The credit- or advance-deposit ratio in the banking sector continued to decline in February this year due to a dull business environment, said Bangladesh Bank officials.
According to the latest BB data, the ADR in the banking sector dropped to 70.35 per cent as of February 20, 2014 compared with that of 76.20 per cent as of February 14, 2013.
The ADR was 76.59 per cent as of December 31, 2012 and 80.33 per cent as of June 7, 2012.
A BB official told New Age that the businesspeople had adopted a ‘wait and see’ approach to expansion of their business by getting credit from banks due to the political unrest in the run up to the January 5 national polls that hit the ADR in the banking sector.
Uncertainty still persists in the business sector, he said.
He said, ‘We earlier hoped that the country’s business situation would get tempo in the second half of fiscal year 2013-14. But, the business sector is yet to get the momentum due to lack of confidence.’
For this reason, the ADR, one of the most important business indicators for the banks, has been hovering at the range of 70 per cent since December, 2013.
The BB data showed that the ADR declined in almost every month since the second half of the financial year 2012-13, he said.
A significant number of banks faced losses in the concluded year and they will suffer same situation if they see dull ADR also in the months to come, the BB official said.
In 2013, the ADR in the banking sector was 76.95 per cent as of January 10, 76.28 per cent as of February 7, 75.28 per cent as of March 14, 75.26 per cent as of April 25, 74.90 per cent as of May 2, 74.01 per cent as of June 13, 73.35 per cent as of July 11, 73.34 per cent as of August 1, 71.65 per cent as of September 26, 71.85 per cent as of October 21 and 71.91 per cent as of November 14. The ADR was 70.84 per cent in January 30, 2014.
As per BB rules, the conventional commercial banks are not allowed to invest more than 85 per cent of their deposits while Islamic banks and Islamic wings of the conventional commercial banks can invest up to 90 per cent of their deposits.
A number of banks had crossed the ADR limit in 2011 and 2012, violating the BB rules but the situation changed totally last year as the credit demand from the private sector continued to decrease, the BB official said.
The BB data showed that the ADR in 23 out of 56 banks declined below 70 per cent as of as of February 20 of this year.
The 23 banks are Agrani Bank (56.12 per cent), Bangladesh Commerce Bank (66.43 per cent), Citibank NA (34.09 per cent), Commercial Bank of Ceylon (55.37 per cent), Dutch-Bangla Bank (67.89 per cent), Farmers Bank (23.46 per cent), HSBC (56.21 per cent), Jamuna Bank (63.97 per cent), Janata Bank (61.18 per cent), Madhumati Bank (15 per cent), Meghna Bank (65.65 per cent), Midland Bank (64.02 per cent), Mutual Trust Bank (68.44 per cent), NRB Bank (24.10 per cent), Prime Bank (67.47 per cent), Pubali Bank (67.34 per cent), Rupali Bank (59.82 per cent), Sonali Bank (50.85 per cent), South Bangla Agriculture and Commerce Bank (65.36 per cent), StanChart (61.55 per cent), State Bank of India (51.89 per cent), Uttara Bank (56.17 per cent) and Woori Bank (58.43 per cent).
NCC Bank holds business review meeting
A business review meeting for the executives of head office, managers and deputy managers of Dhaka-based branches of NCC Bank was held at NCC Bank Bhaban in Dhaka on Thursday.
Md. Nurun Newaz Salim, Chairman of the bank attended the conference as chief guest, said a press release.
Golam Hafiz Ahmed, acting Managing Director of the bank presided over the conference while Deputy Managing Director Akhtar Hamid Khan, Senior Executive Vice Presidents Md. Fazlur Rahman and AZM Saleh, other senior executives and managers and deputy managers of different branches attended the function.
During the meeting, bank’s performance has been evaluated and all concerned were urged upon to put their sincere efforts to continue its growth and enhance the image of the bank as well.
Doha Bank to purchase HSBC Bank Oman business in India
DUBAI: Qatar-based Doha Bank has entered into an agreement with HSBC Bank Oman to purchase the latter’s banking business in India. HSBC Bank Oman is an indirect 51% owned subsidiary of HSBC Holdings plc.
Chairman of Board of Directors of Doha Bank, Sheikh Fahad Bin Mohamed Bin Jabor Al Thani, said that all staff of this operation (the business) will be transferred to Doha bank as a part of the purchase.
“The business being acquired consists of its two branches and had gross assets of Rs 3.5 billion (about $58 million) as on 31.12.2013,” he said.
Sheikh Fahad Thani also said that the transaction is subject to the approvals of Regulatory Authorities in Qatar, India, Oman and Jersey. Doha Bank was incorporated in 1978 and commenced its banking business (including its International Banking services) in Doha, Qatar on March 15, 1979.
BKB disburses Tk 45cr farm loan in Narsingdi
NARSINGDI: Bangladesh Krishi Bank (BKB) Narsingdi region has disbursed over Taka 45.20 crore as agricultural loan among 52,800 farmers in six upazilas of the district during the last nine months of the current fiscal year.
Official sources said the BKB earmarked Taka 65.35 crore for disbursement as agriculture loan in the district during the current fiscal year. The per centage of the distribution by the bank in the region stood at 70 per cent on April 15. Meanwhile, the BKB realised Taka 51.82 crore outstanding loan against the target of Taka 65.29 crore during the same period.
The per centage of loan recovery by the bank stood at 79 per cent on April 15. The BKB generally distributes the agriculture loan for the cultivation of Aman paddy, Boro paddy, wheat, banana. papaya, vegetables, maize, pulse, setting of poultry and dairy farms, pisciculture and purchasing of irrigation equipment.
ADB appoints new country chief
The Asian Development Bank has appointed Kazuhiko Higuchi as the new country director for its Bangladesh resident mission.
‘I am looking forward to working for Bangladesh, and the people of Bangladesh,’ Kazuhiko Higuchi was quoted as saying in a statement by the ADB in Dhaka on Thursday.
‘Bangladesh is progressing fast and ADB will continue to make every effort to support Bangladesh’s endeavour toward further reaping the potential of the country,’ he said.
Higuchi succeeds M Teresa Kho, who moved to become the country director for ADB’s resident mission in New Delhi, India in February this year. Higuchi is expected to assume his new position on April 22.
Higuchi, a Japanese national, joined the ADB in 1988, and has since worked on transport, water supply, and urban development projects, as well as on portfolio management, procurement, and office management.
Prior to this assignment, he was in Uzbekistan as ADB country director, a post he had held since 2009.
From 2005 to 2009, Higuchi was director of the Transport and Communications Division of the South Asia Department of ADB, managing ADB’s operations in the transport and communications sectors in Bangladesh, Bhutan, India, Maldives, Nepal, and Sri Lanka. From 2002 to 2005, he was posted in Kazakhstan as ADB country director.
Higuchi holds a Master of Science degree in construction management from Loughborough University of Technology, UK, and a Bachelor’s degree in civil engineering from Tokyo Metropolitan University, Japan.
ADR in banks continues to fall