Archive

          Pubali Bank Limited and City Bank Limited have come out of the list of problem banks.
The Bangladesh Bank (BB) has taken a decision to this effect following significant improvement in their financial performance.
The central bank issued separate letters to the banks concerned Monday saying that both the banks have been excluded from the category since November 27, 2005.
The central bank took the decision after assessing their financial performances, official sources said.
Both financial and management indicators of the banks have made notable progress in line with the central bank directives, the sources added.
Meanwhile, shares prices of the Pubali Bank and the City Bank banks rose by 3.63 per cent and 0.64 per cent respectively on the day as the news reached the bourses.
The BB included the names of the Pubali Bank and the City Bank banks in its list of problem banks in 1994 and 1996 respectively following their weak performances.
After listing the banks as problem banks, the BB identified the weaknesses and set a timeframe for improvement under its close monitoring and supervision.
Earlier, the central bank asked the Pubali Bank, the City Bank and the United Commercial Bank Limited (UCBL) to submit their special audit reports to it for assessment of their actual financial performances.
The Pubali Bank and the City Bank have been able to submit their special audit reports to the concerned department of the central bank for reviewing their real financial positions.
"We have released the banks from the category of problem banks for improvements in their financial performances," a BB senior official told the FE Monday.
Managing Director of the Pubali Bank Limited Khondkar Ibrahim Khaled wanted to turn the bank into a modern one to ensure better client services.
"We want to turn the bank into a modern bank in the country," he told the FE Monday after receiving the BB's letter.
Sources in the Dhaka Stock Exchange (DSE) said the Pubali Bank share were traded at Tk 1897.75 Monday against Tk 1831.25 in the previous day.
However, the City Bank share was settled at Tk 790 on the day against Tk 788 previously.
Five PCBs still remain in the BB's category of problem banks. The banks are: the UCBL, the Oriental Bank Ltd, the First Security Bank Ltd, the Bangladesh Commerce Bank Limited (BCBL) and the Social Investment Bank Limited (SIBL).