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Download PDF The government is considering cancelling the lengthy negotiation process of handing over state-owned Rupali Bank if the bank’s prospective buyer, a Saudi prince, does not give his final response about taking over the bank within this month.
Privatisation Commission sources said the government is against leaving the Rupali Bank issue uncertain for an unlimited period. The commission has frequently contacted the Saudi prince but he is yet to give his conclusive decision, they said.
The government may also apprise the Saudi prince of its stance within this month if he seeks further time for taking over the bank.
If the Saudi prince finally refuses to take over the bank, the government will go for alternative process to privatise the state-owned bank.
The visiting mission of International Monetary Fund (IMF) has meanwhile asked the government about its position on privatisation of Rupali Bank. The government has conveyed its present position to the IMF.
The BNP-led four-party alliance government had decided to sell the state-owned bank following prescriptions of the IMF and World Bank.
In its first move, the then government decided to hand over 67 percent shares of Rupali Bank for $330 million to the Saudi prince, who expressed his desire to buy eventually the remaining shares also.
The present caretaker government decided to hand over 93 percent shares of the bank to the buyer, but the Saudi prince has not since responded.
Meanwhile, Rupali Bank’s activities except some routine tasks have virtually stopped in the last one year.
The bank’s classified loan was Tk 1,612 crore as of June this year, which is 36 percent of the total outstanding loan. Provision shortfall of the bank stood at Tk 675 crore during the same period.
“We have been forced to suspend disbursement of all kinds of loans over the last one year,” said a senior official of the bank. “Only recently the central bank permitted us to release loans on a limited scale.”
Another official said many of the bank’s staff have applied for voluntary retirement while many more are looking for jobs elsewhere.
“Of Rupali Bank’s 4,500 staff 650 have applied for voluntary retirement since April 30 under the golden handshake scheme,” he said.
As per official data, Rupali Bank’s capital deficit was Tk 569 crore in December last year and its accumulated loss was Tk 261 crore.
September 14th, 2007 at 10:04 pm
Why do you not invite European Agencies to get an investor.
There is rare Muslim feelings among the Muslims thats why all the punishment in the Muslim World.
All UAE Muslims look down on Muslims from India
Pakistan & Bangladesh term them as Rafique (a lower class term for a friend) considered as Miskin (poor).However, We consider our boys doing fine jobs carrying water in Holy city of Medina & sweeping the street of Makkah,
In my last Hajj I bought some food & set in the street with our boys & ate with them.
To me they are as good as any respectable people or rich person.
Let us invite European Investors with speddy communication.
Thank You