M Ghaziul Haque, Chairman of the board of directors of EBL, presides over an AGM at the Bangabandhu International Conference Centre in the city Sunday

Eastern Bank Limited (EBL) has approved 20 percent cash dividend for its shareholders for the year that ended on 31st December 2012.

The approval was made at the bank’s 21st annual general meeting (AGM) at the Bangabandhu International Conference Centre in the city Sunday, said a press release.

M Ghaziul Haque, Chairman of the board of directors of the bank, presided over the meeting.

Mir Nasir Hossain, AM Shaukat Ali, AQI Chowdhury, OBE, Meah Mohammed Abdur Rahim, Asif Mahmood, Ormaan Rafay Nizam and Gazi Md Shakhawat Hossain, Directors, Ali Reza Iftekhar, Managing Director and CEO, Safiar Rahman, SEVP and Company Secretary of the bank, and a large number of shareholders attended the meeting.

During the meeting, M Ghaziul Haque presented last year’s directors’ report and financial statements before the shareholders and replied to various queries of the shareholders.

He said, “Amid intense competition among the existing banks, EBL is able to maintain its growth both in terms of business volume and profitability.”

Total assets of the company last year stood at Tk 147,148 million, rising by 25.12 percent from the previous year.

EBL witnessed an impressive growth in its operating profit, rising by about 9.28 percent in 2012.

The company reported 2.20 percent profit before Tax to the tune of Tk 4,220 million and earnings per share (EPS) of Tk 3.72.

A Rouf Chowdhury, Chairman of Bank Asia, presides over the 14th AGM of the bank at the Officer's Club in Dhaka Sunday.

Bank Asia Limited recommended 10 percent stock dividend for its shareholders for the year 2012.

The approval was given at the 14th annual general meeting (AGM) of the bank held at the Officer's Club in Dhaka Sunday, said a press release.

A Rouf Chowdhury, Chairman of the bank, presided over the meeting.

With the declared dividend, the paid-up capital of the bank would be increased to Tk 6.93 billion and total capital fund to about Tk 13 billion

GAIBANDHA: Islami Bank Bangladesh Limited (IBBL) distributed a total of Tk 22.115 lakh to distressed freedom fighters and organisations in various categories in the district.

The bank, from its Gaibandha branch, provided the assistances to the help people in the area as part of its social corporate responsibility (CSR).

Of the total amount, Tk 140,000 was distributed to 20 distressed freedom fighters for their rehabilitation, Tk 602,000 to 55 students against education stipend, Tk 58,000 to 116 students against teaching aid.

Tk 8,000 was given to each of eight students as education gift, Tk 60,000 to three religious institutions for their renovations, Tk 225,000 to 15 pre-primary schools and Forkania Madrashas, Tk 30,000 to a homeo dispensary and Tk 12,500 to five persons for burial purposes.

A file photo shows Bangladesh Bank governor Atiur Rahman inaugurating an online-based trader work station for transactions of government securities on secondary market at a programme at the BB headquarters in the city recently.

The online-based trader work station introduced by the Bangladesh Bank has so far failed to make the secondary bond market vibrant as clients are reluctant to invest in the treasury bills and treasury bonds through the system, said BB officials.

A BB official told New Age on Wednesday that the primary dealer banks continued to submit a good number of sales orders through the TWS every day but clients were unwilling to participate in the market.

He said that the central bank introduced the TWS on December 17 last year to promote the secondary bond market so that the PD banks and the non-bank financial institutions would sell their securities excess to statutory liquidity ratio to all types of clients.

‘But, securities only worth Tk 4 crore to Tk 5 crore have so far been transacted between the banks and other clients through the TWS,’ he said.

According to the BB data, banks submitted sales orders for the T-bills and T-bonds worth Tk 688 crore on March 4, Tk 1,022 crore on March 5, Tk 692 crore on March 6, Tk 704 crore on March 11, Tk 914 crore on March 12 and Tk 697 crore on March 13 of this month through the TWS, but no transaction was held in the period.

 
The official said that low interest rate of T-bills and T-bonds was the key reason for low investment in the government securities

Banks usually buy three kinds of T-bills — tenures of which range between 91-day to 364-day — and four kinds of T-bonds — tenures of which range between 5-year to 20-year — from the BB.

The BB pays banks maximum interest rate of 12.16 per cent for T-bonds and 11.37 per cent for T-bills.
‘A client usually gets 14 per cent to 16 per cent interest rate for a saving product of a commercial bank,’ the BB official said.

Another BB official said the majority of the clients including corporate business houses had not so far thought much about the secondary government securities market where their provident funds could be invested with proper security.

The BB and the commercial banks should take campaign programmes to gear up the bond market, he said.
He said that the government borrowing from the banks had been increasing since the FY 2011-12 because of a lower net investment in savings bonds and certificates and a decreased flow of foreign loans and grants.

 
‘So, the supply of government securities to the market has recently surpassed the demand for the T-bills and T-bonds. The PD banks would have got a respite from the excess securities they hold if there is a vibrant secondary bond market,’ he said.

He said that the BB would take initiatives soon to boost up the secondary bond market. 
‘The central bank will arrange meetings with the banks one-to-one basis to know their problems. Then, we will take initiatives to resolve the crisis,’ he added.

Muklesur Rahman, DMD of EBL, seen with Foo Boon Ping, Managing Editor of The Asian Banker after receiving the trophy of the Best Retail Bank in Bangladesh for 2013 at a function in Seoul, South Korea recently.

Eastern Bank Limited has been adjudged Best Retail Bank in Bangladesh for the year 2013 at The Asian Banker’s International Excellence in Retail Financial Services 2013 Awards.

The bank received the award in conjunction with the region’s most prestigious retail banking event, the Excellence in Retail Financial Services Convention, said a press release.

Muklesur Rahman, Deputy Managing Director (DMD) and head of retail banking of EBL, received the award from Foo Boon Ping, Managing Editor of The Asian Banker.

The awards programme, administered by The Asian Banker and refereed by prominent global bankers, consultants and academics, is the most prestigious of its kind.

About 150 senior bankers from award-winning banks in 29 countries across the Asia Pacific, the Middle East, Central Asia and Africa attended the glittering event that recognises their efforts in bringing superior products and services to their customers.

A stringent three-month evaluation process based on a balanced and transparent scorecard used to determine the winners and the positions of various retail banks in the region.