Development Bank takes off
Bangladesh Development Bank Ltd (BDBL) has formally went into banking activities yesterday with a huge burden including 534 court cases involving Tk 2,100 crore and a written-off liability worth Tk 2,480 crore.
The management of the newly formed bank has already informed the government of their concerns on those issues.
Another problem that may haunt the new financial institution is its staff, absorbed after the merger of two banks -- Bangladesh Shilpa Bank and Bangladesh Shilpa Rin Sangstha. Merits of those employees are considered below the granted standard.
However, the Development Bank management has as promised a better efficiency in a year, and also the bank's significant contribution to industrialisation, provided that court cases are resolved.
“If we become busy with debt recovery, we will miss out our prime objectives of financing new but prospective projects,” said Mizanur Rahman, the new bank's managing director.
Development Bank came into effect with the merger of ailing Shilpa Bank and Shilpa Rin Sangstha, which were established in 1972 to provide loans and facilities to industrial units, help set up new industries and expand investment in Bangladesh.
The new bank's paid-up capital has been raised at Tk 400 crore and authorised capital Tk 1,000 crore.
Finance Minister AMA Muhith is however upbeat on the new bank.
“I hope the bank will be able to perform efficiently in two years. It will help our industry grow,” Muhith told Development Bank's inaugural function at Dhaka Sheraton Hotel.
Nazem Ahmed Chowdhury, chairman of the bank, presided over the programme.
The minister said industries here suffer for want of working capital, even some entities have become sick.