Bangladesh Bank has formed a six-member committee led by Executive Director SK Sur Chowdhury to probe whether commercial banks were involved in stockmarket irregularities.

The team will examine allegations of bank-related irregularities mentioned in the share market probe report, which has been submitted to the government by an investigation panel.

On April 7, Khondaker Ibrahim Khaled, chairman of Bangladesh Krishi Bank, submitted the probe report, accusing “all the institutions that have anything to do with the stockmarket for the debacle”.

The central bank committee has been asked to submit its report within next one month, said an official of the central bank.

According to the terms of reference, the committee will examine whether there was any irregularity in the commercial banks' trading in the stockmarket in respect of the Banking Companies Act and different circulars of the central bank.

If required, the committee will be able to conduct inspection.

On the basis of its recommendations, the central bank will later take necessary action, officials said.

The central bank's latest measure will be seen as a step towards regaining some of the confidence it lost in recent months, as retail investors as well as critics think Bangladesh Bank could have done more to avoid the unprecedented collapse in the history of the country's stockmarket.

Source: The Daily Star/Bangladesh/May 30, 2011

AK Azad, President of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) yesterday urged the government for lowering bank lending rate to the previous level of maximum 13 percent, in order to bring stability in the investment sector.

“Bank interest rate shot up to 18 percent after withdrawal of the lending cap, which was 13 percent earlier. The situation has worsened, and trade and investment has been stagnated,” he said while addressing a press conference at the Federation Bhaban in the city.

Azad observed that both domestic and foreign investments are discouraged due to high bank interest rate and liquidity crisis with the banks.

“I think the difference between deposit rate and lending rate should not cross more than three per cent,” the chamber leader said.

He suggested the central bank for considering other currencies other than US dollar in foreign transactions as the dollar price has shot up.

Azad also urged the Securities and Exchange Commission (SEC) for taking initiatives in bringing back big investors in the stock market. “To restore stability, the authority should bring back the big investors who earned huge profit during the recent past,” he added.

The president of apex trade body said the government should fix a time limit for the big investors including banks to reinvest in the stock market.

“Some 27 banks and 14 financial institutions raked in profits worth Tk 60 billion from the stock market. They’ll have to reinvest. The stock market will not be stabilised if the big investors stay away,” he said.

Azad urged Finance Minister AMA Muhith to sit with all stakeholders and the stock market regulatory body - SEC - for urgent decision and effective steps in this regard.

He stressed on the need for urgent restructuring of the SEC with necessary reforms in laws, apart from appointing the two members of the commission.

FBCCI First Vice-President M Jashim Uddin, Vice-President Mostafa Azad Chowdhury Babu and directors were present.

Source: Daily Sun/Bangladesh/May 30, 2011

Sowkat Ali was made general manager of Sonali Bank Limited and posted at general managers’ office in Khulna yesterday.

Before joining his office in Khulna, he was working in the bank’s head office in the discipline and appellate division, said a press release.

Born in a village Pankharchar of Lohagora thana under Narail district, Sowkat secured MSS in political science department from the Dhaka University.

After completing his education, he joined Sonali Bank in 1983 as a senior officer (probationary).

Source: Daily Sun/Bangladesh/May 30, 2011

Standard Chartered Bank opened a new branch in the port city of Chittagong with a new and refreshing look.

The new branch is located at Zone Service Complex at Chittagong Export Processing Zone (CEPZ) with the commitment to provide world-class banking services and financial solutions, said a press release.

Jim McCabe, CEO, Standard Chartered Bank, Bangladesh and S M Abdur Rashid, general manager, Bangladesh Export Processing Zone Authority (BEPZA), Chittagong, yesterday inaugurated the branch.

Sandeep Bose, head of consumer banking, Bangladesh, Nepal and Sri Lanka, Standard Chartered Bank, other distinguished guests, valued clients and senior officials of the bank were also present at this inauguration ceremony.

Source: Daily Sun/Bangladesh/May 30, 2011

Pubali Bank Limited (PBL) organised a follow-up meeting on “Loans under Consumers Credit Scheme” at Pubali Bank Head Office in the city recently.

Senior executives, branch managers of Dhaka and Narayangonj region and officers of the bank attended.

During the meeting, they exchanged their views on consumer credit loans. Helal Ahmed Chowdhury, managing director of the bank presided over the meeting, said a press release.

Deputy managing director (Operation) Mahbub Mustafizur Rahman was present at the meeting.

In his presidential address, Helal Ahmed Chowdhury gave necessary guidelines to the officers. He stressed on selection of potential borrowers and taking initiatives to enhance bank’s business.

He emphasised special drive for recovery of overdue, classified and write off loans on priority basis and advised branch managers to keep close vigilance so that newly disbursed loans may not become overdue or classified by intensive supervision and close monitoring of the loan.

He underscored the need for utilisation of the modern Information Techninlogy for qualitative improvement in the overall customer service of the bank to face the highly competitive banking sector.

Santi Ranjan Sarker, general manager of Consumers Credit Division highlighted different aspects and problems on consumer credit loan.

Source: Daily Sun/Bangladesh/May 30, 2011