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Probashi Kallyan Bank (PKB) is set to go into operation as a scheduled bank by March as the government has completed all preparations in this regard, sources said.
To this effect, Financial Institutions Division (FID) has sent a summary paper to the finance minister, seeking his approval for issuing a gazette to begin its commercial operation on a limited scale, they said.
FID has already prepared a draft gazette that was also sent to the minister.
According to Clause 4 (5) of Probashi Kallyan Bank Act 2010, the bank will be able to carry out commercial and banking activities.
Besides, Clause 4 (7) of the Act has stated that PKB can be converted into a scheduled bank with approval from Bangladesh Bank, the bank's document reads.
It will be able to apply to the central bank for its conversion into a scheduled bank after getting approval from the finance minister.
A senior PKB official said now the paid-up capital of the bank is Tk 1.0 billion. In 2015, the government approved a proposal for raising the paid-up capital of the bank from Tk 1.0 billion to Tk 4.0 billion after issuing a gazette notification in this regard.
The bank also needs about Tk 3.0 billion (Tk 300 crore) more as paid-up capital for switching to its scheduled operation.
Of the amount, the government provided PKB with Tk 150 million to start its commercial operation and Wage Earners' Welfare Board (WEWB) gave Tk 500 million to meet new capital requirement for the proposed commercial bank.
It has now a shortfall of Tk 2.35 billion as paid-up capital. A process is underway to provide the rest of paid-up capital, a high official of FID said.
The authorised capital of the bank is Tk 5.0 billion, according to PKB.
The bank receives deposits and gives loans to the migrants and returnees while it also buys and sells foreign currencies.
The bank gave loans worth Tk 2.29 billion to over 23,731 Bangladeshi migrant workers during the period between FY 2011-12 and FY 2016-17.
Among the beneficiaries, some 156 returnees received loans for income-generating projects at home. During the period, the bank also recovered Tk 1.55 billion.
The bank was established in 2010 aiming to provide collateral-free loan to the workers for going abroad with employment and also to the returnees to help them get jobs in the country and facilitate sending remittances by wage-earners to invest in the country.
Currently, PKB has 45 branches across the country. It has also started working to open new branches, according to its official webpage.