Islami Bank Bangladesh Limited (IBBL) has organised a day-long conference on rural development scheme for its project officers at the Institution of Diploma Engineers Bangladesh in the city yesterday.

Engineer Mustafa Anwar, Vice Chairman of the Bank inaugurated the conference, said a press release.

Prof. Abu Nasser Muhammad Abduz Zaher, Chairman of the Bank was present as chief guest while Mohammad Abdul Mannan, Managing Director of the Bank presided over the function.

Among others, engineer Md. Eskander Ali Khan, Hafizul Islam Mian, Engr. Mohammad Dawood Khan, Professor Mohammed Nazrul Islam, Abdus Salam FCA, FCS.

The Daily Sun/Bangladesh/ 6th March 2012

Bangladesh Bank Governor Dr Atiur Rahman urged the commercial banks to disburse credit for installing renewable energy projects in a bid to reduce country’s energy crises as well as generate employment.

Stressing on potentials of setting up renewable energy projects like bio-gas and power generation units from bio-gas, the governor urged the commercial banks to finance these initiatives.

He said BB has initiated a refinancing scheme with Tk 2 billion fund for the renewable energy sector.

Governor made the remarks while addressing a meeting organised by the Agriculture Credit Department of Bangladesh Bank (BB). The representatives of private sector and foreign commercial banks in the country attended the meeting at the BB conference room on Monday.

BB Executive Director SM Moniruaman presided over the meeting while General Manager of the Agriculture Credit Department, Nirmal Chandra Vakta, other senior officials of the department and representatives from the private commercial banks and foreign banks were present.

Khondoker Mojammel Haque, Managing Director of Enterprise Development Company Ltd (EDCL) and Monirul Islam, Vice President of Eastern Bank Ltd made power point presentation.

Mrinal Sarker, Programme Manager of IFC made a presentation on the occasion.

The Daily Sun/Bangladesh/ 6th March 2012

Jim McCabe

Standard Chartered Bank will continue to improve its services in Bangladesh to outperform its competitors as the country offers a huge opportunity, a top official said.

"Our future looks brighter in Bangladesh. But we don't take it for granted," Jim McCabe, chief executive officer of the Bank for its Bangladesh operations, told The Daily Star last week.

His comments came as the emerging markets-focused Bank saw a record net profit of $4.75 billion (3.53 billion euros) in 2011. Last year was the Bank's most profitable year on record.

Its net profit was up 12 percent from the year before, thanks to operating income of $17.64 billion.

It was the ninth successive year of record income and profit as continued strong performances in developing markets offset woes in Western economies that are now under pressure and struggling to recover from the global financial crisis.

"In the last several years, it has been a good growing story for us. This year will be the tenth. Everybody is so focused to make it 10 in a row. No financial institution in the history can say that. Every big bank has suffered a setback at some points in the last nine years."

"What charms me is that our footprint still looks very good. It could be very good in 2012."

He said the Bank's future looks bright in Asia, which accounts for more than 75 percent of its profits, as the region is increasingly becoming the bedrock of the global economy amid a shift in economic and political power from West to East.

"Apart from Asia, our footprint is in Africa and the Middle East. These markets are continuing to prosper and are the recipient of investment. Our strong presence in this part of the world has given us plenty of opportunities to grow."

He said the record results continue to give the Bank the stronger platform in this part of the world. "And our customers look to us for more and more primary provider of financial services."

"We have a strong customer and client base. We have continued to deepen our relationship with them everyday."

Standard Chartered, headquartered in London, is the only global Bank to have been upgraded by all ratings agencies since the financial crisis in 2008. The Bank has already met its Basel III capital funding ratio.

"We have a very strong capital base. We have a very strong liquidity position. As an institution, the Bank is in a very good shape. We are the largest correspondence Bank in the world. We are the Bank of the bankers."

The Bank now operates in 72 countries.

"We are making good use of the branches and make very good use of our distribution network. In each country we have a proper strategy and proper focus on the size and products and customers according to what we are allowed to do."

McCabe said the Bank is working hard to maintain a solid pool of liquidity. "I must say, up until today we have been very successful. It's difficult to always maintain sufficient liquidity when markets are a little bit constricted."

On interest rates in Bangladesh, he said he thinks any high interest environment puts pressure on everyone.

"The government is trying very hard to contain inflation. We are trying very hard to control what is not necessary so that all of the productive parts of the economy can be given the best resources possible to keep growing."

The Bank is also closely working with the central bank on sovereign bonds.

