The government has constituted a two-step loan fund for the development of the Small and Medium Enterprises (SME) under the central bank’s ‘Financial Sector Project for the development of Small and Medium Sized Enterprises’.

Japan International Cooperation Agency (JICA), the international development wing of Japan, will provide the funding for the project worth 5,000 million Japanese Yen.

The principal component of the fund is two step loan of taka 4.787.5 million yen.

Under the two step loan fund, participating financial institutes will be provided with re-finance or pre-finance for lending to SMEs.

An operating guidelines, named ‘Risk Management Guidelines’ has been developed in this regard comprising policies and procedure of this fund, by which the fund will be governed.

Banks and NBFIs interested in participating in this fund have to apply by March 27.

Talking to daily sun, general manager of Bangladesh Bank (SME and Special Programmes Department), Sukamal Sinha Chowdhury, said they have asked the interested banks to properly study the guidelines displayed at BB website before applying for the fund.

The Daily Sun/Bangladesh/ 14th March 2012

NCC Bank Ltd recently organized a two-day long training course on 'Branch Management' for the potential managers of the Bank at Bank's Training Institute.

Md. Nurun Newaz Salim, Chairman of the Bank inaugurated the workshop as chief guest. Mohammed Nurul Amin, Managing Director of the Bank attended the function as special guest.

In his inaugural speech Chairman of the Bank Md. Nurun Newaz Selim advised the potential managers to face the stiff competition and utilize training knowledge efficiently and effectively to achieve organizational goal.

Additional Managing Director Golam Hafiz Ahmed and Deputy Managing Director T. M. Faruque Chowdhury also spoke on the occasion.

Financial Express/Bangladesh/ 13th March 2012

Additional Managing Director of National Bank Limited Md Badiul Alam addressing the inaugural function of a foundation training course as the chief guest organised for the Bank's junior officers (cash) in the city recently.

Md. Badiul Alam Additional Managing Director of National Bank Limited attended the inaugural function of a foundation training course as the chief guest organized by the National Bank Training Institute for its Junior Officers(Cash) in the city recently. A total of 35 Junior Officers(Cash) are taking part in the training.

Financial Express/Bangladesh/ 13th March 2012

Managing Director Mahbubul Alam and Deputy Managing Directors Syed Imtiaz Hasib and Shahid Hossain of Southeast Bank Limited seen with the participants of the workshop on 'SWIFT Operations' for the officers of the Bank organised by its training institute in the city recently.

Southeast Bank Limited (SEBL) organised a workshop on 'SWIFT Operations' for the bank's officers at its training institute in the city recently, said a press release.

SEBL Managing Director Mahbubul Alam while inaugurating the workshop emphasised the need for participants' proper understanding and application on the operational procedures of foreign trade along with the technicalities of SWIFT Operations ensuring online real time worldwide financial messaging network to ensure efficient customer service.

He also urged the participants to continue search for knowledge and update themselves with the latest banking practices to increase their professional skills and facilitate country's foreign trade.

Syed Imtiaz Hasib and Shahid Hossain, deputy managing directors and Shamim Ara Khanom, vice president of SEBL also spoke at the inaugural session.

Kazi Md Erfan Ul Haque, SWIF In charge made presentation on the topic.

Financial Express/Bangladesh/ 13th March 2012

The use of electronic plastic cards, known as ATMs, is on the rise, driven by demand from Bangladesh's booming middleclass that makes up one-fifth of the population, bankers say.

As customers prefer smooth and hassle-free banking transactions, they have said banks are trying to net customers by cutting back charges.

"Our 30 million-plus middle class is the key driver of growth of ATMs," Monindra Kumar Nath, Deputy Managing Director of Mercantile Bank Ltd, said.

"Even a few years ago, they (middleclass) were scared to use this due to higher charges. Now the bulk of the demand for such cards is coming from them only for lowering fees," he added.

He said that annually, card holders of the Bank are increasing at a rate of more than five per cent.

In 2009, customers of his Bank took 10,400 debit cards and withdrew cash worth more than Tk 800 million from automated teller machines (ATMs) while in 2010 customers holding debit-card were 16,300 in number and withdrew cash worth more than Tk 2.07 billion, Mr Nath said.

Last year, the number of debit-card holders increased by five per cent. The customers took 25,500 debit cards and they withdrew more than Tk 2.6 billion by using these cards, he said.

Moreover, 4,500 customers were provided with credit card in 2010 and they transacted nearly Tk 0.19 billion and in 2011 the Bank provided 5,400 credit cards through which the customers made transactions worth more than Tk 0.24 billion, Mr Nath said.

In just two months to February this year, the number of ATM booths reached 56, compared with 31 in 2010, he added.

"As the customers now prefer branchless transaction using electronic cards, the management has decided to install ATMs on all branch premises and in important places across the country to meet the demand," Mr Nath added.

Chief of Communication of Mutual Trust Bank Ltd Mohammed Sami-Al Hafiz told the FE the electronic card-bearing customers of the Bank are increasing significantly as they do not want to waste time by waiting in queues for long.

Every month the number of users is rising by more than 13 per cent as the customers are getting cash from any place at any time, Mr Hafiz said.

Deputy Managing Director of Islami Bank Bangladesh Ltd (IBBL) Abul Bashar told the FE: As the Bank grabbed a majority portion of customers among private banks, the management has planned to provide branchless money-withdrawing services.

"Now we have introduced only debit card and credit card for customers and as soon as possible many kinds of electronic cards with different names would be launched," Mr Bashar said.

In every month 20,000-25,000 customers are taking electronic cards and this number is increasing day by day, Mr Bashar added.

Now more than 0.2 million customers are using the card and by the end of this year the ATM card holders would be estimated at 0.5 million, he said further.

Head of IT Division of Prime Bank Ltd Iqbal Hossain told the FE: More than 10,000 customers are now taking ATM cards monthly but a year ago only 2,000 to 3,000 customers were taking this card in a month.

At present more than 0.2 million customers of the Bank are using electronic cards and by the end of this year the number will surpass 0.3 million, Mr Hossain said.

Head of IT Division of Trust Bank Ltd S M Akram Sayeed told the FE: The Bank has only debit card and the demand for cards is skyrocketing.

The number of card-holders of the Bank in 2010 was calculated at 18,906 while in 2011 the number was 111,157 and by the end of this year the number would exceed 0.2 million as thousands of people are applying for debit cards, Mr Sayeed said.

Misum Maleha Munni, a customer who was waiting for withdrawing cash on the premises of an ATM booth of Dutch-Bangla Bank Ltd (DBBL) at city's Elephant Road, told the FE: There is no need to expand branches but ATM booths should be increased across the country because we are getting necessary cash and information using electronic cards.

"I never thought of getting such kind of time-saving transaction facilities using the plastic cards in a developing country like ours, which made our life easier and smooth," the customer added.

Financial Express/Bangladesh/ 13th March 2012