Due to the government’s failure to turn state owned Probashi Kalyan Bank into a commercial bank in more than six years since it was created in 2011, PKB has been unable to handle money remitted by the country’s workers from abroad, said officials.
Founded as a specialized bank, mainly to serve the country’s migrant workers exceeding one crore , they said, failure to provide it with the status of a commercial back defeated the very objective for which it was created.
They said that despite repeated pledges the government could not or not provide the paid up capital of Tk 250 crore, PKB needs to become a commercial bank.
The latest pledge was made on March 14, when an inter-ministry meeting chaired by finance minister AMA Muhith took the decision to lend to PKB Tk 250 crore from finance division and another sum of Tk 50 crore from the Wage Earners Welfare Board to help PKB become a scheduled bank.
Officials said any financial institution requires to have the paid up capital of Tk 400 crore to get Bangladesh Bank’s recognition as a commercial bank.
In 2011, PKB began its journey with a paid up capital of Tk 100 crore, of which Tk 95 crore was lent by the Wage Earners’ Welfare Fund and another amount of Tk five crore was lent by the government.
Following a decision of the inter-ministry ministry meeting, the Wage Earners’ Welfare Board lent another sum of Tk 50 crore to PKB on April 16.
But the fiancé division did not comply with the decision taken at the inter ministry meeting chaired by the finance minister, in other words the PKB is yet to get TK 250 crore as credit from the finance division.
But PKB received no response to a letter it had to the finance division on July 3 requesting it extend the credit.
Due to the shortfall in paid up capital, PKB is not getting the status of commercial bank, PKB managing director ANM Masrurul Huda Siraj told New Age Sunday.
PKB looks forward to get the credit from the finance division in the current fiscal, he said.
In six years until now, PKB extended Tk 230 crore migration loan to 23,731 workers before their departure and Tk 2.62 as loan for the rehabilitation of 156 workers after their return to Bangladesh.