Bank Islam Malaysia Bhd is eyeing opportunities for expansion in Indonesia and Bangladesh, which have sizeable Muslim populations and adequate Islamic banking regulatory policy and supporting infrastructure in place to facilitate Shariah-based financing and banking operations. Managing director Datuk Seri Zukri Samat said as mergers and acquisitions are on Bank Islam's agenda for inorganic growth and corporate expansion, the bank is on the lookout for suitable candidates but has not initiated any discussions on mergers or acquisitions.

While the two countries have been identified as "very interesting countries" that fit into the bank's expansion plan, Zukri, however, said such plans would have to take into consideration the current global economic situation and its effect in this region.

"Some economists believe that there could be a double dip with Europe going into recession and growth in the Asian region decelerating.” Zukri added.

"We are monitoring this situation and because of that, we are adopting a cautious approach towards our agenda, so we are very cautious and we don't want to be overly aggressive. Nonetheless, there is always an opportunity in a crisis -- acquisition may occur when a shareholder wants to exit -- and as long as there are synergies and the pricing is right, the opportunity arises," he said.

Zukri said both countries have sound economies which offer opportunities for Islamic banking and the presence of many Indonesian and Bangladesh migrant workers here also allows the bank to tap the lucrative remittance business. Asked to comment on the Indonesian market, Zukri said the Central Bank of Indonesia has yet to make an announcement on foreign ownership in the country's financial institutions. Currently, the regulation allows foreigners to own more than 90 per cent, however this may change.

"Indonesia has a population of more than 240 million, the majority of whom are Muslims. However, the penetration of Islamic banking assets is only three per cent of the total banking asset. We see an opportunity here," he told Bernama in an interview.

Bangladesh, apart from its Muslim population of 140 million, has also put in place an Islamic banking infrastructure for Bank Islam to start its operations should there be a merger or acquisition. It is a market that is similar to Indonesia, he said.

He said Bank Islam's overseas expansion model would involve acquiring Islamic banks rather than conventional banks. This is to avoid operational issues involving non-Shariah income from the businesses of the conventional banks during the transition period.

Zukri said Bank Islam prefers to work with a local party, who would be familiar with the local market and the regulatory environment, adding a controlling stake is not a requirement but preferred, provided it is not costly to the bank.

On the bank's acquisition of a 20 per cent stake in Sri Lanka-based Amana Bank Ltd, he said: "It's a good decision to go to Sri Lanka. We are upbeat about the potential and we expect this investment to break even after two years."

Source: The Independent/ Bangladesh/ 8th Dec 2011

Bangladesh Commerce Bank Limited (BCBL) has opened its 29th branch at Bijoy Nagar in the city yesterday (Wednesday).

AQ Siddiqui, chairman of the board of directors of the bank inaugurated the branch as chief guest, said a press release.

SA Chowdhury, managing director, Dr. Muhammad Asaduzz- aman, deputy managing director, members of the board of directors, senior executives of the bank, local elite, among others, were attended the function.

AQ Siddiqui, chairman of the bank in his speech expressed that BCBL has planned to increase banking services in opening new branches in different areas of the country.

SA Chowdhury, managing director of the bank said that Bijoy Nagar is one of the important business areas of Dhaka city and mentioned about various debit and credit products of the bank and invited people to avail credit facilities particularly in the SME sector from Bijoy Nagar branch.

Source: The Daily Sun/ Bangladesh/ 8th Dec 2011

Mahbubul Alam, managing director of Southeast Bank, is inaugurating a branch at Islampur in the city recently.

Southeast Bank Limited has opened a branch at Islampur in the city recently. Mahbubul Alam, managing director of the Bank inaugurated the branch as chief guest, said a press release.

Among others, Mohammed Gofran and Shahid Hossain, deputy managing directors, S M Mainuddin Chowdhury, senior executive vice president and head of IT, Aminul Haque, assistant vice president and head of Islampur branch, Donald Rossette, head of corporate marketing division and assistant vice president, businessmen, customers, educationists, local elites were present on the occasion.

