B Mirror Report : AB Bank PLC, a listed commercial bank on the stock market, has decided to expand its financial services by entering the custodial business for mutual funds, securities, and other financial assets.

The decision was approved at a board meeting held on Tuesday, according to sources from the Dhaka and Chittagong Stock Exchanges on Wednesday.

As part of the plan, the bank’s board has approved a proposal to amend the Memorandum of Association (MoA) to include custodial services within its objectives.

Under the proposed amendment, AB Bank will be able to act as a custodian for mutual funds, securities, financial instruments, and other assets in compliance with applicable laws and regulatory frameworks in Bangladesh.

However, the initiative will not take immediate effect. It requires approval from the Bangladesh Bank and other regulatory authorities, as well as consent from the bank’s shareholders. The proposal will be placed for approval at AB Bank’s 44th Annual General Meeting (AGM) scheduled for June 18.

Market analysts say custodial services are an important part of capital market infrastructure, ensuring the safekeeping, monitoring, and transaction support of institutional and mutual fund assets, thereby enhancing transparency and investor protection.

They also noted that AB Bank’s entry into this sector could create a new revenue stream and increase competition in capital market services, while strengthening integration between the banking sector and capital markets.

In recent years, banks have increasingly diversified beyond traditional lending into capital market-related services such as bonds, mutual funds, trusteeship, and custodial operations.

AB Bank PLC was listed on the stock exchange in 1983. The ‘Z’ category bank has a paid-up capital of Tk 895.69 crore, with a total of 89.56 crore shares. As of April 30, 2026, sponsors hold 18.9% of shares, the government 0.57%, institutional investors 34.64%, foreign investors 0.54%, and general investors 45.30%.