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Bank wants to start 18 years after approval in 1982

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December 11, 2000 

Dhaka-- (UNB)- A first-generation private bank seeks cooperation from the Finance Minister in obtaining letter of intent from Bangladesh Bank to commence operations long 18 years after it was approved in 1982.

High Court, ending a five-year legal battle, nullified a central bank order last month and cleared the ways for the bank to complete all formalities in six months to seek final go-ahead from the central bank.

Sundarban Bank International Limited got approval, along with eight others, in 1982 as the first-generation private banks. Six of them, including Arab Bangladesh, IFIC, City Bank and National Bank, have been in operation for roughly 18 years while the Sundarban was kept at bay by a central bank edict.

“A number of sponsor-directors of SBIL have died while many others lost interest to run banking business,” an SIBL promoter told UNB tonight.

Meanwhile, 27 private banks are in operation while two more have been given approval.

Failing to get letter of intent from the Bangladesh Bank, the Sundarban authorities in 1995 filed writ petition in the High Court challenging the central bank orders.

In a letter to the Finance Minister Saturday SBIL’s main sponsor and chairman Habibullah Bahar said as directed by the High Court Division on Nov 16, they had already started completing all formalities as required by the central bank for allowing it to operate.

After completing all formalities and fulfilling all terms and conditions in six months, they will apply to Bangladesh Bank in the prescribed form for the license to commence their banking business, he informed the Finance Minister in the letter.

By this time, all the new and existing promoters/directors of SBIL will obtain certificates from DFIs/NCBs about their overdue and outstanding loans.

“The SBIL must not have any new or existing promoters/directors who are overtly indebted and who have stuck up loan or bad advances,” SIBL chairman clearly stated in his letter.

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