Bank Asia to invest in a digital bank

Bank Asia has decided to be a sponsor shareholder of a proposed digital bank by investing Tk 12.50 crore, said the private bank yesterday.

The board of directors of the bank approved a proposal in this regard.

The amount of investment is 10 per cent of the total paid-up capital of the digital bank, said the lender in a disclosure on the Dhaka Stock Exchange.

Shares of Bank Asia were unchanged at Tk 20.20 on the DSE yesterday.

"Our honourable board has expressed their keen interest to invest in the digital bank landscape as a sponsor shareholder aiming to bring more unbanked people into the banking network by boosting the ongoing financial inclusion initiatives across the country," Adil Chowdhury, president and managing director of the bank, told The Daily Star.

Bank Asia is 100 per cent committed to providing services to all segments of the society, including the marginalised people in rural and remotest parts of the country, Chowdhury said.

The Bangladesh Bank last month invited applications from entrepreneurs interested in establishing digital banks. It will accept applications until August 1.

On June 1, Finance Minister AHM Mustafa Kamal said a central bank committee was working to draw up strategies to broaden financial inclusion.

Investors willing to set up a digital bank will have to have a minimum paid-up capital of Tk 125 crore and the capital will have to come from sponsors.

The entity willing to set up a digital bank must be a public limited company. The minimum shareholding stake of each sponsor shall be Tk 50 lakh.