Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
Two more listed companies -- BRAC Bank and Pragati Life Insurance -- have decided to invest in the proposed digital banks, according to separate disclosures on Monday.
Earlier, three listed companies -- Bank Asia, Crystal Insurance and Advanced Chemical Industries -- shared their plans for the same.
Digital bank, also known as neobank or virtual bank, operates exclusively online without any traditional physical branch network.
BRAC Bank Ltd has decided to invest in a digital bank named 'bKash Digital Bank PLC' subject to the approval of the country's central bank, the Bangladesh Bank.
However, at a meeting held on Sunday, BRAC Bank did not disclose the amount of investment and the size of its stake in the proposed digital bank.
It also approved the half-yearly financial statement for the January-June period at the same meeting.
The bank's consolidated earnings per share (EPS) jumped 58 per cent to Tk 1.03 in the April-June quarter this year, up from Tk 0.65 in the same quarter a year ago.
The bank's half-yearly EPS also rose 41 per cent year on year to Tk 1.93 for this January-June period.
Listed in 2007, BRAC Bank's shares have remained stuck at Tk 35.80 in the last two months on the Dhaka Stock Exchange.
Meanwhile, Pragati Life Insurance has decided to invest Tk 125 million in establishing a digital bank named 'Pragati Digital Bank PLC' subject to the approval from the authorities concerned.
The amount of investment is 10 per cent of the total paid-up capital of the proposed digital bank, said the company in a disclosure on Monday.
Pragati Life is the fifth publicly-traded company that has announced its plan to invest in a digital bank after four listed companies' intent on investment.
Despite its revelation of investment in neobanking, its stock price plunged 5.77 per cent to close at Tk 129 on the Dhaka bourse on Monday.
The banking regulator invited applications from June 21 to August 01 for forming digital banks this year.
The deadline was later extended to August 17 to give entrepreneurs more time in order to prepare detailed and quality applications with necessary documents.
As per the guideline, investors willing to set up a digital bank will have to have a minimum paid-up capital of Tk 1.25 billion. It is stipulated that the capital must come from sponsors.
The minimum shareholding of each sponsor will have to be no less than Tk 5.0 million and no more than 10 per cent or Tk 125 million.
babulfexpress@gmail.com