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Friday, April 24, 2009

Govt takes 5-year plan to revive Rupali Bank

The New Age

The government is likely to revert from its decision of selling the public stake of the Rupali Bank as the finance ministry and the bank authority are now preparing a five-year plan for reviving its financial status through recapitalisation, official sources said.
‘We have jointly prepared the five years plan for recapitalisation of the commercial bank,’ said a senior official of the finance ministry.
A high powered meeting with senior officials including the managing director of the Rupali Bank was held at the finance ministry where the five-year recapitalisation plan was discussed and recommendations re-examined.
Another meeting will be required for reviewing the bank’s recapitalisation proposals, said the senior official.
Meanwhile, the Bangladesh Bank has rejected the proposal to turn the bank’s block loan of about Tk 1991.36 crore into bonds and issue them in the local bond market with 10 per cent interest, sources said.
The Rupali Bank will issue bonus shares instead of right shares in 2011 in the share market, sources added.
The Bank’s classified loans of Tk 498.21 crore would be considered as an accumulated loan and the guarantee period of the bank’s public loan of around Tk 93.33 crore would be extended.
The government would also provide guarantee of new public loan of Tk 222.61 crore, according to the five-year plan.
Earlier, the state-owned Rupali Bank had sought Tk 20 billion from the government to improve its capital base.
‘We require fresh fund and policy support for improved financial status,’ managing director Abdul Hamid Miah told the New Age.
The Rupali Bank was the centre of attraction during the past two years for its failed sales bid to a Saudi prince who offered a record US$ 450 million for the government stakes in the bank, but the caretaker government cancelled the sale bid after the prince failed to make the payment in time.



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