Eastern Bank Limited (EBL) has recently opened its 50th branch at the Chittagong Export Processing Zone (CEPZ).

Customers of the bank will avail a wide range of banking services at the branch as it is equipped with ultra-modern baking facilities, said a press release.

Meah Mohammed Abdur Rahim, director of the bank, formally inaugurated the branch at Saleh Complex at the industrial zone on Sunday.

The bank’s Managing Director and Chief Executive Officer Ali Reza Iftekhar, Depty Managing Director Moklesur Rahman, brand and marketing Head Ziaul Karim and Md. Musa, manager of the new branch, among others, were present on the occasion.

The EBL will open nine more branches at various parts in the country during the current fiscal, the statement said.

News: Daily Sun/ Bangladesh/ Aug-15-2011

Dutch-Bangla Bank Limited (DBBL) has opened its 101st branch at Ambarkhana in Sylhet recently. Customers of the bank will avail most up-to-date online banking facilities at the branch like other branch network of the bank, said a press release.

KS Tabrez, managing director of the bank, formally inaugurated the branch at Laise Super Market in the Sylhet city’s Kotwali area on Sunday. Prof Md Saleh Uddin, vice-chancellor of Shahjajal University of Science and Technology (SUST), among others, was also present on the occasion.In his speech, Tabrez said DBBL provides a wide array of banking products and financial services including card services to its retail and corporate customers in the country. The bank has started mobile banking operation, first of this kind in the country to reach banking services to the door steps of rural people in the country. The bank also provides enhanced banking services to its customers through a variety of delivery channels like ATMs, Fast Tracks besides branch networks at important places in the country, he added. SUST VC Saleh Uddin said the bank is not only fulfilling present-day customer needs but also the bank spends a significant portion of its profit towards wellbeing of the society.

News: Daily Sun/ Bangladesh/ Aug-15-2011

City Bank has declared 30 per cent stock dividend for its share holders for the year 2010.

The board of directors of the bank approved the dividends at its 28th Annual General Meeting (AGM) at Bashundhara Convention Center in the city on Sunday, said a press release.Aziz Al Kaiser, chairman of the bank, chaired the meeting while the bank’s Vice Chairman Hossain Mehmood, Directors Hossain Khaled, Rajibul Huq Chowdhury, Rafiqul Islam Khan, Mobarak Ali and Managing Director and Chief Executive Officer Kazi Mahmood Sattar, and a large number of shareholders were also present on the occasion. In his speech, Aziz Al Kaiser said the bank has taken a number of measures according to the guideline of Bangladesh Bank, the central bank of the country.

In the long run, the measures will make the bank a stable in banking business in the country, he added.“The suggestions given by the shareholders will help us to formulate the business policy and ensure faster growth and development of the bank,” he said.

News: Daily Sun/ Bangladesh/ Aug-15-2011

National Bank Limited (NBL) has arranged a five-week training programme for its newly recruited officers in the city. Neaz Ahmed, Ma- naging director and chief executive officer of the bank, formally inaugurated the training programme titled ‘Foundation Course for Probationary Officers’ at the bank’s training institute in the city’s New Eskaton area, said a press release.The training institute’s principal Md Majibur Rahman and senior faculty member Zahir Uddin Mohd Babar, among others, were present on the occasion. A total of 28 probationary officers are participating in the training course.

News: Daily Sun/ Bangladesh/ Aug-15-2011

Rejaul Karim Byron

The credit-deposit ratio (CDR) of commercial banks came down to a safe limit in June, as the surplus inter-bank deposits were included in total deposits.

The banks increased deposits and reduced credit, trimming the CDR further, said an official of the Bangladesh Bank.

Commercial banks are not allowed to invest more than 85 percent of their deposits, while Islamic banks cannot exceed the 90 percent limit.

On June 30, the CDR of 43 local and foreign commercial banks fell to 79.68 percent from more than 85 percent in December last year. In many banks, the ratio was above 100 percent.

The banks' overall deposits increased by 11.22 percent on June 30, compared to six months ago. Credit fell 6.20 percent.

The banks included Tk 7,605 crore in the total deposits in June, according to the central bank.

The banks increased deposits aggressively, and every bank cut lending consciously, which pared down the CDR rate, said K Mahmood Sattar, president of the Association of Bankers Bangladesh.

He said a few banks could reap the benefit of inter-bank deposits but most of the banks' CDR fell as they reduced credit.

The BB set a deadline for the banks to bring down the CDR to the safe limit by June to restore credit discipline. The bank owners met with Prime Minister Sheikh Hasina with an appeal to relax the rules.

The central bank relaxed the rules and said the banks can calculate inter-bank deposits in their total deposits.

The CDR by state commercial banks was 72.9 percent on June 30. Those banks included Tk 4,580 crore inter-bank surplus deposits in their total deposits.

The CDR of the private commercial banks was 82.92 percent and they included Tk 2,992 crore in the inter-bank deposits, while that of foreign commercial banks was 76.96 percent and they added only Tk 32 crore in the inter-bank deposits.

Of the 30 private commercial banks, only nine included inter-bank deposits of over Tk 100 crore in their CDR.

Analysts held the banks' excessive investment in the stockmarket as one of the causes, which pushed share prices to an unsustainable high. The central bank had since the first half of 2009 warned banks against parking excessive money in stocks.

Some officials of the Securities and Exchange Commission, stockmarket leaders and influential businessmen piled pressure on the BB to let the banks pour money into the stockmarket.

A total of 47 banks made operating profits of Tk 16,486 crore in 2010, with Tk 2,504 crore coming from the stockmarket, according to the central bank statistics.

The BB discourages the banks from any risky investment in an effort to cut credit growth, the high official of the central bank told The Daily Star yesterday.

As part of its overall monetary policy, the central bank takes steps to bring down credit growth to control soaring inflation, the official said.

News: The Daily Star/ Bangladesh/ Aug-14-2011