Dhaka Bank to invest in digital bank

Hopping on the bandwagon with other conventional lenders that will establish digital banks, Dhaka Bank yesterday said it would invest Tk 12.5 crore to become a sponsor shareholder of a proposed digital bank.

The private bank disclosed to its shareholders that its board had decided to sponsor the proposed Shonchoy Digital Bank PLC and hold a 10 percent stake in the virtual bank, subject to regulatory approval.

Dhaka Bank is one of more than a dozen traditional brick-and-mortar banks that have announced plans to invest in establishing digital banks since the third week of June this year, when the central bank sought applications from prospective investors.

Ten banks have already formed a consortium to set up Digi10 Bank PLC.

Besides, Bank Asia and Brac Bank have also declared separate plans to be part of digital banks.

The deadline for the submission of applications ended yesterday.