Bangladesh Bank has recently asked scheduled banks to submit business plan on how to bring down their excess investment limit in the capital market by July 2016.

To this end, the central bank issued separate letters in the last few weeks to managing directors and chief

executive officers of the banks, whose investment limit was now hovering higher than the BB’s ceiling, asking them to place their plan.
As of December last year, banks and their subsidiaries’ exposure stands above 50 per cent of their capital on an average. It stands at 150 per cent for many.

The central bank set separate deadline for the banks to place their business plan to the BB, an official of the

central bank told New Age on Sunday. 
He said that the central bank had taken the initiative, as the capital market would face a difficult situation if a

number of banks withdraw their investment jointly.

Under the circumstances, the BB asked the banks to bring down their excess investment gradually.

According to the latest BB circular, the market value of total investment of a banking company in capital

market on consolidated basis shall not exceed 50 per cent of the sum of its consolidated paid-up capital,

balance in share-premium account, statutory reserve and retained earnings in accordance
with their latest audited financial statements.

Besides, the banks, which run subsidiaries for the capital market investment, have to reduce their exposure in the capital market in line with the central bank’s directives.  

Previously, banks’ exposure-limit on the stock market was 25 per cent of their respective capital.

At a bankers’ meeting, the BB governor on February 18 warned the banks against excessive exposure to the

capital market in a bid to avoid a bubble burst witnessed in the previous tenure of the Awami League  government.

The stock market saw a boom when the Awami League-led government came to power in 2009. 

The market later went through a debacle, which analysts blamed on excessive investments by the banks.

On September 16, last year, the central bank had asked all the commercial banks to reduce their capital

market exposure to 25 per cent of their equity by July 2016 for the first time to comply with the new bank company act.
The BB, however, changed the banks’ investment ceiling in the capital market on February 27, 2014.

The Modhumoti Bank Independence Cup Football tournament starts from March 22 at Bangabandhu National Stadium, Kazi Salahuddin, President of Bangladesh Football Federation stated this at a press conference at

Bangladesh Football Federation (BFF) conference room yesterday. Modhumoti Bank came forward to sponsor the tournament and vowed to support football in the MoU signing and draw ceremony at the BFF conference

room. Twelve teams are participating in the tournament. The teams are, BJMC, Feni Soccer, Rahmatganj, Abahani Ltd, Dhaka Mohammedan, Arambagh, Sheikh Jamal, Muktijoddha, Uttar Baridhara, Sheikh Russel, Brothers Union, Chittagong Abahani.

 
Sheikh Fazle Noor Taposh, MP, the chairman of the Executive Committee of Modhumoti Bank said, “I believe

football is still the mass people’s game where everyone enjoys the passion of the beautiful game, we are here to support football and believe it will one day fulfil the expectations.”

BFF president Kazi Salahuddin said, “I welcome Modhumoti Bank in our football world, I have every belief that

Bangladesh would become the top footballing nation in the sub-continent and we need some support from

the sponsors, I hope Modhumoti Bank will continue the involvement with football.” 

Director of the Bank, Mijanur Rahman, BFF Senior Vice President Abdus Salam Murshedy, executive committee members were also present at the occasion.

The World Bank has provided the highest amount of foreign aid to Bangladesh since independence till the last 

fiscal year (2012-13) with an amount of over $ 13.1 billion out of the country’s all major bilateral and

multilateral development partners, reports UNB. The Washington-based lending agency has provided an

overall amount of $ 13,113.0 million to Bangladesh till the last fiscal year, according to the latest data of the ‘Flow of External Resources into Bangladesh 2012-13’ released by the Economic Relations Division (ERD).

Of the overall disbursed amount by the World Bank, $ 12,550.7 million are in the form of loans while $ 562.3 
million in the form of grants.

The flagship ERD publication showed that the Asian Development Bank provided the 2nd highest of $ 9,130.2 million followed by Japan $ 7,449.7 million.The United States came up with the 4th highest amount of foreign aid of $3,550.3 million followed by UN System 

$ 3,061.8 million, UK $ 2,298.0 million, Canada $ 2,138.6 million, Germany $ 1,788.1 million, EU $ 1,620.3 million, Netherlands $ 1,180.6 million and Unicef $ 1,038.3 million.

The other major notable development partners who have come up with assistance from 1971-72 fiscal year to 2012-13 fiscal year are Denmark $ 947.2 million, Saudi Arabia $ 904.7 million, Sweden $ 857.3 million,

Norway $ 712.5 million, France $ 581.0 million, IDB $ 579.1 million, India $ 453.4 million and Australia $ 437.3 million.

According to the latest ‘Flow of External Resources into Bangladesh’, the overall foreign aid disbursement

since the country’s independence till the last fiscal year totalled $ 59,311.657 million, including $ 24,661.358 million in grants while $ 34,650.229 million in loans, against the commitment of $ 81,049.174 million.

During the last 42 years from 1971-72 to 2012-13, the foreign aid commitment was much higher totaling $ 81,049.174 million, including $28,495.934 million in grants while $ 52,553.240 million as loans, the ERD publication showed.

 Jamuna Bank Foundation (JBF) organised a voluntary blood donation programme and free eye camp, gynae and general treatment at Sreemongol in Moulvibazar recently.

Kanutosh Majumder, Chairman of Jamuna Bank, inaugurated the ceremony as chief guest, said a press release.

Alhaj Nur Mohammed, Chairman of Jamuna Bank Foundation, presided over the function.

Mosharraf Hussain and Md Atiqur Rahman attended the function as special guests while Shafiqul Alam, Managing Director of Jamuna Bank was guest of honour.

 Mutual Trust Bank Ltd. (MTB) launched “Bangla Cash”, the bank’s Mobile Financial Services (MFS) at the MTB Centre at Gulshan in Dhaka on Saturday.

Rashed Ahmed Chowdhury, Chairman of the bank unveiled the “Bangla Cash” logo as the chief guest. Mustafa Rafiqul Islam, Chairman and Managing Director, Flora Telecom Ltd and Anis A. Khan, MD and CEO of MTB were present, said a press release.