Bangladesh Bank yesterday tightened loans to buy cars and homes in an effort to rein in credit to the unproductive sector.

The BB has made car loans dearer by raising the buyer's portion to 70 percent from the previous 50 percent, according to a statement released yesterday. It means a would-be buyer will have to pay Tk 14 lakh out of his own wallet and can borrow a maximum of Tk 6 lakh from a bank for a Tk 20 lakh car.

A prospective home buyer can borrow 70 percent of his finance from a bank, down from 80 percent earlier, according to the statement.

“The move will slow down the flow of money to the unproductive sector and help curb inflation,” a senior BB official said.

The use of cars has been rising and successive governments could not rein in the trend by imposing high tariff on car imports. Importers have to pay more than 200 percent tax for a 1,500cc (engine power) car. Tariff rates go up depending on the engine capacity.

Lenders also hailed the move saying it would help curb inflation and the city's traffic congestion.

“It will help contain inflation,” said Anis A Khan, managing director of Mutual Trust Bank. On the home loans, Khan said it is not easy to get.

“One has to demonstrate a cash flow and meet conditions to take home loans,” he said.

The BB in a separate circular yesterday asked commercial banks to keep the spread, which is a gap between lending and deposit rates, within 5 percent.

But risky consumer credit such as credit cards and loans to small and medium enterprises has been kept out of the directive, the central bank said.

The BB took the decision following complaints from businesses against banks charging higher rates for loans. Many banks have increased lending rates by 4 percentage points, even for old loans.

The Daily Star/Bangladesh/ 23th Jan 2012

KS Tabrez, managing director of Dutch-Bangla Bank Limited, presides over Managers’ Conference-2012 in the city recently.

The 1st Managers’ Conference-2012 of Dutch-Bangla Bank Limited (DBBL) was held recently to review the Bank’s last year’s performance and discuss the business plan for the year 2012.

Branch managers from 111 branches attended the conference in the city recently with KS Tabrez, managing director of the Bank in the chair, said a press release.

Abul Kashem Md Shirin, Md Sayedul Hasan, Khan Tariqul Islam, Md Mosaddiqur Rahman, deputy managing directors and all divisional heads and senior executives of the Bank attended the conference.

All branch managers firmly committed to achieve the budgetary targets for the year 2012.

The Daily Sun/Bangladesh/ 22th Jan 2012

Zainul Haque Sikder, sponsor-director and chairman of NBL, attends the ‘Executives and the Managers Annual Conference – 2012’ at BICC in the city recently.

National Bank Limited (NBL) held its ‘Executives and the Managers Annual Conference – 2012’ at Bangabandhu Intern-ational Conference Center (BICC) in the city recently.

Zainul Haque Sikder, sponsor-director and chairman of the Bank, inaugurated the conference as chief guest, says a press release.

Neaz Ahmed, managing director, presided over the function.

The Bank’s directors Monowara Sikder, Parveen Haque Sikder, Khalilur Rahman, Moazzam Hossain, Prof Mahbub Ahmed, Mabroor Hossain, AKM Enamul Hoque Shamim, Capt. Abu Sayeed Monir and Lt Col (Retd) Md Azizul Ashraf psc, and consultant Azizur Rahman, additional managing director Md Badiul Alam, deputy managing directors SM Jaffar, Shamsul Huda Khan, AKM Shafiqur Rahman, Nazib Uddin Bhuiyan, ASM Bulbul and Abdul Hamid Mia were also present.

The Bank’s chairman put importance on human and financial asset of the Bank. He urged the Bank’s managers and executives to work all together for maximising profit through improvement of credit risk and credit management.
NBL must improve their client service further and ensure proper use of human resources to be the best Bank in the country, he added.

The managing director expressed his gratitude to the board of directors and the mangers and executives as well for the success. He urged the officials to work harder so that the growth should continue in 2012.

The Daily Sun/Bangladesh/ 22th Jan 2012

Al-Arafah Islami Bank Limited (AIBL) arranged a day-long workshop on ‘Islamic Money Market’ at the Bank’s Training and Research Acadamy yesterday.

SK Sur Chowdhury, executive director of Bangladesh Bank formally inaugurated the workshop as chief guest, said a press release.

Md Mofazzal Hossain, deputy managing director, Md Miran Shah Chowdhury, vice president of the Bank, and Md Zahid Hasan, principal of Training and Research Acadamy were present, among others, on the occasion.

The Daily Sun/Bangladesh/ 22th Jan 2012

The City Bank Limited and the International Finance Corporation (IFC) recently signed a deal to facilitate investment in the global spectrum of the bank.

Under this arrangement, IFC will undertake necessary arrangement to enlist City Bank under its Global Trade Finance Programme and provide it short term finance facilities.

The deal will enable City Bank get dollar at low costs to strengthen its trade financing service, said a press release.

K Mahmood Sattar, managing director and CEO of the Bank and Thomas S Davenport, director, South Asia Region of IFC, signed the agreement on behalf of their respective institutions at the Bank’s head office.

Faruq M Ahmed, additional managing director of City Bank, Sheikh Mohammad Maroof, head of Wholesale Banking Division, and Kyle F Kelhofer, country manager, Bangladesh, Bhutan and Nepal and M Rehan Rashid, senior country officer of IFC were present on the occasion.

The Daily Sun/Bangladesh/ 22th Jan 2012