The World Bank (WB) will provide Tk 250 crore for the Bangladesh part of the Sundarbans under a project, Strengthening Regional Co-operation for Wildlife Conservation (SRCWC). Anderson, vice-president of WB’s sustainable development wing told state minister for environment and forest Dr Hasan Mahmud during a meeting at his secretariat office on Saturday.
Bangladesh, India, Nepal and Bhutan have taken up such projects. Appreciating Bangladesh's steps on conservation of tigers, to increase their population under the Tiger Action Plan funded by the WB, Anderson said, the bank will continue its assistance for the purpose.
She also assured the state minister of the WB assistance on the ‘Dhaka Environment Workers Project' (DEWP). Prevention of water contamination of the surrounding rivers of the capital, establishment of a control room at the department of environment and setting up of   cluster of effluent treatment plants in the industrial areas would come under the DEWP, Inger said.
The WB, vice-president further told Dr Hasan that the WB would also provide assistance on development of Bangladesh's 'carbon positive agriculture'.
Thanking thanks to WB's vice-president Inger, the state minister said, “The WB is playing a vital role in conservation of environment and wildlife in Bangladesh.”
Later, the visiting WB official called on food and disaster management minister Dr MA Razzaque at his secre-tariat office.

News: The Independent/ Bangladesh/ Feb-21-2011

Rejaul Karim Byron

Default rates declined compared to outstanding loans last year, but showed a slight rise in volume, as some banks could not rein in their bad loans.

According to Bangladesh Bank statistics, state banks succeeded in cutting their loan default rates, but private, foreign and specialised banks saw their bad loans shoot up.

In the overall banking sector, the defaulted loan situation has improved because of continuous monitoring by the central bank, said a BB official. However, in some banks, defaulted loans went up, resulting in a little increase in volume.

On December 31, 2010, the defaulted loans of the banks were Tk 22,709 crore or 7.27 percent of the outstanding loans. A year ago, it was Tk 22,482 crore or 9.21 percent of the outstanding loans.

The volume of total defaulted loans increased by Tk 227 crore or 1 percent last year compared to the previous year.

The central bank evaluates the loan default situation on a quarterly basis. The situation improved substantially on December 31, 2010 over the third quarter.

In the third quarter, the defaulted loans reached Tk 24,088 crore but the banks brought down the figure by around Tk 2,000 crore at the end of the year. The amount of bad loans in the banking sector is still huge if the loans being written off are taken into account.

According to the statistics updated until June last year, the banks wrote off bad loans worth about Tk 17,400 crore since June 2004. Of the amount, Tk 2,100 crore was written off in the last fiscal year. Following a central bank guideline, the banks for the first time introduced a system of writing off loans in 2003.

A BB official said the central bank is going to take various reform programmes in the banks which will further improve the default loan scenario.

The bank company act is going to be amended further to tighten monitoring of the commercial banks' activities, change the default loan definition, and further streamline the size and tenure of the banks' boards.

In the state banks, the percentage of the defaulted loans of their outstanding loans has come down to 15.66 percent on December 31, 2010, which was 21.38 percent a year ago. In amount, their defaulted loans decreased by about Tk 990 crore during the one year period.

An official of Sonali Bank said the government has formed a committee headed by Chairman of the bank Kazi Baharul Islam. The official said the four state banks have functioned on the basis of a common approach which had a positive impact on their performances.

In the private commercial banks, the defaulted loans came down to 3.15 percent of their outstanding loans in December 2010, which was 3.92 percent a year ago, but the volume of their defaulted loans increased by Tk 254 crore in the same year.

In volume, the defaulted loans of the foreign banks increased by Tk 205 crore, and in the specialised banks, the amount went up by Tk 758 crore.

A BB official said the defaulted loans of most of the banks went down, but the total bad loans increased as the amount of such loans was high in some banks.

News: The Daily Star /Bangladesh/15 Feb 2011

Bangladesh Bank Governor Dr Atiur Rahman said the banking sector of the country has set an example in maintaining its financial health even during the global economic meltdown when banks in the developed countries suffered a severe liquidity crisis.

The banks in the country don’t have liquidity crisis even now, although few may be in such crisis due to aggressive banking, which he said should be mended immediately.