Source: The Daily Sun/ Bangladesh/ 8th Dec 2011

The Ministry of Finance has asked the central bank to take necessary action against Destiny-2000 Ltd, a Multi-Level Marketing (MLM) company, for its illegal banking activities.

The Banking Division of finance ministry on Tuesday sent a letter to Bangladesh Bank authorities directing it to take action against the illegal activities of Destiny.

The directive was issued following an approval of necessary actions against Destiny last week by former commerce minister Faruk Khan. The approval was followed by sending letters to home secretary, banking division secretary, Bangladesh Bank governor, SEC chairman and Registrar of Joint Stock Companies and Firms requesting them to take legal action against the controversial MLM company.

Commerce ministry issued the letter on the basis of a complain by one Khrushid Ahmed Khan, a resident of Chittagong.

“The Banking Division sent a letter to the BB Governor Aitur Rahman for proper action”, a senior BB official told daily sun on Wednesday. The letter bore the signature of Deputy Secretary to the Banking Division M Rezanul Huda.

Banking division sources said the money laundering department of BB has already completed its investigation against the alleged money laundering activities of Destiny in response to few prior complaints.

The concerned department has already submitted its report to the higher BB authorities. But BB is yet to take any legal action against Destiny. Sources said the government high-ups have barred BB from taking any legal action against the MLM company.

As per the allegation of Khrushid Ahmed Khan of Chittagong, Destiny sold its shares to earn around Tk 14 billion without enlisting it with stock market and keeping the stock market authorities outside the whole process.

In the allegation, he feared that Destiny may disappear from Dhaka and other districts of the country in 2014, causing huge financial losses to people. The present amount of capital of Destiny has reached Tk 500 billion and its total number of agents 3.8 million.

Destiny offers four per cent interest every month against any deposition of Tk 100,000 with it by a client. At the same time, if any of Destiny agents can convince a client to deposit Tk 1,000 or more, the agent will get 25 per cent interest. The whole process is illegal as per BB rules.

Destiny has allegedly been involved with Hundi business through its agents in the USA, Canada, Italy and the Middle Eastern countries. Allegedly it has so far transacted Tk 8-10 billion through Hundi.

Earlier, the Ministry of Commerce has asked the Registrar of Joint Stock Companies and Firms to cancel registration of 45 MLM firms, including Destiny-2000 Ltd, for using false addresses.

Source: The Daily Sun/ Bangladesh/ 8th Dec 2011

The government has decided to include the provision of DNA testing in procuring new taka-one and taka-two metal coins to avoid possible health hazards.

It will procure two billion pieces of taka-one and taka-two metal coins during 2011-12 and 2012-13 fiscal years. Bangladesh Bank (BB) has accepted the proposal to take DNA testing of DIN 1013-3 and DIN 1061 which is essential for metal coins for securing health safety for the people.

Earlier, the central bank ignored the health issues and did not maintain DNA testing for metal coins, sources said.

“The government circulates metal coins as those are not easily perishable and so it procures metal coins,” said a senior official of the finance ministry.

The BB in the tender advertisement has included the provision of two DNA tests for procuring coins.

Besides, the finance ministry in a letter to the BB authority wanted to know the financial involvement in DIN 1013-3 and DIN 1061 testing, according to sources.

The ministry also asked the BB authority to submit it a list of the countries which are using the DNA tested coins to avoid health hazards, according to the letter.

The letter of finance ministry, members who attended the meeting opposes the idea of two DNA tests as anti-microbial test of meeting for procurement of one and two taka metal coins.

As per the proposal, the government would require Tk 2.60 billion for procuring taka-one and taka-two coins, 1 billion pieces of each kind.

The cost of procuring taka-one coin is Tk 1.50 billion while that for taka-two coins is Tk 1.10 billion.

Meanwhile, the portrait of the Father of the Nation Bangabandhu Sheikh Mujibur Rahman will be printed in the proposed taka-one and taka-two coins.

Source: The Daily Sun/ Bangladesh/ 8th Dec 2011