Dhaka, Bangladesh (BBN)– The central bank of Bangladesh has approved conversion of the state-run Probashi Kallyan Bank (PKB) into a scheduled bank to expand its business further, officials said.
The decision was taken at a meeting of the Bangladesh Bank (BB) board of directors, held at its headquarters in the capital on Sunday, with BB Governor Fazle Kabir in the chair.
Under the decision, the central bank’s department concerned will issue a notification, mentioning PKB as a scheduled bank, after completing all the formalities.
The meeting also discussed different issues about the next monetary policy that is scheduled to be released by the last week of this month, according to the officials.
“Our board has approved in principle the conversion of PKB into a scheduled bank,” a BB senior official told the BBN in Dhaka.
He also said the Banking Regulation and Policy Department of the central bank will issue a notification in this connection.
The BB’s decision came after the Ministry of Finance (MoF) had given its consent in favour of allowing the migrants’ welfare fund to hold a 95 per cent stake in the specialised PKB.
“As per the Section 121 of Bank Company Act 1991, PKB can be exempted from the Subsection 14 ka (1) in holding a 95 per cent stake (BDT 3.80 billion) by the Wage Earners’ Welfare Board (WEWB),” the ministry said in its letter.
Besides, PKB had received BDT 200 million from MoF to replenish its paid-up capital to BDT 4.0 billion.
In Bangladesh, minimum requirement of paid-up capital is BDT 4.0 billion.
PKB started its operation in April 2011 with a capital of Tk 1.0 billion to provide collateral-free loans to overseas jobseekers as well as to give loans for rehabilitation of expatriate workers on their return home to engage them in various income-generating activities.
Currently, PKB is running its business with 63 branches across the country.