Bangladesh Bank's (BB's) board of directors on Wednesday approved three new banks sponsored by non-resident Bangladeshis (NRBs). "However, the BB board has decided to further evaluate the shortlisted applications for conventional banks. Today's meeting is being 'adjourned', and the board will sit again on Sunday," BB deputy governor SK Sur Chowdhury told reporters after the meeting.

Governor Dr Atiur Rahman chaired the meeting at the central bank's board room.
License for new conventional banks in the private sector has remained a much-discussed topic for the last few months, after the government pronouncement that it would allow more players in the over-saturated banking sector.  

Currently, 47 banks are operating across the country.
Earlier, BB had received nine applications by NRBs to set up banks for expatriate Bangladeshis. Chowdhury said that the BB board has decided to provide licenses to three of these banks, with conditions that these would contribute to the country's economy by boosting up remittance inflows, getting higher overseas trade and commerce and ensuring more FDI (Foreign Direct Investment).

"One of the three NRB banks will be named NRB Commercial Bank Ltd. Coincidentally, proposed names for the other two banks happened to be the same, namely, NRB Bank Ltd. The board has advised that one of these two banks should change its name," Chowdhury added.

According to BB sources, Iqbal Ahmed (UK), Nizam Chowdhury and Farashat Ali (USA), respectively, are sponsors of the three banks.

Although, aspirants for conventional banks hoped that something would come out for them as well, the BB board could not reach consensus in this regard due to absence of some members, said an inside source.
Chowdhury, however, said that the meeting had some other agendas, and that the board members did not have much time to discuss the issue.

The central bank had shortlisted 16 applications from a total of 37 such applications. Applicants, who had been shortlisted,  include influential lawmakers, politicians and business personalities linked to the ruling alliance, said BB sources.

According to sources, top five banks on the shorted list are -- Union Bank Ltd of former president HM Ershad, Modhumati Bank Ltd of Fazle Noor Taposh MP, The Farmers Bank Ltd of Dr Mohiuddin Khan Alamgir, South Bangla Agriculture and Commerce Bank of SM Amjad Hossain, and Midland Bank Ltd of Moniruzzaman Khandker.

Other aspirants include Mirza Azam MP (The People's Bank), Harun-Ur-Rashid (Destiny Bank), Mahbuba Kabir (Self Employment Bank), Enamul Haque Chowdhury (Chartered Bank), Abdul Matlub Ahmed (Katak Bangla Bank), Abul Kashem (People's Islami Bank), MA Hashem (Federal Bank) and Engineer Enamul Haque (Korea-Bangla Bank).

The Independent /Bangladesh/ 5th April 2012