In a recent development, two listed companies, BRAC Bank and Pragati Life Insurance, have announced their decision to invest in digital banks. BRAC Bank is set to invest in ‘bKash Digital Bank PLC’ pending approval from the Bangladesh Bank. However, the bank has not disclosed the amount of investment and stake size in the proposed digital bank. On the financial front, BRAC Bank witnessed a significant jump in consolidated earnings per share (EPS), which surged by 58% in the April-June quarter of 2023 compared to the same period last year, reaching Tk 1.03. The half-yearly EPS also rose by 41% year-on-year, reaching Tk 1.93 for the January-June period.
Meanwhile, Pragati Life Insurance has decided to invest Tk 125 million, accounting for 10% of the total paid-up capital of ‘Pragati Digital Bank PLC,’ pending approval from relevant authorities. Despite the announcement, Pragati Life’s stock price experienced a 5.77% decline on the Dhaka bourse on 31 July 2023. The deadline for forming digital banks this year has been extended to August 17, allowing entrepreneurs more time to prepare detailed and quality applications with necessary documents. As per guidelines, investors willing to establish a digital bank must have a minimum paid-up capital of Tk 1.25 billion, with each sponsor holding no less than Tk 5.0 million and no more than 10% or Tk 125 million.
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