SoBs, GB to get Tk 17b to meet capital shortfall

The government is set to inject Tk 17.50 billion into five state-owned banks (SoBs) and Grameen Bank (GB) to help them reduce their capital shortfall, officials said.
The finance minister has already given his approval to a proposal in this regard, they added.
According to the proposal, the fund is set to be provided to five state-run banks and Grameen Bank except for Probashi Kallyan Bank (PKB), they also said.
The money will be made available from a fund of Tk 20 billion that has been kept aside in the budget for 2016-17 for recapitalisation. However, scam-hit BASIC Bank would get the highest amount of funds. Some Tk 10 billion, Tk 3.0 billion, Tk 2.0 billion, over Tk 1.49 billion and Tk 1.0 billion will be provided to BASIC Bank, Sonali Bank, Rupali Bank, Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank (RAKUB) respectively, according to the finance ministry data.
Besides, Tk 2.2 million will be provided to Grameen Bank, according to the government share ratio.
Bank and Financial Institutions Division (BFID) has recently sent the proposal, seeking the funds for six state-run banks and Grameen Bank.  But Tk 2.50 billion fund as sought by the PKB to raise its capital base has been put on hold. "Allocation of Tk 2.50 billion as proposed by the banking division for PKB will remain suspended now," the finance minister said in a note.
As of December last, Sonali Bank had a capital shortfall of Tk 26 billion, Rupali Bank Tk 10 billion, BASIC Bank Tk 22 billion, Bangladesh Krishi Bank Tk 74.85 billion and Rajshahi Krishi Unnayan Bank Tk 7.05 billion.  
BFID has recently sent the proposal, approved by the finance minister, to the finance division for taking necessary steps in this regard. "We have got the proposal sent by state-owned banks, seeking funds to meet their capital shortfall from the current budget. Besides, PKB has sought funds as paid-up capital," a senior official of the banking division said.
State-run Sonali Bank, Janata Bank, Rupali Bank and BASIC Bank have also proposed issuing bond for meeting their existing capital shortfall, he added.
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Source: The Financial Express


 

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