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Bangladesh's investment arm, state-owned banks to take 60% stake in Farmers Bank

Bangladeshi state-owned lenders and Investment Corp. of Bangladesh, or ICB, will acquire a 60% stake in troubled Farmers Bank Ltd., The Daily Star reported March 8, citing Finance Minister AMA Muhith.

This comes after a confirmation in February that the government is looking to infuse 11 billion taka into Farmers Bank as part of a bailout package. The plan also includes ICB and state-run lenders — Agrani Bank Ltd., Janata Bank Ltd., Rupali Bank Ltd., Sonali Bank Ltd. — buying shares in Farmers Bank.

Muhith told reporters after a pre-budget discussion with economists that the government will not allow the closure of any bank.

Farmers Bank, which began operations in 2013, has been struggling due to a cash crunch caused by loan irregularities. In November 2017, Bangladesh Bank directed the lender's chairman and managing director to step down due to their alleged involvement in fraudulent financial schemes, including the disbursement of loans to shell companies.

As of March 8, US$1 was equivalent to 83.18 Bangladeshi taka.