The state-owned specialized Bangladesh Krishi Bank (BKB) is in the leading position in setting target for providing agriculture credit among all the 56 banks operating across the country in the fiscal 2014-15.

The BKB will distribute Tk 4800 crore agriculture loan among the farmers in the current fiscal. This was mentioned in the ‘Agriculture and Rural Credit Policy and Programme for fiscal year 2014-15’ announced by Bangladesh Bank on July 21. The central bank has set the target of total agriculture credit at Tk 15,550 crore for the fiscal.

As per the policy, the private and foreign banks will have to provide at least 2.5 per cent of the total credit to the agriculture sector while the new 9 banks have to provide 5 per cent of their total loan to the sector.

According to the policy statement, the BKB is followed by another state-owned specialized Rajshahi Krishi Unnayan Bank ( Rakub) with the target of Tk 16,00 crore.

Among the state-owned commercial banks, Sonali Bank leads the target with a fund of Tk 1180 crore while it is followed by the other three state-owned banks setting a target of Tk 750 crore by Janata Bank, Tk 660 crore by Agrani Bank, and Tk 150 crore by Rapuli Bank.

Among the private banks, Islami Bank Bangladesh Limited (IBBL) is leading the agriculture credit programme with a fund of Tk 790 crore. The IBBL is followed by AB Bank with Tk 270 crore, Exim Bank Tk 260 crore, Al Arafa Islami Bank Tk 251 crore, Prime Bank Tk 250 crore, UCBL Tk 250 crore, Pubali Bank Tk 235 crore, and National Bank Tk 230 crore.

The lowest target of Tk 3 crore was set for newly established Madhumati Bank while the other new banks’ target are Tk 50 crore for Union Bank, Tk 40 crore for NRB Commercial Bank, Tk 30 crore for South Bangla Agricultural and Commerce Bank, Tk 20 crore for Meghna Bank, Tk 20 crore for Midland Bank, Tk 13 crore for Farmers Bank, Tk 8 crore for NRB Bank, and Tk 28 crore for NRB Global Bank.

Among the foreign banks, Tk 222 crore for Standard Chartered Bank, Tk 10 crore for Al Falah Bank, Tk 19 crore for Commercial Bank of Ceylon, Tk 15 crore for Citibank NA, Tk 6 crore for Habib Bank, Tk 125 crore for HSBC, Tk 5 crore for National Bank of Pakistan, and Tk 3 crore for Woori Bank.

The Agriculture and Rural Credit Policy dictates that the banks provide the loan either directly or through partnership with NGOs or micro-finance institutions. 

Dhaka-Half yearly Managers conference of United Commercial Bank Limited (UCB) was held on Saturday at the head office of the Bank. The conference was presided by the Managing Director of UCB Mr. Muhammed Ali, reports in a press release.
Among others the Additional Managing Directors M. Shahidul Islam, Mirza Mahmud Rafiqur Rahman & A. E. Abdul Muhaimen were present at the conference. Moreover, Deputy Managing Directors Mohammad Abu Abdullah, Md. Tariqul Azam & Mohammad Shawkat Jamil along with other senior officials and managers of UCB were present at the conference.
Review of bank’s existing strategic policy for catering the future tactical work plan to expand the quality of client service and product diversity was the main issue of the conference. Everyone participating at the conference expressed their valuable opinion on the continuation and acceleration of the success of UCB.
United Commercial Bank Limited is one of the largest private commercial banks of the country dedicated to better client service and economic solution since its inception in 1983.

Mutual Trust Bank Ltd. (MTB) has taken responsibility for bearing all educational expenses up to HSC level for the two sons of late Liacot Ali, who lost his life while trying to save a young lady attacked by miscreants in Uttara, Dhaka on July 3, 2014, reports in a press release. Anis A. Khan, Managing Director & CEO of Mutual Trust Bank handed over a cheque of Taka Two Lacs, a certificate and a plaque to the widow of late Liacot Ali, Morsheda Akhter and her two sons, Morshedul Jannat and Mishkatul Mustakin Jim, at a simple ceremony held at the MTB Corporate Head Office in Gulshan, Dhaka on July 17, 2014. The bank also launched “MTB Bravery Awards” at the event, which has been introduced specially to honour people like Liacot Ali, and who show great courage with a spirit of self-sacrifice to save and protect the lives of other people put on peril. MTB Deputy Managing Directors, other senior officials and relatives of late Liacot Ali were also present at the occasion.
It may be mentioned here that MTB honored the family of late Hazrat Ali, in 2012, in the same way. Hazrat Ali sacrificed his life while trying to save two lady pedestrians attacked by muggers in Mirpur. The two children of late Hazrat Ali have been receiving full educational support from MTB over the last two years.

