Nationalization Order

Nationalization Order

Immediately after liberation in 1971 the United Bank Ltd. and the Union Bank Ltd. operated in Pakistan were merged and emerged as Janata Bank with the authorized and paid-up capital of Taka 50 million and 15 million respectively.

The newly formed Bangladesh Government took the decision of Nationalization of Banks due to the following reasons:

  • Socialization of economic activities
  • Constitutional obligation of the government to exercise complete authority over the banks' resources.
  • To run the business of the banks that were left by the Pakistani and Bangladeshi owners the banks were nationalized as per directives of the government vide Bangladesh Bank Nationalization Order (President's Order-26) of 1972 and Janata Bank was also nationalized under this order.

But the concept of Nationalization staggered due to over burden of Non-performing Assets, deterioration of basic services, undue interference, improper management etc.

To overcome these obstacles and in compliance with the subsequent prescriptions of World Bank & IMF, Vendor Agreement was signed between Janata Bank and Janata Bank Ltd in 15 th November, 2007 and the Bank was corporatised by transferring all the Assets & Liabilities of Janata Bank to Janata Bank Limited as per Clause (1) of Article 27A of the Nationalisation Order of 1972.