As per the license, the banks will conduct their activities following the Memorandum and Article of Association instead of the Nationalised Bank Order, 1972.

Sources said the first privatisation move empowers the banks' management (board of directors) to take policy decisions independently, though the government will remain as owner. The independent board of directors of each bank will appoint its managing director of its choice.

After having a new shape as public limited company, the banks will have to follow the Bangladesh Bank rules and regulations like other private banks.

The government will issue notification through a gazette to add 'limited' after the banks name. All liabilities and assets of the banks would be transferred to its new company name.

The Rupali bank was made a public limited company in early 90s, but it went by the Nationalised Bank Order, 1972. However, this bank has been run like an NCB since it turned into a public limited company.

The new memorandum of article would give more autonomy to Janata and Agrani banks. The board of directors of the banks from now on will be able to fix up their employees' salaries.

Earlier, the two banks were registered under the Memorandum and Article of Association to the Registrar of Joint Stock Companies and Firms (RJSCF) to operate as public limited companiesy.

Meanwhile Sonali Bank, another state-run bank, will soon be registered with the joint stock company as it has already fulfilled the required number of members of the board of directors.

The government has already gone for newspaper advertisements to choose managing directors for Janata and Sonali. Sources said the authority has so far received 34 applications for the posts.