Jamuna Bank plans to issue subordinated debt bonds worth Tk2bn to strengthen its capital base, which aligns with the regulatory requirement.

Subordinated debt is a hybrid (debt and equity) financial instrument which is treated as a component of capital.

The board of directors of the company has decided to raise funds through placement as part of the tier-II regulatory capital under the guideline of risk based capital adequacy for banks, said the company in a statement.

However, the subordinated debt of Tk2bn is subject to the approval of regulatory bodies and by the shareholders.

In 2009, the central bank had issued a guideline allowing the commercial banks to raise capital by issuing subordinated debt in order to meet the Basel-II requirement.

The banks can raise their capital through issuing such debt instrument, generally known as subordinated bonds, instead of issuing right and bonus shares, according to the guideline.

The subordinated debt eligible to be considered as tier-2 capital if have a maturity period more than five years, said Bangladesh Bank (BB).

The option of such financial instrument can be exercised by a bank once it has composite CAMELS rating at least two and BB rating grade at least two, as mentioned in the guidelines on risk-based capital adequacy for banks.

The Basel-II accord came into effect in Bangladesh on January 1, 2009 alongside Basel-I to consolidate capital base of the banks.

The new Basel accord has been prepared on the basis of three pillars: minimum capital requirement, supervisory review process and market discipline.

Three types of risks - credit risk, market risk and operational risk have to be considered under the minimum capital requirement. 

News:Dhaka Tribune/02-Dec-2013

When many business houses in Bangladesh have a tendency not to repay bank loans on time, Standard Group stands out. And banks will continue supporting this trusted client.
“The Group is a wonderful client. We are ready to support their business,” said Ehsan Khasru, managing director of Prime Bank.
Standard Group was overwhelmed by a massive disaster on Friday when a deliberate fire gutted its 10-storey apparel factory building in Gazipur. Four other buildings in the complex were reportedly damaged, along with 22 trucks loaded with garments.
The fire gutted capital machinery, finished garments, fabrics and raw materials housed in more than 8.5 lakh square feet of floor space in the buildings.
The fire and the losses of Tk 1,200 crore were supposed to make the bankers of the garment maker concerned, but for this case, they were not, mainly due to the business house’s reputation.

Local private lenders — Prime Bank and Shahjalal Islami Bank, and three foreign lenders — Standard Chartered Bank, Citibank NA and HSBC — have business links worth hundreds of crores of taka with Standard Group. Most of the exposure is loans against export LCs (letters of credit).
“They are a very good and reputed client. We’ll look at the issue positively,” said Abdur Rahman Sarker, managing director of Shahjalal Islami Bank.
Sarker said he will take up the issue to his board of directors. However, he said the client is yet to contact the bank.
It was confirmed from officials of Standard Chartered, Citibank and HSBC that they have loan exposures with the Standard Group. Officials of these banks also spoke well of the apparel maker that runs compliant factories.
AKM Mosharraf Hussain, managing director of Standard Group, told The Daily Star that banks are ready to finance his business. “No bank is concerned about us.
We will sit with the banks soon to sort out the things,” he said.
Standard Group, which started its garment business in 1984, employs about 50,000 workers in its 23 units. The factory complex that was destroyed by fire employed about 19,000 workers.
A number of international brands such as Sears, American Eagle, GAP, Uniqlo, Zara and Abercrombie & Fitch are the clients of Standard Group, according to its website.

News:The Daily Star/02-Dec-2013

 BRAC Bank Limited recently distributed warm clothes to more than 26,000 poor people in the northern region of the country.

Country’s northern region is hit hard by severe cold spell every winter. People of the area became highly happy for receiving warm clothes well ahead of the winter season. Many poor old-aged people queued up and received the warm clothes, said a press release.

On receiving a blanket, Abdul Aziz, an 80 year old man at Bhurungamari in Kurigram, said, “Warm clothes ahead of winter have come as a great help for us.”

Some 8,000 employees of the bank donated the warm clothes for the less advantaged people of our country. Apart from donating warm clothes, the employees also raised funds to buy blankets to help people survive the imminent and unbearable winter.

Every winter, BRAC Bank employees come forward to help humanity.

Like previous years, the employees of BRAC Bank donated funds for "BRAC Bank DAUR – Kallayaner Pathchala", an annual marathon to raise funds for humanitarian causes. A portion of these funds has been used to buy the blankets to be distributed among the less advantaged people of our country.

More than three teams of BRAC Bank distributed 3,500 blankets, 6,000 sweaters and 17,000 warm clothes to Bhurungamari in Kurigram, Dimla in Nilphamari and Harivasha in Panchagarh.

News:Daily Sun/02-Dec-2013

IFIC Bank Limited organised a workshop on "Green Banking" for the bank’s officials at the bank’s Training Institute on Sunday.

Muhammad Mustafa Haikal Hashmi, Deputy Managing Director and CRO of the bank inaugurated the programme, said a press release.

Branch officials from different branches of the bank attended the programme.

Khondkar Morshed Millat, Deputy General Manager, Bangladesh Bank conducted the programme.

News:Daily Sun/02-Dec-2013

Dutch-Bangla Bank Limited (DBBL) and United International University (UIU) signed an agreement on e-Payment in Dhaka on Sunday.

Prof. ASM Salahuddin, Registrar, UIU and Md. Kamruzzaman, Head of Personal Banking Division, DBBL signed the agreement on behalf of their respective organisations, said a press release.

Under the agreement payment of fee for registration of international seminars to be organised by UIU can be made through internet from anywhere. The students of UIU or their guardians will also be able to pay tuition fee through Internet by log in at UIU web portal: www.uiubd.com

Prof. Dr. M Rezwan Khan, Vice Chancellor of UIU, Prof. Dr. Chowdhury Mofizur Rahman, Pro-VC, UIU, Habib Abu Ibrahim, Treasurer, UIU, KS Tabrez, Managing Director of DBBL and other executives from both the organisations were also present.

News:Daily Sun/02-Dec-2013