Sonali, Janata, Agrani banks become PLCs

State-owned Sonali, Janata and Agrani banks formally emerged as public limited companies (PLCs) with the signing of separate 'vendor' agreements to this effect yesterday.
The nationalised commercial banks (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 percent shares in the PLCs, the government earlier appointed chairmen of the Board of Directors for the three banks.
“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 in Dhaka.
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 for 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 performance of the 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 the banks' management and the boards would utilise their autonomy to enhance the efficiency of the banks through working out their respective operation plans.
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 .