Rajshahi Krishi Unnayan Bank (RAKAB) presented Eid Gift to 100 wounded and non-well off freedom fighters and disable persons through a formal function at Shilpakala Academy Auditorium here on Saturday noon. Cultural Affairs Secretary of Central Committee of Bangladesh Awami League Asaduzzaman Noor MP was present at the function as Chief Guest and handed over the gifts to respective persons.
Chairman of RAKAB Prof Dr M Shah Newaz Ali was present as special guest at the function and General Manager of Rangpur Division of RAKAB SM Shamsul Alam presided.
Mayor of Nilphamari Pourashava Dewan Kamal Ahmed, UNO of Nilphammari Upazila Kawser Nasrin and local Awami league leaders were present at the Eid gift handing over function.
Eid gift includes Lungi, Saree, Sugar, Semai, Powder Milk and cash Taka one hundred.

News: The Independent/ Bangladesh/ Aug-29-2011

Bangladesh Bank governor Dr Atiur Rahman said the removal of professor Muhammad Yunus as the chief executive of Grameen Bank (GB) won't affect the microfinance pioneer bank as the government has launched a head-hunt for a competent new CEO. "The government is in the process of appointing a capable new CEO for the Grameen Bank with the help of a search committee comprising of reputed international persons," said Dr Atiur.
He was speaking as the chief guest on Thursday at the report launching ceremony of 'Bangladesh Microfinance Review' by BRAC Development Institute (BDI), BRAC University at the BRAC Centre Inn in the city.
Professor Yunus, who founded Grameen Bank in 1983 and transformed it into the world's largest micro-lender with over eight million borrowers, 97 per cent of whom are women, was sacked unceremoniously by the central bank as the GB CEO in March.
The removal led to a protracted legal battle between Yunus and the government, prompting many to express concern about the future and the financial health of the partly state-owned bank. But the governor, however, ruled out any move to undermine the bank, saying the performance of the Grameen Bank has not been and will not be left to founder following the departure of Yunus.
"With a delegated structure of operational management the GB retains firm footing as one of the country's top three microfinance providers," he added.
The governor asked the micro-lenders to adapt to new technology and use mobile banking system in an effort to cut their bloated operational cost.
He said the government has developed draft guidelines to ensure a level playing field for mobile phone banking, aimed at achieving the country's financial inclusion targets.
Mr Atiur stressed cushioning poor households against most common types of shocks such as deaths and crop losses, which often cruelly reverse the steady gains made by hard-working men and women.
He said regulatory oversight is needed for the overall conducive environment for micro-finance.
"Bangladesh has achieved scale in microcredit in an unprecedented manner and one of the reasons it has managed to do so relates to the relatively light touch regulations that the industry faces," he said.
"We have set up the Micro-credit Regulatory Authority (MRA) to achieve this balance and we aim to strengthen its capacity to achieve these goals."

News: The Independent/ Bangladesh/ Aug-27-2011

Renowned banker M Fariduddin Ahmed has joined Exim Bank as the managing director. Prior to his new assignment, he was the head of Islamic Banking Division of AB Bank Ltd. Ahmed started his banking career in Sonali Bank. He served in that Bank as branch manager, faculty member of Staff College, head of electronic data-processing department and other departments of that bank for several years. Later on, he joined Islami Bank Bangladesh Limited on the date of its launching on August 30, 1983 and played a key role in the development of Islamic banking systems and procedures. He also contributed a lot in devising and introducing Islamic banking accounting systems & the principles of distribution of profit to various participating fund. He also edited the Investment Manual for financing under Islamic principles.

News: The Independent/ Bangladesh/ Aug-27-2011

Hasibul Aman

Bangladesh Bank (BB) has injected fresh fund into the money market to meet an extra demand ahead of Eid as well as helping ease the heated call money market.

The inter-bank call money rate was stable on Wednesday despite of withdrawing pressure of cash from the banks ahead of the Eid-ul-Fitr festival, treasury officials said.

The central bank last week provided the banking sector with a daily liquidity support of Tk 80 to 90 billion through repurchase agreements (repo), Tk 10 to 15 billion higher than that of previous week.

