Madhumati Bank launches campaign for women entrepreneurs

Posted by BankInfo on Thu, Apr 24 2014 10:20 am

Selima Ahmed, eminent women entrepreneur, hands over a cheque to a woman entrepreneur at a function organised by Madhumoti Bank Limited in Dhaka recently. Md. Mizanur Rahman, Managing Director and CEO of the bank, is also seen.

 Madhumati Bank Limited recently launched a campaign styled ‘Baishakhi Joyeeta’ for promoting women entrepreneurs loan scheme named ‘Madhumati Labonnyo.’

The campaign was launched for April in the bank's six branches and headquarters, said a press release.

Md. Mizanur Rahman, Managing Director and CEO of the Bank presided over the meeting.

News:Daily Sun/24-Apr-2014

Pubali Bank gives loans among SME entrepreneurs

Posted by BankInfo on Thu, Apr 24 2014 10:08 am

Former land minister Rezaul Karim Hira, MP, and M. A. Halim Chowdhury, Additional Managing Director of Pubali Bank Ltd, hand over a cheque to borrower at a loan distribution ceremony and SME Fair in Jamalpur recently.

 Pubali Bank Limited (PBL) organised open loan distribution ceremony and SME fair in Jamalpur recently.

Former land minister and local MP Rezaul Karim Hira inaugurated the ceremony as chief guest, sai a press release.

The fair was organised aiming at reaching the banking services to the door steps of the marginalised people. Three crore and seventy two lac taka was distributed among 54 people in the fair. Rezaul Karim Hira said, “This attempt of Pubali Bank is really praiseworthy. The marginalised people will get benefit by taking this loan.” He thanked the bank authority for taking such an attempt.

M. A. Halim Chowdhury, Additional Managing Director of the bank said, “We give preference to women employment and self-help programmes the most. Pubali Bank has come forward keeping this in mind”. He said, “The bank has distributed the loan amount to increase the participation of women in SME sector.”

News:Daily Sun/24-Apr-2014

ICC holds workshop for bankers in KL

Posted by BankInfo on Wed, Apr 23 2014 01:22 pm

The Bangladeshi Bankers will visit Maybank today and have interaction with senior officials of Bank Negara Malaysia and Maybank

International Chamber of Commerce, Bangladesh (ICC,B) and ICC Malaysia are jointly organising a three-day workshop on Rules and Tools for International Trade Finance for the bankers of the two countries in the Malaysian capital of Kuala Lumpur from today.

A total 90 bankers from 19 Banks including Bangladesh Bank, 18 commercial banks and Bangladesh Institute of Bank Management (BIBM) will attend the workshop while some 50 other bankers from Malaysian banks will also be participating the same workshop, according to a press release yesterday. 

The Bangladeshi Bankers will visit Maybank today and have interaction with senior officials of Bank Negara Malaysia and Maybank. This is for the first time that ICC Bangladesh is organising such a workshop outside the country.

Vincent O’Brien, who is a highly experienced practitioner of International Trade Finance a long-standing member of the ICC Banking Commission from Ireland, will be conducting the workshop. ICC Bangladesh Secretary General Ataur Rahman is leading the team along with Deputy General Manager Ajay B. Saha.

The main objective of the workshop is to allow the Bangladeshi bankers to interact with their counterparts in Malaysia and also learn more about the latest rules and tools of international trade finance, understand international trade finance scenario based on real life cases and guide them to undertake secure and successful international trade and finance as well as to avoid risks in cross-border transactions.

The workshop will also help the bankers in understanding the new provisions and how the changes impact users with the confidence and legal certainty to trade in unfamiliar markets and save both time and money as well as how to achieve maximum practical benefit in everyday Documentary Credit Operations and Risk Management. 

News:Dhaka Tribne/23-Apr-2014

Government borrowing from BB becomes zero

Posted by BankInfo on Wed, Apr 23 2014 11:39 am

The condition yet to have positive impact on private investment, triggering concerns

The government’s borrowing from Bangladesh Bank has come down to zero at the end of March this year, reflecting strong and sound financial stability in the country.

However, officials said, the government is still worried over the lack of investment in the private sector, which might jeopardise the comfortable financial situation.

As the government has paid back the loan to the central bank, BB’s accounts of Over Draft Current (ODC) and Ways and Means Advance (WMA) came down to zero, said an official of the finance division yesterday.

He, however, feared the country’s economy might face a challenge in the near future unless the government enhances expenditure, increases the private sector credit and attracts more foreign direct investment.

The country‘s growth rate is hitting hard because of the sluggish private sector investment, the official further added.

The government normally borrows a significant amount of money from the central bank under its ODC and WMA programme to finance the budget deficit.

According to finance ministry sources, the matter was discussed at a recent fiscal coordination council meeting when the finance minister asked the ministries to vibrate private sector through ensuring more facilities and infrastructures for attracting more the private investment.

WMA and ODC accounts zero means there has been no inflationary pressure in the market because central bank prints necessary amount of money and the same situation had prevailed in 2010, according to the cash and debt management of finance division.

