'Most of the big businessmen are the owners of the banks. So some profits go through the bench'

Bangladesh Bank has planned to encourage big industrial conglomerate to raise fund from the stock market to meet their investment needs.

The monetary policy statement announced yesterday said the central bank will continue to encourage big borrowers to access the capital market as banks will need to comply with the recently revised regulation on single borrower exposure limits for business groups.

“In order to fill the gaps in the financial landscape, BB intends to facilitate the role of private equity or venture capital sources of finance.”

Deputy Governor SK Sur Chowdhury said the central bank will ask the banks to take necessary measures so the big borrowers go to capital market for financing their projects.

Analysts appreciated the central bank move, but remained skeptical about implementation of the policy measure.

“It is a good move as financing to any business from the capital market is relatively lower than the banking sector. It will infuse dynamism in the capital market too,” said finance adviser to the last caretaker government Mirza Azizul Islam.

Big business people generally feel shy to go to the capital market, as it will ensure accountability and transparency of the business, he said. “Most of the big businessmen are the owners of the banks. So some profits go through the bench.”

But it will also affect in the profitability of the banks already sitting on huge idle fund, he added.

Recently, the central bank has tightened the single borrower exposure limit, saying if the rating of a credit risk grading turns out to be “marginal,” banks must not sanction the large loans.

If the big borrowers fail to provide sufficient collateral against the loans, they will fall into the “marginal” group on a scale of eight categories in credit risk assessment. Previously, the borrowers with insufficient collateral had qualified for such loans. 

 A meeting of the Shari’ah Supervisory Committee of Islami Bank Bangladesh Limited was held at Islami Bank Tower in Dhaka on Tuesday.

Mufti Sayeed Ahmad, Vice Chairman of the Committee and Head Mufti of Al Jamiatus Siddikiah Darul Ulum presided over the meeting, said a press release.

 Exim Bank Limited organised Annual Business Development Conference 2014 at a hotel in Dhaka on Tuesday.

The meeting discussed different issues relating to achievement of 2013 and compiling Annual Business Plan for 2014 which will bring a remarkable result at the end of the year by removing all difficulties, said a press release

 Shahjalal Islami Bank Limited distributed blankets among the people of Chapatola in Jessore as a part of the bank’s CSR recently.

Some 152 families got three blankets at a time, said a press release.

Five hundred blankets were also distributed among the poor people of Abahynagor and Nawapara area in the district.

Alhaj Syed Nurul Arefeen, Vice Chairman of the Board of Directors and Farman R Chowdhury, Managing Director of the bank distributed blankets.

Md. Shamsuddoha, Head of Public Relations Division, Jalal Ahmed, in charge of Foundation, Saidur Rahman, Manager of Jessore Branch and Khulna Branch Manager were present on the occasion.

KISHOREGANJ: Police detained more than 20 people, including Kishoreganj Sonali Bank branch manager Humayan Kabir Bhuiyan and its 11 officials, for interrogating about the looting of Tk16.40 crore from the branch.

Sources at Kishoreganj Model Thana said they detained 20-25 people, including 12 bank officials, from the bank branch in a drive from early Monday to noon for interrogation in connection with the burglary.

DGM Sheikh Amanullah of the bank filed a case against some unidentified people on Sunday night.

Police did not yet show anyone arrested in the case.

Meanwhile, AKM Fazlul Haque was appointed manager of the branch at the same night.

Besides, an investigation team, led by Managing Director of Sonali Bank Pradip Kumar Datta, was on way to visit the spot.

Earlier, eight policemen who were on duty at the bank branch during the possible time of the burglary were suspended on charge of neglecting duty.

Burglars tunneled into the vault of Sonali Bank’s main branch in the district town and looted about Tk 16.40 crore early Sunday.

The burglary that took place in a filmy style came to light on Sunday afternoon when bank employees went to the vault room for money.

Police and other law enforcing agencies kept the bank cordoned off after the incident.

News:Daily Sun/28-Jan-2014