Prime Bank Investment Limited (PBIL) is taking the lead in broadening the reach of Bangladesh’s capital market. Its focus is on creating inclusive investment options that can tap into the country’s savings and funnel them into secure, prosperous, and beneficial financial instruments.
PBIL’s key strategy involves not only financial innovation and discipline but also the development of robust investment solutions. The institution aims to promote its chief product, PrimeInvest, while also enriching the future direction of the company.
PBIL stands out in its attempt to redefine its role beyond the conventional perspective of margin loan services and issue management. This versatile strategy allows PBIL to have a transformative effect in expanding the country’s capital market.
PBIL boasts an operational efficiency backed by a striking paid-up capital of Tk 300 crore. Its credibility is significantly amplified by the backing of a financial powerhouse such as Prime Bank.
The year 2024 marked a turnaround in PBIL’s fortunes. Its net profit amounted to Tk11.56 crore on revenues of Tk46 crore, counteracting the losses it incurred in 2020. This turn of events validates the assertion that merchant banking can indeed be a route to progressive, thriving business ventures.
Building upon its achievements, PBIL has successfully supervised nine equity issues worth approximately Tk1,000 crore and oversaw 13 bond issues amounting to nearly Tk7,000 crore.
In a notable accomplishment, PBIL advised and facilitated two significant M&A deals in the year 2024, further indicating the potential of the organisation.
PBIL is looking into issuing the nation’s first green bond tailored for startups. This innovative move signifies a firm step toward sustainable and expansive financing.
PBIL has also undertaken internal governance transformations, such as applying a self-regulate framework for margin lending. This move has efficiently minimised the amount of toxic assets in its accounts and has helped realign its risk portfolio following the best industry standards.
The primary inspiration behind PBIL’s endeavours is PrimeInvest. It’s an offering that paves the way for students, women, expatriates, and average savers to make minor monthly investments. Concurrently, it also provides customized plans to cater to affluent individuals based on their respective financial objectives.
PBIL identifies rural and semi-urban areas as promising pockets of untapped capital. By tapping into this potential, new avenues of growth can be explored.
Addressing the barriers to industry growth, the CEO underscored the excess corporate tax of 37.5% on merchant banks as a significant deterrent to entrepreneurial ventures. Furthermore, he highlighted the necessity of establishing a score-based regulatory rating framework for the merchant banking sector.
The CEO unveiled the urgency to restructure Bangladesh’s capital formation approach. To incentivise equity financing, he suggested the introduction of relevant tax incentives as well as setting up reforms to remove legal complexities that hinder loan recoveries.
Wrapping up his recommendations, the CEO urged collective action. He emphasized the need for collaboration among various factions and regulators to construct a vibrant and robust capital market.