Bangladesh Bank has inducted state-run Probashi Kallyan Bank, which was initially set up as a financial institution for non-resident Bangladeshis, as a scheduled specialised bank.
Banking regulation and policy department of the central bank on Monday issued a circular in this connection and asked officials concerned to take necessary measures.
The decision was made at a meeting of the BB board of directors on Sunday, at the behest of BB governor Fazle Kabir.
According to a separate circular issued on Monday, the central bank, as per the Section 121 of Bank Company Act 1991, exempted the PKB from the subsection 14 ka (1) in holding shares by the Wage Earners’ Welfare Board.
The BB’s decision came after the finance ministry had given its consent in favour of allowing the migrants’ welfare fund to hold 95 per cent stake in the specialised PKB.
The PKB started its operation in April, 2011 with Tk 100 crore in capital to provide collateral-free loans to overseas Bangladeshis as well as to give loans for rehabilitation of expatriate workers on their return home to engage them in various income-generating activities