Islami Bank Bangladesh Limited (IBBL) inaugurated its 249th branch at Moheshkhali, Cox’s Bazar on Sunday.

AHM Hamidur Rahm- an Azad, MP inaugurated the branch as chief guest, said a press release.

Engr Muhammad Dawood Khan, sponsor director of the bank presided over the function.

Chairman of Moh- eshkhali Upazila Pari- sad Abu Bakar Siddique and Vice Chairman Advocate Mushtak Ahmed and Mayor of Moheshkhali municipality Sarwar Azam attended the function.

Mohammed Monirul Moula, executive vice president and head of Chittagong south zone, Faridul Alam, Principal, Moheshkhali College, Badiul Alam, President, Gorokghata Bu- sinessmen Welfare Association, among others, spoke.

Meanwhile, a seminar on “Islamic Economics and Banking” was held on Saturday on the occasion of inauguration of Moheshk- hali SME/ Krishi branch of the bank.

Source: daily-sun, Bangladesh/15th Dec 2010

Bangladesh Krishi Bank signed a memorandum of understanding (MoU) with Bangladesh Tea Board (BTB) on financing Small Holding Tea Cultivation in Chittagong Hill Tracts.

The MoU was signed at the board room of Bangladesh Krishi Bank on Tuesday, said a press release.

Under the MoU, the initiative of tea cultivation would be implemented in the three hill districts.

Deputy development director (DMD) of Krishi Bank Md Joynal Abedin, general manger (Operation) Masud Alam Khan were present on the occasion.

Source: daily-sun, Bangladesh/15th Dec 2010

DHAKA : Bangladesh Bank governor Dr Atiur Rahman on Wednesday asked the banks to fix a focal point while carrying out their Corporate Social Responsibility (CSR).

He gave the directive while addressing a meeting on ‘CSR Presentation’ at Hotel Sheraton in the city.

Management and Resources Development Initiative (MRDI) and Association of Bankers, Bangladesh Limited (ABBL) jointly organized the meeting.

Speaking as chief guest, Dr Atiur said the image of a particular bank would increase significantly if they conduct their CSR properly.

“Employees of such banks then feel proud and its impact contributes a lot in their business,” he said.

The Bangladesh Bank governor, however, mentioned a problem concerning an SRO that makes it obligatory for the recipient to inform the NBR that they have got the CSR benefit from a particular bank. He suggested the NBR to incorporate the donor bank for providing information on the CSR.

As per the existing rule, banks get 10 per cent tax rebate for the money they spend on CSR.

Dr Atiur also suggested the NBR to provide other facilities if they can not give more tax rebate to the banks on their CSR money. — UNB

Source: daily-sun, Bangladesh/15th Dec 2010

Inter-bank call money rate shot up to 62.5 per cent yesterday, which is highest during the present government’s regime, as banks and financial institutions were facing fund shortage.

The call money rate moved up to 50 per cent on Monday.

“The increase in CRR and SLR of commercial banks and a large amount of share selling pressure put extra pressure on money market.” said Managing director of the Eastern Bank Ali Reza Iftekhar on Tuesday.

He also said the major telecom companies’ have withdrawn cash from the commercial banks ahead of the year ending for making their dividend payments and fees to government exchequer.

A fund manager of a commercial bank said that most of the commercial banks were borrowing from call money market ranging from 35-60 per cent while NBFIs borrowed at rates ranging from 40 to 62.5 per cent.

In a bid to tame inflation by squeezing liquidity in money market, the Bangladesh Bank has increased statutory liquidity ratio (SLR) to 19 percent from 18 percent and cash reserve requirement (CRR) to 6 percent from 5 percent.

The banks and NBFIs should increase their SLR and CRR from today (Wednesday) as per a recent directive of the BB.

Bankers said call money rate usually goes up to 20 per cent before the Eid-ul-Azha because of heavy withdrawal of funds by the hide traders. Call money rate increased up to 85-90 per cent in 2005 during the BNP-led four party alliance regimes.

Although the BB injected Tk 11.4 billion into the money market under a special repurchase agreement (Repo) on Tuesday, the fund proved to be inadequate, fund managers said. The total amount of Tk 34.8 billion was transacted in the local call money market on Tuesday.

Source: daily-sun, Bangladesh/15th Dec 2010

Bangladesh Bank has recently finalized their independent pay scale for its employee. According to the new pay scale the Executive Director's scale is thirty four thousand and five hunderd taka (Tk.34,500) and on that s/he will draw a salary of fifty two thousand four hundred and fifty taka (Tk.52,450) whcih was fifty thousand nine hundred and fifty taka (Tk.50,950) before. It has been finalized yesterday afternoon in a Cabinet Secretarie's office in a meeting of the Secretaries of Bangladesh Bank's Independent Pay Scale Finalizing committee. It has been informed that the new pay scale will come in effect after the approval of the Minister Cabinet.

Cabinet Secretary M. Abdul Aziz chaired the meeting where Finance Secretary Dr. Mohammad Tareq, Banking Secertary Shafiqur Rahman Patwary and DG of Bangladesh Bank Murshid Kuli Khan were present. Assistant Director's Pay scale of Bangladesh Bank has beed settled to eleven thousand and five hundered (Tk.11,500) and scale of General Manager and other officers' increased upto thousand taka.

Source: Amar Desh/15 Dec 2010