Bangla Buy

Feb 13, 2009 (LBO) – Sri Lanka’s NDB Bank said it has acquired a controlling interest of Capital Market Services Limited, a licensed merchant bank in Bangladesh. The acquisition was made after it fulfilled pre-investment conditions, National Development Bank said in a stock exchange filing.

The announcement did not give the value of the investment or size of the controlling stake.

But previous media reports had said NDB would take an 80 percent stake in Capital Markets Services Ltd and would inject an additional eight crore Bangladeshi taka (about 132 million rupees) into the Bangladeshi bank.

These reports said Capital Markets Services had two crore taka in previous paid-up capital and needed to raise more funds.

This was because the Bangladesh Securities and Exchange Commission had raised the regulatory paid up capital for merchant banks to 10 crore taka from eight previously.

The new joint venture in investment banking is expected to start in the first quarter of 2009 under a new name, NDB Capitals Ltd, the reports said.

NDB becomes the third Sri Lankan bank to enter Bangladesh after Commercial Bank of Ceylon and Sampath Bank. Sa