manage Tk24 billion (US$81 million) to maintain a minimum capital adequacy of 12.5 per cent. The bank also proposed a merger with or an acquisition by one of the five state banks in the country. However, following much consideration, the central bank wrote to the Ministry, in which it turned down both proposals made by Padma Bank, and instead, recommended the seeking of foreign investments to fill the bank’s capital deficits.
The letter, signed by the General Manager of the central bank Ali Akbar Faraji, pointed out that the two propositions that were previously made were are not viable solutions since they do not comply with the 1991 Bank Company Act and the 1994 Company Act.
It also pointed out that a merger with or an acquisition by a state bank would require the support of both parties, which may not achievable. “The state-owned banks themselves are facing various problems in the operation and management of banks, including high levels of defaulted loans and other financial indices,” the letter read.
So far, the Dhaka-based commercial bank has sought foreign investment through US-based DelMorgan and Co, which was granted the approval of the Bangladesh Bank in August.
