Bangladesh Bank Governor Dr Atiur Rahman has said the central bank will not allow a further rise of the inflation rate as there are signs of good crop production this year.

“Inflation is the biggest enemy of the poor. But, in no way, we would allow to grow further,” he said adding that Bangladesh is in a better position in terms of poverty scenario in comparison with that of the neighbouring countries as it witnessed participatory economic growth.

“The economic change in Bangladesh is not only quantitative but also qualitative,” the governor said while addressing a roundtable on financing agro-based small and medium industries held at the FBCCI auditorium on Tuesday.

“Inflation might have reached somewhat high, but at the end of the day the country is enjoying a GDP growth rate of around 7 percent,” Atiur told businessmen requesting them for showing tolerance to some ‘growth pains’ for a stable economy.

While citing the high growth rate of some neighbouring countries Atiur said, “slow and steady growth is sustainable and we want to go in that direction.”

On poverty alleviation among rural poor, Atiur said, “Only the agro-based industry can create an effective safety net through employment generation, which must cut income fluctuation among the rural poor.”

The governor, however, said the central bank wants both the agricultural and industrial developments as the manufacturing sector is a major source of employment generation. “We want to walk on both feet,” he added.

FBCCI president AK Azad in his speech demanded re-imposition of 13 percent cap on lending. “Fourteen percent lending rate on working capital for the industries is also too high, whereas the previous cap of 13 percent was a burden for them,” the president of the apex trade body said.

He also slammed the banks for their over exposure to the capital market. “The industrial sector can’t suffer for such profit making tendencies of the banks,” he added.

Other discussants of the roundtable, however, demanded caps both on lending and deposits for ensuring a stable banking sector.

Sukamal Singha Chowdhury, general manager, BB’s SME and Special Programmes Department, presented a keynote at the roundtable organised by BRAC Bank.

In his paper, he stressed on agro-based industrial development and diversification of products. The farmers’ access to the agriculture loans has increased remarkably in recent time and banks are also showing interests in disbursing agri loans, he mentioned.

Managing director of Brac Bank Syed Mahbubur Rahman, FBCCI director Golam Mostafa Talukder, Former FBCCI presidents Abdul Awal Minto, Akram Hossain and Abul Kashem, among others, took part in the discussions.

News: Daily Sun/ Bangladesh/ 13-Apr-2011

Eastern Bank Ltd has launched two products 'EBL Unnoti' and 'SME Equity Builder' for small and medium entrepreneurs.

EBL Managing Director and Chief Executive Officer Ali Reza Iftekhar launched the new products at a press conference at Sonargaon Hotel in Dhaka.

EBL Unnoti is an asset product for SME customers designed to bring flexibility in loan usage where a customer can avail himself of the facility when required, and interest will be charged only on the amount utilised.

It is a bundle loan product having overdraft and term loan facility for SME customer having finance against fixed asset and working capital requirement for creditworthy business secured by collateral security (registered mortgage of land and building).

Any SME customer with a minimum two years of successful business operation and all legal documents can apply for the loan. The minimum loan is Tk 10 lakh and the maximum is Tk 1 crore.

The tenure of the loan is a maximum of five years.

SME Equity Builder is a savings scheme for SME entrepreneurs, which can be opened by any SME client having valid trade licence at all EBL branches, the bank said.

The account will encourage SME entrepreneurs to develop habit of savings for enterprises. Ninety percent loan facility is available against deposited amount, it said.

SME Equity Builder offers an 11 percent interest rate on a monthly compound basis to be paid on maturity. It will help the fund in the account grow at a faster rate than the conventional savings schemes, the bank said in a statement.

An enterprise can open multiple accounts with convenient installment size between Tk 500 and Tk 50,000. The maturity of the scheme is 5 years. However, premature encashment is also available.

News: The Daily Star/ Bangladesh/ 13-Apr-2011

AB Bank Limited celebrated the 29th anniversary of its establishment across the country yesterday. All of the bank’s 81 branches organised programmes to mark the day in a befitting manner, said a press release. AB Bank’s chairman M Wahidul Haque and managing director Kaiser A. Chowdhury addressed the celebration at the bank’s head office in Dhaka, said a press release. The directors and other officials of the bank were also present at the function. AB Bank is currently being operated through 81 online branches, 11 SME (small and middle entrepreneurs) centres, a nationwide ATM network controlled by its own subsidiary Cashlink Bangladesh limited, two independent subsidiaries in Investment Banking and Capital Market, one branch in Mumbai and another Finance company in Hong Kong, said the bank sources. The sources said the bank will soon launch its operations in the United Kingdom (UK) and Myanmar. According to the sources the bank under Corporate Social Responsibilities (CSR) made substantial contributions to the people affected by natural calamities. AB Bank also assists in raising donations and sponsorships in the aid of communities include autistic children, blindness, cancer, environment etc, the sources said. The bank has plans to introduce new products under Corporate and Retail Banking services. It has also taken up program to offer customized products for Non Resident Bangladeshis (NRB).

News: Daily Sun/ Bangladesh/ 13-Apr-2011

Bangladesh Bank and all the scheduled banks will remain closed on April 14 (Thursday).
The central bank announced the holiday on the occasion of Bengali New Year, 1418, a BB press release said on Monday.

News: The Independent /Bangladesh/ Apr-12-2011

First Security Islami Bank Ltd organised managers conference at Regency Hotel & Resort recently.

AAM Zakaria, managing director of First Security Islami Bank presided over the conference, said a press release.

The conference were attended, among others, Md Abdul Quddus, deputy managing director, zonal heads, head of the branches, executives of head offices.

News: Daily Sun/Bangladesh/ Apr-12-2011