FE Report

The Jamuna Bank Ltd (JBL), a new generation private commercial bank, will launch its merchant-banking operation soon to make a strong presence in the stock market.

It, however, needs approval from the capital market watchdog Securities and Exchange Commission (SEC).

The JBL got nod from the Bangladesh Bank to form a subsidiary company titled 'Jamuna Bank Capital Management Limited'.

"The bank's board of directors has decided to operate as merchant bank upon receiving central bank's approval for formation of a subsidiary company," said an official of the bank.

Merchant banks offer a wide range of activities, including portfolio management, credit syndication, acceptance credit, counsel on mergers and acquisitions and insurance, etc.

The BB recently in a circular asked the commercial banks to run their merchant banking business through separately formed subsidiary companies to ensure transparency of the merchant banking business.