SBI seeks govt intervention to solve investment-related problems
Sunday, 16 March 2008
Shakhawat Hossain
The State Bank of India, operating branches in Bangladesh, has sought the government intervention to solve the problems in getting deposits from state-owned entities.
"Of late, we have been facing difficulties in mobilising funds in our endeavour to step up investments in different segments of the economy," the Indian bank said in a letter to the finance ministry last week.
The State Bank of India (SBI) in the letter said it has to encounter problems due to unwillingness by the state-owned entities for keeping deposits with it.
"We have in the recent past approached many government departments/agencies and corporations for perking deposits with us, which would enable us to take up more investment proposals" it said.
The letter said: "However, we have observed that there is some confusion regarding perking of deposits with State Bank of India."
The SBI has urged the finance ministry to take necessary measures to remove the confusion among the state-owned entities.
A Bangladesh Bank official said the country's existing rules permit state-owned entities to keep a maximum of 25 per cent of their fund in foreign private banks operating in the country.
The rest of amount they have to deposit in the local commercial banks.
The SBI that has, so far, played a small but significant role in banking sector in the country said the deposits mobilised from the state-owned entities will be utilised for investment in Bangladesh only.
Leveraging its large branch network in India, almost 15,000 including 100 overseas branches, SBI has facilitated Indo-Bangla trade in a big way. It has made substantial investment in the trade, retail, and also the garment sectors in Bangladesh.
It has four branches in Bangladesh, one each at Motijheel and Gulshan in the capital and others in Chittagong and Sylhet.
SBI resumed its operation in Dhaka in 1975 after nearly 10 years of interruption. It was operative in Dhaka, Chittagong, Narayanganj, Mymenshing, Rangpur, Sirajganj and Chandpur until 1965.
SBI that started operation way back in 1806 as the Bank of Bengal in Kolkata made its presence felt in this part of the world through acquisition of Dhaka Bank in 1862.
The State Bank of India, operating branches in Bangladesh, has sought the government intervention to solve the problems in getting deposits from state-owned entities.
"Of late, we have been facing difficulties in mobilising funds in our endeavour to step up investments in different segments of the economy," the Indian bank said in a letter to the finance ministry last week.
The State Bank of India (SBI) in the letter said it has to encounter problems due to unwillingness by the state-owned entities for keeping deposits with it.
"We have in the recent past approached many government departments/agencies and corporations for perking deposits with us, which would enable us to take up more investment proposals" it said.
The letter said: "However, we have observed that there is some confusion regarding perking of deposits with State Bank of India."
The SBI has urged the finance ministry to take necessary measures to remove the confusion among the state-owned entities.
A Bangladesh Bank official said the country's existing rules permit state-owned entities to keep a maximum of 25 per cent of their fund in foreign private banks operating in the country.
The rest of amount they have to deposit in the local commercial banks.
The SBI that has, so far, played a small but significant role in banking sector in the country said the deposits mobilised from the state-owned entities will be utilised for investment in Bangladesh only.
Leveraging its large branch network in India, almost 15,000 including 100 overseas branches, SBI has facilitated Indo-Bangla trade in a big way. It has made substantial investment in the trade, retail, and also the garment sectors in Bangladesh.
It has four branches in Bangladesh, one each at Motijheel and Gulshan in the capital and others in Chittagong and Sylhet.
SBI resumed its operation in Dhaka in 1975 after nearly 10 years of interruption. It was operative in Dhaka, Chittagong, Narayanganj, Mymenshing, Rangpur, Sirajganj and Chandpur until 1965.
SBI that started operation way back in 1806 as the Bank of Bengal in Kolkata made its presence felt in this part of the world through acquisition of Dhaka Bank in 1862.