Wage Earners' Welfare Board (WEWB) has contributed an amount of Tk 1.0 billion to facilitate Probashi Kallyan Bank (PKB) for shoring up its capital base before converting it into a scheduled bank, sources said.
"The board has handed over the cheque for the amount to the PKB Tuesday," said an official of the bank. With this, the total paid up capital of the bank stood at Tk 2.65 billion.
WEWB is expected to provide the remaining Tk 1.35 billion, required to make up the capital shortfall, within two months, said the official. The required paid up capital of a scheduled bank is Tk 4.0 billion.
PKB started its operation in April 2011 with a capital of Tk 1.0 billion, aiming to provide collateral-free loans to overseas jobseekers and give loans for rehabilitation of returning workers through income-generating activities.
However, migrant rights campaigners criticised such mobilisation for the bank from the workers' welfare fund as it would hamper welfare activities of the board.
The contribution of the WEWB to the specialised bank now stands at Tk 2.45 billion and with the remaining amount it will be Tk 3.80 billion.
The finance division earlier contributed only Tk 200 million to raise the paid up capital of the bank.
When contacted, WEWB director general Gazi Mohammad Julhas said they contributed Tk 1.0 billion to the PKB as paid up capital. The rest 1.35 billion will be handed over within two months.
"We have given the fund to the bank as part of welfare activities of migrant workers," he said.
Replying to a query, he said the board would not get much profit from the bank. "We will get only the dividend if the bank makes profit," he said. "We are giving the money as the migrant workers will get services from the bank directly."
He said the bank's performance was not bad. As it had small capital, it could not provide the outbound workers with loans in accordance with their demand.
After transformation into a scheduled one, the loan service is expected to improve, he said.
Migrant rights activists expressed dissatisfaction over mobilising money from the WEWB, saying that the government should have provided the bank with its own fund.
Ovibashi Karmi Unnayan Programme (OKUP) chairman Shakirul Islam said the government should not avoid its duty to ensure the wellbeing of migrant workers. "So, it should provide paid up capital from its own source," he added.
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