Bangladesh Bank Tuesday gave a go-ahead to 10 private sector projects to take loans worth $109.2 million from foreign sources, the regulator said in a statement.

The loans include $25.1 million for Sylvan Agriculture Limited, $ 20.0 million for Banga Builders Limited, $ 15.0 million for Western Marin Shipyard Limited, $ 15.0 million MI Cement factory Limited, $ 5.0 million for Universal Menswear Limited and $ 4.0 million for DNV Clothing Limited. The rest of the amount was approved for the RR Imperial Electricals and Genesis Washing Limited.

The highest interest rate of the projects is three-month LIBOR+4.50 percent in a year. The effective interest rate will be within 4.94 percent per annum, the central bank said.

The tenure of these loan proposals are at least 5 years.

The approval came at the 67th meeting of the scrutiny committee of the BB presided over by its Governor Atiur Rahman at its office in Dhaka.

“This type of foreign financing will be helpful in keeping the foreign exchange rate stable and will impact positively on the balance of payments of the country,” according to the statement.

Officials said more foreign financing proposal is under processing and close BB consideration for the approval.

News: Daily Independent/Bangladesh/29-Aug-12

Bangladesh Commerce Bank Limited (BCBL) opened its 32nd branch at Nawabgonj in Dhaka Monday.

A Q Siddiqui, Chairman of board of directors of BCBL, inaugurated the branch as the chief guest, said a press release.

S A Chowdhury, CEO and Managing Director and Dr. Muhammad Asaduzzaman, Deputy Managing Director of the Bank attended the ceremony.

News: Daily Sun/Bangladesh/29-Aug-12

 Islami Bank Bangla- desh Limited (IBBL) donated a well-equipped ambulance to Dr. Zahed Memorial Child Hospital of Faridpur as a part of its corporate social responsibility.

Prof Abu Nasser Muhammad Abduz Zaher, Chairman of the Bank handed over its key to AK Azad, President of Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at a ceremony held at Auditorium of the Bank premises in Dhaka Monday, said a press release.

News: Daily Sun/Bangladesh/29-Aug-12

The state-owned Sonali Bank has lost its capacity to finance the government’s fresh imports, especially done by the Bangladesh Petroleum Corporation (BPC) and the Trading Corporation of Bangladesh (TCB), as it is reeling under acute liquidity shortages.

According to Bank insiders, the Bank’s liquidity was eroded up by high borrowing of the government and disbursement of non-viable loans of bigger amount that has been approved without proper procedures. One such big loan of Tk 35.47 billion was disbursed by the Bank management to a private sector business entity, Hallmark Group.

On Monday last, the Bank management has expressed its inability to pay BPC’s fresh import bills amounting to $14 million (Tk 1.14 billion). Simultaneously, the management decided not to finance TCB’s any new import liability, as the state-run trading company does not pay its ‘overdue’ loans to the Bank.

A high official of the Bank said the bank already provided excess financing against ‘BPC guarantee’ to meet the state-run corporation’s import liability.

The official said Sonali Bank, meantime, has financed Tk 75.5 billion against BPC’s Tk 50 billion as ‘guarantee’.

“We are really unable to pay fresh import bills as our liquidity strength has been eroded up in recent years. What is needed right now is to save this Bank by applying cautious policy,” the official said seeking anonymity.

The official said Sonali Bank had long been enjoying its status of lender in the call money market but it recently turned into a borrower bank due to high borrowing of the government and non-viable loan disbursement, which has less possibility of recovery.

“But, in recent months, this bank has borrowed an amount Tk 50-70 billion from the call money market to make its daily transactions viable,” said the official.

Meanwhile, the amount financed by Sonali Bank to pay TCB’s import bills has increased to Tk 3.91 billion. Of the amount, Tk 6.9 million has already turned ‘overdue’ which TCB has not repaid, said the official.

He said the Bank has given LTR (Loans against Trust Receive) to the TCB, but the state-run agency is reluctant to repay even after selling its imported goods.

LTR is a sort of financing, under which the borrowing party shall repay to the lending bank on sale of its imported goods, according to banking company acts.

This correspondent could not attach any authoritative comment from TCB as a phone (mobile) call to its Chairman Brig. Gen. Sarwar Jahan Talukder went without response last afternoon.

News: Daily Sun/Bangladesh/29-Aug-12

Dhaka Stock Exchange fell for the second day in a row, as investors, driven by the lure of profits, continued with their selling spree.

DGEN, the benchmark General Index of Dhaka Stock Exchange, finished the day at 4,291.87 points, after falling 49.38 points or 1.13 percent.

The market started the day on a flying note, gaining more than 50 points in the first hour of trading.

But as the day progressed investors selling pressure pushed the gauge down to red.

The uncertainty surrounding the funding of Padma Bridge is preventing investors from making fresh investments and even influencing them to reallocate their portfolio, IDLC Investment said in its market commentary.

Most of the large cap companies underwent price correction during the day, the merchant banker further said.

Most of the issues in the premier bourse faced price correction thanks to the overriding tendency for profit-booking, inferred Green Delta LR Holdings, a stockbroker, from its market research.

Turnover fell by 7.82 percent from the previous day to Tk 580 crore. A total of 1.48 lakh trades were executed, with 12.27 crore shares and mutual fund units changing hands on the premier bourse.

Of the total 269 issues that traded on the DSE floor, 127 advanced, 119 declined and 23 remained unchanged.

All the major sectors ended up in the red zone, with telecommunication leading the way having dropped by 4.61 percent.

Non-bank financial institutions (by 1.57 percent), power (by 1.51 percent) were the other notable losers.

Banks and pharmaceuticals lost as well, by 0.91 percent and 0.37 percent respectively.

Unique Hotel and Resorts was the top traded stock of the day thanks to its transaction of 28.20 lakh shares worth Tk 32.58 crore, followed by RN Spinning Mills and Meghna Petroleum.

Beximco Synthetics was the biggest gainer of the day, posting a rise of 9.25 percent.

ICB AMCL First Mutual Fund dropped by the most: by 8.98 percent.

The Selective Categories Index of Chittagong Stock Exchange closed the day at 8,247.89 points after falling 85.75 points or 1.09 percent.

Losers beat gainers 97 to 87, with 12 securities remaining unchanged on the port city bourse that registered transactions of 1.521 crore shares and mutual fund units worth Tk 64.84 crore.

News: Daily Star/Bangladesh/29-Aug-12