The government will hire a consulting firm to work as the financial advisor of state-owned Rupali Bank for expediting its privatisation process.

Rupali Bank, the smallest among the four nationalised commercial banks (NCBs), will be privatised by June next year as per a government decision.

The Ministry of Finance has already chalked out the modality of appointing the financial advisor and determined its functions, sources said.

The advisor will assist Rupali Bank in improving and strengthening its operations so that potential investors are encouraged to take part in the bank's privatisation process.

The consulting firm will prepare the bank for privatisation, advise on the best method of sale, and assist in the negotiations for sale.

The ministry suggests that the consulting firm will consist of local and international consultants. The firm should form a team comprising a lead consultant, an accounting expert and a legal expert.

The legal expert must have experience in bank restructuring and privatisation, and overseeing the preparation of legal documents on a completed bank sale.

Rupali Bank is the smallest of the four nationalist commercial banks having only 6.42 per cent private shares. It has 508 branches, over 2,525000 deposit accounts and 5,731 staff. The bank's total asset is estimated at Tk 59,488.4 million.

As per a commitment, the government has informed the World Bank Dhaka office recently about the progress in the privatisation of the bank.

Sources said the government would put an advertisement in international media inviting applications for the consulting firm.

"We will also take necessary steps to improve the performances of other nationalised commercial banks," said a source in the finance ministry.