Bangladesh Bank (BB) on Thursday launched two new credit schemes to help students and women buy computers.

Governor Dr Atiur Rahman inaugurated the schemes at a programme at the central bank headquarters in the capital city.

Under the refinancing credit schemes named “Student Power” and She Power”, students and women would get cheaper loan from banks to buy laptops and desktop computers. But the purchasing should be done online.

The loan, with as low as 10 per cent interest, should be repayable in installments within two years after the purchase. The borrower students and women will require arranging 20 per cent of the total price of the computer as down payment.

Trust Bank will channelize necessary funds for the credit programmes when the Dell Bangladesh will supply the laptops and desktop computers. An e-marketing company - Amar Desh, Amar Gram (my country, my village) will provide the online platform for the purchase (www.amardeshamargram.com).

Addressing the occasion, Dr Atiur said this kind of initiative with participation from other banks and institutions would help students and women use information technology and would eventually help increase income from outsourcing.

BB’s executive director Dasgupta Asim Kumar, Trust Bank managing director Ishtiaque Ahmed Chowdhury and Dell Bangladesh country manager Sonia Bashir Kabir attended the programme, presided over by general manager of BB’s SME and Special Programme Department Md. Masum Patwary.

Agencies under Hajj Agencies Association of Bangladesh (HAAB) will have the access across the country to use Southeast Bank's online banking facility to collect Hajj related fees and expenses of the Hajj pilgrims.

The Hajj pilgrims from remote rural areas of the country will also be able to deposit their Hajj related different fees to the respective accounts of their travel agencies at any nearby branches of Southeast Bank which will automatically be deposited through the online banking facility. HAAB will coordinate the whole process between the Hajj pilgrims and the bank.

In this connection, a Memorandum of Understanding (MoU) was signed between Southeast Bank Limited and HAAB in the city on Wednesday, said a press statement.

Managing Director of Southeast Bank Shahid Hossain and President of HAAB Ibrahim Bahar signed the MoU on behalf of their respective organisations.

Southeast Bank will also issue Prepaid Hajj Card without any charge to the HAAB members. The bank will issue Visa Credit Card (Dual Currency) without any annual membership fee for pilgrims. HAAB members will also be able to withdraw money from any ATM Booth in Saudi Arabia by using Visa Credit /Hajj Card.

Additional Managing Director Mohammed Gofran, Deputy Managing Director (DMD) & Head of Islamic Banking Division Muhammad Shahjahan, DMDs SM Mainuddin Chowdhury, Giash Uddin Ahmed and M Kamal Hossain of Southeast Bank Limited and Secretary General Sheikh Abdullah and other high officials of HAAB were present on the occasion, among others.

News:The Tinancial Express/06-Mar-2014

The preliminary approved companies are CAPM Venture Capital and Finance Ltd and Meridian Finance and Investment Ltd.

The central bank has primarily approved the licence of two new non-bank financial institutions (NBFIs) with a view to diversify the financial activities across the country.

The preliminary approved new companies are CAPM Venture Capital and Finance Ltd and Meridian Finance

and Investment Ltd. Bangladesh Bank (BB) yesterday approved the two new financial institutions at its 350th

board meeting which was presided over by the BB governor Atiur Rahman. The central bank deputy governor

SK Sur Chowdhury disclosed the matter to the reporters. Mahmud Hossain owns the CAPM Venture Capital and

Finance Ltd while Kazi Aminul Islam is the owner of the Meridian Finance and Investment Ltd. The central

bank deputy governor informed the reporters that the stakeholders of the two companies had submitted their

business plans to the central bank. The authority of the central bank, sources said, hailed business plans of

booth the companies. The finance ministry also recommended the approval of the new financial institutions.

After completing all formalities, the central bank primarily approved licence of the two new financial

institutions having paid up capital of Tk 100 crore. The two companies like other non-bank financial

institutions filled up all the condition, also said the deputy governor. Expressing about the business plan of

CAPM, the deputy governor said that the company would invest their money to import various kinds of

machineries.
On the other hand, the Meridian Finance and Investment Ltd will work for the development of country’s

infrastructural as well as boosting up the private sector. The central bank primarily has imposed a total of 31

conditions for the two financial intuitions.   Currently, a total of 33 non-bank financial institutions including the two new institutions are operating their business activities across the country. 

After completing the registration procedure from Register of Joint Stock Company and Firms (RJSC), the two

companies will formulate their company activities, also said the deputy governor and adding that the central

bank then finally approved the license of the two financial institutions as per company act 32.  Bangladesh

bank will permit to open their branches to judge their memorandum of articles whether it is capable or not.

