Islami Bank Bangladesh Limited organised Business Development Conference for its officers for Comilla, Sylhet and Noakhali zonal offices in Comilla. 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, said a press release. Md. Nurul Islam and Syed Abdullah Mohammad Saleh, Deputy Managing Directors also spoke.

News: Daily Sun/Bangladesh/04-Nov-12

The Bangladesh Bank has signed a package agreement styled “IT System for CRT and STR” with Thakral Information Systems Pvt Limited on providing IT supports.

Under the agreement, Thakral Information Systems Pvt Limited will supply hardware infrastructure and other essential accessories for the central bank.

The IT support would be required to implement the World Bank funded the Central Bank Strengthening Project (CBSP) aiming at strengthening the capacity of the BB.

The CBSP, launched in 2003 with the financial support of the World Bank, nears completion as most part of the scheme has been completed. Recently, the BB constituted Bangladesh Financial Intelligence Unit (BFIU) in a bid to beef up its money laundering protection activities.

Md Ahsan Ullah, Project Director of CBSP and Executive Director of Bangladesh Bank, and Shahjahan Majumder, Chief Executive Officer of Thakral Information Systems Pvt Limited signed the agreement on behalf of their respective organisations.

Naznin Sultana, Deputy Governor of Bangladesh Bank, ANM Abul Kashem, high official of CBSP and representatives of Thakral Information were present at the signing ceremony. It is expected that with implementation of the CBSP, the Bangladesh Bank would be established as one of the strongest banks in the region.

News: Daily Sun/Bangladesh/03-Nov-12

Md Shafiqur Rahman has been promoted to Managing Director (MD) of Social Islami Bank Limited (SIBL) effective from October 1, 2012.

Shafique, a post graduate in commerce of the University of Dhaka and an associate of the Institute of Bankers, Bangladesh, was DMD of SIBL since 2012.

A seasoned banker with professional banking career for over three decades, Shafique started his career as probationary officer in Sonali Bank Limited in 1977. During his long career, he held various important positions in Sonali Bank Limited as manager of different branches across the country until 2003 including manager of its local office.

He also served Agrani Bank as general manager in 2003 and also manager of its principal branch. He had also worked at Jamuna Bank Limited and South-East Bank Limited as Senior Executive Vice President.

Having worked in various key positions in bank, Shafiq has attained specialisation in almost all areas of banking like investment, foreign exchange, HR, and information technology, treasury and branch management.

In SIBL, he played leadership roles in the management and operation of different divisions like investment risk management, retail and trade finance, RMG and textile and centralised trade processing.

News: Daily Sun/Bangladesh/03-Nov-12

Islami Bank Bangladesh Limited Friday organised Business Development Conference for Chittagong North and South zones. Prof. Abu Nasser Muhammad Abduz Zaher, Chairman of the bank spoke at the function as chief guest.

Mohammad Abdul Mannan, Managing Director of the bank presided over the programme.

Md. Nurul Islam and Syed Abdullah Mohammad Saleh, Deputy Managing Directors, Rafi Ahmed Begh, Mohammad Monirul Moula and Mohammad Amirul Islam, Executive Vice Presidents and Md. Kamal Uddin Jasim, Senior Vice President and head of Business Promotion and Marketing Division attended.

News: Daily Sun/Bangladesh/03-Nov-12

Rezaul Karim

---

The rate of cancellation of import-related letters of credit (LCs) has increased significantly because of disagreement between importers and exporters and volatility in prices of the commodities/items on the global market, official sources said.

Profit earning of banks from LCs has shrunk due mainly to scrapping of a large number of import document in the recent times, they said.

"Most of the LC cancellations occurred due mainly to faulty agreements and loopholes in conditions agreed upon by the buyers and the sellers," an executive director of the central bank told the FE on Wednesday.

The LCs for import of items worth US$ 2558.42 million were cancelled in 2011-12 fiscal, the Bangladesh Bank (BB) data showed.

Such cancellations were worth $1881.88 million in the 2010-11 fiscal.

The LC cancellations increased by 26.44 per cent in the last fiscal over that of the previous one, according to the BB statistics

"If a large number of LCs were not cancelled by importers and exporters, the respective banks would get the service charges against the LCs. Such service charges would have helped the banks to earn more profit. Since the opposite is happening, the banks' profit from the area is declining," the foreign exchange branch manager of a private bank told the FE.

A number of LCs against various items were also cancelled because of the drastic fall in the prices of commodities in the international market, officials said.

The cancellation of LCs increased last fiscal year owing to the ongoing financial meltdown across the world, a BB high official said.

The LCs for consumer goods worth US$ 256.93 million were cancelled in the fiscal 2011-12.

The BB officials, however, expressed concern over the rising trend in the cancellation of LCs of essential items, saying that the rate of cancellation may go up further in the near future if the prices of the same continue to fall.

The LCs for intermediate goods worth US$ 126.98 million, industrial raw materials worth $1164.91 million, petroleum and petroleum products worth $158.28 million, capital machinery worth $205.81 million, miscellaneous industries worth $244.27 million and others worth 401.25 million were cancelled in the fiscal 2011-12, the BB data showed.

Besides, the LCs for importing goods worth US$ 205 million were cancelled in July-August in the current fiscal.

The BB official said the increased cancellation of LCs might create pressure on the supply situation of commodities in the local market.

"The consumers are not getting any benefit from the declining trend in prices of commodities on the global market due mainly to the lack of proper monitoring by the government," a PCB (private commercial bank) official added.

News: The Financial Express/Bangladesh/02-Nov-12