Banking

Shahjalal Islami Bank gets new AMD

Posted by BankInfo on Thu, Jun 22 2017 11:13 am

Star Business Desk

M Shahidul Islam has joined Shahjalal Islami Bank as additional managing director, according to the bank.

Prior to the new appointment, Islam was also an additional managing director of United Commercial Bank.

Islam obtained bachelor's and master's degrees in management from the University of Chittagong.

He started his banking career as a probationary officer at National Bank Ltd in 1984.

news:daily star/22-jun-2017

New MD for Southeast Bank

Posted by BankInfo on Thu, Jun 22 2017 10:58 am

Star Business Desk

M Kamal Hossain was promoted as the managing director of Southeast Bank on Tuesday, according to the lender.

He had been serving the private bank as the acting managing director since March this year prior to his promotion.

He started his banking career as a probationary officer with National Bank Ltd in 1983.

Hossain joined Southeast Bank in 2003 as a vice-president and went on to become an additional managing director.

He earned his bachelor's and master's degrees in public administration from the University of Chittagong.

news:daily star/22-jun-2017

FSIBL inks deal with BREB

Posted by BankInfo on Thu, Jun 22 2017 10:43 am

First Security Islami Bank Limited (FSIBL) signed an agreement with Bangladesh Rural Electrification Board (BREB) for electricity bill collection through FSIBL agent banking.

Md Nazmul Haque, Controller, Finance and Accounts Division, Bangladesh Rural Electrification Board (BREB) and  Ali Nahid Khan, Head of Agent Banking and Mobile Banking Division signed the agreement on behalf of their respective organizations, said a press release.

news:daily sun/22-jun-2017

Govt to mobilise Tk 20,000cr from banks for power projects

Posted by BankInfo on Thu, Jun 22 2017 10:28 am

The government will mobilise Tk 20,000 crore from commercial banks within the next six to nine months for implementing a series of power projects to generate 2,000 megawatts of electricity.

At a meeting on Wednesday, State Minister for Power and Energy Nasrul Hamid asked the banks to assist the local power sponsors by investing the funds.

SDG Chief Coordinator Abul Kalam Azad, Power Secretary Dr Ahmad Kaikaus, Banking Division Secretary Md Eunusur Rahman, Bangladesh Bank Deputy Governor SK Sur also attended the meeting along with the high officials from several banks, including Standard Chartered, HSBC, Dhaka Bank, Prime Bank, Agrani Bank.

The state minister also assured the banks that their investment will be more secured in Bangladesh’s power sector.

The Power Division is implementing 116 projects at an estimated cost of $24.73 billion. Of the total cost, around $13.78 billion will come from project aids.

Besides, the power division is also planning to implement another 56 projects that will require $32.79 billion, including $25.47 billion in project aids.

The government will need around $85 billion for implementing power transmission, generation and distribution projects.

The government is planning to implement the projects with funds from government-to-government deals, ECA financing and local banks.    

In response to the proposal from the state minister, top officials of the banks said they have already received proposals from different power sponsors.

The also said they are ready to support the power sector development. They suggested reforms in some rules and regulations and a review of the statutory liquidity ratio (SLR).

SDG Chief Coordinator Abul Kalam said the Finance Division will soon form a high-powered committee comprising representatives of NBR, finance division, power division and private banks to address the issue.

Banking Division Secretary Md Eunusur Rahman said the local banks are reluctant in investing in the power sector as those are long-term investments. He also assured that they are ready to address any issue the banks might have been facing in this regard.

BB Deputy Governor SK Sur said the government can mobilise funds for power sector development by issuing Islamic and corporate bonds.

The government is planning to utilise a chunk of idle money from the forex reserves and commercial banks’ funds to implement a series of priority power projects for meeting the power demand in the long term.

The power sector has already received $8 billion in investments during the last eight years of the current Awami League government.

“Power Division wants to make the local banking sector and financial institutions aware of the investment opportunities in power sector,” Power Cell Director General Mohammed Hossain, who presented the keynote at the meeting, told daily sun.

Bangladesh Bank has over Tk 1 lakh crore of idle money, officials said.

news:daily sun/22-jun-2017

Govt borrowing from saving instruments likely to exceed target in FY2016-17

Posted by BankInfo on Thu, Jun 22 2017 10:20 am

The total amount of loan from saving instruments will be almost 50% of the outgoing fiscal year’s deficit budget, which is now estimated at Tk98,674 crore

The government expects its borrowing from saving instruments will exceed Tk50,000 crore in the outgoing fiscal year against the target of Tk45,000 crore.

In June so far, an amount of Tk10,000 crore came from the sale of saving instruments.

“There has been a huge pressure of buying saving instruments in the month of June which marks the end of a fiscal year,” said Bablu Kumar Saha, Director General of the Department of National Savings.

He said the saving instruments are still preferred by the people to depositing in banks or investing in stocks as the profit rates of the instruments are relatively high.

“The people are increasingly choosing to buy saving instruments instead of depositing their money in banks or investing in stock markets,” Bablu Kumar said.

According to the Finance Division, the total government borrowing from saving instruments will be almost 50% of the outgoing fiscal year’s deficit budget which is now estimated at Tk98,674 crore.

An official said if the government loan from saving instruments crosses Tk50,000 crore, it will also create a fiscal indiscipline in the outgoing fiscal year.

According to the Department of National Savings, the government has so-far sold Tk60,519 crore saving instruments as of April 2017 while the principal payment paid was Tk18,419 crore. An amount of Tk12,914 crore was also paid as interest.

As a result, the net amount stands at now Tk42,099 crore from the sale of saving instruments as of April 2017, which is 93.55% of the government’s total credit target in the current fiscal year.

The government has a target to borrow a net amount of Tk45,000 crore in the revised budget during the fiscal year 2016-17.

In the revised budget, the principal amount is Tk22,000 crore and the profit is Tk15,630 crore.

In the FY2017-18, the target of total sale of saving instruments is Tk60,000 crore, the principal amount payment is Tk29,850 crore and the profit is Tk19,780 crore.

Now the government wants to encourage people to go to stock market and the banks reducing the profit rate of the saving instruments.

Earlier, Finance Minister AMA Muhith said: “We have already taken initiative to rationalise the profit rate (of saving instruments) so the people go to banks or stock markets.”

The profit rates of saving instruments currently range from 11.04% to 11.70%.

Although the present rates are after slashing down by 1%-2% in the FY2014-15, they are still high compared to the treasury bill, bonds and bank deposit interest.

Finance Division’s Credit Debt Management Committee (CDMC) described the nature of taking loan from the government window as an “open tap” source.

The CDMC has identified three causes behind the rise in demand of the saving instruments: the reduction of banks’ fixed deposit rate, the people’s reluctance to invest in stocks and reduction of tax of saving instruments.

CDMC has advised to reform the operation of the national saving instruments. As per the initial proposal of the Department of National Savings, several steps were taken to squeeze the size of amount of saving instruments.

According to the proposal, the people have to inform the authorities concerned about the source of income for depositing or investing in the state saving instruments.

Organisations investment should be stopped while the investment limit in the sectors other than pension scheme will be lowered to Tk25 lakh from the existing Tk45 lakh, the proposal said.

The under-aged group will not purchase the national saving certificates and the profit rate of saving certificates will be more lucrative for the older men and women, it said.

According to the proposal, the functions of the Department of National Savings will be digitalised.

news:dhaka tribue/22-jun-2017
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