BASIC Bank has sent a rejoinder to a news item headlined “Curious buying spree” published in The Daily Star on Wednesday.

The report said Sheikh Abdul Hye Bachchu, the bank’s chairman, has spent around Tk 150 crore on 11 deep-sea fishing trawlers in less than two years.

But BASIC Bank denied the allegation, saying its chairman has three fishing vessels namely Crystal -1, Crystal-2 and Karnatori.

The rejoinder said, “However, it is agreeable that as a part of business expansion, four vessels — two namely Silver Sea 1, Silum Chai 29 and two others are in the process to be purchased by Mr Hye which are yet to be registered in the name of his company.”

Four vessels namely Peninsula 1 & 4 and Speed 1 & 2 as mentioned in the report do not belong to him (Bachchu) and he knows nothing about the ownership of these vessels, it claimed.

The bank also said Mr Hye is an established businessman and has the capacity to procure and operate the vessels which he is possessing. He had been the Managing Director of BM Builders and BM Telecom (Agent of British Telecom) since long.

“Mr Hye possesses adequate land property and 23 flats, of which, 16 have been sold out and sale proceeds have been utilised for expansion of business. Some of these flats were located in Old DOHS and were sold at very high price,” read the rejoinder.

The mentioned vessels are owned by a limited company named Eden Fisheries where there are four directors,

including Hye.  As per rules and regulations of Bangladesh Bank as well as Bank Company Act, there is no bar to a chairman or a director of a bank owning businesses provided that the business is not connected with any interest or function of the bank concerned to which he/she is a director or chairman, it added.

It further claims The Daily Star report links Hye with the operational activity and performance of BASIC Bank. BASIC Bank is totally a separate identity which has no relation with the business of Hye.

But linking the name and business of Hye with operational performances of BASIC Bank seems “a personal attack against him and we are expressing our strong protest against it”.
OUR REPLY
The Daily Star published the report based on the findings from the sellers of the vessels and the deep-sea fishing industry. The correspondent talked to Eden Fisheries’ present and ex-employees who also confirmed the purchase.
Sheikh Abdul Hye Bachchu in his own admission has stated that he now owns three vessels — Crystal 1,

Crystal 2 and Karnatori — which The Daily Star has come to know he has procured in 2011 after he became the chairman of BASIC Bank. He also admits that as part of business expansion four vessels — Silver Sea 1, Silum Chai 29 and two others are in the process to be purchased by him.

The Daily Star has been confirmed by multiple sources, including one of his employees whom we cannot name, that he already owns Silver Sea 1 and Silum Chai 29. He has also purchased Peninsula 1, Peninsula 3 and Speed 2. This paper has recordings of the conversations with the sources.

Such buying spree has created curiosity in the industry which The Daily Star has pointed out.  We therefore stand by our report.
The Daily Star did not link Hye’s buying of fishing vessels with the troubled BASIC Bank. The report was on his personal business. We just gave a picture of the bank where Hye,

owner of Eden Fisheries, has been chairing the board of directors since 2009. Bangladesh Bank in an investigation revealed how the bank’s board approved many sub-standard loans throwing the bank into great risk.

About the business background of Hye, this newspaper tried for over one month to contact him to know about his business and get his comments on the findings.

We did not find anything written (except for his name) in his profile on the BASIC Bank’s website. When we failed to reach him in person and by phone, we faxed and emailed to BASIC Bank’s headquarters seeking his response. Yet, he did not reply.

Bangladesh Bank (BB) has started holding meetings of bank officials and depositors to create awareness about Deposit Insurance Scheme (DIS), which is designed to minimize the risk that the depositors suffer for placing funds with a bank.

As part of this move, the central bank held meetings of bank officials and depositors in Chittagong and Khulna regions. It will organize such meetings in different regions in the next two months.

“Customers of commercial banks are not aware about the DIS . . . we are organizing such meetings to aware them because protecting the interest of depositors is our prime responsibility,” Khagesh Chanda, General Manager of BB’s Deposit Insurance Scheme, told BSS.

The purpose of DIS is to help increase market discipline, reduce moral hazard in the financial sector and provide safety nets at the minimum cost to the public in the event of a bank failure, he added.

He said BB will organize such meeting of bank officials-depositors in Barisal, Rajshahi, Rangpur, Bogra, Sylhet, Mymensingh and Dhaka.

BB set the rate of premium for deposit insurance and coverage at Taka 0.07 (7 paisa) for every 100 taka to minimise any risk connected to the loss of depositors’ fund with a scheduled bank. Premium rate will be at Taka 0.08 from the first half of the calendar year of 2014.

As per provisions, the premiums collected from the insured banks are deposited in an account called the Deposit Insurance Trust Fund, maintained by the central bank

Md Habibur Rahman, Managing Director of Al-Arafah Islami Bank Limited, hands over computer sets to the BSCBA leaders at a function at the bank’s head office in Dhaka on Sunday. 

Al-Arafah Islami Bank Limited distributed 10 ultra-modern computer sets to Bangladesh Supreme Court Bar Association (BSCBA) as per its CSR activities at the bank’s head office in Dhaka on Sunday.

Md Habibur Rahman, Managing Director of the bank handed over the computer sets to the BSCBA leaders, said a press release. Md Mofazzel Hossain, and Kazi Tauhidul Alam, Deputy Managing Directors of the bank were also present.

Banking sector witnessed a rapid expansion in the past four and a half years when the number of depositors grew by a staggering 56.0 per cent with opening of 1,527 new branches.

According to a document of Bangladesh Bank (BB) released on Sunday, the number of depositors till December 2012 was 5.88 crore. The growth in depositors was 56.0 per cent over the 3.76 crore depositors in December 2008.

The growth in borrowers’ number, however, was only 12.0 per cent during the period as their number rose to 95.98 lakh in 2012 from 85.79 lakh in 2008.

The document shows that in the last four and a half years, private banks opened more branches than the state-owned commercial and specialized banks when the number of rural branches exceeded the urban branches unlike previous years

Deputy Commissioner of Rangpur Md. Farid Ahammad, speaks at a function organised by Prime Bank Eye Hospital, at Balachowra Haat of Badargonj in Rangpur recently. 

Prime Bank Eye Hospital, a concern of Prime Bank Limited, launched a free eye camp at the premises of ‘VIP Shahadat Hossain College and High School’ at Balachowra Haat of Badargonj in Rangpur recently.

Deputy Commissioner of Rangpur Md. Farid Ahammad inaugurated the eye camp as the chief guest, said a press release.

Chairman of Prime Bank Foundation Md. Shahadat Hossain and General Manager of Bangladesh Bank Rangpur office Md. Bazlar Rahman Molla were present in the programme as the special guests.