Garment exporters yesterday demanded a quick probe into the corruption allegations against Sonali Bank officials and the Hall-mark Group authorities.

In a written statement, leaders of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) also expressed concern that the scandal can seriously hamper the process of borrowing from banks by entrepreneurs in the industrial sector.

“The authorised dealer (AD) branches of the banks are showing apathy to the cases of local bill purchases due to the scandalous irregularities by corrupt bank officials and vested quarters among the business community,” said the statement yesterday.

The AD branches are often unduly referring the local bill purchases to the head office for further approval, or showing excuses, referring to the central bank, they said.

The alleged loan scam of Hall-mark Group, an apparel maker, would hamper new exploration initiative by real entrepreneurs as the scam could damage the brand image of the country, said the exporters.

The BGMEA leaders demand strict legal actions against those involved in the financial irregularities, the statement added.

An investigation by the Bangladesh Bank found that the Ruposhi Bangla Hotel branch of Sonali Bank is responsible for illegally disbursing Tk 3,547 crore loans to Hall-mark Group and five other companies between 2010 and May this year.

The investigation also revealed that Hall-mark Group alone took Tk 2,686 crore out of the total amount of loans.

News: The Daily Star/Bangladesh/04-Sep-12

Rubel Aziz, chairman of The City Bank, and K Mahmood Sattar, managing director, pose with the 'Best Bank in Bangladesh for 2012' award from FinanceAsia recently. FinanceAsia is a leading financial publication in the Asia-Pacific region.

City Bank was named the 'Best Bank in Bangladesh for 2012' by FinanceAsia, a leading financial publication in the Asia-Pacific region, the Bank said in a statement yesterday.

FinanceAsia's gave the award in local bank category in Bangladesh for the first time this year.

The Bank was evaluated on its performance in the past year, its financial statures, vision and long-term strategies.

Rubel Aziz, chairman of City Bank, and K Mahmood Sattar, chief executive officer and managing director, received the award.

"This is the first year we are awarding in the local bank category in Bangladesh and we have selected City Bank for its leadership in risk management and its plan for steady and sustainable growth,” FinanceAsia said in its award presentation.

It is the Best Bank in terms of adopting global best practices, which in an emerging market is extraordinarily important, it added.

Rubel Aziz, chairman, said, “City Bank's name is now synonymous with large scale successful transformation and a brand that changed into a household name as if almost overnight.”

News: The Daily Star/Bangladesh/04-Sep-12

China's manufacturing activity fell to its lowest level in more than three years in August as the global economic slowdown continues to weigh on the world's largest exporter, HSBC said Monday.

The final reading of the British banking giant's closely-watched purchasing managers' index (PMI), which gauges nationwide manufacturing activity, slid to 47.6 last month from 49.3 in July, HSBC said in a statement.

This was the lowest since March 2009 and marked the tenth consecutive monthly fall, the bank said. It chimed with the official PMI figure released Saturday, which hit a nine-month low of 49.2.

A PMI reading above 50 indicates expansion, while one below 50 points to contraction.

HSBC economist Qu Hongbin said the figures showed China's manufacturing sector faced "intensifying downward pressure" and urged the government to step up easing measures.

"China's exporters are facing increasing difficulties amid stronger global headwinds," he said, adding new export orders contracted last month at the sharpest pace since March 2009 while employers cut jobs at the fastest rate in 41 months.

Authorities have tried to boost the economy with interest rate cuts and by lowering the amount of reserves that banks must keep on hand in a bid to spur the kind of lending that could stimulate a rebound.

However, Qu said the latest manufacturing figures indicated the previous stimulus efforts were not sufficient and more was needed.

"Beijing must step up policy easing to stabilise growth and foster job market conditions," he said.

China's economic expansion slowed to 7.6 percent in the second quarter to the end of June, the worst performance in three years and the sixth straight quarter of slower growth.

July figures for trade, industrial output, retail sales and foreign direct investment were also weak, raising concerns that government efforts to stimulate growth may have been insufficient.

News: The Daily Star/Bangladesh/04-Sep-12

The month of August saw non-resident Bangladeshis send $1.167 billion in remittance, down by 2.84 percent from July's receipts of $1.201 billion, the central bank said yesterday.

The figure, however, is 6 percent higher than the $1.102 billion recorded for August 2011.

This is the ninth consecutive month that Bangladesh has received over one billion dollar in remittance.

The remittance in the first two months of 2012-13 rose by 11.9 percent over the same period a year ago.

Bangladesh's more than 7 million migrant workers sent home $12.84 billion in fiscal 2011-12, 10.32 percent higher than the previous fiscal year.

Along with the rebound in garment exports, the healthy flow of remittance has boosted the country's foreign exchange reserves. The reserves, which rose for the third month in a row in August, as of yesterday, stood at $11.44 billion.

August's remittance was the third highest recorded since January, as migrant workers sent more money to their relatives on the occasion of Eid-ul-Fitr.

News: The Daily Star/Bangladesh/04-Sep-12

Md Golam Rabbani has joined Al-Arafah Islami Bank Ltd as its deputy managing director, said the Bank in a statement yesterday.

Before this, he was serving in the same position at Prime Bank Ltd.

After completing his Bachelor of Jurisprudence (Hons) in 1973 and Masters of Jurisprudence in 1974 from Rajshahi University, Rabbani started his banking career in 1977 in the erstwhile Bangladesh Silpha Rin Sangstha (BSRS) as a first-class officer.

He joined Prime Bank in October 2001 and was promoted to the post of deputy managing director in January 2011. Rabbani also obtained an MBA from a US university.

News: The Daily Star/Bangladesh/04-Sep-12