Private business group willing to buy government stake in BCBL
Tuesday, 30 March 2010
Nazmul Ahsan
A group of at least eight, including one joint-venture food company, business entities has conveyed its intention to the Prime Minister's Office (PMO) to take over the government stake in the Bangladesh Commerce Bank Limited (BCBL).
The PMO, according to sources, has asked the finance ministry to examine the proposal. The government owns 40 per cent shares of the bank.
The finance ministry has asked the central bank to give its opinion on the issue and furnish the details of the BCBL's latest financial management positions.
Dr. Mashiur Rahman, Economic Affairs Adviser to the Prime Minister, recently wrote a letter to the finance ministry requesting the latter to undertake initiatives to dispose of the government's stake in BCB, an official concerned said.
The private companies that showed interest in the BCBL are: Dhaka Capital Builders, Modern Capital City Ltd, Fuwang Food Industries Ltd, Razzak Textile Mills Ltd, Mak Fine Paper, BRB Cables, S A Paribahan and Noman Group of Industries.
Of them, Fuwang Food Industries is a Taiwan-Bangladesh joint venture company while the rest seven are locals.
The Dhaka Capital Builders is the lead business firm among eight, a top official in the PMO said. He, however, said the interested companies are yet to mention about their respective proportion of shares they want to buy from the government's 40 per cent stake in BCB.
A BB high official said it is the government to decide whether it would go for divestment or increase the paid-up capital through issuance of right shares or merge the BCB with another government-owned bank.
"Any of the three options could be accepted,'' a high official in the BB told the FE.
He, however, said divestment of the government's stake should be the last option.
Earlier, the BB recommended the government to increase the paid-up capital of BCB through issuing right shares or restructure it soon to make the largely owned government bank a viable financial entity.
The BB, in its recommendation, proposed issuance of 1.25 right shares for every single share of Tk 100 to increase the paid-up capital of BCB from existing Tk 920 million to Tk 2.0 billion.
A high official in the MoF said we are going to take decision on BCB soon after a long indecision.
Transparency would be maintained in implementing whatever decision is taken with regard to the BCB after considering the opinion of BB, he added.
Presently, the BCB has Tk 2.0 billion as authorized capital and Tk 920 million as paid-up capital.
The BCB has a capital shortfall of Tk 1.63 billion and provision shortfall Tk 766 million as of June, 2009. The non- performing loan as of March last was 27.67 of the outstanding loan of the bank.
The BCB was established through reorganisation of the former Bangladesh Commerce and Investment Ltd. (BCIL), which was set up on 27th January 1986 as a private non-banking financial initiation with an authorised and paid-up capital of Tk. 300.00 million and Tk. 50.00 million respectively.
A group of at least eight, including one joint-venture food company, business entities has conveyed its intention to the Prime Minister's Office (PMO) to take over the government stake in the Bangladesh Commerce Bank Limited (BCBL).
The PMO, according to sources, has asked the finance ministry to examine the proposal. The government owns 40 per cent shares of the bank.
The finance ministry has asked the central bank to give its opinion on the issue and furnish the details of the BCBL's latest financial management positions.
Dr. Mashiur Rahman, Economic Affairs Adviser to the Prime Minister, recently wrote a letter to the finance ministry requesting the latter to undertake initiatives to dispose of the government's stake in BCB, an official concerned said.
The private companies that showed interest in the BCBL are: Dhaka Capital Builders, Modern Capital City Ltd, Fuwang Food Industries Ltd, Razzak Textile Mills Ltd, Mak Fine Paper, BRB Cables, S A Paribahan and Noman Group of Industries.
Of them, Fuwang Food Industries is a Taiwan-Bangladesh joint venture company while the rest seven are locals.
The Dhaka Capital Builders is the lead business firm among eight, a top official in the PMO said. He, however, said the interested companies are yet to mention about their respective proportion of shares they want to buy from the government's 40 per cent stake in BCB.
A BB high official said it is the government to decide whether it would go for divestment or increase the paid-up capital through issuance of right shares or merge the BCB with another government-owned bank.
"Any of the three options could be accepted,'' a high official in the BB told the FE.
He, however, said divestment of the government's stake should be the last option.
Earlier, the BB recommended the government to increase the paid-up capital of BCB through issuing right shares or restructure it soon to make the largely owned government bank a viable financial entity.
The BB, in its recommendation, proposed issuance of 1.25 right shares for every single share of Tk 100 to increase the paid-up capital of BCB from existing Tk 920 million to Tk 2.0 billion.
A high official in the MoF said we are going to take decision on BCB soon after a long indecision.
Transparency would be maintained in implementing whatever decision is taken with regard to the BCB after considering the opinion of BB, he added.
Presently, the BCB has Tk 2.0 billion as authorized capital and Tk 920 million as paid-up capital.
The BCB has a capital shortfall of Tk 1.63 billion and provision shortfall Tk 766 million as of June, 2009. The non- performing loan as of March last was 27.67 of the outstanding loan of the bank.
The BCB was established through reorganisation of the former Bangladesh Commerce and Investment Ltd. (BCIL), which was set up on 27th January 1986 as a private non-banking financial initiation with an authorised and paid-up capital of Tk. 300.00 million and Tk. 50.00 million respectively.