Rapport Bangladesh Limited organised a day-long workshop on leadership for banking and financial institutions in Chittagong recently.

Dr M Mosharraf Hossain, Chairman and Managing Director of Rapport Bangladesh Limited conducted the workshop, said a press release.

Twenty senior and mid-level executives of Islami Bank Bangladesh Limited, United Commercial Bank Limited, BRAC Bank Limited, Prime Finance and Investment Limited, Premier Bank Limited, BRAC, Habib Bank Limited and Bico Pharmaceuticals Limited participated at the workshop.

Source: The Daily Sun, Bangladesh/11th Dec 2010

Finance Minister AMA Muhith has warned banks not to invest "call-money" borrowings in the stock market and blamed bureaucratic inertia for the failure by the government to offload shares of more than two dozen state companies.

Speaking a day after the steepest decline in Dhaka Stock Exchange's history, the minister said most shares are now overheated and the investors must have patience and think long term to make profit from the capital market.

Muhith rued despite his ministry's instructions, stakes in 26 state owned enterprises could not be offloaded by end of November - a move the government had promised in an effort to cool the market.

"We have set a 30-day deadline to offload those shares. It should not have been a complicated issue to offload additional shares of SOEs that have already been listed," the finance minister said in the capital.

"But those shares have yet to hit the market only due to mindset problem of some people," Muhith said, referring to the bureaucrats. He was speaking at the launching ceremony of `Bangladesh Institute of Capital Market' (BICM), a public-private training institute.

Dr. Mashiur Rahman, Economic Affairs Adviser to the prime minister was also present on the occasion.

The finance minister said investors need to show patience in the 'volatile' capital market. In spite of looking for short term profit, an investor needs to hold his shares to gain long term profit, he added.

His comments came a day after the Dhaka Stock exchange witnessed its steepest fall ever with the benchmark index shedding 547 points or 6.37 per cent in just 80 minutes of trading.

The fall set off angry protests by small investors who sniffed foul-play into the collapse. The demonstrations forced the securities regulator to postpone its two recent orders in mid-day and the market clawed back to end with the fall 1.56 per cent.

He also rejected the conspiracy theory swirling in the market that a vested quarter was out to destabilise the bourses, saying the capital market is now more strong and deep with the surge of new investors.

"During the tenure of this government, the number of investors has increased significantly and BO accounts now stood around three million," the minister said.

"So, I don't think that only a few unscrupulous investors can not destroy the country's capital market," said Mr. Muhith.

The finance minister said although investors often blame the authorities for frequent interventions, these orders are sometimes necessary for the greater interest of the market.

He said the PE (price-earning) ratio of most of the sectors had reached "dangerous level", meaning they are overpriced. Experts say a PE ratio of 16 is the standard for a financially healthy company.

But in the DSE - the country's premier bourse -- some companies' PE ratios including a few from the poor performing textile sector -- have even crossed 50, the minister said.

The finance minister strongly warned banks not to invest fund they borrow from inter-bank call money market into the bourses. "Banks should stop this practice", he said.

The finance minister said demutualization of the country's two bourses, which is essential to ensure market transparency, is likely to take place in the tenure of this government.

Economic Adviser Moshiur Rahman stressed the need for diversification of listed companies. He said most investors must be trained on the pros and cons of stock trading so that they can behave rationally.

The newly formed BICM can bridge the gap between new and intuitional investors, said the adviser.

Securities and Exchange Commission Chairman Ziaul huq Khondokar, Dhaka Stock Exchange (DSE) former president Rakibur Rahman, Chittagong Stock Exchange President Fokhruddin Ali Ahmed and Executive President of newly formed BICM were also present in the launching ceremony.

Former DSE president Rakibur Rahman said investment in good companies which have strong fundamentals can save the investors from market volatility.

"It is not expected that every day market will go up. We have seen that when our market plummets, investors stage wild demonstrations. It is not a good practice and I have not seen anything like this anywhere in the world.

He said supply of quality shares --both from private and public sectors -- can help stabilize the market.

In his concluding, speech Securities And Exchange Commission (SEC) chairman Ziaul Huq Khondker praised two former chairmen of SEC for their valuable contribution toward establishment of the BICM.

Among others Abdul Hannan Zoarder, Executive President of the newly formed BICM also spoke in occasion.

Largely, financed by Bangladesh Government, BICM will act as the premier provider of high quality practical education, training and assessment on the Bangladesh capital markets.

