Probashi bank grapples with capital crunch

Dhaka,  Sun,  11 December 2016
Published : 19 Oct 2016, 21:55:17

Probashi bank grapples with capital crunch

Rezaul Karim


Probashi Kallyan Bank (PKB) has been hamstrung by acute capital shortage, which has been hampering its operational activities, officials said.

A senior official of the bank said the paid-up capital of the bank is Tk 1.0 billion, but of the amount, the bank is left with only Tk 350 million, which makes it difficult for it to provide desired services.

Last year, the government approved raising the paid-up capital of the specialised bank from Tk 1.0 billion to Tk 4.0 billion issuing a gazette.

But the wage earners' welfare board (WEWB) has imposed conditions on providing additional Tk 3.0 billion fund to raise the paid-up capital.

For this, the specialised bank has been running with capital shortage, said the official.

A senior official of the welfare board said the government will have to give the rest of the paid-up capital as the board is not "able" to provide Tk 3.0 billion from its own coffers.

The state-run PKB will disburse Tk 1.0 billion in the current fiscal, according to the bank data.

The bank was established in 2010 to provide collateral-free loan to workers for going abroad with employment, also to the returnees to help them out for getting jobs within the country and facilitate sending remittances by the wage-earners to invest in the country.

The bank receives deposits, extends loans to the migrants and returnees, buys and sells foreign currencies etc.

Until April 2016, the PKB sanctioned loans worth of Tk. 880 million with a recovery rate about 73 per cent and provided migration loans to 17,930 people. It also handles about 2,000 overseas job-seekers every day.

Managing director of PKB Md. Wahiduzzaman Khandaker could not be reached for comments despite several attempts.

The bank has 51 branches across the country and the process is underway to open more branches.

The authorised capital of the bank is Tk 5.0 bilion, according to the PKB.

    rezamumu@gmail.com
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