Dutch-Bangla Bank to join proposed Digi10 Bank PLC

Digital Bank targets customers beyond the bank's reach in the country and geographical boundaries, making it easier to expand business in the rural area and on a global scale. 

It will offer services to customers in various parts of the country without the need to establish physical branches. 

Dutch-Bangla Bank decided to invest in the proposed digital bank to expand the banking business all over the country very quickly, retain existing smart customers of DBBL who are not comfortable with traditional banking, and acquire a new set of new-generation tech-savvy clients, reads a press release.

As per the Banking Company Act 1991 (BCA), a sponsor may not hold more than 10% share of the digital bank, and as such, a consortium of 10 renowned banks was formed to hold a 10% share of each bank. 

The banks are City Bank, Dutch-Bangla Bank, Eastern Bank, Mercantile Bank, Midland Bank, Mutual Trust Bank, NCC Bank, Prime Bank, Pubali Bank and Trust Bank.

As per the guideline of Digital Bank, the minimum paid-up capital of the proposed bank has to be Tk125 crore, which means that each of the member banks initially has to invest Tk12.5 crore. 

Therefore, Dutch-Bangla Bank will invest Tk12.5 crore against a 10% share of the proposed Digital Bank.  The authorized capital of the bank will be Tk250 crore. 

The name of the digital bank will be 'Digi10 Bank PLC'.

The board of directors of the bank took the above decisions in its 270th meeting held on Monday (14 August).