DBBL to open merchant bank, invest in digital bank

Dutch-Bangla Bank Ltd (DBBL) is going to invest in a digital bank and form two subsidiaries in order to expand business in capital market, the bank said yesterday.

The DBBL said its board of directors has given the go-ahead to the plan to invest Tk 12.5 crore in the proposed Digi10 Bank PLC by joining a consortium of 10 banks. The bank will have 10 percent share in the proposed virtual bank.

The private bank also said its board decided to form a full-fledged merchant bank -- Dutch-Bangla Bank Investment Limited -- with a proposed paid-up capital of Tk 25 crore.

It will be a fully owned subsidiary subject to all regulatory approvals.

In addition, the DBBL will establish a brokerage house named Dutch-Bangla Bank Securities Limited to act as a stock dealer and broker.

The fully owned subsidiary will have a paid-up capital of Tk 10 crore, said the private bank in a disclosure on the Dhaka Stock Exchange news board.

Investors remained indifferent to the disclosure as the stock price of the DBBL remained unchanged at Tk 59.10 at the DSE yesterday.