A Sri Lankan bank is in talks with local non-banking financial institutions to carve out a joint venture, with its focus on investment banking in Bangladesh.
National Development Bank (NDB), headquartered in Colombo, unveiled the plan in a filing to the Colombo Stock Exchange, seeking to operate an investment bank in Bangladesh as a majority shareholder.
NDB's disclosure came after it had conducted a feasibility study to start investment banking.
Over the last one year, the bank has been jockeying for local firms but has yet to make a final deal.
People close to the matter however said the Sri Lankan bank said NDB made progress in talks with some local firms such as Capital Market Services Ltd, a merchant bank.
According to NDB, it has already won approval from the Sri Lankan central bank, subject to obtaining approval from the Controller of Exchange and the Minister of Finance and Planning in the island nation.
But no approval has yet been received from Bangladesh regulators. "We have not received any approval from Bangladesh authorities," the bank said in a statement.
Transactions will take place after NDB gets the required approval and completes the terms and conditions of a joint venture agreement.
NDB is the third Sri Lankan bank, expected to come to Bangladesh, after investments by Commercial Bank of Ceylon and Sampath Bank. Sampath Bank has investment in LankaBangla Finance.
Sources: The Daily Star, October 6, 2008
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