Thevakumar Kandiah

Thevakumar Kandiah, country director of the Asian Development Bank, retired from ADB services yesterday.

Kandiah had a 35-year professional career in development banking, including more than 28 years at the ADB focusing on transport and energy infrastructure development, financing and implementation.

Kandiah joined ADB's Bangladesh Resident Mission as country director in May 2010, according to a statement.
“During the last 20 months, I interacted with stakeholders extensively, and learned about the country, its resilient and resourceful people, growth dynamism, and received valuable suggestions on how to make ADB's operations more effective,” Kandiah said in the statement.

“I am going home with fond memories.”
“During my tenure, I witnessed a dynamic and resilient Bangladesh progressing fast to attain the middle-income status by 2021,” he said.

“The country has attained a respectable 6.7 percent growth in gross domestic product in FY2011. Average GDP growth of 6 percent was achieved in the past decade, up from 4.8 percent in the 1990s,” he said.
“The achievements are significant despite daunting challenges.”

The Daily Star/Bangladesh/ 13th Jan 2012

One Bank Limited signed a master facility agreement under Investment Promotion and Financing Facility (IPFF) with Bangladesh Bank (BB) at BB’s head office on Wednesday, says a press release. Farman R Chowdhury, managing director of One Bank, and S K Sur Chowdhury, executive director of Bangladesh Bank, signed the agreement.

Johora Bebe, deputy managing director, Rozina Aliya Ahmed, senior executive vice president and head of marketing, Shabbir Ahmed, executive vice president and head of asset marketing, and Abu Saleh, vice president, syndication and structured finance unit, One Bank Limited, and Husne Ara Shikha, joint director and deputy project director, Goutam Kumar Ghosh, deputy director, IPFF Cell, Bangladesh Bank, and other officials of both organisations also attended the signing ceremony.

Government has taken the IPFF project to make available partial debt financing through private sector financial intermediaries for eligible, government-endorsed infrastructure projects, to be developed by the private sector. Projects developed solely by the private sector but identified by the government to be in the public interest will also be eligible to get financing under IPFF.  

Under the agreement, One Bank will enjoy financing facility from the World Bank, administered by Bangladesh Bank, for extending credit facilities to infrastructure projects.

The Daily Independent/Bangladesh/ 13th Jan 2012

Big Wall Street and European banks are looking to slash budgets across Asia, as the emerging market promise is trumped by an urgent need to control costs.From taxi and air fares and year-end parties to entire operational divisions and new country offices, little is sacred.

The age of headquarters in New York or London subsidizing investment banking expansion in Asia is giving way to a period of austerity - a shift the industry accepts is long-term, especially given a steep drop in Asia fee income late last year compared to the rest of the world.

The cost cutting goes beyond standard headcount reductions, scything deep inside banks, where whole product teams are being closed down, entire offices are under review, and travel and entertainment budgets are pared to the bone.Hiring is sparse, with pressure from bank headquarters to first show results for those who joined in the past two years.

Division heads are no longer chasing every deal, and instead have to be much more selective.“The heyday of just expanding and taking people wholesale is over,” said Enid Yip, Asia Chief Executive at Swiss private bank Sarasin. “People will have to start looking very closely at their own contribution to the P&L (profit and loss).”In Asia, estimated fee volumes slumped 43 per cent in October-December, the biggest drop of any region, though the others were not far behind.

With Asia excluding Japan accounting for only 15 per cent of the global fee pool, any continued fall on last year’s scale just damages the Asia proposition further.“Last year, a $1 billion deal turned into $300 million, if it went through at all. A $10 million fee suddenly became $1 million. We have to be more selective about where we put resources,” said an Asia head at one U.S. investment bank.

Bank of America-Merrill Lynch is shedding a fifth of its investment banking managing directors in Asia this quarter, and is pooling some analysts and associates to respond to business that is critical, rather than have them in specific teams, sources have said.Credit Suisse is closing its Taiwan fixed income operations, and Macquarie closed part of its equity derivatives division in Hong Kong in the fall.

Spanish bank BBVA, which was expanding rapidly until mid-last year, has cut about a third of its wholesale banking staff in Asia, and Morgan Stanley has chopped fixed-income jobs in Singapore and Hong Kong, sources told Reuters. The abrupt exit of Jesse Bhattal from Japanese brokerage Nomura Holdings, announced this week, helps underscore the point. Bhattal led Lehman Brothers and Nomura at a time of heady expansion and leaves now when the growth period is ending.

