Loan disbursement to SME sector has witnessed a sharp rise during the first six months of 2012 as banks and financial institutions disbursed a total of Tk 32,255 crore, up by Tk 6,092 crore or 24 per cent from the same period of the last year. During the January-July period of the current calendar year, banks pumped Tk 31, 453 crore while other financial institutions Tk 802 crore into the SME sector, according to a Bangladesh Bank (BB) data.

Accords to BB, small entrepreneurs have been given Tk 17,829 crore while medium entrepreneurs Tk 14,427 crore.
BB has set a target of disbursing Tk 59,000 crore as loan in the SME in 2012 as the government has attached a priority to expansion of the small and medium enterprises as part of its plan to cut poverty through creating employment opportunity.

Of the total amount, entrepreneurs in manufacturing sector got Tk 10,463 crore while service sector Tk 1,639 crore.  Credit worth Tk 1,234 crores went to the female entrepreneurs, up by Tk 252 crore from the last year’s Tk 982 crore.

“Banks and other financial institutions have channeled more credit to the small and medium entrepreneurs than the larger entrepreneurs following the BB’s advices..flow of credit to service and manufacturing sector is on rise,” BB’s SME and Specialized Programmes Department General Manager Sukomal Singha Chowdhury told BSS.

As the central bank has a plan to ensure the availability of loan for genuine SME entrepreneurs, the BB officials are supervising the loan disbursement at the filed level, he added.

“We encourage banks and other financial institutions to provide more credit to manufacturing sector because this sector creates jobs,” said Sukomal Singha.

News: Daily Independent/Bangladesh/28-Aug-12

Uttara Bank Limited (UBL) recently distr- ibuted agri loan to the farmers through its Khepupara branch in Patuakhali.

Shaikh Abdul Aziz, Managing Director and CEO of the Bank handed over cheques to farmers, said a press release.

Md Fazlur Rahman, Deputy Managing Director, Salim Nazrul Hoque, Executive General Manager and Md Mahfuzur Rahman, Zonal Head of Barisal Zone were present on the occasion.

News: Daily Sun/Bangladesh/28-Aug-12

Mohammad Abdul Mannan, managing director of Islami Bank Bangladesh, and Michael Kuehner, chief executive officer of Robi Axiata Ltd, shake hands after signing a deal between their companies in Dhaka on Sunday. The Bank intends to launch its mobile banking service, Islami Bank mCash, in partnership with the mobile operator.

Islami Bank Bangladesh Ltd is going to launch mobile banking service 'Islami Bank mCash with Robi, the Bank said in a statement yesterday.

“mCash' will enhance the Bank's services,” it said.

“Clients can enjoy banking services like money deposit, cash withdrawal, fund transfer to other accounts and remit money from overseas to mobile accounts in the least possible time,” Islami Bank said.

Mohammad Abdul Mannan, managing director of Islami Bank Bangladesh, Michael Kuehner, chief executive officer of Robi Axiata, have attended the signing of a mobile banking agreement in Dhaka.

The service also accommodates mobile top-up, commodity buying and selling and salary/wage transfer. The service will be available through any mobile operator. Accounts can be opened free with a primary balance of Tk 20 only.

Mohammad Abdul Mannan, IBBL's MD, said the bank is loyal to the central bank's effort of inclusive banking for unbanked people and the government's effort of digitalisation and that mobile banking will play a vital role in the process.

IBBL's joint service with Robi will be a milestone in the communication and banking sector of the country, he added.

Kuehner said the efforts of these two organisations can be vital to the total development of the country and bring banking services to the unbanked.

News: Daily Star/Bangladesh/28-Aug-12

The Asian Development Bank (ADB) will provide $150 million to Bangladesh to help improve capacity, efficiency and safety of the railway systems.

Iqbal Mahmood, senior secretary to the Economic Relations Division (ERD), and M Teresa Kho, country director of ADB's Bangladesh resident mission, signed a loan deal in Dhaka yesterday.

“The agreement is part of implementing the ADB's Bangladesh Railway Sector Improvement Project under Second Periodic Financing Request (PFR), where Bangladesh will receive the loan as Ordinary Capital Resources,” Mahmood said.

He spoke at a signing ceremony organised by the ERD at its conference room at Sher-e-Bangla Nagar in Dhaka.

