Prime Bank Limited, listed in the capital market, will invest in subsidiaries in order to expand and diversify its business.
The bank will collect investment funds through bond and share from the capital market.
The board of the private commercial bank has approved the decision, it said in a disclosure on the Dhaka Stock Exchange on Wednesday.
According to DSE, Prime Bank will provide 10 per cent of the proposed digital bank's paid-up capital comprising 10 listed banks. The amount of which will be Tk12.50 crore. This decision will be effective subject to the consent of the concerned regulatory bodies.
The banks are – The City Bank, Mutual Trust Bank (MTB), National Credit and Commerce Bank (NCCB), Dutch-Bangla Bank Limited, Eastern Bank Limited (EBL), Trust Bank, Pubali Bank, Prime Bank, and Midland Bank Limited. These ten banks are entrepreneurs of digital banks.
Ten private sector banks have taken the initiative to establish DG10 Bank Plc to reduce the use of cash currency and make transactions easier. The paid-up capital of the bank will be a minimum of Tk 125 crore.
In addition, Prime Bank will establish a subsidiary company to operate Mobile Financial Services (MFS). The paid-up capital of this company will be Tk 45 crore.
Prime Bank will establish an asset management company with a paid-up capital of Tk 10 crore. The bank will also set up an asset management company to manage mutual and alternative investment funds.
