The demand was raised by the members of Bangladesh Association of Banks (BAB), an association of private bank owners, at a post-budget review for FY 2004-05 in Dhaka.

Speaking at the discussion, the members said the accounts of the banks are more transparent than those of other listed companies and banks' shares have been playing a dominant role in development of the capital market.

The banks have to serve interest of the government, depositors and as well as owners, the meeting observed.

"But if we serve only government's interest, it will deprive the shareholders," BAB Chairman Syed Manzur Elahi told reporters after the meeting.

He said if the banks pay less tax, their profit will increase and this will enable them to curtail interest rate.

The BAB members termed the proposed budget "anti-investment and anti-industry" and said the budget will not help investment, industry and the banking sector.

They argued that presently banks pay higher tax than any other institutions and that it should be brought down.

The meeting was also critical of proposed restriction on the tenure of directors under the revised bank company laws and observed the new laws will only encourage election of directors by falsifying their names.

They said the stringent measures forced them to resort to loopholes and even in many cases, transfer their sponsor shares to the names of their near and dear ones so that they could still hold the control of the banks.

The BAB recently won a court battle with the central bank securing a stay order on the move. But Bangladesh Bank has gone to the Supreme Court challenging the verdict.

The new laws will also reduce professionalism, the meeting observed.

Meanwhile, the government is going to pass Banking Companies Act (Amendment) bill in the parliament that would enable the central bank to impose the restrictions on bank directorship.

"The conditions of the private banks would be worse than the state-run banks if the bill is passed," UCBL Director MA Hashem MP told the meeting.

Bank Asia Chairman M Sayeduzzaman, a former finance minister, told the meeting that there is no alternative to going to court to protect the interest of the directors of the private sector banks.

The BAB chairman told the meeting that he will send an official proposal to the executive committee (EC) of the association to enumerate the requests to revise the new laws.

The EC, constituted with representation from all private banks, will then discuss the proposal with the respective boards to work out strategies against the new laws, Elahi added.