In the face of pressure from the government high-ups, the Bangladesh Bank (BB) may allow five new private banks to come on the scene against its will.

The board of the central bank may also give its nod to setting up of three NRB (Non-Resident Bangladeshis) banks due to the same pressure.

The five private banks are Union Bank Ltd of former president HM Ershad, Fazle Noor Taposh MP's Modhumati Bank Ltd, Dr Mohiuddin Khan Alamgir's The Farmers' Bank Ltd, South Bangla Agriculture and Commerce Bank of SM Amjad Hossain, and Midland Bank Ltd of Moniruzzaman Khan Khandker.

A meeting of the BB Board will be held today with its Governor Atiur Rahman in the chair where proposals for 16 short-listed new banks will be placed.

A BB bank official said there is tremendous pressure from the government high ups to approve nine new banks. However, the central bank board may consider a maximum of five proposals.

The five proposed banks are at the top of the list made by the central bank's scrutiny committee, said another BB official preferring not to be named.

Besides, the government high-ups have been putting pressure on the BB for approving Chartered Bank Ltd, Meghna Bank Ltd, Kotak Bangla Bank Ltd, People's Islami Bank Ltd and Federal Bank Ltd.

The central bank eventually gave in to "political pressure" and sought applications for new banks in September, receiving 37

applications till November 30 last year.

The BB board then unofficially decided not to approve more than three banks, the BB officials said.

A member of the central bank board told The Daily Star that several board members are against approving many new banks in the backdrop of the present economic situation and liquidity position in the existing banks.

Some board members may not attend today's meeting as they do not want to remain involved with the process of approving new banks, he said.

Earlier, there was a possibility of approving new banks in the board meeting held on March 15. A board member remained absent from the meeting as he was not in favour of allowing more new banks, he added.

At present 47 public, private and foreign banks are already in operation in the country.