Finance Minister AMA Muhith on Friday said the government has decided to increase the capital of the merchant banks as well as to stop their “forced sale” apparently in a bid to stabilize the volatile capital market. “The capital of the merchant banks is small… we’ve decided to increase their capital, but it is difficult to say now to what extent,” he said while briefing reporters after his meeting with the merchant bankers at the Securities and Exchange Commission (SEC) conference room.
Banking Division Secretary Shafiqur Rahman Patwari, SEC chairman Ziaul Haque Khondoker, member Yasin Ali and other high officials of the SEC and the merchant banks attended the meeting.
On margin loan, the Finance Minister said the government could only formulate a guideline or fix the limit and nothing more than that.
It was decided in the meeting that the lenders and their clients would agree on the margin loan ratio and other conditions based on their relationship, he added.
He informed that before finalizing the proposed law relating to the merchant banks, there would be discussions with the stakeholders.
About the allegation of “forced sale” against the merchant banks, Muhith said he personally thinks that such sale is immoral. He said that the merchant banks can play a balancing factor in the market.
“When you buy, you should also sale. When share prices increase, you must also sale.”
Replying to a question, the Finance Minister said that he himself and different institutions under his ministry had some “faults” in stabilizing the market.
He said that BNP leaders Barrister Moudud Ahmed and MK Anwar “did not think the way I did about the market.”
Muhith also justified their frequent interventions considering the volatility of the market.
Asked about the recent government decision asking the ICB and four state-owned banks to buy shares, he said: “This is not illegal… the purpose is to keep alive the market.”
The Finance Minister opined that the market was unimportant for the economy for some time because the required investment did not although share prices increased.
“But now I see there are opportunities as many applications have been received for IPOs (Initial Public Offerings).”
He told a questioner that the exposure of the merchant banks would increase if their capital is raised.
Besides, work is going on to reconstruct the index involving the DSE and CSE, he said.
Muhith voiced his reservations about the Chartered Accountants in carrying out company assessments and emphasized bringing them under law.
He said they have sent proposals to the cabinet twice for formulating a Financial Reporting Act to constitute a council as an overseer of the chartered accountants and look for any faults or whether any reform is needed.
Asked about the instability of the capital market, the Finance Minister said that the answer might be a political one. “It is an incestuous market and this should be stopped.”
Mentioning that the bourses have agreed for demutualization, he said that the capital market is bound to be a difficult market, if “I am the investor, I am the issuer and also I am the broker.”
SEC chairman Ziaul Haque Khondker said that the merchant banks came up with the proposals for increasing their capital, formulating clear guidelines for re-evaluation of assets and introducing advisory services.
He informed that the draft guideline on the book
building method has been prepared and it would be finalized after consulting the stakeholders.

News: The Independent/ Bangladesh/ Feb-19-2011

Under the programme of Corporate Social Responsibility (CSR) the Trust Bank Limited has donated Tk 0.5 million to the Cantonment Girls Public School and College. In a humble ceremony at the bank’s head office, Adjutant General of Bangladesh Army and Vice Chairman of Trust Bank Limited Major General Abu Belal Muhammad Shafiul Huq, ndc, psc handed over the cheque to the principal of the Cantonment Girls Public School and College Lt. Col. Zayedul Islam.
Among others, Trust Bank’s board of directors member Brig. Gen. Khan Abu Rawshan Muhammad Mustafa Kamal, ndc, psc, Brig. Gen. Tushar Kanti Chakma, ndc, psc, Begum Rokeya Din and managing director and chief executive officer of the bank Shah A Sarwar was also present of the occasion.
President of the Cantonment Girls Public School and College’s managing body Brig. Gen. M Emamul Huda, psc was also present on the occasion.

News: The Independent/ Bangladesh/ Feb-19-2011

Officials of Sonali Bank Limited (SBL) at a conference put emphasis on digitalization of all branches to provide the best services to the clients for accelerating socio-economic developments in Rangpur yesterday.

They urged the SBL officials to achieve its all fixed business indexes during the current fiscal and play their due roles for eradicating poverty from the northern region in the ongoing process of building a digital Bangladesh.

The SBL executives called upon the bankers for disbursing maximum agri-loans, exploring newer prospective sectors, including the SME and agriculture, to expand investments for quicker economic advancements in Rangpur division.

News: daily Sun/ Bangladesh/ Feb-19-2011

The 83rd meeting of the Executive Committee of the board of directors of Standard Bank Ltd was held at the board room of the bank recently.

The EC Chairman Harun Rashid Chowdhury presided over the meeting, said a press release.

The members of the committee Kamal Mostafa Chowdhury, Muhammad Nurul Islam, Ferozur Rahman, SAM Hossain, Mohammed Abdul Aziz and Harun Or Rashid attended.

Among others, managing director SA Farooqui, additional managing director Md Nazmus Salehin and board secretary AFM Nizamul Islam Chowdhury were.

The EC took various important decisions regarding bank's investment policy in the field of trade, commerce and industries and approved proposals received from different branches in respect of financing working capital for industries and other import, export and commercial businesses.

News: daily Sun/ Bangladesh/ Feb-19-2011

BRAC Bank Limited has opened two service booths at Hazrat Shahjalal International Airport recently to provide remittance and other banking services to the outbound passengers with a special focus on non-resident Bangladeshis (NRBs).

Shafique Alam Mehdi, civil aviation and tourism secretary, formally inaugurated the booths as the chief guest, said a press release.

BRAC Bank plays a vital role in bringing remittance of approximately Tk 45 billion in the country per year, the news release added.

Syed Mahbubur Rahman, managing director and CEO of BRAC Bank, senior officials of Civil Aviation Authority and the bank were also present at the function.

The booths ---‘Probashi Kollyan Booth’ and ‘Probashi Biniyog Booth’ was set up at the departure lounge in terminal 1 and 2 to provide foreign currency exchange services, account opening, remittance advice, information about legal remittance channels and authorised remittance houses, internet banking and investment in capital market facilities to the Bangladeshis expatriates, the statement added.

The civil aviation and tourism secretary praised the role of BRAC Bank for setting up the booths for the well being and convenience of expatriates Bangladeshis. He also hoped that the booths would play a vital role in promoting remittance inflow through legal channels.

News: daily Sun/ Bangladesh/ Feb-19-2011