The government is likely to issue Tk 25.04 billion bonds for Agrani Bank to pay dues of cash crunch Bangladesh Petroleum Corporation (BPC) and arrange further credit for procuring fuel oil from the international market.

“Agrani Bank will arrange further credit to the country’s lone fuel oil importing corporation if the government issues bonds for the said amount,” said a senior official of the Agrani Bank.

Finance Minister AMA Muhith on September 10 this year directed the authority concerned to issue bond for mitigating the financial risk of Agrani Bank.

BPC in a letter to finance ministry sought minimum fund requirement of Tk 10.49 billion to overcome its liquidity shortage. The corporation at a meeting at the finance ministry last week was asked to inform the ministry about its fund requirement.

The corporation has also submitted a ‘Cash Flow Statement’ till June 30 this year on the basis of consensus among BPC and four state owned commercial banks. Meanwhile, the corporation has projected import of around 6.50 million tonnes of oil in the current fiscal year (FY 2011-12) at a cost of Tk 460 billion (US$ 6.21 billion), up by 53 per cent from the previous fiscal year's Taka 300 billion.

Total loss of BPC during last fiscal year (2010-11) stood at Tk 81.98 billion while the finance ministry disbursed Tk 57.91 billion as soft credit. The corporation’s total outstanding with the finance ministry amounted to Tk 24.07 billion during last fiscal year, according to the finance ministry.

After retuning from Washington, finance minister would hold a meeting at the finance ministry to discuss cash crises of BPC and state-owned commercial banks. The proposals of raising price of fuel oil and electricity would be discussed at the meeting.

BPC also sought loans directly from overseas lenders to meet its mounting oil import bill.

The HSBC, Citibank and Standard Chartered Bank would be the lead arrangers of loan, BPC chairman Md Muktabir Ali earlier told the press last week.

News: Daily Sun/ BAngladesh/ Oct-04-2011

BRAC Bank, country’s largest SME bank, has arranged five-day workshop for SME entrepreneurs from Saturday. The workshop aims at enriching basic financial knowledge of SME businessmen and helps them prepare balance sheet and other important financial statements, said a press release. Md Abul Kashem, deputy governor of Bangladesh Bank, formally inaugurated the workshop on October 01 at Joydebpur Branch of BRAC Bank in Gazipur.

News: Daily Sun/ BAngladesh/ Oct-04-2011

Md Nurun Newaz Salim, chairman of the bank, formally inaugurated the booths as chief guest and Mohammed Nurul Amin, managing director and CEO of the bank was present as special guest. Md Matiur Rahman, senior executive vice president, Md Omar Faruque Bhuiyan, executive vice president, Fakhrul Islam Chowdhury, senior vice president and senior officials of the bank were present on the occasion.

From these booths, customers of NCC Bank will enjoy 24-hour cash withdrawal, balance inquiry, utility bill payment, mini statement and pin change facilities through these booths without any cost.

News: Daily Sun/ BAngladesh/ Oct-04-2011

Bangladesh Bank yesterday invited applications for setting up of new private banks and published detailed guidelines for establishing banking company.

In a recent meeting of Board of Directors, BB had decided in principle to grant license to new private banks pursuant to section 31 of the Banking Companies Act, 1991.

The banking sector regulator took the decision after considering the need and overall strategy congenial to effective monetary and financial sector policy for the country, a BB statement said.

Last date of application submission for license is November 30 this year. Applications should be in the prescribed form and prepared according to the instructions provided in the guidelines.

According to the set terms and condition, it must be a public limited company incorporated in Bangladesh and initial minimum paid up capital of a new bank shall be Taka 4 billion, provided by sponsors.

The Share capital will be formed with ordinary shares only.

The minimum shareholding stake of each sponsor shall be Taka 10 million and the maximum shall be 10 percent of the proposed bank’s share capital. This ceiling is applicable to an individual, company or family member, either individually or jointly.

Sponsors' contribution to the equity capital of the proposed bank will be required to be out of net worth declared to the Tax authorities in form IT 10B. Contributions borrowed from banks and NBFIs will not be acceptable. Tax return and certificate has to be submitted.

Competence, integrity and qualifications of the sponsors of the proposed bank becoming the first directors shall be evaluated.

The evaluation process shall include background checks on whether previous activities, including regulatory or judicial judgments, raise doubts concerning their competence, sound judgment, or integrity.

The sponsors or directors shall qualify the Fit and Proper Test criteria applicable for the Bank Directors in Bangladesh, the guideline says.

Taka one million has been fixed as the non-refundable application processing fee, which will be paid through a bank draft in favour of Bangladesh Bank, attached to the letter of application.

For further information about the detailed guidelines, interested people have to log on to official website of the Bangladesh Bank.

News: Daily Sun/ BAngladesh/ Sep-28-2011

Chittagong region’s principal office of Pubali Bank Limited honoured seven managers and other 20 officials for their outstanding performances for collecting highest deposit to the bank. Helal Ahmed Chowdhury, managing director of the bank was present at the function as the chief guest while deputy managing director Safiul Alam Khan Chowdhury presided over, said a press release. To motivate all officers of Chittagong region, Pubali Bank’s Chittagong principal office rewarded the officials for their best performances.

Md. Fazlul Haque, GM of Chittagong Principal Office, among others, was present.

News: Daily Sun/ BAngladesh/ Sep-28-2011