Five new banks got approval

DHAKA, Feb 5, 2013 (BSS) - Five new banks got approval from the Bangladesh Bank (BB) today to start their business. With these new banks, the number of banks in the country has now stood at 52 including public, private and foreign banks.

 

The newly approved five banks are, NRB Commercial Bank of US expatriate Bangladeshi engineer Farasat Ali, Union Bank of former president and JP Chairman HM Ershad, South Bangla Agricultural Bank of SM Amzad Hossain, NRB Bank of expatriate Bangladeshi in UK Iqbal Ahmed and Meghna Bank of parliament member HN Ashikur Rahman.

 

The decision of approval to the new banks came at a meeting of the BB's Board of Directors, held at its headquarters on Tuesday with BB Governor Atiur Rahman in the chair.

 

The board put on hold the approval of another bank, Midland Bank of M Moniruzzaman, to review its business plan further, BB Deputy Governor SK Sur Chowdhury told the reporters after the meeting.

 

The central bank in two phases on Sunday and Tuesday reviewed the business plans of the six banks, presented by their managing directors.

 

Chowdhury said the approved banks would now need to get registration from the Joint Stock Company to form companies and subsequently apply to the central bank seeking permission for opening branches to start formal business.

 

On September 27, 2011, the central bank invited applications from people interested in setting up new commercial banks and received 37 applications. On April 17, 2012 the central bank issued letter of intent (LoI) to nine proposed banks, of which five got final approval.

 

Like the existing banks, the paid-up capital of the new banks would be taka 400 crore each.

 

Three banks, that did not get approval are Modhumoti Bank, Farmers Bank and another NRB bank. Among the three banks, the sponsors of the Farmers Bank and NRB bank could not fulfill the necessary capital requirement within the stipulated time-frame. Modhumoti Bank met the capital requirement, but has not given its business plan to BB yet.

 

Earlier, the BB issued licences to private banks first in 1983 and in two more phases 1995 and in 2001.