The New Nation - Internet Edition

Staff Reporter

The Switzerland-based ICB Financial Group Holdings AG signed the sale-purchase agreement of the troubled Oriental Bank in the capital yesterday.

The Swiss company also paid Tk 350 crore to purchase 50.16 per cent shares of the problem-ridden Oriental Bank. The money (Tk 350 crore) would be used as capital of the bank that renamed as ICB Islamic Bank Ltd, Hadenan Jalil, representative of the ICB group, told a post-signing press conference.

A tripartite sale-purchase agreement was signed among the Swiss ICB Group, Oriental Bank and Bangladesh Bank. Hadenan Jalil, also proposed to be the Chairman of new management, incumbent chairman of Oriental Bank AH Toufique Ahmed and Bangladesh Bank (BB) General Manager (BRPD) Jahangir Alam signed the agreement on behalf for their respective sides.

"Our first priority is to bring back confidence of the previous and existing accountholders through providing better services," Hadenan Jalil said, assuring that the takeover by his group would not affect the depositors, clients and employees of the Oriental Bank

Hadenan Jalil said the bank (ICB Islamic Bank Ltd) would try to reach each and everyone of the previous and existing clients to give their message of better services and that the day-to-day banking activities would be transparent and accountable to the clients.

He also spoke about the initial plan of operation that the bank would expand their branch network as much as possible, subject to the central bank approval, with modern IT systems. It would also try to tap the potentials of Bangladesh remittance receipts, Hadenan Jalil added.

Replying to a question, he said there would be no firing of the existing staff of the bank, but there might be some changes within to strengthen the bank in terms of management.

"Very soon, we'll be able to workout our plan," Hadenan Jalil said, adding that the success of the bank would depend on the commitment of the bank staff as well as the commitment of the bank board to its staffers.

A senior executive of the bank said the Board of Directors would be constituted very soon while the 50.16 percent shares of Tk 3.5 billion would be distributed among the directors before taking over the bank management within next 15 days.

Speaking at the function, Bangladesh Bank Deputy Governor Murshid Kuli Khan expressed satisfaction over the successful conclusion of the deal as per the central bank's schedule.

He expected that the new management having vast banking experiences would be able to bring out the bank from the distressed condition and problem category, and make it a healthy and strong bank in the country.

The Oriental Bank Limited has been suffering from capital and provisioning shortfall, huge classified loans, ineffective management, severe liquidity crisis and overall acute financial crisis after its former Chairman Obaidul Karim fled the country after swindling over Tk 500 crore depositors' money immediately before the January 11 (2007) changeover in connivance with powerful quarters in the previous BNP government.

Latter, Bangladesh Bank, the central bank of the country, took over trouble bank on June 19 in 2006 as per the Banking Companies Act 1991 for the sake of public and depositors' interests and to ensure proper management of the bank and keep up the public confidence in the banking system.

As a result, the central bank had deployed one of its senior executives with the power to carry out responsibilities of the Oriental Bank's Board of Directors as the chief executive through dismantling the previous Board and removing the managing director.

On February 14, the Bangladesh Bank announced the Swiss ICB AG as the preferred bidder as it had quoted highest price.

Earlier, on February 4, the ICB group emerged as the highest bidder quoting Tk 350 crore price, beating Domestic Investors Consortium, Bangladesh that offered over Tk 250 crore the same stake.

It may be mentioned here that Bangladesh Bank could sale the Oriental Bank within 2 months 15 days of its decision to privatize, while BOI (Board of Investment) failed to do so for the Rupali Bank in 2 years and 6 months time al though BOI had spent about Tk 35 crore for the job.