The government’s borrowing through ODC stood at Tk7,000 crore  and WMA Tk2,500 crore at the end of January 2014 against TK7,205 crore in June 2013. At the end of March this year, ODC and WMA of Bangladesh Bank came down to zero level while the central bank’s ODC surplus is Tk3,500 crore, according to the central bank data.

Cash and debt management wing of the finance ministry now plans to give long-term dues especially big amount of bonds payment within short time, said a source in the finance ministry.

The cash and debt management wing has already put a cap on the government's borrowing from the BB through ODC limiting it to Tk4,000 crore.  An ODC limit has been imposed from April 1.

The BB data showed that the credit growth in the private sector declined to 10.73% in February from 13.96% in the corresponding month of previous year.

The official said due to the fall in private sector credit growth, the banks were investing significant amount of fund in the government securities with a lower interest rate of 7% to 12.16%

Besides, the private sector credit growth remained stagnant at 11.1 % during the months of September, October and November in 2013 against the target of 15.5 %. As per the finance division data, bank borrowing stood at Tk8,730 crore at the end of December 2013, compared to Tk7, 213 crore in the same month a year before.

Finance ministry officials had tried to convince a visiting IMF review mission last week that the government would reduce the bank borrowing target to Tk24,000 crore from the Tk25,993 crore while  finance division showed that the bank borrowing was Tk5000 crore  at the end of March during the visit of IMF Extended Credit Facility mission, according to finance ministry official.

Disbursement of money for Annual Development Program is 47 % at the end of March in 2014, which was over 50% same period last year, according planning ministry data.

Professor Shamsul Alam, a member of general economic division of the planning ministry, said the   government spending would not be increased unless the capacities of the ministries and divisions are enhanced for implementing the development projects.

He also said the government was trying to boost private sector investment by constructing more infrastructure across the country.

President of Bangladesh Exporter’s Association Abdus Salam Murshedy said the private sector would be definitely vibrant if the government can create the environment. He said the idle money of banking sector now stood at around Tk100,000 crore at the end of March.

News:Dhaka Tribune/23-Apr-2014

 

 

Tk6,000 crore more sought for recapitalising state banks

Posted by BankInfo on Wed, Apr 23 2014 11:26 am

Fund sought for specialised banks too

The bank division of the Finance Ministry has sought Tk6,000 crore allocation in the upcoming budget for recapitalisation of the four state-owned banks.

The division has sought Tk700 crore for the same purpose for the state-owned specialised banks.

M Aslam Alam, secretary of the Bank and Financial Institutions Division, told the Dhaka Tribune that the four government banks needed more capital in the next fiscal year in line with Basel II.

Basel II, published in 2004, is an accord that intends to create an international standard for banking regulators to control how much capital banks need to put aside to guard against risks.

The four state-owned commercial banks in Bangladesh – Sonali, Janata, Agrani and Rupali – are said to have been robbed off their safe footing by major scams such as those staged by the Hall-Mark and Bismillah groups.

“The balance sheets of the state banks should be streamlined in order to ensure their survival...The development partners think that the state banks may collapse because of capital shortfall. So, they want to see recapitalisation in steps,” the secretary said.

He also said a negotiation had been going on with the Finance Division regarding the amount to be allocated in the coming budget for the purpose.

In September last year, the Finance Division once disbursed Tk4,100 crore to the state-owned banks so that they could address capital inadequacies. At the time, the aggregate capital shortfall of the four banks was over Tk8,000 core.

A senior official said the Finance Division needed to first know how well the banks had used that allocation before it could approve further funds.

According to sources in the Bangladesh Bank, in December last year, capital shortfall of Sonali Bank stood at Tk249 crore, Rupali Tk107 crore, Janata Tk404 crore and Agrani Tk92 crore.

The central bank has not audited the four banks since then, but an official said these banks might turn out to be Tk7,000 crore short of capital in the next audit.

In the audit, the banks need to show, among other things, impressive performance in reducing non-performing and default loans in order to get further recapitalisation allocations.

A recent study of the Business Monitor International, a London-based research firm, said Bangladesh’s banking sector was “seriously vulnerable to economic shocks” mainly because of the poor performance of the state-owned banks.

“The state banks had racked up a large amount of non-performing loans on their books, creating a flaw in the banking system,” said the study titled Bangladesh Commercial Banking Report 2014.

As of September 2013, the gross non-performing loan (NPL) ratio of state banks stood at 28.8%, up from 11.3% in 2011 and 23.9%in 2012.

On December 31 last year, the amount of default loans at the state banks was Tk16,606 crore or 19.76%of their outstanding loans, according to the Bangladesh Bank.

NPLs are sums of borrowed money for which debtors have not made scheduled payments for at least 90 days. A non-performing loan is either in default or close to being in default.

Dr Sadiq Ahmed, vice-chairman of the Policy Research Institute, slammed the government for the policy.

“Without first fixing the reasons for the deterioration in the portfolio of the state banks, simply providing funds from the treasury to beef up their capital base is equivalent to putting bandage on a cancerous wound,” he said.

News:Dhaka Tribune/23-Apr-2014

 

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