Dhaka Bank Limited recently signed a participation agreement with Bangladesh Bank under refinance scheme for setting up agro-processing rural industries in the country.

The main purpose of the refinance agreement is to boost country’s agro-processing industries through disbursement of SME loans at easy terms and conditions in the rural areas. Managing director of Dhaka Bank Limited Knondker Fazle Rashid and general manager of SMESPD, Bangladesh Bank Sukomol Sinha Chowdhury signed the deal on behalf of their respective organisations while Chowdhury Mohidul Hoque, executive director of Bangladesh Bank was the chief guest on the occasion.

Neaz Mohammad Khan, DMD (RM), Sirajul Hoque, EVP of Dhaka Bank and Ali Ahmed, joint director, Bangladesh Bank together with other officials from DBL and the central bank were present. The agreement will add new dimension to Dhaka Bank’s financing strength under SME.

News: Daily Sun/ Bangladesh/ Aug-14-2011

The banking division of the finance ministry has rejected the Bangladesh Bank (BB) recommendations on non-banking financial institutions (NBFIs) in the proposed act alleging that the central bank has not taken opinion from the stockholders.

“There is no sign of discussion with the stockholders of NBFIs in the proposed “Financial Institutions Act 2011,” said a senior official of the finance ministry.

He also said that the BB authority has not prepared the proposed financial institutions act with 35 provisions.

The banking division last week sent a letter to the governor of BB Atiur Rahman to revise the proposed Financial Institution Act 2011.

As per the letter, the banking division asked the BB authority to prepare the draft of the Financial Institutions Act 2011 with the consent of the stockholders of the non-banking financial institu-tions.

Earlier, the BB authority sent the proposal seeking opinion from the finance minister AMA Muhith.

According to the draft, the scope of business of NBFIs is going to be widened to enable those to contribute more to the economy and provide better services to clients. The range of the proposed “Financial Institutions Act 2011” is being expanded by including development finance, credit card, factoring and forfeiting under the law.

The proposed act imposes various restrictions regarding tenure and number of directors of the NBFIs like that in banks.

The government has taken an initiative to enact a new law replacing the 18-year-old Financial Institutions Act 1993.

According to the proposed act, in case of development financing, the NBFIs would be able to invest in new industries, agriculture and trade or any type of financial initiative. The NBFIs can get involved in factoring and forfeiting business also.

Factoring is a financial transaction whereby a business house sells its accounts receivable (such as invoices) to a third party (called a factor) at a discount in exchange for immediate money with which it continues business.

It is different from forfeiting only in the sense that forfeiting is a transaction-based operation involving exporters in which the firm sells one of its transactions, while factoring is a financial transaction that involves the sale of any portion of the firm's receivables.

As per the draft, no person, company or members of a same family can hold more than 10 percent of shares of any NBFIs either alone or collectively.

News: Daily Sun/ Bangladesh/ Aug-14-2011

Bangladesh Bank is set to release banknotes of five denominations with the portrait of Bangabandhu Sheikh Mujibur Rahman on Thursday.

The notes of Tk 2, Tk 5, Tk 100, Tk 500 and Tk 1,000 will be issued initially from the central bank's Motijheel office counter in Dhaka, the regulator said in a statement yesterday.

The banknotes will later be released from other offices of the central bank and all commercial banks.

Alongside the new notes, the banknotes and metal coins now in circulation will also remain valid, according to the statement.

The Tk 2 note will bear the signature of Finance Secretary Mohammad Tareq, while the other bank notes will carry the signature of BB Governor Atiur Rahman.

All the notes have been printed on a more durable paper mixed with synthetic fibre. The portrait of Bangabandhu has been printed on the front side of the notes while the National Memorial has been printed in light colours in the background.

The Tk 2 note has the picture of the Central Shaheed Minar, Tk 5 note has the picture of Kusumba Mosque in Naogaon, Tk 100 note has Star Mosque, Tk 500 note contain the scenery of agricultural farming. The Tk 1,000 note contains the image of Jatiya Sangsad.

Except for the Tk 2 note, Bangladesh Bank is written on the backside of all notes.

The Tk 500 and Tk 1,000 notes have seven lines in special ink on the right side, which can be easily felt on touch. The Tk 500 note has four small dots for the benefit of the visually impaired people while the Tk 1,000 note has five small dots.

News: The Daily Star/ Bangladesh/ Aug-02-2011

The Securities and Exchange Commission (SEC) on Tuesday approved the IPO prospectus of AB Bank First Mutual Fund to raise Tk 1.5 billion.

This is a closed-ended mutual fund with 10 years life time

“The approval came at a SEC meeting with its Chairman Professor M Khairul Hossain in the chair,” said Saifur Rahman, executive director and spokesman of SEC.

The per unit price of each of the mutual fund will be Tk 10 and market lot will be of 500 units.

AB Bank will subscribe units worth Tk 300 million as sponsor, while Tk 450 million will be raised through pre-IPO or private placement, and the rest Tk 750 million will be kept for initial public offering (IPO).

Race Asset Manage- ment will act as manager of the fund. AB Bank is the custodian of the fund while Bangladesh General Insurance Company is trustee.

News: Daily Sun/ Bangladesh/ Aug-10-2011

National Credit and Commerce Bank Limited (NCC Bank) recently signed a deal with Ansar-VDP Unnayan Bank for smooth delivery of inward foreign remittance to the country.

Under the deal, the two banks will work jointly to provide secured and quick delivery of remittance to the doorstep of customers of the banks using the network of Ansar-VDP Unnayan Bank, said a press release.

Mohammed Nurul Amin, managing director of NCC Bank, and MA Yousoof, managing director of Ansar-VDP Unnayan Bank, inked the deal at the head office of NCC Bank in the city.

News: Daily Sun/ Bangladesh/ Aug-10-2011