Nagad in ownership search
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Tuesday
February 07, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
TUESDAY, FEBRUARY 07, 2023
Nagad in ownership search

Corporates

Jebun Nesa Alo
23 March, 2021, 10:20 pm
Last modified: 24 March, 2021, 03:45 pm

Related News

  • Two-month long Nagad-Rokomari book fair begins
  • Nagad wins Posts and Telecommunications Award 2023
  • Nagad offers BPL tickets on payment 
  • DPE recommends disbursement of primary stipends thru' Nagad
  • 'Nagad Islamic' at Bishwa Ijtema to serve devout Muslims

Nagad in ownership search

Since its beginning on 26 March 2019, Nagad, operated by the Third Wave Technologies Limited, has been branding itself as a state-run MFS provider with the Bangladesh Post Office having the ownership of it. But in reality, the government has no stake in it

Jebun Nesa Alo
23 March, 2021, 10:20 pm
Last modified: 24 March, 2021, 03:45 pm

Nagad, the fastest growing Mobile Financial Service (MFS) provider, is still operating without acquiring a licence from the Bangladesh Bank even two years into its inception because of an ownership crisis, presenting a risk to its 3.8 crore registered customers.

Since its beginning on 26 March 2019, Nagad, operated by the Third Wave Technologies Limited, has been branding itself as a state-run MFS provider with the Bangladesh Post Office having the ownership of it. But in reality, the government has no stake in it.

Nagad, in which Sigma Group has majority investment, is providing services through the MFS agreement with the Bangladesh Post Office, which is not acceptable to the Bangladesh Bank for availing a licence.

The Bangladesh Post Office requires at least 51% share of Nagad to get the MFS licence, according to the MFS guidelines of the Bangladesh Bank.

As the shareholding process has not been done yet, the Bangladesh Post Office has not been able to even apply for the licence in the past two years.

The Bangladesh Bank issued a no objection certificate on request of the Bangladesh Post Office in March last year on a temporary basis to operate the MFS. But, it took a third-time extension to its NOC, which will expire in June for completing the licensing process.

Nagad is now the second-largest MFS provider in Bangladesh with daily transactions amounting to Tk400 crore.

The number of Nagad's customers and its market share are growing fast but the company's transactions have remained unregulated, which is vulnerable for customers, said a senior executive of the central bank.

Nagad obtained more than 30% market share in its two-year journey but nobody knows whether the company is compliant with the MFS regulations as the Bangladesh Bank has no monitoring on it, the official said, seeking anonymity.

Explaining the ownership issue, Nagad's Managing Director Tanvir Ahmed Mishuk said the venture started with the Bangladesh Post Office under a revenue-sharing model.

In the model, Nagad would share only revenue with the government. But they now have to adopt the shareholding model as per the MFS guidelines to get a licence from the Bangladesh Bank.

In the shareholding model, the Bangladesh Post Office will get 51% ownership, said Mishuk, also a shareholder of Nagad on behalf of Sigma Group.

"We are facing some difficulties in the shareholding process because the company now is in losses. So, the Bangladesh Post Office has to take a share of the losses. Previously, they would get income from Nagad as per the revenue-sharing model," he said.

On the other hand, taking ownership by a government organisation is a long process, which is delaying the licensing, he added.

In September last year, Nagad handed over Tk1.12 crore to the government as part of the service revenue, which was counted towards the postal department's net income for the fiscal 2019-20.

By sharing the revenue income, Nagad made history by becoming the only income-generating service for the postal department.

Mishuk claimed that the valuation of Nagad now crossed $1 billion or around Tk10,000 crore based on daily transactions amounting to Tk400 crore. They conducted a valuation by a third-party foreign company in June last year when the valuation was Tk2,300 crore based on daily transactions of Tk80 crore.

However, he did not disclose the name of the company that did the valuation.

The postal department's 51% shareholding will be based on the valuation of the company, he said.

But the government will not invest in the company in the cash form but the value will be measured on their goodwill and assets, he added.

When asked about the ownership crisis of Nagad, Md Siraz Uddin, director general of the Directorate of Posts, Bangladesh Post Office, said a company formation with the Third Wave Technologies is under process.

"We will have two or three more meetings to settle some issues. After that, we will send a proposal to the law ministry for vetting," he said.

