The bank said in a stock exchange filing that it was waiting for approval from central bank exchange control and Sri Lanka's finance minister as well as the Bangladeshi authorities.
"National Development Bank has made a study on the feasibility of operating an investment bank in Bangladesh with the objective of having a majority shareholding and has been negotiating with a prospective investee company and its shareholders," the statement said.
"NDB has also sought the approval from regulatory authorities in Sri Lanka (including the Controller of Exchange) and Bangladesh.
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The statement also said the transaction shall take place after it gets the required approvals and it completes the terms and conditions of a joint venture agreement between NDB, the prospective investee company and its shareholders.
NDB is the third Sri Lankan bank to set up business in Bangladesh,