The Daily Independent/Bangladesh/ 13th Jan 2012

As part of its Corporate Social Responsibility, Islami Bank Bangladesh Ltd. (IBBL) has donated Tk 30 lakh to the Committee of Action for Research, Extension and Services (CARES) for development of education and research.

IBBL chairman Prof Abu Nasser Mohammad Abduz Zaher handed over the cheque for Tk 30 lakh of the 1st instalment of TK 2.66 crore to Dr A Majeed Khan, convener of CARES and founder president of Independent University, at the IBBL head office in the city on Thursday.

The cheque handover ceremony was also attended by Mohammad Abdul Mannan, managing director of IBBL, Commodore Ataur Rahman, former chairman of IBBL, Md Eskander Ali Khan, president of IBBL Executive Committee, Dr MA Matin, former deputy prime minister and vice-chancellor of University of South Asia, Dr Mahabub Hossain, executive director, Brac Bangladesh, Dr M Joinul Abedin, country representative of International Rice Research Institute, and top executives of the Bank and CARES.

Prof Abu Nasser Mohammad Abduz Zaher said the Bank is involved with huge CSR activities. “We never do any activities which are against the country’s law, tax system and national interest. We never make any investment contrary to Islamic norms,” he said.

The Daily Independent/Bangladesh/ 13th Jan 2012

Finance Minister AMA Muhith Wednesday said he was optimistic about a favourable decision coming from the World Bank (WB) on the release of its committed fund for the Padma Bridge at the end of the current month.

The decision of WB in disbursing the pledged fund is now pending with its President, Muhith added.

"I am expecting a favourable decision at the end of the current month so far as disbursement of the WB's committed fund is concerned," Muhith told reporters after a meeting of the Cabinet Committee on Purchase at the Cabinet Division Wednesday afternoon.

WB country director Ellen Goldstein, who earlier on the day met with the finance minister, in a statement also said the Bank would give a decision on the Padma Bridge funding within this month.

"We need to have further discussion to say anything positive to the press", she, however, told the FE while she was getting onto her car after meeting with the finance minister at the latter's secretariat office.

"Dialogue with the government will continue and more time will be needed to come to a decision," she added.

Muhith said situation has changed after reshuffling the portfolio of the former Communications Minister Syed Abul Hossain.

"The responsibility of dealing with the Padma Bridge construction is different now. We have changed the minister," Muhith told the reporters.

The finance minister said appointment of the construction consultants for the largest bridge of the country is being delayed for a Canadian investigation now in place against a consulting firm that was short-listed by the government and duly approved by WB.

The construction of Padma Multi-purpose Bridge became uncertain after the Bank had suspended its committed fund in October last year following allegations of corruption.

Muhith said no malpractice and irregularities took place in selecting consulting firms. He said if everything goes smoothly, we will be able to start construction of Padma Bridge from the next dry season, which begins from October-November.

The finance minister said the anti-corruption commission is now at the end of its investigation into alleged corruption charges against the immediate past communications minister. The investigation report is expected to be submitted within a week, he added.

Ms. Goldstein in her statement reiterated the bank's stand on the guarantee of good governance and transparency in the implementation of the mega infrastructure project.

"Good governance and transparency are of paramount importance for the World Bank in implementation of the Padma Bridge. We are still in discussions with the government on whether this can be ensured."

She met the Finance Minister a day after she returned from the WB headquarters.

Both Muhith and Goldstein, however, refrained from commenting on the outcome of the meeting to the press immediately.

The WB country director said the Wednesday's meeting with the Finance Minister was to brief him on her visit to Washington and seek his views on the way forward.

Commenting on the latest development, Economic Relations Division (ERD) Secretary Iqbal Mahmood said that work of the Padma Bridge project was never stopped and it was in progress.

"There is no incident of suspension of the Padma Bridge project. It is continuing and will also remain so," he told the FE.

Communications Minister Obaidul Quader also reiterated his optimism to the FE saying that the Padma Bridge construction will begin within a year.

"Whatever be the fund arrangement, the Padma Bridge construction will begin within a year," he added.

The Daily Financial Express/Bangladesh/ 12th Jan 2012