'They will have get final approval after full filling all the conditions by the sponsors and also have to submit business plan to the central bank'

Bangladesh Bank has decided to allow two more financial institutions as per the recommendations made by the finance ministry.

The two likely institutions are CAPM Venture Capital and Finance Limited owned by Mahmud Hussain, and Meridian Finance and Investment Limited, the prime promoter of which is Kazi Aminul Islam.

The board of directors of the central bank made the decision at a meeting held yesterday, deputy governor SK Sur Chowdhury told the reporters after the meeting.

At present 31 financial institutions are actively conducting business activities in the country.

Nine banks and one financial institution were approved in the last tenure of Awami League-led government.

There had been an allegation that those approvals were given under political consideration.

Besides, one more financial institution got the approval from the central bank as soon as the present Awami League-led government was re-elected in January 5 polls.

The paid-up capital of the two new financial institutions will be Tk100 crore. Sponsors have to pay the tax on the capital investment. Moreover, they have to fulfill 30 more conditions as per the rules.

"The two financial institutions have just got initial approval. They will have get final approval after full filling all the conditions by the sponsors and also have to submit business plan to the central bank," said SK Sur Chowdhury.

CAPM Venture Capital and Finance Limited will work for buying machineries and also for business development.

Meridian Finance and Investment Limited will work for infrastructure and private sector development.

“If the two new companies come into operation with innovative activities, then it is alright. But if they got the approval for the same ground as like as the existing FIs’, they have to face stiff competition’’, said former central bank governor Dr Salehuddin Ahmed.

News:Dhaka Tribune/06-Mar-2014

They take full advantage of relaxed loan reschedule policy

Four state-owned commercial banks have reduced their non-performing loans (NPL) by 35% in the year 2013, taking advantage of the relaxed loan rescheduling opportunities extended by Bangladesh Bank. 

The four state-owned banks have rescheduled the loans worth Tk5,768 crore at the fag end of the just concluded year.

Bangladesh Bank had relaxed the loan rescheduling rules in December 2013 to facilitate the businessmen affected by political unrest and help the banks to reduce their NPL rates in their balance sheets.

The total NPL of the state-owned commercial banks reduced by Tk8,866 crore to Tk16,616 crore in last year from Tk25,482 crore in 2012.

The defaulted loans of the banks basically decreased due to the huge amount of loan rescheduling, according to a Bangladesh Bank report.

Sonali Bank rescheduled Tk1,746crore in 2013 as compared to Tk453 crore in 2012 while Janata Bank rescheduled Tk1,109 crore as compared to Tk106 crore, Agrani Bank Tk854 crore as compared toTk166 crore and Rupali Bank Tk2,059 crore as compared to Tk601 crore.

The classified loans of the banks have, however, been reduced due to the given rescheduling facilities. But it is a simple accounting concept, not a theoretical one, former Bangladesh Bank Governor Dr Salehuddin Ahmed told the Dhaka Tribune.

“Banks can provide loan rescheduling facilities to the really affected businessmen considering their conditions, but if the facility remains open for all, the incentive would be misused by the corrupt people in the banking sector.’’

Dr Ahmed termed the loan rescheduling decision an irrational one as it is nothing but just to recapitalise the state-owned banks, which are already indulged in corruption, from the public money.

Not only the country’s financial sector, but also the overall economy has already witnessed a setback in absence of accountability and transparency in this sector, he said.

Ending a long continued up trend in default loans, the country’s banking sector witnessed a substantial fall in non-performing loans (NPL) by around 4% or Tk16,137 in the last quarter (October-December) from the previous quarter of 2013, because of the relaxed rules on loan rescheduling offered by the central bank.  

Bangladesh Bank alsoitself skeptical about recovering loans from the rescheduled accounts as a result it took decision on February 19 to strictly monitor the loan accounts rescheduled under a relaxed policy given on excuse that business was affected by the prolonged political unrest.

“We had relaxed the rules due to the political unrest and banks were also relieved of the NPL burden by taking advantage of the relaxed rules,” Deputy Governor SK Sur Chowdhurysaid, but warned the central bank would monitor the loan accounts to see whether those were following the terms and conditions of the relaxed rules.

Banks will have to ensure that the installments of the accounts are being paid in accordance with the terms and conditions, he said.

According to the report, maintained provision of some banks became excess then the required provision in the balance sheet of last year mainly due to massive deduction of NPL amount.