Speakers at a programme on Sunday said majority of the investment in the country is largely dependent on the scheduled banks instead of capital market, which is not positive for a healthy economy.
Keeping this in view, they laid emphasis on reducing the gap in the ratio between gross domestic product (GDP) and contribution of capital market, from existing 20 per cent.
They came up with the view at a press conference, marking the seventh founding anniversary of The Prime Bank Investment Limited (PBIL) at its head office in the capital.
Managing Director (MD) of Prime Bank Limited and a Director of the PBIL Ahmed Kamal Khan Chowdhury, MD and Chief Executive Officer (CEO) of PBIL Md. Tabarak Hossain Bhuiyan, its Chief Operating Officer (COO) Tanveer Reza, Chief Financial Officer (CFO) Khandoker Raihan Ali and Head of research Syed Adnan Huda attended the function.
Speaking on the occasion, Ahmed Kamal Khan said almost every project, long-term finance and public private partnership (PPP) investments are being accomplished through banks, which is now going beyond capacity.
"A strong capital market is a must for a steady economy," he said.
Most of the investment in the country is too much dependant on banks, Mr Khan said adding it is difficult for the banks to make profit from the long-term investment for 12 or 18 years, such as financing hospital or hotel, he said.
Tabarak Hossain Bhuiyan said the country's capital market contribute around 20 per cent to the gross domestic product (GDP) while the figure is around 70 per cent in India.
He also said many issuers are still unaware of stock market benefits.  
In such circumstance, the PBIL is contributing to the capital market with its time-fitting better services to the clients, he said.
The investment bank began its journey on April 28, 2010 as a subsidiary of the Prime Bank Limited with paid up capital of Tk 3.0 billion, whose total asset is now estimated at Tk 6.9 billion, said Bhuiyan.
He also said the PBIL would focus on building its own brand image with special attention on corporate advisory services in capital raising, syndication, lead arrangement, merger and acquisition.
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Source: The Financial Express