The new scheme will increase the bank's paid up capital to Tk 700 crore from the existing Tk 57 crore, according to sources.

The Tk 700 crore scheme stipulates Tk 400 crore as sponsor shares and the remaining Tk 300 crore as general shares.

The account holders who have more than Tk 10 lakh deposited at the bank will be compelled to purchase ten to twenty-five percent of the general shares depending on the amount deposited with the bank, according to the scheme.

Those who have Tk 10 lakh or less deposited with the bank are free to purchase 10 percent of its shares, while the account holders who have between Tk 10 lakh to Tk 50 lakh deposited must buy 10 percent, those with Tk 50 lakh to Tk 1 crore must buy 20 percent, and the account holders with Tk 1 crore and above must buy 25 percent of the shares.

After these depositors are paid for by the shares, the central bank plans to start repaying the rest of the depositors from a date fixed by the Bangladesh Bank (BB).

Under the scheme, only the principal amount (excluding profit) of the liabilities as recorded in the books of accounts of the bank on January 25, 2007 will be payable. The amount of profit accrued on the deposit after January 25 is supposed to be fixed by the Oriental Bank board of directors, which is yet to be formed.

The Bangladesh Bank-appointed Chief Executive Officer of Oriental Bank, Asaduzzaman Khan, told The Daily Star after receiving the scheme, "Oriental Bank will start to repay the account holders after a date fixed by the Bangladesh Bank."

A BB high official said, "The repayment date will be fixed after the sponsor shares are sold."

The central bank will publish an expression of interest to sell the sponsor shares, which will be sold at an excess value, in all major local and international newspapers next week, the official added. He said he is hopeful of selling the sponsor shares by the end of December.

Sources said the additional value added to sponsor shares' face value of Tk 1,000 will be considered as premium.

The sponsor shares would be sold like those of Rupali Bank through open tender bringing huge capital for the bank, the sources said, adding that Middle-eastern and British investors have already expressed interest to buy the sponsor shares.

The scheme also outlined the ways of paying out liabilities of the bank. As per the scheme, if depositors wish, the bank will pay first Tk 1,00,000 within six months after two months of activation of the scheme. Further Tk 1,00,000 will be paid out within 12 months after six months of scheme activation, another Tk 1,00,000 within 18 months after 12 months of the scheme activation, another Tk 1,00,000 within 24 months after 18 months of the scheme activation, another Tk 1,00,000 within 30 months after 24 months of scheme activation, another Tk 1,00,000 after 36 months after 30 months of the scheme activation, another Tk 1,00,000 within 42 months after 36 months of the scheme's starting, another Tk 1,00,000 within 48 months after 42 months of scheme activation, another Tk 1,00,000 within 54 months after 48 months of scheme activation, another Tk 1,00,000 within 60 months after 54 months of scheme activation and the balance after 60 months of the scheme's starting.

About formation of the board of directors, the proposals say it will consist of 13 members -- 10 from sponsor shareholders and the other three from general shareholders. The BB will approve the first board of directors for three years, while it will also appoint the first chief executive officer for a three-year term.

The central bank will have the authority to settle any dispute that arises under the new scheme.

In August 2006, a serious financial crisis and liquidity shortage in the Oriental Bank forced the BB to intervene and dissolve the bank's board of directors and sack the bank's managing director.

The BB also cancelled a large chunk of 'benami' shares owned by fugitive businessman Obaidul Karim and now-detained businessman Abul Khair Litu.