Al-Arafah Islami Bank Limited (AIBL) opened its 78th branch at Panchdona in Narsingdi recently, said a press release. Member of Al-Arafah Islami Bank Foundation and Director of AIBL Capital Market Services Ltd Engr Khandoker Mesbahuddin Ahmed inaugurated the branch as the chief guest.

AIBL Managing Director Ekramul Hoque delivered the welcome address. Among others, vice presidents of the bank Engr Md Habib Ullah and Abed Ahmed Khan and First Assistant Vice President Jalal Ahmed were present at the inaugural ceremony. Directors of the bank Harun-ar-Rashid Khan and Sabrina Farah Ahmed, Founder Chairman AZM Shamsul Alam, president of Narsingdi Chamber of Commerce and Industry AK Fazlul Haque and social worker Doctor Khandoker Mohiuddin Ahmed also addressed the inaugural function.

Local elite, businessmen and clients of the bank attended the function. Manager of the branch Shahidul Islam thanked the audience, the release added.

News Source: Financial Express/05 Jan 2011

Islami Bank Bangladesh Ltd (IBBL) collected deposit of Tk 291.31 billion until December 31, 2010 with a rise of Tk 47.66 billion in a year from January 1 making 20 percent growth. Total investment of the bank reached Tk 291.46 billion during the same period increasing Tk 52.46 billion with 22 per cent growth compared to that of the previous year.

IBBL handled foreign exchange business of Tk 609.33 billion with an increase of Tk 146.96 billion in a year taking the growth rate to 32 per cent including import of Tk 246.33 billion, export of Tk 148.43 billion and remittance of Tk 214.58 billion enhancing Tk 85.10 billion in import, Tk 42.00 billion in export and Tk 19.86 billion in remittance respectively against the same period of the last year. The disclosure was made at the bank's year-end meeting at IBBL head office in the city recently, according to a press release.

IBBL deputy managing directors Mohd Shamsul Haque, Md Habibur Rahman, Md Setaur Rahman and Md Nurul Islam, among other top executives, attended the meeting with Managing Director Mohammad Abdul Mannan in the chair.

News: Financial Express/05 Jan 2011

Professor Mohammed Farashuddin, Former governor of Bangladesh Bank, has called for imposing a strict limitation on scheduled banks' investment in Initial Public Offerings (IPOs) only and bringing them out of pre-IPO investment as it is creating only asset inflation in the economy. He was speaking at tenth Nurul Matin Memorial Lecture on 'Ethics in Banking', organized by Bangladesh Institute of Bank Management (BIBM) in a city hotel Monday.

"Banking Ethics has been put in the cold storage by commercial banks in diverting good part of their advances in non-IPO shares and making abnormal margin in a chaotic stock market", Dr. Farashuddin said, adding that such practice bars stock market's capacity of capital or equity formation. "Limiting commercial banks' involvement in IPOs and ensuring the limited exposure is channeled through properly formed and supervised subsidiaries should be in order along with regular surveillance on Small and Medium Enterprise (SME) fund to stop its diversion in consumer goods and non-IPO investment", he suggested.

Dr. Farashuddin also asked for scrutinising SME fund's performance not only in terms of providing working capital, but also from the aspect of creating newer enterprises. He also emphasised on further strengthening of Bangladesh Bank's supervisory capacity as well as additional operational independence and asked the government's attention for separate compensation package for central bank officials. "BB should be relieved from the duty of 'auxiliary assistance in socio-economic development' which will enable it to concentrate more on monetary policy and bank supervision objectives", Dr. Farashuddin said.

The speaker brought the issues of depositor's representation in board of directors, double-digit spread of interest, political intervention in sanctioning and waiving loan, excessive loan taken by equity-holder directors, commercial bank's BASEL-II compliance in his speech. Dr. Farashuddin also suggested for forming Asset Management Company for dealing with Non-performing Assets (NPAs), offloading nationalised commercial bank's share and exposing them in competition for efficiency, BB's involvement in assessment of scheduled bank's chief executives, limiting spread of interest to 6-7 per cent, and finalising merger law and enforcing it simultaneously with capital adequacy requirement. Concurring with the speaker's suggestion, BB governor Dr. Atiur Rahman, chair of the function, said, "BB is pursuing equitable and inclusive growth by engaging private banks in socially desirable lending and creating ground for tomorrow's profitable business".

Former governor A.K.N Ahmed was present as the chief guest and suggested to ensure ethics in policy making level in banks and keeping banks' growth in line with society's growth. BIBM director general Dr. Toufic Ahmad Choudhury welcomed all. Bankers, eminent economists, representatives from civil society and BB top officials were also present.

News Source: Financial Express/05 Jan 2011

Another leading bank of Bangladesh, Southeast Bank Limited recently expanded its branch network further by opening its 73d and 74th Branch consequently to Madanpur & Narsingdi. Mr. Zakir Ahmed Khan, Financial Adviser of Southeast Bank Limited formally inaugurated the Branches as Chief Guest. Among others Company Secretary & Senior Executive Vice President Muhammad Shahjahan, customers, educationists, local elites, and banks other officials were present.

From now on, modern commercial banking services and credit facility shall be extended to the customers of the Branch. Besides, the hard-earned money of the Bangladeshi expatriates working abroad shall be handed over speedily to their beneficiaries at a competitive exchange rate from the Branch.

News Source:Financial Express/04 Jan 2011

Rejaul Karim Byron

Remittance growth slowed last year compared to the previous year, and the inflow fell short of the yearly target by $1 million.

The growth was 2.62 percent in the last calendar year against a target of $11 billion. In the last few years, the growth hovered around 15-30 percent.

The remittance inflow was $10.99 billion last year, and $10.71 billion in 2009.

Officials at the finance ministry and Bangladesh Bank (BB) linked the declining growth to the fall in manpower export and the reduced earnings of the expatriates.

According to labour and employment ministry data, manpower export fell by about 18 percent last year.

A high official of the central bank said Bangladesh in the current year faces the dual challenge of containing inflation and increasing manpower export.

Remittance inflow plunged in December last year compared to November, BB data showed. In December the amount was $963.53 million, down from $998.64 million in November.

The growth of remittance showed a downward trend from the beginning of the year 2010, mainly from July.

A BB official said, apart from a fall in manpower export, many expatriate workers have returned home after losing their jobs abroad. Also, the decline in the export of skilled manpower dampened remittance inflow.

Refugee and Migratory Movements Research Unit (RMMRU), a research and policy advocacy institution, in a study in December said the export of skilled manpower went down last year, while the trend is upward among the unskilled segment.

The government took some steps last year to increase the export of manpower, such as setting up of an expatriate bank and digitalisation of the recruitment process, according to the findings of the study.

However, it said some more measures are required to improve the migration situation.

The RMMRU suggested laying highest emphasis on manpower export during the sixth five-year plan tenure.

A finance ministry report on macro-economic situation prepared last month said export of manpower, especially the skilled ones, is a big challenge for Bangladesh. The report recommended expanding Bangladesh's labour market in the countries in Eastern Europe and North and South Africa.

Source: The Daily Star/ Bangladesh/ Jan-04-2011