Rupali Bank to start exercising operational autonomy soon
Saturday, 13 March 2010
Nazmul Ahsan
The government will also corporatise Rupali Bank Ltd in a similar move taken earlier to enable it to compete with private sector commercial banks.
Four consultants will soon be appointed in key areas of the bank and about 1000 fresh officials will be recruited, sources said.
The move has been taken following amendment to the memorandum and articles of association of Rupali in mid February this year that empowered the board of directors of the bank with more operational autonomy.
The government earlier corporatised three state-owned commercial banks - Sonali Agrani and Janata banks.
The Ministry of Finance (MoF) on Wednesday okayed appointments of four consultants for Rupali with attractive remuneration, who will be responsible to upgrade the overall of the bank, the sources said.
The consultants will be recruited in departments like Audit and Accounts, Information Technology, Foreign Exchange Management and Small and Medium Enterprises, said an office order of the MoF.
"We are delighted as the government has belatedly realised the necessity to corporatise Rupali through allowing us to recruit consultants and required manpower," a top Rupali Bank official told the FE.
He said the activities of the bank will accelerate further if the MoF forgoes its authority on Rupali as the Extra Ordinary General Meeting (EGM) that amended the articles of association of the bank and has empowered the board with operational authority.
"We should no longer seek permission from MoF for any recruitment or day to day activities of the bank as per the decision taken at the EGM," another Rupali bank official said.
However, officials in the MoF could not give any precise answer when asked whether it would still retain some authority on the bank.
But they said everything would be vested on the board of Rupali in course of time to truly reflect the corporatised character of the bank.
Furthermore, the bank is going to recruit 700 officers and 240 senior officers soon, bank officials said.
The board of directors of Rupali along with three other boards of directors of Sonali, Janata and Agrani, will shortly finalise a uniform pay structure for the staff of four state- owned commercial banks, it is learnt.
The structure is likely to be similar to those of private commercial banks.
Moreover, the board of directors of Rupali is contemplating appointing a Chief Executive Officer for the bank.
"The CEO must have sound track record in banking business, who might be given attractive salary,' a bank director of Rupali told the FE.
The government owns 94.5 per cent stakes of the ailing Rupali bank Ltd.
According to the amendment made in the EGM of Rupali, the board of directors, not the MoF, would appoint or remove the chairman.
However, the MoF will appoint directors to the board as usual as the bank is largely state-owned, sources said.
Rupali, according to the existing memorandum, cannot lend to Small and Medium Enterprise (SME), but the revised Articles of Association has included a provision allowing SME banking, an official concerned said.
The government will also corporatise Rupali Bank Ltd in a similar move taken earlier to enable it to compete with private sector commercial banks.
Four consultants will soon be appointed in key areas of the bank and about 1000 fresh officials will be recruited, sources said.
The move has been taken following amendment to the memorandum and articles of association of Rupali in mid February this year that empowered the board of directors of the bank with more operational autonomy.
The government earlier corporatised three state-owned commercial banks - Sonali Agrani and Janata banks.
The Ministry of Finance (MoF) on Wednesday okayed appointments of four consultants for Rupali with attractive remuneration, who will be responsible to upgrade the overall of the bank, the sources said.
The consultants will be recruited in departments like Audit and Accounts, Information Technology, Foreign Exchange Management and Small and Medium Enterprises, said an office order of the MoF.
"We are delighted as the government has belatedly realised the necessity to corporatise Rupali through allowing us to recruit consultants and required manpower," a top Rupali Bank official told the FE.
He said the activities of the bank will accelerate further if the MoF forgoes its authority on Rupali as the Extra Ordinary General Meeting (EGM) that amended the articles of association of the bank and has empowered the board with operational authority.
"We should no longer seek permission from MoF for any recruitment or day to day activities of the bank as per the decision taken at the EGM," another Rupali bank official said.
However, officials in the MoF could not give any precise answer when asked whether it would still retain some authority on the bank.
But they said everything would be vested on the board of Rupali in course of time to truly reflect the corporatised character of the bank.
Furthermore, the bank is going to recruit 700 officers and 240 senior officers soon, bank officials said.
The board of directors of Rupali along with three other boards of directors of Sonali, Janata and Agrani, will shortly finalise a uniform pay structure for the staff of four state- owned commercial banks, it is learnt.
The structure is likely to be similar to those of private commercial banks.
Moreover, the board of directors of Rupali is contemplating appointing a Chief Executive Officer for the bank.
"The CEO must have sound track record in banking business, who might be given attractive salary,' a bank director of Rupali told the FE.
The government owns 94.5 per cent stakes of the ailing Rupali bank Ltd.
According to the amendment made in the EGM of Rupali, the board of directors, not the MoF, would appoint or remove the chairman.
However, the MoF will appoint directors to the board as usual as the bank is largely state-owned, sources said.
Rupali, according to the existing memorandum, cannot lend to Small and Medium Enterprise (SME), but the revised Articles of Association has included a provision allowing SME banking, an official concerned said.