It was also contributed by the maturity of a good number of treasury bills, compelling the government to pay back

Bangladesh Bank has introduced an innovative scheme of Tk 200 crore, where loans will be extended to the poor and banks will enjoy incentives against recovered loans, in addition to interest.
For the first time, the central bank has introduced the 'revolving refinance fund' to give low interest loans to low-income professionals, small and marginal businessmen and farmers.
On Wednesday, the central bank sent a guideline in this regard to the chief executives of all the commercial banks.
Bangladesh Bank said low-income groups will get loans from the refinance scheme to make the rural economy more vibrant through financial inclusion.
Under the scheme, a maximum of Tk 50,000 can be given as loans to an individual with no collateral.
However, each loan applicant will have to provide a personal guarantee from an adult Bangladeshi citizen from the area.
Banks can give the loans directly or through micro-credit institutions approved by the micro-credit regulatory authority.
Banks will give loans to borrowers at a maximum interest rate of 12 percent and the micro credit institutions will take a maximum of 19 percent.
The banks will take a refinancing facility from the central bank at 5 percent. The micro-credit institutes will take funds from the banks at a rate of 7 percent.
The borrower will repay the loan plus interest by a maximum of one year. However, if any borrower fails to pay back the loan, the refinance facility will be cancelled and a market based interest rate will be applicable.
However, no borrower will have to pay twice the amount of the original loan amount.
After returning the refinancing facility, banks will get a subsidy at a rate of 3.5 percent.
In the guideline, BB said farmers who possess a maximum of 2.47 acres of land and businessmen who run very small businesses would come under the purview of this scheme by opening bank accounts by initially depositing Tk 10.
Around 50 types of small and micro entrepreneurs and professionals based in para, mahalla and village like grocers, stationery shop owners, barbers, tailors, mobile top-up service providers, floating food vendors, newspaper hawkers, tea vendors, rickshaw and van drivers will fall under the scheme.

One of the most prestigious business magazines in the world, ‘Global Finance’ has recently published their list of awardees of the Best Banks in Asia Pacific for the year 2014. This list includes names of 30 banks from the Asia Pacific Region. The names of the banks have been selected through a strict survey. They have been announced based on their performances, and their services provided to their customers.
United Commercial Bank Limited, of Bangladesh has been selected as one of the Best Emerging Market Banks by Global Finance, in the Asia Pacific Region.
Over the past five years UCB has shown a gradual and impressive progress in almost all the sectors. According to the data provided by the bank the Cost-Income Ratio has increased from 39.81 in 2009 to 50.24 till 31st March the current year; the credit deposit ratio has also seen a noticeable increase from 79.37 in 2009 to 85.33 till 2014 March. Other sectors too have included improvements compared to that of the previous year.
The bank has also projected improve in the foreign trade department and capital measures. Moreover the loans and advances show the increase in provision of loan which clearly indicates improvement in the business sector of the country. The bank increased their provision for loan in Agriculture, Transport, House building, Import, Industrial and several others.
In 2012 renowned personality Muhammed Ali has been appointed as the Managing Director of the United Commercial Bank. His experience, guidance and intelligence has steered into such achievements.
On the accords of receiving this award the Managing Director of United Commercial Bank, Muhammed Ali said, ‘It is undoubtedly a privilege Since the past few years our bank has shown noticeable improvements. The main reason for this improvement is our aim to manage the balance sheet. Rather than providing huge sums of loans, we focus of providing the loans in the right sector and we keep a track of the amount lend. We intend on doing business, we move forward focusing on this. And if we continue to do so we can expect to reach a better level in the near future.’
When asked about the influence on the employees on receiving the award Mr. Muhammed Ali said, ‘The employees will not only be influence but they will also be a part of such achievements.’
He included that they hopes to improve the structure in order to have a role in strengthening the financial structure of the country.
Concluding the conversation he included, ‘keeping the political issues and other distractions apart, the people of Bangladesh are very good, and laborious. They can, if they intend to improve the condition of the nation with a little effort.’
To be included the Global Finance’s Sixteenth Annual World’s Bank Awards Ceremony 2014 will be presented to the announced winners on 11th October, 2014 at the National Press Club in Washington DC.

Bangladesh Bank on Wednesday created a fresh refinance fund worth Tk 200 crore for landless farmers, marginal businesspeople and low-income professionals affected by natural calamity.
The BB issued a circular to managing directors and chief executive officers of all banks saying that the clients would get loans under the refinance scheme with a 12 per cent to 19 per cent interest rate.
A BB official said that the fund was created to make active the bank accounts of landless farmers, marginal businesspeople and low-income professionals with Tk 10 deposits.
The clients will count 19 per cent interest if they receive the loan
from the refinance fund through NGOs.
The clients, however, will have to count 12 per cent interest if they receive the loans through the scheduled banks.
The banks and the NGOs will receive the fund from the central bank with interest rate of five per cent.
A client will get maximum Tk 50,000 in credit from the banks for one year.
The banks will not take any mortgage from the clients against their disbursed loan under the refinance scheme.
The clients, however, will have to mange a personal guarantor against his or her loans, the BB circular said.

Scheduled banks other than the new nine banks and non-bank financial institutions will have to spend at least 2.5 per cent of their net profits for corporate social responsibility purposes in a fiscal year, said officials of Bangladesh Bank.
The new nine banks will have to spend 10 per cent of their net profits for CSR programmes in a fiscal year as per the conditions they were given at the time of receiving licences from the central bank for their operation.
The BB will not consider allocation for media advertisements and promotional activities as CSR activities, a BB official told New Age on Wednesday.
He said the central bank had already framed draft CSR guidelines for banks and NBFIs.
The CSR allocation will not be mandatory for a bank or NBFI if it posts a negative net profit in a fiscal year.
Banks and NBFIs will not allocate any CSR fund for the organisations related to their directors.
Banks and NBFIs will not be allowed to receive any gift against their CSR disbursement.
The BB official said that the central bank was farming the policy as it had received a number allegation against banks and NBFIs that they misused their CSR fund.
He said that the BB would be able to bring discipline in the CSR allocation by banks and NBFIs when they will follow the guidelines.
Banks and NBFIs will have to disburse CSR fund in three key fields – concessional loans, donation fund, and allocation for developing internal (banks and NBFIs) job environment and gender equality.
Banks and NBFIs will impose lower rate of interest than their weighted average cost of fund for the concessional loans.
The marginal and the landless farmers of the remote areas will be able to receive the concessional loans.
Banks and NBFIs will set up internal baby-cares for their female officials by using CSR fund.
They will give donation to the issues of their
officials if they (issues) obtain scholarship from any reputed educational institution.
A bank or NBFI will have to frame its own CSR policy and its board of directors will have to approve it.
Its board will have to review the policy periodically.
The board will have to make CSR committee led by a director of the bank or the NBFI.
The bank or NBFI will have to make another committee with its senior officials — managing directors and general managers.
Banks and NBFIs will have to publish an annual CSR publication, illustrating their CSR activities