950830

Eobi to set up

investment bank

RECORDER REPORT

ISLAMABAD: Employees Old-age Benefits Institutions (Eobi) is planning to establish an investment bank.

The proposal, though at initial stage, envisages joint venture with some reputed foreign investment bank and equity participation from multilateral agencies.

The institution has plans to earmark Rs 150 million for the proposed bank. "The Eobi has been working on a number of options to increase yield on its investment portfolio, setting up of an investment bank is worked out to be most feasible option," official said.

The institution has, of late, sought permission of the finance ministry. After concurrence of the finance people, the institution will carry out detailed feasibility of the venture.

The proposal also requires relevant amendments in the Eobi Act of 1976 if all goes well with the idea.

A consultant, engaged by the institution, has recommended the investment bank in his pre-feasibility report.

About 12 investment banks are operational in the country at the moment. Applications for establishment of two commercial and six investment banks are also reported to be pending with the evaluation committee of the State Bank.