Bangladesh Bank’s (BB) selection of Infotech Global Pte Ltd, a Pakistani origin company, for a sensitive project, linked to the electronic payment system of the central bank, has drawn sharp criticism from one of the advisers of the Prime Minister, and information technology industry insiders. The ongoing procurement process, for "National Payment Switch Applications (NPSA)", under the "Central Bank Strengthening Project", is being carried out with International Development Association credit, worth USD 5 million (around Tk. 37 crore). Critics said that procuring software, hardware, and support services, for the important national institution, from a Pakistani origin company, might pose a threat for online transactions in future.
Commenting on this, Prime Minister's finance adviser, Dr Mashiur Rahman, said security issue must be given top priority. "I don't know much about the procurement process. But, in my view, the tender evaluation process must cover the security aspects judiciously, considering national interest," he said.
Meanwhile, local information technology industry insiders have criticised the move by the central bank, saying that the NPSA of the central bank is a sensitive project, and awarding the work to a company of Pakistani origin, might pose a major threat to national security.
"A national institute, such as Bangladesh Bank, must ensure that all protective measures are taken, regarding internal and external security," said Enamul H Chowdhury (Khasru), managing director, Energypac Engineering Ltd.
The head of the central bank's procurement committee for the project claimed that everything was done, as per standard rules and procedures.
"I don't know about the origin of the company. But the selected company is based in Singapore, and has qualified in all evaluation procedures," he added. Speaking on the latest status of the procurement, he, however, admitted that he has sent the committee's evaluation report to the World Bank (WB), for further review and approval.
Meanwhile, BB sources said that after completing the evaluation on September 11, the head of the six-member procurement committee, and one of the deputy governors of the central bank, sent the report to WB on the next day, ranking Infotech Global Pte Ltd as the lowest bidder. The source said that the selected company, which had showed its Singapore address, is originally a subsidiary of Pakistan-based Infotech Group.
"The real identity of the company was not discovered during the evaluation process, because its location is shown as Singapore," said the source.
"But, in Bangladesh, the incumbent government is strictly rearing anti-Pakistan sentiment, and some bigwigs of the government have requested the head of the procurement committee to block the participation of the Pakistani company," added the source.
The previous tender for the same work was suspended early this year, by the central bank governor, as another Pakistani company had been selected as the lowest bidder. "The reason, taken into consideration, was the anti-Pakistan sentiment in Bangladesh," said the source.
Besides, owing to the selection of a foreign company, the government of Bangladesh would lose around Tk. 1.50 crore in tax revenue from the cost of procurement, as both Singapore and Pakistan have agreements with Bangladesh, regarding avoidance of double taxation, according to the source. A total of 11 companies, one foreign and 10 local, had participated in the bidding process.

News: Daily Sun/ Bangladesh/ 22-Sep-11

Bangladesh Krishi Bank (BKB) achieved over hundred per cent growth in disbursing agri loan in the fiscal 2010-11 compared with the previous year due mainly for introducing hassle-free system and strong monitoring at the field level. Besides, the bank also marked a positive trend in realizing loan from recipients during the previous fiscal.
The BKB disbursed Taka 5,901 crore agri loan across the country in the previous fiscal (2010-11) against Taka 4,819 crore in the fiscal 2009-10 marking a record 105 per cent growth.

News: Daily Sun/ Bangladesh/ 20-Sep-11

Johora Bebe has been promoted to deputy managing director of ONE Bank Limited recently, says a press release. Prior to this, she was senior executive vice-president and the head of Credit Risk Management (CRM) and in-charge of Operations Division of the bank.
Johora joined ONE Bank in 2005. Before that she worked at IFIC Bank as senior vice-president and the head of project finance division. She started her banking career at Agrani Bank in 1983 and held many responsible positions there including the position of a branch manager.

News: Daily Sun/ Bangladesh/ 22-Sep-11

State-owned Janata Bank ltd has earned a net profit of Tk 4.9 billion in 2010 while it bagged Tk 12.04 billion as operating profit in the same year which is three times higher than Tk 4.21 billion in 2006.

The financial data was revealed on Monday at the 4th annual general meeting (AGM) of the state-owned commercial bank. Dr. Abul Barkat, chairman of the bank, presided over the meeting while SM Aminur Rahman, CEO and MD of the bank, delivered the welcome speech.

While addressing the AGM, Abul Barakat attributed the profit increase to the corporatisation of the bank. Despite a global economic recession for the last few years, Janata Bank has showed a satisfactory performance, Barakat said.

He mentioned that Janta Bank is witnessing a declining trend in classified loan, now at 5.3 percent which was 12 percent in 2006, adding that, the existing rate of classified loan is a bit normal for a commercial bank which is never possible to be less than 3 percent.

The Janata Bank chairman informed the AGM that the total deposit of the bank also jumped to Tk 286. 56 billion in 2010, posting a 16 percent rise compared to the previous year. The growth of the bank’s loans and advances also increased to Tk 225.73 billion from Tk 166.35 billion in the previous year, posting a 36-percent rise while foreign trade volume increased by 46 percent from Tk 207.17 billion to Tk 302.25 billion during the period, Abul Barakat added.

The AGM also revealed that availability of capital reserve of the bank was Tk 23.45 billion as against Tk 22.97 billion, while equity was Tk 20.39 billion and provision against loans and advances was Tk 8.98 billion.

The AGM also approved distribution of cash dividend of Tk 10 million and declaration of stock dividend at the rate of 57.05 percent on paid up capital Tk 5 billion to the tune of Tk 2.87 billion in favour of the government.

Shams Al-Mujahid, deputy secretary, Bank and Financial institutions division and representative of GoB, Directors of the Board-- Advocate Balram Poddar, Dr. Jamal Uddin Ahmed FCA, Md. Nazibar Rahman, Dabir Uddin Ahmed, Dr. Md. Abdur Rouf Sardar, Alhaj AKM Shahjahan Kamal and Dr. RM Debnath, DMD Mr.Golam Sarwar, were also present on the occasion.

News: Daily Sun/ Bangladesh/ 20-Sep-11

Bangladesh Bank has extended time for commercial banks to adjust single borrower exposure limit by another year in a bid to bring stability in the crisis-ridden market. A central bank circular on Monday said the commercial banks would not be allowed to increase their existing loan balance during the extended period. The decision came last week from the central bank as it allowed four more months for the banks to go by the decision to restore the investors' confidence.

News: Daily Sun/ Bangladesh/ 20-Sep-11