Seven banks miss deadline to make earnings public

Most of the listed banks annual profits surged in 2013 on the back of the central bank’s relaxing rules on loan rescheduling to recover losses during political unrest in the second half of the year.

So far 23 out of 30 listed banks have announced their profit earnings but the remaining seven banks are yet to publish despite expiry of deadline for making earnings public. 

Annual profits of only six banks dropped and 17 banks soared.

Seven banks missed deadline to make their financial statements public in line with the listing regulation of stock exchanges.

The companies will have to make available financial statements before the expiry of three months from the end of each financial year even if the figure is provisional and subject to audit, according to the Dhaka Stock Exchange.

Though last year was a difficult year for banks as business activities were battered by the political turmoil, Bangladesh Bank’s move to relax loan rules helped them recoup losses, said analysts.

BB in a notice issued in December last year advised banks to reconsider loan rescheduling and down payments until June this year on a case-by-case basis for borrowers in all sectors affected by political turbulence.

IFIC Bank was the top profit earner as its profit growth jumped 230% to Tk137 crore compared to the previous year.

Profits of Dhaka Bank grew 151%, BRAC Bank 111% and Southeast Bank 105% during the period, according to the earnings per share disclosed on DSE website.

“The bank profits soar on the central bank’s move. Due to the move, there was a shift in the fourth quarter than the previous ones,” said a banker.

But the story behind BRAC Bank’s impressive growth is perhaps due to higher non-fund based income, said an analyst at BRAC EPL Brokerage Ltd.

The market, however, reacted cautiously to the positive profit-disclosures in the banking sector.

“Equity investors along with others concerned would have to wait for some time in order to get a true picture of the bank earnings because the rescheduled loans might default later,” said Md Moniruzzaman, managing director of IDLC Investments Ltd.

Last year, most banks experienced unsatisfactory credit flow due to political unrest and an increase in default loans, he said.

Mohammad Akib, an executive at Zenith Investments Ltd, said, “Banks yearly earnings were not so significant to generate buying interest among the investors.”

Seven banks that missed deadline to make financial statements public are Exim Bank, Rupali Bank, Standard Bank, National Bank Ltd, NCC Bank, Premier Bank and Shahjalal Bank.

All these banks apart from Standard Bank also failed to post their financial figures of 2012 within deadline and delayed more than three months.

The supposedly small-scale investors at a city brokerage on Thursday expressed their frustration over the delay to disclose financial information and the structural problem of not posting complete financial online before the annual general meetings.

According to them, the delayed disclosures raise possibilities of insider trading due to information asymmetry in the equity markets, leveraging the market in jitters.

“Three months is an enough time to announce yearly earnings for the banks, given all the data entries are usually done using advanced technologies,” said Shahidul Islam, chief executive officer of VIPB Asset Management Company Limited.

Overall, banks that saw better income than the previous year are giving higher dividends for 2013, according to the DSE. Despite the fact, banking shares fell by 3.16% last week on the premier bourse, disappointing investors the most. 

Managing Director of UCB Muhammed Ali and Additional Managing Director Mirza Mahmud Rafikur Rahman, along with other clients of the bank, are seen at UCB Remittance Fair and SME Entrepreneurship Meet in Sylhet on Friday. United Commercial Bank Limited organsied a remittance fair in Sylhet on Friday.

Managing Director of UCB Muhammed Ali inaugurated the fair as chief guest, said a press release.
During the fair, SME Conference and UCash distributors meeting were held.

SHERPUR: Agriculture Minister Matia Chowdhury said the government has decided to establish “Palli Sanchay Bank” in the country for easy bank transaction of rural farmers.

“We would set up a ‘Palli Sanchay Bank’ (rural savings bank) for rural people as well as farmers so that they could save money by utilizing their small savings,” she said at a rally at Nalitabari upazila parisad here.

The minister distributed seed, fertilizer, cash, cheque and rice of general relief among farmers under the incentive package.

During the distribution, Deputy Commissioner M Zakir Hossain, Superintendent of Police Mehedul Karim, upazila Awami League president Abdul Halim Ukil and general secretary Moksedur Rahman Lebu were present among others.

Matia said, “Rural people are getting old aged allowance, widow allowance, disable allowance and other aid, so that they could save their money.”

She said the Palli Sanchay Bank is already approved and rural people will be able for transaction through the bank. —BSS

As a part of financial inclusion program, BASIC Bank Limited participated in School Banking Conference-2014 at Chittagong for building awareness among the school going children to develop their savings habit and introduce them with banking services, reports in press release. Governor of Bangladesh Bank, Mr. Dr. Atiur Rahman distributed the BASIC School Banking Gift Bags among the school going children at BASIC Bank’s Stall recently.

The General Manager of the Bank, Mr. Md. Mozammel Hossain along with Mr. Md. Abdul Gofur Talukder, AGM, Mr. Md. Bodrul Haque, AM and Mr. Nazmul, JO of Agrabad Branch were also present on that occasion.

BASIC Bank Limited (Bangladesh Small Industries and Commerce Bank Limited) registered under the Companies Act 1913 on the 2nd of August, 1988, started its operations from the 21st of January ,1989.

It is governed by the Banking Companies Act 1991. The Bank was established as the policy makers of the country felt the urgency for a bank in the private sector for financing small scale Industries (SSIs).

At the outset, the Bank started as a joint venture enterprise of the BCC Foundation with 70 percent shares and the Government of Bangladesh (GOB) with the remaining 30 percent shares. The BCC Foundation being nonfunctional following the closure of the BCCI, the Government of Bangladesh took over 100 percent ownership of the bank on 4th June 1992.

Thus the Bank is state-owned. However, the Bank is not nationalized; it operates like a private bank as before. BASIC Bank Limited is unique in its objectives.

It is a blend of development and commercial banks. The Memorandum and Articles of Association of the Bank stipulate that 50 percent of loanable funds shall be invested in small and cottage industries sector.

Bangladesh Commerce Bank Training Institute recently organized a Training workshop on “Prevention of Money Laundering & Combating Terrorist Financing”.CEO & Managing Director, Abu Sadek Md. Sohel inaugurated the course as Chief Guest. Among others as special guest M. Ebadat Hussain, EVP, Principal of the Institute M Abu Hena & Md. Mobarak Hossain, AVP and Faculty member were present on the occasion.

Become a bank of first choice by the customers with meaningful contributions to the society.

Bangladesh Commerce Bank Limited is committed to fulfill its customer’s needs and become their first choice in banking so that a sustainable growth, reasonable return and contribution to the socio-economic development of the country can be ensured with a motivated and professional work-force.