Banking

Elias Brothers: a bane of banking industry

Posted by BankInfo on Tue, Jul 18 2017 10:53 am

Once a sought-after client, it now owes Tk 870cr to 18 lenders

Once a highly sought-after client, Chittagong-based Mohammad Elias Brothers Group, known as MEB Group, has now become the bane of the banking industry.

The group recently grabbed headlines by coming first on the list of top 100 loan defaulters in the country.

Though Finance Minister AMA Muhith did not disclose MEB Group's default amount, The Daily Star has found that the company has defaulted on its loans with 18 financial institutions, the total of which comes to about Tk 870 crore. 

Founded in 1962 as a commodity trader, MEB Group later spread its wings to textiles, glass, plastics, paper mills, auto bricks, edible oil and beverages.

It went on to set up one and a half dozens of companies, of which only six are now in operations. The rest were either shuttered or non-operative because of financial constraints.

The group blamed its fall on the intense competition among a number of commodity traders that compelled them to sell goods at prices lower than the import costs between 2001 and 2010.

“MEB was forced to do the same and it accumulated our losses and bank loans,” said Mohammad Shouib Riad, managing director of MEB Industrial Complex.

Secondly, MEB Group had incurred huge losses during the last caretaker government regime in 2007-08, which pressurised the commodity trader to import huge quantities of edible oil at a much higher price, he said.

Later, the group had to sell the commodity for almost half of the cost, which yielded losses of about Tk 400 crore.

“We had to buy crude oil at $1,300 a tonne and sell those at only $700,” said Riad, who joined the family business in 2005 after completing his studies abroad.

Now, the group has retreated from commodity trading, its core business until 2009-10, altogether.

Also, The Daily Star found mismanagement soon after the death of MEB Group's founder Mohammad Elias in 1993.

The group was founded as a company of four brothers, who have a number of sons and daughters. The third generation too got involved in the family business after 2005.

“Family feuds were one of the main reasons for the MEB's downfall,” said a chief executive officer of a private bank that is owed nearly Tk 40 crore.

Riad too acknowledged mismanagement in the running of the family business. “We could have managed better, but we were not able to do so,” he said. The CEO of the bank has a first-hand experience in dealing with MEB Group, both during its ascent and descent.

“In the 80s and 90s, we ran after MEB to give them loans. They were the reputed and the most in-demand clients for banks at that time,” said the banker who worked for a foreign bank in Chittagong then.    Now the irony is that banks shy away from lending to this business house, he said.

Involvement in politics of Shamsul Alam, son of Elias and current managing director of MEB Group, in 2008 has also taken a toll on the family business.

Alam, after failing to get the nomination from Awami League in the 2008 elections, joined BNP and became vice-president of the Chittagong city unit.

Riad though is still hopeful of overcoming the crisis and bringing the group back to its glory days.

He cited the Mohammad Elias Brothers Oil Refinery Plant as a case in point. The plant was established with the group's working capital and there is no loan against the project.

Nurul Absar, chairman of the group, could not be reached for comments.

News:Daily star/18-jul-2017

WB moves to rebuild chaotic Dhaka city

Posted by BankInfo on Tue, Jul 18 2017 10:40 am

Int'l conference on know-how Wednesday

The World Bank has convened an international conference in Dhaka for tomorrow (Wednesday) under a move for rebuilding Bangladesh's chaotic capital into a dynamic and attractive urban agglomeration.

Officials said Monday international experts from Oxford University, UK, Chinese megacity of Shanghai, Indian capital Delhi, Dhaka's two city mayors, local ministers, policymakers, economists, urban planners and researchers will deliver their thoughtful opinions and expertise on how Dhaka could be turned into an attractive and liveable capital city worthy of a country graduating into a higher status.

The World Bank Dhaka office is organising the daylong international conference at a city hotel.

A World Bank (WB) official said they will organise the event to collate some thoughtful ideas and innovations for formulating a roadmap to transform the "chaotic" Dhaka city into an attractive dynamic city by 2035.

"The World Bank has plans to help the Bangladesh government to make up the capital into a truly liveable urban city," he added.

Dhaka is classed as one of the least liveable cities in the world with its messy traffic, overburdened vehicles, dense population and poor urbanization activity.

The WB official said former Delhi Chief Minister Ms Sheila Dixit will share her experience on how the Indian capital has turned around.

