The initial paid-up capital of the subsidiary will be Tk 450 million, according to a filing posted on the website of the Dhaka Stock Exchange (DSE).
The MFS will include mobile-enabled payment and mobile banking with security and convenience for transfers, payments and savings through mobile wallet accounts.
In August 2023, the Prime Bank's board approved proposals for setting up two subsidiaries for MFS and joining a consortium to apply for a digital bank.
Company secretary Tanvir A Siddiqui said the bank was now required to ensure infrastructure including software for the subsidiary meant for MFS.
After the preparation is done, the bank will submit a proposal to the central bank, seeking a licence.
Prime Bank took the initiative to set up subsidiaries in an effort to expand business by diversifying services.
As per the 2023 decision, the bank is also working to set up another subsidiary with an initial minimum paid-up capital of Tk 100 million to provide asset management services and alternative investment fund.
After getting primary consent from the BB, the company will apply to the securities regulator for a licence of asset management company.
Earlier, Prime Bank joined a consortium of 10 commercial banks to set up a digital bank with the proposed name 'Digi10 Bank PLC'.
The bank, which recommended a 17.5 per cent cash dividend for the year ended in December 2023, experienced a 56 per cent year-on-year growth in profit to Tk 5.43 billion in the year.
Its share price exhibited a downward trend since early May. The stock fell to Tk 18.5 per share on the Dhaka Stock Exchange on Tuesday from Tk 22 per share on May 7.
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