With the funding, Bangladesh Railway will complete double-tracking of 64 kilometres of railway lines between Tongi and Bhairab Bazar, and improve signalling system of 11 stations in Darshana- Ishwardi section, said Mahmood.

The fund will also cover the cost of rehabilitating yards and extending loops in the Darshana- Ishwardi-Sirajganj Bazar section, and supervision of consultancy services, he said.

The interest rate of the loan is London Inter Bank Offered Rate (Libor) based with ADB terms and conditions, and the repayment period is 25 years with five years' grace period, he added.

Earlier in 2006, the government signed a framework financing agreement with the ADB under multi-tranche financing facilities worth $430 million to restructure the entire railways system.

Under the arrangement, the ADB has already provided $130 million for double-tracking the Tongi Bhairab Bazar section, and implementing reforms.

“The reforms and infrastructural development to be accomplished will help increase container transportation by 10 percent, and raise number of daily trains in the Tongi-Bhairab Bazaar section by 25 percent until 2020,” said the ADB country director.

“The improvement will result in low operating costs for users, increasing the competitiveness of Bangladesh for investment,” she added.

Upgrading the railway network will directly reduce transport costs for Bangladesh's major exports, especially readymade garments. The improved railway system will ease the pressure on the road network, which is congested, and thus benefit the transport sector as a whole.

It will also help promote regional trade and investment by improving a cost-effective communication network. AKM Dinarul Islam, deputy secretary to the ERD, was also present.

News: Daily Star/Bangladesh/28-Aug-12

Three separate platforms of more than 650 persons from different professions yesterday expressed their grave concerns about the future and autonomy of the Grameen Bank.

In a statement, 405 teachers under the banner of University Teachers' Association of Bangladesh said: "We are deeply worried at the present government's ploy in the appointment of managing director of internationally renowned and Nobel winning Grameen Bank out of vendetta and animosity."

"We are also surprised at the amendment to the Grameen Bank Ordinance to prevent the impoverished, neglected and the poor women member-borrowers of the bank from exercising their rights and to halt empowerment of the poor women."

They said the international community is worried about the government's hostile attitude to Nobel Peace Prize laureate Dr Muhammad Yunus.

"Bangladesh's image has been tarnished due to the government's naked interference in Grameen Bank, politics of secret killing and the Padma bridge corruption," said the statement.

The signatories to the statement of the association include its President Prof AFM Yusuf Haider and Secretary General Prof Tahmina Akhter, and Abdul Aziz, Khalilur Rahman, M Farid Ahmed and Ashraful Islam Chowdhury.

In another statement, 65 eminent citizens said: "The government and the head of the government have taken steps to destroy the Grameen Bank in the name of controlling it, which is worrisome."

They said Prof Yunus has shown the dream of activating the country's disadvantaged poor womenfolk, which has injected life into the women awakening.

"The countrymen have started to reap its benefit slowly. We request the government not to destroy the bank that is enabling women awakening," said the statement.

The platform also urged the government to refrain from curbing the authority of the board of directors of the bank in the name of amending the ordinance.

The signatories to the statement include former vice chancellors of Dhaka University Emajuddin Ahmed and Moniruzzaman Miah, former VC of Jahangirnagar University Mustahidur Rahman, former deputy VC of Agriculture University Shah Mohammad Faruque, vice-president of Bangladesh Bar Council Khandokar Mahabub Hossain and former general secretary of Bangladesh Supreme Court Lawyers Association Badruddoza Badal.

Under the banner of "Shato Nagorik", 219 eminent citizens urged the countrymen to be alert about any ploy that could harm the Grameen Bank.

"We are deeply worried that the present government is desperate to establish its control over the country's only Nobel winning organisation Grameen Bank and destroy it through steps taken one after another," they said in a joint statement.

"Besides, the government is spreading vices to vilify and tarnish the image of microcredit and social business pioneer Prof Yunus," it said.

The signatories to the statement include Prof Sadrul Amin, Prof Tajmeri SA Islam, Prof Abu Ahmed, poet Abdul Hye Shikder, Prof ZM Tahmida Begum, Prof Mohammad Golam Rabbani, Borhan Uddin Khan, Mosharraf Hossain Mia and Prof Mokhlesur Rahman.

News: Daily Star/Bangladesh/28-Aug-12