Bangladesh Bank yesterday invited applications for setting up of new private banks and published detailed guidelines for establishing banking company.

In a recent meeting of Board of Directors, BB had decided in principle to grant license to new private banks pursuant to section 31 of the Banking Companies Act, 1991.

The banking sector regulator took the decision after considering the need and overall strategy congenial to effective monetary and financial sector policy for the country, a BB statement said.

Last date of application submission for license is November 30 this year. Applications should be in the prescribed form and prepared according to the instructions provided in the guidelines.

According to the set terms and condition, it must be a public limited company incorporated in Bangladesh and initial minimum paid up capital of a new bank shall be Taka 4 billion, provided by sponsors.

The Share capital will be formed with ordinary shares only.

The minimum shareholding stake of each sponsor shall be Taka 10 million and the maximum shall be 10 percent of the proposed bank’s share capital. This ceiling is applicable to an individual, company or family member, either individually or jointly.

Sponsors' contribution to the equity capital of the proposed bank will be required to be out of net worth declared to the Tax authorities in form IT 10B. Contributions borrowed from banks and NBFIs will not be acceptable. Tax return and certificate has to be submitted.

Competence, integrity and qualifications of the sponsors of the proposed bank becoming the first directors shall be evaluated.

The evaluation process shall include background checks on whether previous activities, including regulatory or judicial judgments, raise doubts concerning their competence, sound judgment, or integrity.

The sponsors or directors shall qualify the Fit and Proper Test criteria applicable for the Bank Directors in Bangladesh, the guideline says.

Taka one million has been fixed as the non-refundable application processing fee, which will be paid through a bank draft in favour of Bangladesh Bank, attached to the letter of application.

For further information about the detailed guidelines, interested people have to log on to official website of the Bangladesh Bank.

News: Daily Sun/ BAngladesh/ Sep-28-2011

Chittagong region’s principal office of Pubali Bank Limited honoured seven managers and other 20 officials for their outstanding performances for collecting highest deposit to the bank. Helal Ahmed Chowdhury, managing director of the bank was present at the function as the chief guest while deputy managing director Safiul Alam Khan Chowdhury presided over, said a press release. To motivate all officers of Chittagong region, Pubali Bank’s Chittagong principal office rewarded the officials for their best performances.

Md. Fazlul Haque, GM of Chittagong Principal Office, among others, was present.

News: Daily Sun/ BAngladesh/ Sep-28-2011

NCC Bank Limited has opened its 82nd branch at Akhaura of Brahmanbaria on Monday.

Md Nurun Newaz Salim , chairman of the bank, formally inaugurated the branch as chief guest, said a press release.

Mohammed Nurul Amin, managing director and CEO of the bank, presided over the function while the bank’s former Vice Chairmen--A S M Main Uddin Monem and Khairul Alam Chaklader were present as special guests.

Mayor of Akhaura Pourashava N M Hasan Khan, Upazila Nirbahi Officer (UNO) Kazi Md Mozammel Haque, the bank’s Deputy Managing Director T M Faruque Chowdhury, local elites were also present, among others, at the function.

News: Daily Sun/ BAngladesh/ Sep-28-2011

Eastern Bank Limited (EBL) presented Hajj belts to Biman Bangladesh Airlines at a simple ceremony at Balaka yesterday. Ali Reza Iftekhar, managing director and CEO, handed over the belts to Air Commodore (Retd) Muhammad Zakiul Islam, managing director and CEO, Biman for the pilgrims travelling on Biman to Saudi Arabia to perform Hajj, said a press release.

News: Daily Sun/ BAngladesh/ Sep-28-2011

Bangladesh Commerce Bank Limited (BCBL) opened its 26th branch at Bhaluka in Mymensingh yesterday. A Q Siddiqui, chairman of the board of directors of the bank, formally inaugurated the branch as chief guest where S A Chowdhury, the bank’s managing director, were present as special guests, said a press release.

News: Daily Sun/ BAngladesh/ Sep-28-2011