The printing of banknotes in obsolete machines has put the country and its people at risk of being counterfeit victims. Other important and security materials are also being printed amid risk.

A banknote [known as a bill, paper money or simply a note] is a type of negotiable instrument recognized as a promissory note, made by a bank, payable to the bearer on demand.

According to sources, the Security Printing Corporation Bangladesh Ltd [SPCBL], an organization entrusted with printing banknotes, non-judicial stamps and other important documents, cannot print required number of banknotes and match colour due to manpower shortages and dilapidated condition of the machines.

People within the government and the Board of Directors of SPCBL apprehended a great disaster if the organization fails to publish required number of quality banknotes and other sensitive documents.

This apprehension was expressed at the 178th board meeting of SPCBL presided over by its chairman and Bangladesh Bank Governor Dr Atiur Rahman on September 6, 2012.

Most of the machines used for the printing of banknotes and other important documents were purchased at the outset of SPCBL. Now new machine was set up before 2009-10 financial year.

Intaglio printing technology called Super Orlof Intaglio (SOI) press is used to print banknotes. As worm gear [a part] of SOI decays day by day, the whole machine becomes out of work. Parts of the 27- year-old press are not available in the local and international markets.

Finding no alternative, the authorities concerned made duplicate parts from Bangladesh Industrial Assistance Centre (BITAC) to run the press somehow.

A report submitted in the board meeting said required number of banknotes cannot be printed as long time is being wasted in matching colour. On the contrary, colour of notes cannot be matched properly when more number of notes is printed.

It is known that a number of one hundred thirteen crore eighty four lakh pieces of banknotes and one thousand two hundred seventeen crore and fifty seven lakh other security products (OSP) have been printed from this press in the current year.

Cheque books of various nationalized and private banks including Bangladesh Bank are printed from the SPCBL. A cheque book finishing machine was purchased from France for cutting, stitching and binding.

The corporation is not being able to meet the demand despite using the machine for two shifts round the year. Apart from this, the machine’s operational efficiency and the standard of the produced products has declined. The multi-cut unit of the machine remained inactive for the last two years.

According to the information placed in the board meeting, the demand of cheque books was 11,260,200 in the fiscal year 2011-12. Using the machine in two shifts, it is possible to produce around 24,000 cheque books everyday by the existing machine.

Counting 22 days as working day in a month, it is possible to produce some 63 lakh cheque books in a year (264 working days).

So another machine is essential for printing the cheque books. Also, an approval has come from the board meeting to purchase one more machine.

Former governor of Bangladesh Bank Dr. Saleh Uddin Ahmed said the printing activities of stamps, band rolls and many other important printing are being accomplished at the Security Printing Corporation besides printing notes.

So, machines with modern technology are needed for use in the corporation and it is important to ensure the quality of the work as many important printings of the state are served from here.

News: Daily Sun/Bangladesh/15-Sep-12

Disbursement of loans by Bangladesh House Building Finance Corporation (HBFC) increased by about 32.88 percent in fiscal 2011-12 compared to that in the previous fiscal.

During the period, the realization of loans increased by about 7.43 percent. This was disclosed at a conference of HBFC zonal and regional managers at HBFC auditorium in the city.

The meeting was told that the HBFC disbursed loans amounting to Taka 298.8 crore in 2011-12 and realized Taka 444.15 crore.

The organization disbursed Taka 224.33 crore and realized Taka 413.45 crore in 2010-11.

Prime Minister’s Adviser on Public Administration HT Imam attended the conference as the chief guest while HBFC Managing Director Dr M Nurul Alam Talukder was in the chair.

HBFC Board of Directors Chairman M Yasin addressed the function as the special guest.

Speaking on the occasion, HT Imam highlighted various success of the government and said that the country attained 6.5 percent growth despite global recession.

News: Daily Sun/Bangladesh/15-Sep-12

Bangladesh Bank (BB) Governor Dr Atiur Rahman Thursday directed all the commercial banks to immediately go for initiating legal procedures, including filing criminal cases, if any fraudulence in lending and other banking transactions is detected.

The governor also directed the banks to pay the outstanding L/C (Letter of Credit) bills within next 15 days (from Thursday) as accepted bills amounting to $363 million (Tk 30 billion approximately) with different banks remained unpaid though deadline expired in June last.

Dr Rahman was exchanging views with chief executive officers (CEOs) of different commercial banks at the bankers meeting held at the central bank headquarters in the capital.

At the meeting, the governor said that the central bank as a regulator would maintain zero tolerance against weak monitoring and reluctance in taking legal and disciplinary actions against fraudulence activities in banks.

