Immediate offloading share of four state-owned commercial banks are not possible as auditing and accounting of those banks are inadequate for proper valuation, regulators said
“The accounting and auditing for state owned commercial banks is found inadequate in a commission meeting held recently on the particular issue,” Bangladesh Securities and Exchange Commission Chairman (BSEC) Shibli Rubayat Ul Islam told Business Mirror Friday.
“Those state owned properties are needed to be valuation properly. But at the current standard of accounting and auditing it is quite impossible to complete proper valuation of those companies,” Mr. Shibli Rubayat Ul Islam a accounting background professor further said
The finance minister was repeatedly making announcement of bringing state owned banks to the stock market with the view to enhance depth of the market as well as infuse dynamism.
On February 13, 2019, Finance Minister AHM Mustafa Kamal formed a committee headed by Additional Secretary (Treasury and Debt Management) Sheikh Mohammad Salim Ullah.
The government is making known its desire to offload shares of various public entities to the stock market since last caretaker government in 2008.
The then Finance adviser AB Mirza Azizul Islam had initiated offloading shares of four state-owned companies-Osmania Glass Sheet Factory, Atlas Bangladesh, National Tubes and Eastern Cables – to the stock market keeping at least 51 percent stake to the government.
On February 10, 2010, the finance ministry has decided to offload the shares of 21 state-owned companies. In the wake of turmoil in the capital market the ministry has decided to offload the shares of 21 state-owned enterprises.