Kamruzzaman Bablu :
BASIC Bank is going to get Tk1,000 crore from the government as recapitalisation funds to improve clients’ trust damaged by massive corruptions.
A Finance Division official said the money will be made available from the fund of Tk2,000 crore that was earmarked in the budget for outgoing fiscal year 2016-17 for recapitalisation of state-run banks along with issue of rights shares of state share capital.
The Finance Ministry has sent a proposal in this regard to the finance minister, the official said.
The decision comes at a time when there is growing controversy over the continuous salvage of state banks with taxpayers’ money.
According to the proposal, Tk1,000 crore, Tk300 crore, Tk100 crore, over Tk164 crore and Tk100 crore will go into the coffers of BASIC, Sonali Bank, Rupali Bank, Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank respectively from the allocation.
Besides Tk185 crore will be provided to the IFIC as a subscription fee for rights shares. Also, Tk150 crore and Tk22 lakh will be provided to the House Building Finance Corporation and Grameen Bank respectively.
The Bank and Financial Institutions Division sent the proposal out last week. An inter-ministerial meeting was held on May 2 over this issue.
The meeting recommended providing the proposed funds to the banks from the budget for 2016-17.
Finance Minister AMA Muhith has already said that the government would treat BASIC Bank with special emphasis to help it meet capital shortfall.
He said the bank needs “special nurturing” as it’s condition is not normal now. “It cannot be compared with other banks.”
The minister said BASIC Bank former chairman Sheikh Abdul Hye Bacchu was involved in loan scams in the state-run specialised bank.
The Finance Ministry says that without recapitalisation funds, the bank will not be able to do business.
BASIC is running its Letter of Credit business with the help of Sonali Bank. It has received Tk2,390 crore from budgets in the last five years.
BASIC Bank is going to get Tk1,000 crore from the government as recapitalisation funds to improve clients’ trust damaged by massive corruptions.
A Finance Division official said the money will be made available from the fund of Tk2,000 crore that was earmarked in the budget for outgoing fiscal year 2016-17 for recapitalisation of state-run banks along with issue of rights shares of state share capital.
The Finance Ministry has sent a proposal in this regard to the finance minister, the official said.
The decision comes at a time when there is growing controversy over the continuous salvage of state banks with taxpayers’ money.
According to the proposal, Tk1,000 crore, Tk300 crore, Tk100 crore, over Tk164 crore and Tk100 crore will go into the coffers of BASIC, Sonali Bank, Rupali Bank, Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank respectively from the allocation.
Besides Tk185 crore will be provided to the IFIC as a subscription fee for rights shares. Also, Tk150 crore and Tk22 lakh will be provided to the House Building Finance Corporation and Grameen Bank respectively.
The Bank and Financial Institutions Division sent the proposal out last week. An inter-ministerial meeting was held on May 2 over this issue.
The meeting recommended providing the proposed funds to the banks from the budget for 2016-17.
Finance Minister AMA Muhith has already said that the government would treat BASIC Bank with special emphasis to help it meet capital shortfall.
He said the bank needs “special nurturing” as it’s condition is not normal now. “It cannot be compared with other banks.”
The minister said BASIC Bank former chairman Sheikh Abdul Hye Bacchu was involved in loan scams in the state-run specialised bank.
The Finance Ministry says that without recapitalisation funds, the bank will not be able to do business.
BASIC is running its Letter of Credit business with the help of Sonali Bank. It has received Tk2,390 crore from budgets in the last five years.