Former Vice Mayor of world's miracle-city Shanghai Mr Zhao Qizheng and a Chinese urban planner Mr Zhu Ruolin will present thoughts on the transformation of the city seen as China's industrial heartland.

Besides, an Oxford University Professor, Mr Anthony Venables, will present the technical foundations for Dhaka towards 2035, he said.

"Experts from home and abroad, including the RAJUK Chairman, the Chief of the Special Works Organisation of the Bangladesh Army, President of Dhaka Chamber of Commerce and Industry and the Chief Economist of the World Bank, South Asia, will discuss how the plan could be turned into an action for the Dhaka city development at the international conference Wednesday," the WB official said.

In addition, World Bank country director Qimiao Fan and Economic Relations Division (ERD) Secretary Kazi Shofiqul Azam will speak on partnership between the WB and the government for making Dhaka into a liveable city by 2035.

Various reports and surveys have revealed that Dhaka is expanding fast as a sprawling, jerrybuilt metropolis amid a lack of modern plans and coordination among different agencies executing and overseeing its development works.     

News:Financial Express/18-jul-2017

BRAC Bank organises seminar on int’l trade

Posted by BankInfo on Tue, Jul 18 2017 10:25 am

BRAC Bank Limited organised a trade seminar on ‘International Trade: Associated Risks, Customs, VAT and Taxation Law’ for its valued corporate customers.

BRAC Bank Limited and Bangladesh Institute of Bank Management (BIBM) jointly organised the seminar at the BIBM Campus in Mirpur on Saturday, said a press release.

Dr. Shah Md.Ahsan Habib, Professor and Director (Training), BIBM and Syed Mushfiqur Rahman, First Secretary, National Board of Revenue, conducted the training sessions.

Dr. Toufic Ahmad Choudhury, Director General, BIBM, and Selim RF Hussain, Managing Director and CEO, Tareq Refat Ullah Khan, Head of Corporate Banking, Jabedul Alam, Head of Trade Development, BRAC Bank, senior officials of BRAC Bank and BIBM were also present.  

At the day-long seminar, a total of 100 the senior officials of the leading corporate organisations got the opportunity to learn the effects and attributes related to the trade practices.

News:Daily sun/18-jul-2017

Mercantile Bank gets new Chairman

Posted by BankInfo on Tue, Jul 18 2017 10:13 am

AKM Shaheed Reza, Eminent business man and Industrialist, has been elected as Chairman of Mercantile Bank Limited in its 306th Board meeting on Monday, says a press release.
He is the Chairman of 'Reza Group', a renowned export oriented textile & Apparel industry. Besides these, he is involved in Insurance, Financial Services, Newspapers, Electronic Medias and many other business and industries in the country.
Shaheed Reza is the President of Feni Chamber of Commerce and Industry, Director of FBCCI and CIP also. Besides business entity, he is well recognized for his benevolent contribution to the society through different social welfare activities like education, health and social development movements.

News:new nation/18-jul-2017

Tazrina Ferdausi, Nuruzzaman made BKB's DMD

Posted by BankInfo on Tue, Jul 18 2017 10:03 am

Tazrina Ferdausi and Md. Nuruzzaman have been joined at Bangladesh Krishi bank as Deputy Managing Director recently. Prior, Tazrina Ferdausi and Md. Nuruzzaman was General Manager of Agrani Bank Limited and Rupali Bank Ltd respectively, said a press release.
Tazrina Ferdausi started her banking career in Agrani Bank Limited in 1983 as Senior Officer. She obtained B.S.C. from Rajshahi University and MBA from Dhaka University in 1982. She completed Diploma in 'Bank Management' from Sweden. In banking career, she held important positions in different departments and performed responsibilities successfully. She also took part in various trainings, seminars and symposiums held at home and abroad.
Md. Nuruzzaman started his career in Rupali Bank Ltd in 1983 as  Senior Officer. He obtained MSS (Economics) from Dhaka University and completed MBA (Finance) from Victoria University of Bangladesh in 2009. He also completed Banking Diploma and LLB.  He held important position in different departments and performed responsibilities successfully. He took part in various trainings, seminars and symposiums held at home. He comes of a respectable Muslim family under Titash Upazila of Comilla district.

News new nation/18-jul-2017
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