Finance Minister AMA Muhith on Thursday said that introducing private partnership in the state-owned banks through offloading of shares will begin within the tenure of the present government.
“Such process is already in place at Rupali Bank to some extent while the opportunity is yet to be created in the rest of three state-owned banks (Sonali, Janata and Agrani). We’re expecting to begin this (offloading of shares) in these banks within the tenure of the present government,” he said.
The Finance Minister made the remarks while addressing the inaugural session of the Annual Conference 2014 of Janata Bank Ltd at a city hotel.
State Minister for Finance MA Mannan spoke as special guest at the session, chaired by Janata Bank chairman Dr Abul Barakat.
Janata Bank managing director and CEO SM Aminur Rahman delivered the address of welcome while its deputy managing director Iftikharuzzaman gave the vote of thanks.
Muhith said the decision was taken long ago over the state-owned banks that the government will retain its authority over these banks as shareholders, but their management will be commercial, like other commercial banks are being operated in the country.
Mentioning that the country’s banking sector is forging strength from various sources following its vast expansion, he, however, said this does not indicate that there were no incidents of forgery and burglary in this sector.
“Incidents of forgery and burglary are still there, but our steps against such incidents are also gradually increasing and developing,” he added.
Following the loan scam of Hall-Mark group, the Finance Minister said that he believed the evaluation, monitoring and other necessary guidelines have improved a lot from the Bangladesh Bank and other banks which will help develop to a great extent the country’s banking sector.
Regarding the separate pay scale at the state-owned banks, he informed that a decision about this is already there. “It’s my belief that it would be made effective very soon,” he said.
Apparently referring to the incidents of burglary in two branches of Sonali Bank, Muhith said that giving protection to the vaults of one or two banks has become a big problem and it is also a ominous sign.
In this connection, he said proper attention is being given so that the security system in various branches of the banks are strengthened by ensuring strict monitoring through CCTV and strengthening of the vaults.
Noting that the overall record of Janata Bank Ltd is good over the years, the Finance Minister asked the officials and employees of the country’s one of the largest banks to keep up their efforts towards further prosperity.
Meanwhile, differing with the Finance Minister’s view of offloading shares of the state-owned banks, Janata Bank Ltd chairman Dr Abul Barakat said that offloading shares of the state-owned banks means giving these banks to the private sector as after some five years, these banks could be owned by the persons of the private sector.
He said the World Bank and the IMF intend to make this happen. “But the state must not be weakened economically ever.”
Highlighting various CSR activities of the bank, especially honoring and providing financial assistance to the gallantry award winning freedom fighters, Dr Abul Barakat said the allocation for the bank’s CSR purpose in 2014 is Tk 35 crore as against Tk 30 crore in 2013.
Speaking on the occasion, State Minister for Finance MA Mannan urged the officials and employees of the bank to be more cautious while discharging their duties so that no untoward incident could take place in the coming days.
He said that the “healthy wind of strong governance” currently prevailing in the country will positively impact the state-owned banks and other private sector banks although there were negative approach of the common people towards the public sector banks.
According to the Janata Bank highups, currently there is no deficit in provision including in the capital of the bank. The rate of classified loans of the bank has dropped to 11.12 percent in 2013 compared to the previous year while the investment growth of the bank was 78.39 percent last year, which was Tk 8,493 crore higher than the previous year (2012).
Besides, the net asset of the bank has now increased to Tk 58,608 crore showing a growth of 14.66 percent.
Source: UNBConnect
