The same amount of money was allocated for the state banks to meet their capital shortage in the current fiscal year. According to official sources, Finance Division wanted to merge BASIC Bank and Sonali Bank, but the government high-ups declined the proposal. “Finance Division recommended merger of BASIC Bank and Sonali Bank. So, the next fiscal year’s allocation (for recapitalisation of state banks) will be same as the current fiscal year,” said an official at the Finance Division. BASIC Bank is running its Letter of Credit (LC) business with the help of Sonali Bank.

Source: Dhaka Tribune May 16, 2017 18:33 UTC