Bangladesh Development Bank eyes January launch

The much-awaited formation of state-owned Bangladesh Development Bank Ltd (BDBL) has reached the final stages with its registration completed with the Office of the Registrar of Joint Stock Companies and Firms.
The central bank also approved a plan for BDBL to run as a scheduled bank.
The registration was completed on November 16.
A merger between Bangladesh Shilpa Bank (BSB) and Bangladesh Shilpa Rin Sangstha (BSRS) shaped up into BDBL.
Officials say BDBL will be able to launch operations in January 2010, with industrial financing, commercial banking and merchant banking at the heart of its services.
"This is a good step taken by the government," said Md Mizanur Rahman, managing director of BSRS. "We expect BDBL to compete with other commercial banks."
The incorporation and business of commence have been permitted by the government, he said. It will sign a vendor agreement with the government soon.
BSB and BSRS, with almost similar functions, were established in 1972 to provide loans and facilities to industrial institutions, help set up new industries and expand investment in Bangladesh.
But the two companies failed to meet expectations. In 1992, the government moved to privatise BSRS, which remained unaccomplished due to some complexities.
The companies' board will sit on December 8 to fix a vendor agreement schedule with the government, the BDBL organogram, employee pay structure and select office space for the bank's headquarters.
As per merger plans, the accounts of the two organisations will be consolidated by December 2009.
The paid-up capital of the merged company will amount to Tk 400 crore. The present paid-up capital of BSB is Tk 200 crore, and Tk 70 crore for BSRS. Making adjustments to the reserve funds of the two companies will raise the capital. In the meantime, BSRS raised its funds to Tk 200 crore.
As per BDBL's operational plans, the banks will operate across the country by setting up branches at district levels. At present, BSB has 15 branches while BSRS has two.
BSB and BSRS have financed 174 and 69 projects so far, according to the companies' websites. As many as 1,000 officials are working for the two organisations.
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