Dhaka: The government has planned setting up a bank for the government employees. The name of the bank will be Shammridhi Shopan Bank, Finance Minister Abul Maal Abdul Muhith said in his budget speech.

“Besides pay and allowances, for the welfare of government employees, we may take an initiative to establish a commercial and development bank titled “Shammridhi Shopan Bank” as recommended by the Pay and Services Commission”, the finance minister said.

He said initially, this bank is expected to commence its operation with an initial paid-up capital of Tk.400 crore. This paid-up capital will be collected by selling primary shares to existing and retired employees.

The matter, however, requires further consideration, Muhith said pointing out that substantial expansion had already taken place in the banking sector.

“Now we need to determine appropriate policies regarding deposit collection and the growth path. We are planning to establish a banking commission to review and recommend measures on banking policies and overall banking activities”, he said.