Talking about inflation, the central bank governor suggested that bank loans in unproductive private sectors be checked to prevent wastage and control inflation.

Atiur was speaking at the launching ceremony of the automation of 11 branches of Agrani Bank at a hotel in Dhaka yesterday.

Agrani Bank, a state-owned commercial bank (SCB), has already computerised around half of its 867 branches and also opened 97 ATM (automated teller machine) booths in different cities of the country as part of its digitising banking service, the governor told the function.

“I am happy to learn that Agrani Bank is doing well in digitising its activities,” he said.

The BB boss said works were underway to bring the head office, circle offices, corporate and authorised dealer (AD) branch including regional branches of the bank under online facilities soon.

He also lauded the bank saying its capital, deposit, branches and manpower hold a good position now.

He said the bank would soon introduce facilities like SMS banking, mobile banking, internet banking and tele-banking.

He urged the bank authorities to give importance on core banking solution like that of other SCBs to compete with the private commercial banks.

BB governor also made a call to all banks of the country to expedite their efforts in providing loans for SME and agriculture sectors as well as initiate green banking programmes.

Agrani Bank Chairman Dr Khondoker Bazlul Haque, its Managing Director Syed Abdul Hamid, among others, were also present on the occasion.

News: Daily Sun /Bangladesh/14 Feb 2011

Bangladesh Bank will unveil a commemorative coin today to mark the ICC Cricket World Cup 2011, to be held in the sub-continent this month including Bangladesh.

Finance Minister AMA Muhith, also the chairman of the world cup organising committee, will unveil the Tk 10 silver coin at a function at National Sports Council (NSC) this morning with BB Governor Dr Atiur Rahman in the chair, a BB press release said.

Bangladesh Cricket Board (BCB) president AHM Mustafa Kamal,

State Minister for Youth and Sports Ahad Ali Sarkar, Zahid Ahsan Russel, chairman of the Parliamentary Standing Committee on Youth and Sports, Secretary of the Ministry of Youth and Sports Mahbub Ahmed, BB deputy governor Ziaul Hasan Siddiqui

will also attend the function.

The Germany made coin will have a price tag of Tk 3,000.

The sale of the commemorative coins will start in the capital at 12:00pm at Bangladesh Bank’s head office and all commercial banks.

Other branches of the BB and other commercial banks outside the capital will also sell the coin later.

The round shaped coin will have world cup logo embedded on one side and the World Cup and BB logo on the other.

The coin is made of 925 fine silver (99.9% silver), having a diameter of 38mm and weighing 30 grams.

Bangladesh is a co-host of the sporting event along with India and Sri Lanka.

Eight matches including two quarter finals and the inaugural ceremony will be held in Bangladesh starting from February 17.

News:Daily Sun/Bangladesh/08 Feb 2011

Bangladesh Bank has issued licence to Agrani SME Financing Company Ltd, a subsidiary financial institution of Agrani Bank Ltd, to keep the ‘Small Enterprises Development Project’ functioning.

The new financial institution was awarded license on January 31 this year under the section 4 (1) of the Financial Institution Act, 1993.

With the emergence of the new company, the total number of country’s financial institutions rose to 30.

About the rationale behind BB’s move of awarding a fresh license amid a volatile financial sector, a BB official said it was only to facilitate SME activities of Small Enterprises Development Project.

In recent times, the existing financial institutes have been passing through turmoil situation as they mostly depend on call money market which recently witnessed a surge in interest rate by around 190 percent.

BB’s new move, however, might not be proved to be very effective in near future as the institution will have to compete with the existing companies having strong infrastructure and network, Akhter H Sannamat, a financial market analyst observed.

“I don’t find it necessary to open any new financial company now, though it might have some true special functions,” he said.

“There are many banks and financial institutions that already have penetrated into the SME sector. For the last six to seven months, BB also directed them to enter into the sector,” Sannamat said, adding that it would be very “challenging” for it to survive.

“The existing companies will find them in better positions as they have the necessary infrastructure and network but the new company has to struggle as it will take much time for it,” he also observed.

The cabinet on December 31 in 2009 approved a proposal on the formation of Agrani SME Financing Company Ltd by turning small enterprises development project into a subsidiary of Agrani Bank Ltd.

News: Daily Sun/ feb-07-2011