Sonali, Janata, Agrani banks turn into PLCs: Each share fixed at Taka100
Staff Reporter
Fixing the value of each share at Tk 100 three nationalized commercial banks (NCBs)–Sonali, Janata and Agrani banks-were formally made public limited companies (PLC) through the signing of separate “vendor” agreements to this effect yesterday.The NCBs, after necessary gazette notification, will be operated by independent management and board of directors in accordance with the Banking Companies Act of 1994. Having 100 per cent share of the PLCs, the government earlier appointed chairmen of the board of directors for the three banks.The shares of the banks have already distributed among the directors. In order to appoint the chief executives to these banks, examinations of 10 managing directors working at different banks were held at the Ministry of Finance. It is learnt that appointment of new managing directors to Sonali, Janata and Agrani banks will be given in a day or two. However, the present managing directors (in charge) will perform the responsibilities until the appointment of new MDs. The salary structures of the persons who are going to get appointment to these banks as new MDs have been fixed at Tk 5 lakh to 7 lakh per month.
Besides, steps have been taken to make these banks sustainable competing with other private banks of the country. The issues of modernizing and appointing skilled and eligible manpower for these banks have been finalized. The officials and employees working in these banks and crossed 50 years of age will be retrenched through golden handshake.
The newly-appointed board of directors will run the banking companies independently, but the government will hold the right to appoint directors whose number will range between minimum seven and maximum 13.
On October 13, the Council of Advisers gave approval to the vendors’ agreement after reviewing the corporatisation process.
The state-run Sonali, Janata and Agrani banks have already obtained separate licences from the Registrar of Joint Stock Companies and Firms to operate as PLCs.
“With the signing of the agreements, these banks should run (professionally) as banks. It lies on the management and boards of the respective banks,” Finance Adviser Dr Mirza Azizul Islam said at the signing ceremony at Finance Division.
Sonali Bank chairman Ali Imam Majumdar, also the Cabinet Secretary, Janata Bank chairman Sohel Ahmed Chowdhury and Agrani Bank chairman Siddiqur Rahman Chowdhury signed the agreements on behalf of their respective banks, while deputy secretary of Finance Ministry Quamrunnahar Ahmed signed for the government.
Witnessing the signing ceremony along with senior officials and bankers, the Finance Adviser said: “Unfortunately, if we look at the performances of these banks, they could not perform at desired level, particularly for political intervention.”
The agreement was to convert the NCBs into incorporated companies, giving them real autonomy, he said.
He expected that the banks’ management and the boards would utilize their autonomy to enhance the efficiency of the banks through working out their respective operation plans.
Dr Aziz said the agreements would free the banks from political intervention, help them to recover overburdened classified loans and run the banks more professionally.
As the banks run on depositors’ money, he advised the newly incorporated PLCs to look into the interest of the depositors so that they don’t get poor return on deposits and devise a lending plan so the cost of production does not go high deterring industrialisation.
“The banks should not be guided by profit maximisation… the role should be improving services so they can regain lost reputation,” the Adviser said and expected their progressive role having no more monopoly in the banking industry.
Speaking on behalf of the Banks’ Boards, Janata Bank chairman Sohel Ahmed said the banks would be able to become competitive with the authority given to them through their incorporation as PLCs.
Earlier, immediately after the country’s independence, the banks had been nationalised through the Bangladesh Bank (Nationalisation) Order 1972.
The government gave green signal to convert the banks into PLCs on March 3 this year and the Council of Advisers at its meeting on October 31 approved the proposal to make the banks as PLCs through the vendor agreements.
Source: www.nation.ittefaq.com
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