BASIC Bank has sought approval from the finance ministry for increasing its authorised capital to Tk 55 billion from existing Tk 25 billion. Khondoker Md Iqbal, managing director of the bank, in a letter sent to the finance ministry sought the approval.
The board of directors of the bank in its 385th meeting decided to raise the authorised capital from existing Tk 25 billion to Tk 55 billion, according to the bank data. The meeting also decided to change the face value of its ordinary shares to Tk 10 from Tk 100 each. The proposal will be placed before the 27th Annual General Meeting (AGM) of the bank scheduled for July 14 next. At present, the paid-up capital of the bank is Tk 10.89 billion. However, the bank received Tk 16 billion in two instalments from the government last year to replenish its capital shortfall. The bank was also provided with funds by the government earlier to meet its capital shortage. The bank has requested the Bank and Financial Institutions Division under the finance ministry to make available more capital either in cash or other form amounting to Tk 26 billion to meet its capital shortfall.
BASIC Bank Limited is one of seven state owned banks in Bangladesh. In 2016 the finance minister in a statement described the state of the bank as weak due to graft by top officials of the bank and would require some time for improvement.Sonali Bank UK Ltd and other international banks had censured Basic bank over irregularities. Since 2012 Basic bank had been frozen out of international transactions as a result of the irregularities. BASIC Bank Limited is unique in its objectives. It is a blend of development and commercial banks. The Memorandum and Articles of Association of the Bank stipulate that 50 percent of loanable funds shall be invested in small and cottage industries sector.
The bank currently offers:Term loans to industries especially to small-scale enterprises, Full-fledged commercial banking service including collection of deposit, short term trade finance, working capital finance in processing and manufacturing units and financing and facilitating international trade, Technical support to Small Scale Industries (SSls) in order to enable them to run their enterprises successfully, Micro credit to the urban poor through linkage with Non- Government Organizations (NGOs) with a view to facilitating their access to the formal financial market for the mobilization of resources,
In order to perform the above tasks, BASIC Bank works closely with its clients, the regulatory authorities, the shareholders (GOB), banks and other financial institutions.
Sources: Wiki, Financial Express, bank's home page