He said the postal department will hold 51% share of the company, but they will not have any investment in it.

A committee consisting five members was formed under the Information and Communication Technology Division and the Post and Telecommunication Division for valuation of investment of the postal department, said Md Shafayet Alam, executive director of Nagad and also a member of the committee.

He said the committee has already made a roadmap on how the postal department can convert its infrastructure into value for investment in Nagad.

Although Nagad is the second-largest digital money transaction channel, the transaction value is not being reflected in the total MFS statistics of the Bangladesh Bank as it does not have a licence.

Currently, 15 MFSs are operating in the market, and average daily transactions amounted to above Tk1,800 crore as of January this year, according to Bangladesh Bank data.

Economy / Top News / Banking

Nagad / mobile banking

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • A man stands in front of collapsed buildings following an earthquake in Kahramanmaras, Turkey February 6, 2023. Ihlas News Agency (IHA) via REUTERS ATTENTION EDITORS - THIS PICTURE WAS PROVIDED BY A THIRD PARTY. NO RESALES. NO ARCHIVES. TURKEY OUT. NO COMMERCIAL OR EDITORIAL SALES IN TURKEY.
    Deaths exceed 2,600 as catastrophic quakes ravage Turkey, Syria
  • 30% cos see double-digit growth even in hard times
    30% cos see double-digit growth even in hard times
  • Govt borrowing from commercial banks surges
    Govt borrowing from commercial banks surges

MOST VIEWED

  • FBCCI urges for boosting FTA, PTA
    FBCCI urges for boosting FTA, PTA
  • Idcol finances Joules Power’s 3.23MWp solar project in N'ganj
    Idcol finances Joules Power’s 3.23MWp solar project in N'ganj
  • Photo: PR
    Bangladesh Bank, Brac Bank organise awareness programme on FX clearing through RTGS
  • Banglalink deploys 4,000 new 4G sites as part of nationwide network expansion drive
    Banglalink deploys 4,000 new 4G sites as part of nationwide network expansion drive
  • Bank Asia distributes blankets among cold-affected people in Sitakunda
    Bank Asia distributes blankets among cold-affected people in Sitakunda
  • Fastrack enters Bangladesh market
    Fastrack enters Bangladesh market

Related News

  • Two-month long Nagad-Rokomari book fair begins
  • Nagad wins Posts and Telecommunications Award 2023
  • Nagad offers BPL tickets on payment 
  • DPE recommends disbursement of primary stipends thru' Nagad
  • 'Nagad Islamic' at Bishwa Ijtema to serve devout Muslims

Features

Photo: Collected

Get your partner a lovely present this Valentine's Day

16h | Brands
Pottery Wheel Craft Kit: A creative outlet for little hands

Pottery Wheel Craft Kit: A creative outlet for little hands

15h | Brands
Say it with Colours

Say it with Colours

1d | Mode
Photo: Courtesy

From 'Made in Bangladesh' to 'Designed in Bangladesh'

1d | Panorama

More Videos from TBS

Who will survive? Adani or Hindenburg?

Who will survive? Adani or Hindenburg?

6h | TBS Stories
James Gunn’s 8-10-year plan for the DC Universe

James Gunn’s 8-10-year plan for the DC Universe

6h | TBS Entertainment
LC issues lead to severe shortage of surgical equipment

LC issues lead to severe shortage of surgical equipment

9h | TBS Insight
Stage plays are going on in the digital age

Stage plays are going on in the digital age

14h | TBS Stories

Most Read

1
Leepu realised his love for cars from a young age and for the last 40 years, he has transformed, designed and customised hundreds of cars. Photo: Collected
Panorama

'I am not crazy about cars anymore': Nizamuddin Awlia Leepu

2
The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo
Economy

IMF approves $4.7 billion loan for Bangladesh, calls for ambitious reforms

3
Belal Ahmed new acting chairman of SIBL
Banking

Belal Ahmed new acting chairman of SIBL

4
Fund cut as Dhaka's fast-track transit projects on slow spending lane
Infrastructure

Fund cut as Dhaka's fast-track transit projects on slow spending lane

5
Photo: Collected
Startups

ShopUp secures $30m debt financing to boost expansion, supply chain

6
Photo: Courtesy
Panorama

From 'Made in Bangladesh' to 'Designed in Bangladesh'

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]