Dhaka, Sept 4 (bdnews24.com) - State-owned Sonali, Janata and Agrani banks have still not begun operations as public limited companies for not having what bankers call a vendor's agreement with the finance ministry.
The banks, also known as nationalised commercial banks (NCBs), have so far missed two deadlines—the first by June and the second by August, for complete corporatisation.
"I think it is getting delayed due to non-signing of a vendor's agreement," Syed Abu Naser Bukhtear Ahmed, managing director and chief executive officer of Agrani Bank, told bdnews24.com.
"We've been ready to operate as a PLC since June."
"The government delay in signing a vendor's agreement may have some valid grounds," Ahmed observed, but failed to give a clear explanation for the finance ministry's delay in inking the agreement.
Sonali, Janata and Agrani banks are required to have vendor's agreements to ensure their operations as PLCs. The agreement would clear the way for the banks' greater autonomy and allow the central bank, not the government or finance ministry, to monitor their activities more intensively.
Earlier, the law ministry vetted a finance ministry proposal regarding the vendor's agreement to be signed with the banks.
The Registrar of Joint Stock Companies and Firms also approved registration letters, mandatory to ensure the banks' operations as limited companies, earlier this year.
According to the initial plan, Bukhtear Ahmed said the vendor's agreement was supposed to be signed by June.
"We're ready to operate as PLC, but can't do so because of the vendor's agreement still to be signed," Ahmed told bdnews24.com.
Another senior official in Sonali Bank who requested not to be named said, "The banks are ready to get the vendor's agreement and begin their operation as PLCs. I think, there will be no more delay in this regard."
Corporatisation of NCBs began in 2004 when the World Bank lent a substantial amount of money (over $250 million) to restructure these banks.
Under the WB's bank modernisation project, Rupali Bank is being privatised, while three other NCBs are set to operate as PLCs.
Accordingly, the government hired a private company, Pricewaterhouse Coopers of Hong Kong, for Agrani Bank in late 2004, for its ultimate privatisation. A private sector executive was also appointed in Janata Bank to head its management.
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