NEW DELHI: The Asian Development Bank (ADB) yesterday lowered the growth forecast for India to 6.5 per cent for the current fiscal, from the earlier 7 per cent projection, on the back of subdued demand and high inflation.

“India’s economy is now expected to grow by 6.5 per cent in 2012, down from the previous forecast of 7 per cent. India’s outlook is clouded by a combination of high inflation and poor demand, both externally and internally,” the ADB said in its ‘Outlook Supplement’ report.

It said that the weakness in the economy was reflected in declining business confidence, slow credit growth and subdued sales of automobile sector.

“With persistently high inflation, monetary policy has little room to counter the slowdown in economic growth...high inflation and trade deficit make it difficult to ease monetary policy to stimulate demand,” ADB said.

The Reserve Bank is scheduled to announce its quarterly review of monetary policy on July 31.

Wholesale inflation was 7.55 per cent in May. At the retail level, the Consumer Price Index (CPI) inflation for the same month was 10.36 per cent.

The Manila-based multilateral lender has also lowered the India’s growth forecast for 2013 to 7.3 per cent, from the 7.5 per cent projection made in April.

ADB has cut its growth forecasts for developing Asia to 6.6 per cent for 2012 citing economic problems in the Eurozone and its impact on global demand. It had projected a 6.9 per cent growth for the region earlier.

It further said that the decline in growth forecast for developing Asia was mainly on account of lower growth in India and China.

Moreover, ADB added, the global economic worries were also getting reflected in the plunge in business investment, and there could be slowing of growth in the second half of 2012.

According to official projections, Indian economy is expected to grow at 7.6 per cent (0.25 per cent) in the current fiscal.

While the RBI left its key policy rates unchanged in its last policy review in June, European Central Bank and People’s Bank of China slashed their respective policy rate earlier this month to boost growth.

The ECB reduced its main interest rate to a record low of 0.75 per cent and its deposit rate to zero to help tackle the euro zone crisis. “Global economic growth remains sluggish, with rising concern that emerging economies are increasingly vulnerable to weak economic prospects in the United States and euro area,” ADB said, while reducing the growth outlook for industrialised economies to 1 per cent, from 1.1 per cent earlier.

The Daily Sun/Bangladesh/ 14th July 2012

JAYPURHAT: Rajshahi Krishi Unnayan Bank (RAKUB) has realised Taka 832.3 million as agriculture credit here during the 2011-12 fiscal, transcending the target of Taka 457 million.

The realisation rate is 185 per cent, according to the specialised bank.

Earlier, the RAKUB distributed Taka 827.4 million against the target of Taka 761.0 million during the period. The RAKUB realised Taka 393.8 million from 157 certificate cases and Taka 891 million from court cases.

The Daily Sun/Bangladesh/ 14th July 2012

Bangladesh Bank (BB) was accorded Industrial Engineering and Operations Management (IEOM) award by American Lawrence Technological University for being a pioneer in introducing e-Tender system for all kinds of procurement, according to a BB press release.

The award was handed over to BB officials at a conference held from July 3 to 6 at Istanbul Technical University in Turkey.

Researchers from 59 countries including US, UK, Germany, South Korea, Hong Kong and India participated in the conference.

The Daily Sun/Bangladesh/ 14th July 2012

Sukomol Sinha Chowdhury, General Manager, SME and Special Programmes Department of Bangladesh Bank, and Mohammad Abdullah, Managing Director of IFIC Bank, exchange documents after signing an agreement at the central bank premises. Governor of Bangladesh Bank Dr. Atiur Rahman is also seen.

IFIC Bank Limited and Bangladesh Bank (BB) recently signed an agreement on utilising JICA-assisted funds in Small and Medium Enterprise (SME) sector in the country.

As per the agreement, IFIC Bank Limited will avail of re-financing facility from the central bank revolving fund to lend money for the development of SMEs, said a press release.

Sukomol Sinha Chowdhury, General Manager, SME and Special Programmes Department of Bangladesh Bank and Mohammad Abdullah, Managing Director of IFIC Bank signed the deal on behalf of their respective sides at the central bank premises.

The Daily Sun/Bangladesh/ 13th July 2012

Sheikh Abdul Hai Bacchu, Chairman of BASIC Bank, inaugurates a branch of the bank in Mymensingh Thursday.

BASIC Bank Limited has opened its 51st branch in Mymensingh Thursday.

Sheikh Abdul Hai Bacchu, Chairman of the bank inaugurated the branch, said a press release.

Kazi Fakrul Islam, Managing Director of the bank chaired the function while lawmaker Md Abdus Sattar was present as special guest.

Kanok Kumar Purakayasta, Deputy Managing Director of the bank, Dr Shuvash Chandra Biswas, Deputy Commissioner of Mymensingh, general managers of the bank, businessmen and local elites were also present.

Sheikh Abdul Hai, Chairman of the bank said the bank has been operating its activities with fully on online system for ensuring better services to its customers.

Aiming to boost country’s industrial production, the bank started its journey in 1989, he said.

“The bank’s agriculture credit disbursement and SME development is satisfactory,” he said adding the bank is, especially, giving loans to the women entrepreneurs.

Kazi Fakrul Islam said most of the customers of the bank believed their investment is secured as the bank is fully owned by the government.

The Daily Sun/Bangladesh/ 13th July 2012