The excess pumping of liquidity into the money market was eying on meeting an extra demand ahead of the country’s biggest religious festival.

“The total amount of daily liquidity supply through repo currently jumped to Tk 80 to 90, which is Tk 10 to Tk 15 billion higher than the normal volume,” an official of Securities Department of BB said on Thursday.

Another BB official said there is no liquidity shortage and the money regulator is supplying as per the demands of the market to negotiate the extra pressure on liquidity from the demand side before the biggest Muslim festival. “Bangladesh Bank, as the lender of the last resort, is providing repo as soon as banks are demanding,” he said.

He also informed that the inter-bank call money rate was hovering around 17 percent on average last week, soaring from 7 to 8 percent in the previous week.

But the lending rates among banks reportedly hit 25 percent on Thursday.

The rate, however, already surpassed the lending cap set by the regulator. Earlier in January this year, BB put a ceiling on the inter-bank lending rate at 12 percent to avoid volatility in the banking sector.

The BB official said it is usual that call money rates heat up before the Eid, the highest demanding period of liquidity.

It is not appalling, if the rate rises around 20 percent as the current lending rate for the public is nearly 16 percent. But it will be a problem if the rate soars to 25 to 30 percent, he added.

Call money rate hit a record high to 190 percent in mid December last year, leaving the money market in a volatile situation.

The rate took a volatile turn as the banks themselves dismantled their asset-liability management, for which many of them were show caused later by the regulator, the BB official pointed out.

The money market, however, remained comparatively stable this time as banks had been sent caution notes about the heated up liquidity market, BB sources said.

They were also repeatedly warned of bringing down their credit-deposit ratio (CDR) within the set limits, which might have contributed to the present comparatively eased liquidity situation, the official added.

News: Daily Sun/ Bangladesh/ Aug-27-2011

The inter-bank call money rate on Thursday, the last working day of the week, hit 25 percent as the cash withdrawal took place in larger amounts from various banks ahead of the biggest religious festival Eid-Ul-Fitr.

Although the central bank fixed the rate for the day at 20 percent early on Thursday, the rate went up by 5 percent.

Bangladesh bank sources said that commercial banks on Thursday transacted Tk 55 billion, Tk 130 million more than that of the previous day.

M Jahangir Alam, executive director of the central bank told daily sun that 20 percent call money rate against FDR rate of 12 percent is quite usual before Eid.

He said there is no sign of liquidity constraint in the market as the number of borrower is very less against much more number of depositors.

There is no crisis of foreign currency in the market. As we have released sufficient dollar in the market the local currency Taka has been appreciated against the greenback, he said.

“We believe that the market should be allowed to move on its way rather than imposing anything decision on it,” Jahangir Alam added.

He however said, the central bank is keeping sharp watch on the currency market so that the market cannot turn abnormal.

A few banks including the country’s largest state-owned commercial bank, Sonali Bank and Agrani Bank had to borrow money from the market yesterday to meet growing demand from the depositors.

Sonali Bank borrowed Tk 2.55 billion yesterday.

Managing director in-charge of Sonali Bank Atiqur Rahman told daily sun that borrowing required funds through the call money market is a very common practice in banking culture and before a big festival like Eid, borrowing sometimes becomes an inevitable for some banks.

Virtually the call money rate ranged from 12 percent to 25 percent on Thursday as some of the non-banking financial institutes (NBFI) charged up to 25 percent.

Managing director of Agrani Bank, Syed Abdul Hamid said the call money normally fluctuate within a certain limit but if it crosses the limit even abnormally before festivals like Eid it will not be surprising.

Abdul Hamid however hoped that Thursday’s call money rate could come down below 15 percent at the end of the day but finally the rate increased to some extend at the day’s closing.

Meanwhile, some executives of private commercial bank said making unusual profit by capitalising fund constraints is quite unethical.

Talking to daily sun managing director of Islami Bank Mohammad Abdul Manna said that such greed-based and profit mongering practices by some banks should be stopped.

News: Daily Sun/ Bangladesh/ Aug-26-2011