Rupali Bank seeks operational power from MoF
Monday, 11 April 2011
FE Report
Rupali Bank Ltd has sought operational authority from the Ministry of Finance (MoF) to run the bank under a corporatised culture, official sources said. The authority has been demanded in line with the amended Memorandum and Articles of Association of Rupali Bank. The general share holders who own 5.45 per cent share and the government that owns the remaining vast majority share of the bank approved the amendment to its Memorandum at an annual general meeting (AGM) of the bank held in February, 2010, the sources said. Bangladesh Bank, following the approval from the AGM, also approved the amended version of Rupali's Memorandum and Articles of Association in the same month, which vested the board of directors of the bank and its management with full operational and administrative authority to run the bank. However, Rupali still needs the approval from the MoF to have the power to hire and fire its staff, getting financial power to spend and earn and diversify its activities under a competitive environment of banking business in the country, a high official in Rupali Bank said. The managing director (MD) of Rupali Bank Ltd Farid Uddin Ahmed in a letter to the MoF sought the authority to run the bank in the most professional manner, it is learnt. The letter, sent to the ministry last week, said Rupali needs the operational authority like those of the state-owned corporatised banks namely Sonali, Janata and Agrani. The authority may be given in line with the amended Memorandum and Articles of Association of the bank, the letter said. The MD in his letter said Rupali is the lone state-owned public listed company in the capital market as the bank was listed in the market in 1986. "Now, we need 'no objection' from the MoF as all the relevant formalities have been completed," a top Rupali official told the FE. "Rupali will be more profitable and corporatised if the required authority is given to its board and management," he added. An official concerned in the ministry, however, said they are now in hectic pressure with the workload of capital market related tasks after the probe report on the share market scam is published. "We will make a decision on the issue of Rupali Bank next week," the official in the ministry said.
Rupali Bank Ltd has sought operational authority from the Ministry of Finance (MoF) to run the bank under a corporatised culture, official sources said. The authority has been demanded in line with the amended Memorandum and Articles of Association of Rupali Bank. The general share holders who own 5.45 per cent share and the government that owns the remaining vast majority share of the bank approved the amendment to its Memorandum at an annual general meeting (AGM) of the bank held in February, 2010, the sources said. Bangladesh Bank, following the approval from the AGM, also approved the amended version of Rupali's Memorandum and Articles of Association in the same month, which vested the board of directors of the bank and its management with full operational and administrative authority to run the bank. However, Rupali still needs the approval from the MoF to have the power to hire and fire its staff, getting financial power to spend and earn and diversify its activities under a competitive environment of banking business in the country, a high official in Rupali Bank said. The managing director (MD) of Rupali Bank Ltd Farid Uddin Ahmed in a letter to the MoF sought the authority to run the bank in the most professional manner, it is learnt. The letter, sent to the ministry last week, said Rupali needs the operational authority like those of the state-owned corporatised banks namely Sonali, Janata and Agrani. The authority may be given in line with the amended Memorandum and Articles of Association of the bank, the letter said. The MD in his letter said Rupali is the lone state-owned public listed company in the capital market as the bank was listed in the market in 1986. "Now, we need 'no objection' from the MoF as all the relevant formalities have been completed," a top Rupali official told the FE. "Rupali will be more profitable and corporatised if the required authority is given to its board and management," he added. An official concerned in the ministry, however, said they are now in hectic pressure with the workload of capital market related tasks after the probe report on the share market scam is published. "We will make a decision on the issue of Rupali Bank next week," the official in the ministry said.