City Bank to invest in digital bank

The City Bank Ltd is going to invest Tk 13.88 crore in a proposed digital bank as a sponsor shareholder.

The private commercial bank said its board has approved the proposal to join a consortium of nine commercial banks which together will apply for a digital bank.

The name of the proposed bank is Digi10 Bank Plc.

City Bank plans to become a sponsor shareholder by investing Tk 13.88 crore, which is 11.11 percent of the initial paid-up capital of Tk 125 crore of the proposed digital bank.

Paid-up capital is the amount of money a company has received from shareholders in exchange for shares of stock.

Shares of City Bank closed unchanged at Tk 21.40 on the DSE yesterday.

In June, the Bangladesh Bank invited applications from entrepreneurs interested in establishing digital banks.

Bank Asia, bKash, Pragati Life Insurance, ACI Ltd, Padma Bank and Crystal Insurance are among the companies that have applied for digital banking licences and some companies are expected to follow suit.

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Mobile network operator Banglalink has also decided to apply for a digital banking licence as it looks to leverage its vast pool of customers to serve a population increasingly using technologies to make and receive payments.