April last.
He blamed the lukewarm response of the regulatory authorities of that country for that despite repeated attempts.
The official said, "There has been no development even after a change in the management of the Pakistani bank."
The four-member committee comprises representatives from the finance ministry, foreign ministry, Bangladesh Bank and a deputy managing director of Rupali Bank.
An official concerned said the government in March 2015 took a decision to sell 1.84 per cent or 32.77 million shares of Rupali Bank in the Pakistani bank.
When contacted, a high official of the Rupali Bank said, "We benefit little from Summit Bank, nor is there any good prospect."
"So, we have decided to sell our existing shares," he added.
In 2008, Summit Bank issued 3.27 million bonus shares in favour of Rupali Bank.
Currently, the Pakistani bank owes over PKR 16.3 million to Rupali Bank, he disclosed citing the Summit Bank's balance sheet.
"We have contacted them on many occasions through e-mail and on telephone seeking settlement of our dues," he said.
"But the bank authority referred it to the State Bank of Pakistan," he mentioned.
Former deputy managing director of Rupali Bank Hasne Alam, who is now on PRL, was once the chief of the committee.
He said earlier, "Presently, the price of the bank's shares is much lower than the face value. We are waiting for an increase in the price of shares."
In October 2007, Arif Habib Securities Limited under the Scheme of Amalgamation set by the State Bank of Pakistan acquired the Pakistan operations of Rupali Bank Limited.
It was later renamed Arif Habib Bank.
Rupali Bank Managing Director Md. Ataur Rahman Prodhan could not be contacted for his comments on phone.
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