Sheikh Abdul Hai Bacchu, Chairman of BASIC Bank, inaugurates the 53th branch of the Bank in Chapainawabganj Sunday.

BASIC Bank Limited opened its 53th branch in Chaipainawabganj Sunday aiming to reach the banking services to the doorstep of the common people.

Sheikh Abdul Hai Bacchu, Chairman of BASIC Bank, inaugurated the branch, said a press release. The inaugural function was chaired by Kazi Fakrul Islam while Md Mainuddin Mandol, general secretary of District Awami League of C’Nawabganj was present.

News: The Daily Sun/Bangladesh/11-Sep-12

The country’s commercial banks have written off Tk 210 billion from their bad loans till March 2012, the central bank reported recently.

Loans write-off is meaning that banks have lost the last ray of hope in recovering those loans, said a Bangladesh Bank (BB) official.

Usually, the respective bank management has to transfer the record of such default loans to a separate register from the main balance sheet.

In this case, a bank has to adjust the amount equivalent to written off default loans to the main balance sheet from the annual profit the bank earned.

For an example, a bank earned Tk 5 billion profit in the year 2011. The bank’s management wants to write-off Tk 1 billion. Therefore, the bank shall need to show Tk 4 billion profit as it has adjusted Tk 1 billion from the profit, the official detailed.

He said the central bank has introduced the loan write-off provision in 2003.

“A bank can write off default loans. But it must show 100 percent provisioning for that. So, loan write off is meaning a ‘loss’ of the bank,” said the official.

On the other hand, the list of defaulters of such loans is recorded at Credit Information Bureau (CIB) of the central bank and such defaulters would not be allowed to take fresh loan from any bank, he said.

According to BB report, banks have written off Tk 290 million in January-March period of 2012. Of the amount, the private banks together have written off Tk 200 million while the remaining amount was abandoned by all the state-owned commercial and specialised banks.

On 31st December 2011, total volume of write off loans in the country’s banking sector was Tk 208.43 billion.

Out of the total amount, the stake of state-owned commercial banks was Tk. 90.77 billion including Tk 32.27 billion by the state-owned specialised banks.

News: The Daily Sun/Bangladesh/11-Sep-12

Stocks returned to the red yesterday, after investors went on a selling spree to take profit.

DGEN, the benchmark General Index of Dhaka Stock Exchange, finished the day at 4,357.17 points, after dropping 27.81 points or 0.63 percent. Turnover rose 24.38 percent to Tk 759 crore from the previous day.

“The government's strict stance to probe the Hall-Mark scam and expectation for amicable settlement with World Bank spurred investors' sentiment,” IDLC Investments said in its daily analysis.

In addition, healthy turnover helped to grow investors' confidence, it said.

“Amid such a scenario, DGEN gained by 81 points in the opening hour. However, it lost the early hour gain and closed in the negative territory.”

“Recently, DSE appears to be a lot more active than it was a couple of weeks ago,” said Green Delta LR Holdings, adding that experts believe higher participation of investors is the main reason for that.

A total of 1.6 lakh trades were executed, with 14.57 crore shares and mutual fund units changing hands on the Dhaka bourse.

Of the issues that traded on the DSE, 171 issues declined, 78 advanced and 21 remained unchanged.

Non-bank financial institutions gained 0.98 percent and power 0.47 percent which were the gainers of the day. Banks lost 1.44 percent, followed by telecom 1.32 percent and pharma 0.13 percent.

Titas Gas featured in the most traded stocks where 93.74 lakh shares worth Tk 83.62 crore changed hands.

GBB Power was the biggest gainer of the day, as it posted a 10 percent gain, while Grameen Mutual Fund was the worst loser, plunging by 5.72 percent.

The Selective Categories Index of Chittagong Stock Exchange closed the day at 8,408.01 points, after falling 61.06 points or 0.72 percent.

Losers beat gainers 147 to 43 with 11 issues remained unchanged on the port city bourse that traded 1.82 crore shares and mutual fund units worth Tk 80.55 crore in turnover.

News: The Daily Star/Bangladesh/11-Sep-12

The success of Ireland's international bailout hinges on it getting more European support and there being economic recovery externally, the International Monetary Fund (IMF) said on Monday as it cut its growth forecast for Ireland for next year.

Euro zone leaders agreed at their summit in June to look at improving Ireland's bank rescue, a commitment that has pushed Irish bond yields down sharply and allowed Dublin to raise long-term debt for the first time since it secured the EU/IMF bailout almost two years ago.

Ireland wants the terms tied to 31 billion euros of IOUs pumped into two failed banks eased and Europe's rescue funds to take over its stakes in other lenders, something the IMF said was needed to put the rescue programme "on a clear path to successful completion".

"When implemented, recent European commitments could decisively improve program prospects... Success hinges on external economic recovery and more European support," the IMF said in its latest report on Ireland's bailout progress.

"Timely commitment to such a strengthening of European support, especially ESM investments in the equity of Irish banks, therefore offers real prospects for Ireland to exit its reliance on official financing, which would be a positive breakthrough in the euro area crisis."

While again praising Dublin for the "vigorous" policy implementation that has made it the toast of Europe's bailed out countries, the IMF noted that a deterioration in economic conditions outside of Ireland would hamper its growth prospects for this year and next.

News: The Daily Star/Bangladesh/11-Sep-12

A Rouf Chowdhury, chairman of Bank Asia, poses with the participants of a two-day workshop on credit appraisal system and green banking, at its concluding ceremony at the Bank's corporate office in Dhaka on Sunday. Md Mehmood Husain, managing director, was also present.

News: The Daily Star/Bangladesh/11-Sep-12