The government has provided Probashi Kallyan Bank (PKB) with Tk 150 million to start its commercial operation as a state-owned specialised bank, officials said.
The sum of money will be made available from a fund of Tk 20 billion set aside in the budget for the fiscal year (FY) 2017-18 for recapitalisation, they added.
The finance ministry has, however, tagged a condition that the bank can't use the fund for other purposes except its activities, according to a ministry document.
The bank also needs about Tk 3.0 billion (300 crore) more as paid-up capital for switching over to its scheduled operation. It has now a shortfall of Tk 2.50 billion as paid-up capital for its conversion into a commercial bank. Of the amount, 5 per cent of shortfall will be met by the government while Wage Earners' Welfare Board (WEWB) will provide the bank with Tk 2.35 billion, according to a decision taken at a meeting held at the finance ministry.
A senior PKB official said now the paid-up capital of the bank is Tk 1.0 billion. In 2015, the government approved a proposal for raising the paid-up capital of the bank from Tk 1.0 billion to Tk 4.0 billion after issuing a gazette notification in this regard.
The Prime Minister gave her consent to the conversion of PKB into a scheduled bank under the Bank Companies Act, central bank sources said.
According to Clause 4 (6) of the Probashi Kallyan Bank Act 2010, the bank will be able to carry out commercial and banking activities. Besides, Clause 4 (7) of the Act has stated that PKB can be converted into a scheduled bank with approval from the Bangladesh Bank.
PKB is likely to go into commercial operation early next year, a PKB source said.
The authorised capital of the bank is Tk 5.0 billion, according to PKB.
The bank receives deposits and gives loans to the migrants and returnees while it also buys and sells foreign currencies.
The bank gave loans worth Tk 2.29 billion to over 23,731 Bangladeshi migrant workers during the period between FY 2011-12 and FY 2016-17.
Among the beneficiaries, some 156 returnees received loans for income-generating projects at home. During the period, the bank recovered Tk 1.55 billion.
The specialised bank disbursed loans of about Tk 290 million among the migrant workers in the five months of FY 2017-18.
The bank was established in 2010 aiming to provide collateral-free loan to the workers for going abroad with employment, also to the returnees to help them for getting jobs in the country and facilitate sending remittances by wage-earners to invest in the country.
Currently, PKB has 55 branches across the country, according to its official webpage.
© 2024 - All Rights with The Financial Express