“The BB will bear down harder on banks, of which, the boards and senior managements display laxity in carrying out respective duties properly regarding identification and prevention of fraudulence activities,” Dr Rahman told the bank CEOs.

He maintained, “I would urge you all to bear this in mind; and thus to strengthen and maintain utmost alertness in maintaining lending disciplines and internal audit and controls; taking appropriate disciplinary and legal criminal proceedings immediately as any fraudulent activity is detected.”

Turning to the recent Hallmark’s loan-forgery from Sonali Bank, the governor urged top bankers to create and ensure an environment so that depositors could not be gripped by panic.

“Keep continue respective banking operations normally; and take rigid stance against fraudulence activities and create trustworthiness among clients,” Dr Rahman told bankers.

Deputy Governor SK Sur Chwodhury, while briefing reporters after the meeting, said that the central bank inspection teams and the Sonali Bank management is working to probe into the Hallmark’s loan-forgery in order to find out remaining facts by investigating in all 26 banks, which are involved in lending to the little-known company.

“In-depth investigation is being carried out in concerned branches of 26 private banks about their lending linked to Hallmark Group to dig out other facts whether the officials in other banks were involved in it,” Chowdhury said.

While replying to questions regarding pending payments by Sonali Bank to other banks against accepted L/C bills worth Tk 10 billion, Chowdhury said managing director (MD) of Sonali Bank Pradip Kumar Dutta sought ‘little time’ to repay banks.

“Since Sonali Bank accepted the L/C bills, it must pay, as per the banking regulations. The bank’s MD sought little time,” he added.

Chwodhury said the outstanding L/C bills accepted by different banks amounting to $ 363 million remains unpaid to corresponding banks though deadline expired in last June.

Of the amount, $ 319.60 million (Tk 26 billion) is against 6746 inland L/C bills of both local and foreign currency and $ 43.34 million (Tk 3.30 billion) against 514 foreign L/C bills, he said.

Chowdhury said banks were directed to pay the accepted L/C bills by 15 days from Thursday (September 13).

He said the Bangladesh Foreign Exchange Dealers Association (BAFEDA) and the ABB (Association of Bankers, Bangladesh) would jointly initiate arbitration between the banks (L/C recipient bank and the bank at the other-end) regarding payment of accepted L/C bills in case of failure by any bank on expiry of 15 days.

“If the arbitration does not works, the central bank would exercise its authority to pay the dues and debit the amount from the account of the corresponding bank that fail to make the claimed payments,” he said.

At the meeting, other agendas discussed including implementation of the Bangladesh bank’s circulars on loan provisioning for classification and rescheduling, SBS (Scheduled Banks’ Statistics) II and III, bringing the bank spread (the gap between interest rate for deposits and lending by banks) to lower-single digit (below 5 percent), Cash Deposit Ratio (CDR) and capital adequacy requirements in accordance with the Basel II criterion.

Chowdhury said CEOs of banks were urged to seek the central bank help in adjustment of loan provisioning if any bank faces difficulties.

Regarding the demand of ‘more time’ to implement the circulars on loan provisioning by bank CEOs, Chowdhury said, “It was not settled right now. We are working on it.”

News: Daily Sun/Bangladesh/14-Sep-12

The 360th Executive Committee meeting of Board of Directors of Al-Arafah Islami Bank Ltd was held at the board room of the bank Thursday.

Al-hajj Abdus Samad, Chairman of the Executive Committee presided over the meeting, said a press release. The meeting reviewed overall business performance of the Bank.

Al-hajj Abdul Malek Mollah, Vice-Chairman, Al-hajj Md. Harun-Ar-Rashid Khan, Al-hajj Nazmul Ahsan Khaled, Al-hajj Hafej Md. Enayetullah, Al-hajj ANM Yeahea, Members, KM Abdul Wadud, General Manager of Bangladesh Bank, Ekramul Hoque, Managing Director of the Bank and Md. Mofazzal Hossain, Company Secretary and Deputy Managing Director of the bank were present in the meeting.

News: Daily Sun/Bangladesh/14-Sep-12

Sayeed H. Chowdhury, Chairman of One Bank Limited, speaks at a programme styled "Clients' Anniversary Night," organised on the occasion of its 13th Anniversary of the Bank at Ruposhi Bangla Hotel recently. Managing Director Mr. Farman R. Chowdhury delivered welcome address at the function. Vice Chairman Mr. Asoke Das Gupta thanked the guests. A colorful cultural programme was also arranged.

News: The Daily Sun/Bangladesh/13-Sep-12