The Financial Express

Central bank likely to approve Shakib’s directorship at People’s Bank on Thursday

| Updated: January 20, 2022 17:35:52

Central bank likely to approve Shakib’s directorship at People’s Bank on Thursday

Bangladesh Bank is likely to approve share ownership of cricketer Shakib Al Hasan and his mother Shirin Akhtar in the proposed People’s Bank in the upcoming meeting of its board of governors, sources said.

People's Bank failed to qualify for the final license even three years after issuing consent from Bangladesh Bank, which is going to take in Shakib and his mother in the bank, reports UNB.

At the meeting of the board of governors on Thursday, the central bank is expected to raise an application for further extension of People's Bank's LOI (letter of intent) along with the approval of Shakib and his mother’s sponsorship in the bank.

The meeting, with Governor Fazle Kabir in the chair, is likely to approve both the applications to pave the journey of another bank in the country with the blessing of Shakib, sources said.

The letter of intent (LOI) expired in December last year after several extensions. The bank has now applied for an extension of the LOI by adding cricketer Shakib and his mother.

“The bank is now ready to start operations,” said Abul Kashem, a New York-based Bangladeshi expatriate and chairman of the proposed bank.

 “We have made all kinds of preparations. After submitting all the documents as per the requirements of Bangladesh Bank, we are ready to supplement any more info,” he said.

Kashem said Shakib and his mother may hold a total of two directorships in the board of directors of People’s Bank.

 People's Bank could not start operations due to a lack of arrangement of paid-up capital of Tk 5.0 billion. Consequently, the bank is not getting the final license of Bangladesh Bank.

Bangladesh cricket’s poster boy is going to own two director posts of People's Bank, which is finally waiting to get the final license from the Central Bank.

According to the rules of Bangladesh Bank, an aspiring director of a bank must hold a minimum of 2 per cent share. So, a minimum capital of Tk 100 million has to be provided for each post of director for the People’s Bank.

 However, it is learned that Shakib is providing more than Tk 250 million worth of capital to obtain the fractional ownership of 4 per cent or more.

On February 17, 2019, the Bangladesh Bank issued letters of intent (LOI) to three new banks - People’s Bank, Bengal Commercial Bank and Citizen Bank.

Out of these three, Bengal and Citizen Banks have already started their operations. But People’s Bank failed to meet the regulatory requirements, including paid-up capital and prayed for more time.

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