Probashi Kalyan Bank to float shares in stock mkt

Probashi Kalyan Bank (PKB), the specialised state-owned bank for expatriates' welfare, has initiated a process of floating its share in the stock market for further expansion, sources said.
According to the sources, the authority of the bank is at the end of completion of all necessary procedures to raise a capital worth Tk 4.0 billion through offloading shares in the stock market.
PKB's move is a part of the government's on-going initiative to offload shares of all the state-owned entities (SoEs).
Earlier in 2011, the government declared to off-load shares of all the SoEs in the stock market to make the loss making entities vibrant but due to some bureaucratic complexities the attempt did not come to effect for long.
But, in May last the finance minister again declared offloading the shares within a year and the attempt of PKB is a part of this declaration.
"We are making all necessary papers according to our ordinance to offloading shares of worth Tk4.0 billion," Managing Director of PKB, CM Koyes Sami told the FE.
"If every thing goes accordingly, then we are hopeful to offload the shares within a year," he added.
'As per our research, due to huge demand of loans among the NRBs and the returnees, the bank will need at least Tk6.5 billion more in the next five to disburse, so we need to collect the money from the stock market," Mr Sami informed.
Mr Sami, however also informed that only non-resident Bangladeshis (NRBs) and returnees will only be eligible for applying for issuing the shares of the PKB.
The government through enacting 'Probashi Kallyan Bank Act, 2010' has established the specialized bank--PKB with a paid-up capital of Tk1.0 billion and an authorized capital of worth Tk 5.0 billion.
According to the act, the PKB will only work for the welfare of foreign going Bangladeshi workers and returnees along with their family members.
However, the PKB in a real sense started its activities from January 2012 and given migration loans worth Tk 420 millions to more than 4,118 overseas job seekers until 31st December 2013.
Besides, the bank has also provided loans to more than 100 returnee migrants for their rehabilitation.
Interest against the migration and rehabilitation loans is 9 per cent and 11 per cent respectively.  
According to sources at the PKB, the bank processes any of the loan application within highest three days.   
However, following a number of success story and huge demand among the foreign going and returnees the PBK has taken a vast expansion plan which will be materialized within the year 2018.
Under the plan the bank will open 150 branch offices in 64 districts and 61 upazilas. At present the bank has 38 branches in seven divisional cities and districts across the country.
The PKB provides loan amounting to Tk 84,000 for going with employment to Middle East, South-East Asian countries and Malaysia and Tk 120,000 to Europe and African countries without any co-lateral.
Besides, the bank also provides co-lateral free loans to the returnees up to Tk 1.0 million based on type of project.