He said the market appetite for Bangladesh's sovereign bonds is strong, as Bangladesh plans to raise $500 million from the bond market.

"In the conventional marketplace, $500 million will be a lower level to issue bond. But $500 million is a good number to start with."

It is likely that the bond could be launched in 2012.

The StanChart chief executive said Bangladesh is an important market for the Bank. "We have a very, very long history here. This is a market that is a priority for the Bank. All of our resources, capabilities and advices are available."

"Our business is growing and doing very well in all fronts -- consumer and wholesale banking. We have a healthy growth. The growth here in Bangladesh is certainly no different from the parent company."

He said Bangladesh was ranked in the top 13 or 14 countries globally that have driven the record profit of the Bank.

He also said the Bank's SME business is growing. That is one of the key growth areas of the Bank.

McCabe said the Bank is always focused on improving services, as people make many decisions on the basis of the services they receive. "We want to out-serve everybody.

McCabe said the Bank uses its leadership position to brand Bangladesh's companies abroad.

"We are introducing more products. We are also finding ways to improve cash flow and cash management and electronic fund transfer."

He said, in case of high interest rate environment, time is really money and it really matters more when money costs more. Anything that is productive and quicker is adding value to the companies.

In Bangladesh, the Bank has 1,300 staff and 250,000 customers in the consumer banking and 400 in the corporate clients.

McCabe said the recent developments in Bangladesh's economy are not unexpected.

"What is happening in Bangladesh was forecast. This is not something surprising. Everybody knew that power utilisation is rising in early stages. There would be a greater demand in fuel oil usage."

"There will be an increase in imports. We all knew inflation would rise. We knew that balance of payments would be tighter. All these things were identified nine months to one year ago."

"What is happening today is not unusual and wrong. It just needs to be managed properly. The government is working hard to try and manage it."

Bangladesh had a fantastic run of so many years of growth, he said.

“It will have another year of growth. Because of the external pressures it would be challenging. Infrastructure built up in the country is very significant. There are just some short-term pressures on the economy."

He said their strategy for Bangladesh is sound. "We are optimistic about the country's future. In the next five years, it would continue to grow and play an important role in the region."

"Everything Bangladesh makes is of good quality. It is true that during high inflation people get scared. But this is part of the Bangladesh's growth and development as it moves forward.

He said there are some infrastructure challenges in Bangladesh and the country would have to manage them with the realities with right infrastructures.

McCabe also said it is not true that foreign banks have higher spread in Bangladesh. "We don't charge the most. Other local banks charge more. We don't pay the least on deposits. We are very proud that we are more efficient than anybody else. That efficiency is worth a lot especially as rates rise."

He rules out any plan to be listed on the Bangladeshi stockmarket for now.

The Daily Star/Bangladesh/ 6th March 2012

Prime Minister Sheikh Hasina on behalf of National Bank Limited (left) handing over cheques for Tk. 24 lac for 4th year to the families of five army officers held at a simple ceremony at Gono Bhaban in the city recently. The Prime Minister on behalf of NCC Bank also handed over another cheque worth Tk. 4.8 lac as yearly contribution for 4th year to Dr. Rowsan Ara Begum, wife of Lt. Col. Lutfur Rahman.

Financial Express/Bangladesh/ 5th March 2012

The government is set to receive US$200 million as syndicated loan from overseas sources for importing petroleum products, officials said Sunday.

Three foreign commercial banks (FCBs) are mobilising the loan from the global market for the state-run Bangladesh Petroleum Corporation (BPC) at 5.25 per cent rate of interest.

The banks are Standard Chartered Bank, Hongkong and Shanghai Banking Corporation Limited, generally known as HSBC, and Citibank N.A.

"All official formalities have been completed. The SCBs are scheduled to start disbursing the loan from Tuesday (March 6)," a senior official of the Bangladesh Bank (BB) told the FE.

He also said the hard-term loan committee has already approved the loan proposal to ease pressure on the country's foreign exchange reserve.

"The loan will help keep the foreign exchange market stable to some extent," another BB official said, adding that the loan will be treated as 'revolving facility' initially for a period of one year.

The latest move of the government came against the backdrop of reluctance on the part of the state-owned commercial banks (SCBs) to open letters of credit (LCs) for importing fuel oils by the BPC.

The dues of BPC with five state-run banks stood at more than Tk 170 billion till January 2012.

The BPC's overdues to the banks have gradually been rising in the recent times. As a result, the banks are facing liquidity problem.

Financial Express/Bangladesh/ 5th March 2012