Genex Infosys and Navana Pharmaceuticals have become the latest listed companies to join the queue for investing in a digital bank as the country looks to expedite financial inclusion through technology.
The board of directors of Genex Infosys decided to invest Tk 125 million in the proposed digital bank, 'UPAY Digital Bank PLC,' during a meeting on Thursday, according to a company disclosure.
This investment amounts to 10 per cent of the total paid-up capital of Tk 1.25 billion for the proposed bank. However, the investment is subject to approval from regulatory authorities, said the disclosure.
Similarly, the board of Navana Pharmaceuticals, during a meeting on Thursday, also opted to invest Tk 75 million in the same digital bank, 'UPAY Digital Bank PLC.'
The drug maker in a disclosure said that this investment represents 6 per cent of the total paid-up capital of the proposed digital bank and is contingent on approval from regulatory authorities.
Meanwhile, a consortium of ten private commercial banks, including Dutch-Bangla Bank, City Bank, Eastern Bank, Mercantile Bank, Midland Bank, Mutual Trust Bank, NCC Bank, Prime Bank, Pubali Bank and Trust Bank, has formed to put into Tk 125 million each in proposed 'Digi10 Bank PLC' to attract tech-savvy customers.
In addition, three other listed banks - Bank Asia, BRAC Bank and Dhaka Bank - have also announced separate plans to participate in digital banks.
Moreover, five other listed companies - ACI, Crystal Insurance, Pragati Insurance, Pragati Life Insurance and Unique Hotel & Resorts - have outlined their plans to invest in digital banks.
ACI, a prominent conglomerate in Bangladesh, has decided to invest Tk 100 million, while Crystal Insurance, Pragati Insurance, Pragati Life Insurance and Unique Hotel & Resorts have each decided to invest Tk 125 million.
A digital bank, also referred to as a Neobank or virtual bank, operates exclusively online without traditional physical networks. The primary distinction between a digital bank and a conventional bank lies in the absence of physical branches. However, it will maintain a physical registered headquarters.
The Bangladesh Bank invited applications to form digital banks on June 21. The original deadline of August 1 of this year was subsequently extended, providing entrepreneurs with additional time to meticulously prepare comprehensive applications accompanied by the necessary documents. The deadline for application submissions ended on Thursday.
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