Padma Bank merger can take place if law is passed: Kamal

Finance Minister AHM Mustafa Kamal today hinted that the merger of the Padma Bank with other banks might take place once the concerned law in this regard is passed. "Of course we can consider the proposal (merger of Padma Bank). But, for doing that, the concerned law in this regard needs to be passed," he said. 

The Finance Minister was replying to a volley of questions after chairing the day's meetings on the Cabinet Committee on Economic Affairs (CCEA) and the Cabinet Committee on Government Purchase (CCGP).

"I received no application from Padma Bank so far," he said while talking to reporters after a meeting of the cabinet committee on public purchase (CCPP) on Wednesday.

Asked about the possible merger of Padma Bank, Kamal said that the concerned law on bank merger is being drafted and it is in the final stage. "Once it is brought to Jatiya Sangsad and passed, then the operations for  Bank merger will begin," he said. 

Revealing that he is yet to receive any proposal regarding the merger of Padma  Bank, Kamal said that all the state-owned commercial banks like Sonali Bank  Ltd, Janata Bank Ltd, Agrani Bank Ltd and Rupali Bank Ltd have shares in the Padma Bank. Apart from this, he said representatives of the state-owned commercial banks are also at the Board of Padma Bank.

He also said a draft has been prepared for framing a law on the merger and acquisition. "Hopefully, the law will be enacted soon to facilitate the process of merger and acquisition. Once the law is enacted, we can consider the proposal of the Padma Bank."  

He said that the government would have to look after the interest of the shareholders of the bank so that the bank is not shut down and thus its operations continue. "For this, the state-owned banks earlier came up for its rescue."

Over Padma Bank's bid to raise foreign funding, Kamal said anyone abiding by the law can try to raise foreign funds. "If the foreign investors think it is viable to invest at the bank seeing its balance sheet, then anyone can invest," he continued. 

The Finance Minister, however, said that the Padma Bank needs to be compliant and it would have to follow the existing rules and regulations.

When Farmers Bank, later turned into Padma Bank, was nearing collapse owing to lending anomalies since its inception in 2013, four state-owned banks -- Sonali, Janata, Agrani and Rupali -- and the Investment Corporation 
of Bangladesh came up with a Taka 715 crore bailout in 2018.

When sought details of a Panama company named Business Research  International Corporation, Inc (BRIC), Panama that recently got the contract in a joint venture for setting up a 50MW (AC) solar power plant at Terokhada upazila in Khulna, Kamal said that it is a company from Panama and no anomaly was found regarding the company.

The Finance Minister said the government would not make any investment at the solar power plant, rather the joint venture investors would invest at the plant and thus produce power. "The government will buy electricity from them while the total investment will be made by the joint venture."

Earlier on September 22, the CCGP meeting approved the proposal for setting up the 50MW solar power plant in Khulna.