Initially, the BICM will offer short-term training course on capital market. Masters, M Phil and PhD courses also will be introduced in future. Initially, high officials of Securities and commission (SEC) will conduct those training programmes.

Source: The Financial Express, Bangladesh/10th Dec 2010

AB Bank Limited opened its 78th branch at "Munshi Tower" (1st Floor), Madhabpur, Habiganj, Sylhet on Thursday.

Deputy Commissioner of Habiganj, Mr. Mahmud Hasan graced the occasion as Chief Guest and officially inaugurated the new branch.

Additional Managing Director of AB Bank, Mr. Majedur Rahman and Deputy Managing Director, Mr. Shamim A. Chaudhury were also present along with him.

High officials from the local government and administration were also present in the inaugural ceremony. Other dignitaries of AB Bank attending the opening ceremony were Mr. Golam Mahmud Rizvi, Regional Relationship Manager, Mr. Syed Mahmudul Haque, Branch Manager, Madhabpur and other bank officials of the Madhabpur branch.

Source: The Financial Express, Bangladesh/10th Dec 2010

The Norwegian Agency for Development Cooperation (NORAD) submitted its report on Wednesday on Norwegian support to Grameen Bank in Bangladesh in 1980s and 1990s.

Minister of the Environment and International Development Erik Solheim requested Norad to prepare the report after the Norwegian television series "Brennpunkt" raised the question of where the Norwegian aid money had gone.

Norad's report shows that Grameen Bank transferred a total of NOK 608.5 million to its sister company Grameen Kalyan in 1996. Norway 's share of this amount is estimated to be approximately NOK 170 million. The Norwegian Embassy in Dhaka reacted immediately when it discovered the transfer in 1997.

In the Embassy's view, the transfer was not in accordance with the agreement. The matter was raised with Grameen Bank. Following negotiations, it was agreed in May 1998 that NOK 170 million was to be transferred back from Grameen Kalyan to Grameen Bank.

"According to the report, there is no indication that Norwegian funds have been used for unintended purposes, or that Grameen Bank has engaged in corrupt practices or embezzled funds. The matter was concluded when the agreement concerning reimbursement of the funds was entered into in May 1998 under the government in office at the time," said Mr Solheim.

Source: The Bangladesh Today, Bangladesh/9th Dec 2010

Bangladesh Bank (BB) governor Dr Atiur Rahman has suggested the National Board of
Revenue (NBR) to make rational the rules and regulations for CSR (Corporate Social
Responsibility) to provide corporate houses more scope for social involvement.
The governor's suggestion came following the argument of the country's leading bankers
that the current CSR rules were not simple enough to follow. The bankers made this
observation at a discussion meeting on CSR, held at Hotel Sheraton on Wednesday where Dr
Rahman was the chief guest.

Editor of the Financial Express Moazzem Hossain moderated the programme, organized by
Management and Research Development Initiative (MRDI).

The bankers observed that the current CSR rules, made by NBR during the immediate past
caretaker government, incorporated some oblique clauses, which can easily be
misinterpreted. For instance, a clause regarding mandatory registration does not make it
clear whether the CSR implementing authorities or receivers or both of them need to fulfill
the criterion.

Referring to such oblique rule, the governor advised the NBR to adopt a coherent approach
towards the social activities with prudent policy support.
He also advocated the banker's plea for giving more tax incentives to their CSR programme.
The governor, however, urged the banks to carryout their CSR activities irrespective of tax
benefit as the activities would be a branding instrument for promoting their services and
business.

Dr Rahman also advised the government for framing a 'governance guideline' so the
corporate houses get a clear direction for targeted CSR programme. Otherwise, he said they
would end up in irrational CSR activities.

Chairman of the Association of Bankers, Bangladesh Limited (ABBL) urged the NBR to
provide more tax incentives to the banks and corporate so the banks can expand their CSR
activities.

Responding to the suggestions, NBR Member Md Aminur Rahman said the rules and
regulations could be made simpler, but providing more tax incentives need further scrutiny.
The banks and corporate are getting 10 percent tax deduction on CSR activities. The NBR
official said the government needs more tax for its own social safety-net programmes.
BB Executive Director Shitangshu Kumar Sur Chowdhury also spoke on the issue. Pak troops
conceded 1st casualty declining to relinquish power: Indian analyst.

Sourche: The Bangladesh Today, Bangladesh/9th Dec 2010