Sonali, Janata approve Tk 4b for BF
FE Report | Wednesday, 16 March 2011
FE Report
Two state-owned commercial banks (SCBs), Sonali Bank Limited and Janata Bank Limited, in their board meeting Tuesday approved Tk 2.0 billion each for the proposed Tk 50 billion Bangladesh Fund (BF). Earlier, the Investment Corporation of Bangladesh (ICB), the major sponsor of the BF, approved Tk 5.0 billion for the Fund. In the backdrop of severe liquidity crisis in the stock market, four SCBs-Sonali Bank, Janata Bank, Agrani Bank and Rupali Bank and four state-owned financial institutions-ICB, Bangladesh Development Bank, Sadharan Bima Corporation and Jiban Bima Corporation took decision to form a special fund of Tk 50 billion to give liquidity support in the country's cash-hungry stock market. The sponsors of the proposed BF took decision to make investment both in the capital and money market. Fifty per cent of the proposed BF will be invested in the capital market and the rest 50 per cent in the money market. Sources in the ICB said along with the public sector participants, private banks, insurance companies, merchant banks and asset management companies will also take part in the proposed BF gradually. After generating funds from various sources the major sponsor of the Fund, ICB, will seek permission from the capital market regulator Securities and Exchange Commission (SEC) to float Bangladesh Fund.
Two state-owned commercial banks (SCBs), Sonali Bank Limited and Janata Bank Limited, in their board meeting Tuesday approved Tk 2.0 billion each for the proposed Tk 50 billion Bangladesh Fund (BF). Earlier, the Investment Corporation of Bangladesh (ICB), the major sponsor of the BF, approved Tk 5.0 billion for the Fund. In the backdrop of severe liquidity crisis in the stock market, four SCBs-Sonali Bank, Janata Bank, Agrani Bank and Rupali Bank and four state-owned financial institutions-ICB, Bangladesh Development Bank, Sadharan Bima Corporation and Jiban Bima Corporation took decision to form a special fund of Tk 50 billion to give liquidity support in the country's cash-hungry stock market. The sponsors of the proposed BF took decision to make investment both in the capital and money market. Fifty per cent of the proposed BF will be invested in the capital market and the rest 50 per cent in the money market. Sources in the ICB said along with the public sector participants, private banks, insurance companies, merchant banks and asset management companies will also take part in the proposed BF gradually. After generating funds from various sources the major sponsor of the Fund, ICB, will seek permission from the capital market regulator Securities and Exchange Commission (SEC) to float Bangladesh Fund.