An initiative taken by the government to start the commercial operation of Probashi Kallyan Bank (PKB), a state-owned specialised bank, has seen no visible progress mainly due to lack of required paid-up capital, officials said.
In this regard, Bank and Financial Institutions Division (BFID) wants to hold an urgent meeting with the finance division, the Ministry of Expatriates' Welfare and Overseas Employment and Wage Earners Welfare Board, they added.
BFID has sent a brief summary to the finance division requesting it for taking necessary steps to arrange a meeting on the paid-up capital of the bank.
A senior PKB official said the paid-up capital of the bank is Tk 1.0 billion. In 2015, the government approved a proposal for raising the paid-up capital of the bank from Tk 1.0 billion to Tk 4.0 billion after issuing a gazette.
About Tk 3.0 billion (300 crore) additional paid-up capital for the bank switching over to scheduled operation is urgently needed. For this, commercial operation of the bank is delayed, a PKB source said.
According to the decision taken in a meeting held in March 2017, the finance division will take necessary steps to arrange Tk 2.50 billion and Wage Earners Welfare Board (WEWB) will provide Tk 500 million as paid-up capital.
A letter had been sent to the finance minister for providing Tk 2.5o billion, according to the meeting's decision. But the minister expressed his intention to increase the share of WEWB as paid-up capital. The Ministry of Expatriates' Welfare and Overseas Employment has agreed to increase the portion of WEWB as the paid-up capital.
The WEWB has already provided Tk 500 million, according to meeting's decision.
"We want sit immediately with finance division, WEWB and other stakeholders to increase the paid-up capital that was decided for starting commercial operation of PKB," a high official of BFID said.
The Prime Minister gave her consent for converting the PKB into a scheduled bank under the Bank Companies Act, central bank sources said.
According to clause 4 (6) of the Probashi Kallyan Bank Act 2010, the bank will be able to carry out commercial and banking activities. Besides, clause 4 (7) of the Probashi Kallyan Bank Act 2010 has stated that PKB can be converted into a scheduled bank with approval from the Bangladesh Bank.
The authorised capital of the bank is Tk 5.0 billion, according to the PKB.
The bank was established in 2010 to provide collateral-free loan to the workers for going abroad with employment, also to the returnees to help them out for getting jobs in the country and facilitate sending remittances by wage-earners to invest in the country.
The bank receives deposits and extends loans to the migrants and returnees while it also buys and sells foreign currencies.
Currently, PKB has 54 branches across the country.