Bangladesh Bank Governor Dr Atiur Rahman yesterday asked banks to reduce their investment portfolio within 25 per cent in the capital market by September 2016.
The governor also directed banks to submit new report regarding their investment in capital market. 
The governor made the direction while addressing a meeting with the chiefs of commercial banks at the BB conference in the city. Some 15 commercial banks have more than 25 per cent investment out of their total investment portfolio which is against the Banking Act 2013, said the governor.
Talking to the reporters, the central bank deputy governor SK Sur Chowdhury informed that the banks who have invested less than 25 per cent can invest more in the capital market.
Meanwhile, the governor also asked banks to cut interest rate for industrial loans and fix it at a reasonable level to boost investment aiming at spurring growth.
Rates of interest of some banks are still high and imposing of such interest rates especially on industrial sector is unexpected at a time when liquidity position is satisfactory.
The governor warned banks against any credit indiscipline and said the central bank will take strict measures against irregularities in loan management in future.
“Bangladesh Bank won’t hesitate to take strict measures against such irregularities,” he said, adding, “You must strengthen internal supervision, become more careful about loan disbursement, send genuine and quality loan proposals to board, face irrational pressure of board tactfully,”.
If necessary, he asked banks to take Bangladesh Bank’s help to create atmosphere of good governance for strengthening credit discipline and help the bank board realise this.
“You must take the responsibility . . . recurrence of irregularity will not be stopped if things go in this way that you will commit irregularities and BB will detect those,” Atiur said. He said some recent irregularities in banking sector got wide media coverage though Bangladesh Bank took strong measures against those banks concerned. 
Over the last five years, the central bank took a number of good steps for the overall development of the banking sector but those issues were not focused in the media, he added.
“It can’t be acceptable that one or two incident of irregularities would obliterate all our good deeds,” he said adding the central bank has strengthened its supervision activities and it will apply its highest power to uphold the confidence bestowed by the people upon it.
Atiur said there is surplus liquidity in the banking system as credit demand from internal sources has witnessed a fall slightly because importers are getting loans at lower interest and easy conditions from foreign sources. For maintaining profitability, banks need to explore new areas for investment, Atiur said.
But bankers must remain alert so that bank investment does not go to unproductive and highly risky sectors due to excessive liquidity pressure, he added.
He said some banks are purchasing credits from other banks and in many cases, those are default loans and purchasing of such credits is alarming. “We’ve kept these under our strict supervision . . . so you must remain alert about it,” he added.

The Muslim community usually spends on a lot of gifts, giveaways and clothes on the eve of the festival that triggers sales in the later part of Ramadan 

A saleswoman charging bills with a credit card at a city shop. The card vendors offer lucrative disounts on payments if Eid shoppers use the plastic money.

With Eid taking place next week, the sales outlets from clothing to electronics are in race to lure shoppers by offering heavy discounts.

Some banks and financial institutions, including City Bank, Eastern Bank Ltd and bKash, joined in this race too by offering cashless buying with discounts from their specified shops.

Besides, various clothing and jewelry outlets, electronic goods outlets also offer considerable discounts on top brand of products like Singer, Samsung and Nokia.

The Muslim community usually spends on a lot of gifts, giveaways and clothes on the eve of the festival that triggers sales in the later part of Ramadan.

More and more outlets and stores are putting up exclusive promotions to catch up with Eid shoppers, according to sellers.

Eid shoppers pick up a bargain in the capital's malls and stores as most outlets are offering discounts ranging from 10% to 100%, while others retained their old prices.

However, shop managers said the discounts did not cover their new collections.

Raihan, a 28-year-old store manager, said it was normal to have discounts in the run-up to the Eid.

“We started our sales a few days ago. It’s a long holiday season and we are trying to give people the chance to shop before Eid."

Mohammd Faruqe, a seller at a top brand outlet, said: “It's normal this time of the year to give discounts. We hope it will encourage people to shop more.”

Shoppers, on the other hand, thought some of the shops though advertising sales did not have any goods on discount.

Saima Farzana, 21 from Khilgaon came at a city shopping mall, said she saw some shops saying they were having a sale with discounts. "But in fact there was no sale."

"I went inside a shop that had a 60% discount sticker on the window to find one of the workers telling me the sale already ended weeks ago.”

She said: "I think it's a way to lure customers. It cannot be acceptable to the people."

Sadman Sakib, 23, student of a private university, said the shops those offer holiday discounts only applicable for old stocks only. “Most of the places having discount offers, don't give you discounts on their new collection of clothes,” he said.

"I know these shops offer discounts on last season's stock to get rid of it. But if you search hard enough you will find a good buy."