Turn Agrani SME Financing Co into state-owned entity

State-run Agrani Bank has urged the government to count its subsidiary Agrani SME Financing Company (ASMEFC) Limited as a state-owned non-bank financial institution, a source said.
Deputy Managing Director (in charge) of the bank Md Yousuf Ali made the request in a letter to the Ministry of Finance recently, the source added.
ASMEFC was turned into a financial institution in July 2010 with the government approval and the bank's subsidiary was also registered with the Registrar of Joint Stock Companies and Firms in October, 2010, according to the letter.
Later, the Bangladesh Bank issued licence to ASMEFC to operate as a non-bank financial institution.
Agrani Bank owns 100 per cent stake in the financing company.
The memorandum and article of association of the company are vetted by the Legislative and Parliamentary Affairs Division of the Ministry of Law.
The Board of Directors of the company is formed by the government and it comprises a director from the government side, a senior official of the bank said.
Besides, the company follows the National Pay Scale 2015, he added supporting the reason why the government should announce it as a state-owned financial institution.
The authorised capital and paid-up capital of the bank owning the company are Tk5.0 billion and Tk1.0 billion respectively, according to available data.
The company's current shareholdings comprise the Agrani Bank Limited and six other shareholders nominated by the bank. It has 46 branches (with none overseas) across the country.
In 2016, the company earned Tk135.66 million revenue, Tk 9.69 million profit after tax and recorded an EPS of Tk. 0.77 compared to that of Tk2.93 in the previous year.
The company's total assets remained at a better position with a growth of 3.55 per cent compared to that of 2015.
With more effective processes, stringent procedures, efficient people, the financing company was able to return to a better financial footing in a more sustainable way, commented the official.
In 2016, a total of 3126 enterprises were established with the finance of the company creating employment opportunities for 7,058 people.
Of the people employed, 1,272 were females and 5,786 males.
The company's core activities include financing the small and medium enterprises.

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