We have to closely monitor the banks that have taken the opportunity of loan rescheduling, so those loans won’t turn into classified again

Bangladesh Bank Governor Dr. Atiur Rahman yesterday hoped that the non-performing loans (NPL) of the scheduled banks would remain under a moderate level in the balance-sheet of December 2013 just because of flexible policy undertaken by the central bank.

He was addressing the General Managers Conference held at the central bank headquarters.

To recover the financial health of the banks, International Monetary Fund (IMF) has long been putting pressure on the central bank to reduce the NPL.

Addressing the conference BB governor said, “We have to closely monitor the banks that have taken the opportunity of loan rescheduling, so those loans won’t turn into classified again.” 

“As the rate of classified loans in the banking sector increased slightly 12.79% in September, 2013 after adopting internationally best practices in loan classifying and provisioning, the central bank has relaxed the rules of loan-rescheduling, so the NPL rate reduces in the balance sheet.’’

Bangladesh Bank had earlier asked the commercial banks issuing a circular in December, 2013, to offer privileges to small and medium enterprises (SMEs), agricultures and other productive sectors in case of loan rescheduling.

It also asked the banks and financial institutions to consider the impact of political unrest on various productive sectors and business to receive down payment and allow loan rescheduling.

The banks and financial institutions should, however, need to obtain permission from their respective authorities and no objection from the BB before allowing anyone the extended-time for the loan rescheduling.

Although the BB circular is applicable to the affected businessmen only, on the contrary, the central bank is also allegedly allowing all the non-compliance rescheduling cases. As a result, many businessmen are taking the chance to reschedule their loans despite not being affected.

Country’s commercial banks started loan rescheduling comprehensively in order to reduce the non-performing loan (NPL) amount in the balance sheet of the year end 2013.

Bangladesh Bank has so far approved over 300 such loan rescheduling cases which don’t comply with the loan rescheduling requirements.  Among the loan-rescheduling recipients, Beximco Group got the highest privileges with around Tk2,000 crore, according to the Bangladesh Bank data.

Exchange rate remained stable in the interbank call money market and in foreign money market due to the close monitoring by the central bank, said the governor at the conference.

“However, inflation remained higher in last three-month because of supply disruption amid political unrest.” 

 City Bank has recently signed a cooperation agreement with International Finance Corporation (IFC) as part of IFC’s ‘Access to Finance Advisory Service’ programme aimed at promoting sustainable private sector investment in developing countries.

Under the cooperation agreement, IFC has agreed to contribute to City Bank’s initiatives to automate the Loan Origination and Collection Management processes as well as the development of the skill resources and assisting in its capacity building programme in the SME and retail business areas of the bank, said a press release.

The agreement was signed by Sohail R K Hussain, Managing Director and CEO on behalf of City Bank and Kyle F Kelhofer, Country Manager, Bangladesh, Bhutan and Nepal of IFC at City Bank’s Head Office in Dhaka.

Citibank, N.A., Bangladesh Monday signed an agreement with Sonali Bank Limited on “Corporate Tax e-Payment” solution.

The National Board of Revenue (NBR) is currently in the process of developing a system where corporate taxpayers will be able to pay tax online.

With launching of the system, Citi’s clients, under the deal, will be benefited for being able to pay taxes online, said a press release.

The signing ceremony was attended by senior officials from Sonali Bank Limited, The National Board of Revenue, Bangladesh Bank, International Finance Corporation, IT Consultants Ltd. and Citibank N.A.

Pradip Kumar Dutta, Managing Director and Chief Executive Officer (CEO), Sonali Bank Limited, reiterated the role of Sonali Bank in the proposed Tax e-Payment mechanism for institutional customers and stressed the effectiveness of this digitised method in lieu of the prevailing manual tax payment process.

Rashed Maqsood, Managing Director and Citi Country Officer for Bangladesh, highlighted Citi’s commitment to deliver world-class solutions for corporate clients.

This partnership with NBR and Sonali Bank will pave the way towards an electronic era in corporate tax, and further strengthen Citi’s continued leadership in the country’s electronic banking space.

 Uttara Branch of Jamuna Bank has been shifted at Giant Business Tower at Uttara in the city.

Kanutosh Majumder, Chairman, Jamuna Bank Limited, inaugurated the new premise as chief guest, said a press release.

Nur Mohammed, Chairman, Jamuna Bank Foundation and Faruque Hasan, Managing Director, Giant Group were present as special guests on the occasion.

Shafiqul Alam, Managing Director and CEO, Jamuna Bank Limited presided over the ceremony.

Bangladesh Krishi Bank (BKB) organised Khulna Divisional branch managers’ conference in Khulna recently. 

Md. Abdus Salam, Managing Director of the bank addressed the conference as chief guest, said a press release. 

Md. Abul Kashem, General Manager of Khulna Division presided over the conference. 

ATM Anisur Rahman, Deputy General Manager of BCBD attended the programme as special guest.