The Securities and Exchange Commission (SEC) on Tuesday approved the IPO prospectus of AB Bank First Mutual Fund to raise Tk 1.5 billion.

This is a closed-ended mutual fund with 10 years life time

“The approval came at a SEC meeting with its Chairman Professor M Khairul Hossain in the chair,” said Saifur Rahman, executive director and spokesman of SEC.

The per unit price of each of the mutual fund will be Tk 10 and market lot will be of 500 units.

AB Bank will subscribe units worth Tk 300 million as sponsor, while Tk 450 million will be raised through pre-IPO or private placement, and the rest Tk 750 million will be kept for initial public offering (IPO).

Race Asset Manage- ment will act as manager of the fund. AB Bank is the custodian of the fund while Bangladesh General Insurance Company is trustee.

News: Daily Sun/ Bangladesh/ Aug-10-2011

National Credit and Commerce Bank Limited (NCC Bank) recently signed a deal with Ansar-VDP Unnayan Bank for smooth delivery of inward foreign remittance to the country.

Under the deal, the two banks will work jointly to provide secured and quick delivery of remittance to the doorstep of customers of the banks using the network of Ansar-VDP Unnayan Bank, said a press release.

Mohammed Nurul Amin, managing director of NCC Bank, and MA Yousoof, managing director of Ansar-VDP Unnayan Bank, inked the deal at the head office of NCC Bank in the city.

News: Daily Sun/ Bangladesh/ Aug-10-2011

Bangladesh Development Bank Limited (BDBL) handed over Tk 50 million to the government as dividend from its profit earned during 2010.

BDBL chairman Nazem Ahmed Chowdhury handed over a cheque of Tk 50 million to Finance Minister AMA Muhith at a function at the latter’s secretariat yesterday.

The bank earned a net profit of Tk 644.5 million and disbursed Tk 902.3 million loan during in the year 2010.

During last year, the bank recovered loan amounting Tk 1.705 billion including Tk 1.41 billion long-term loan against the recovery target of Tk 1.63 billion.

The bank also provided Tk 577.7 million to the government, the Bangladesh Bank and different lending institutions last year.

The Finance Minister at the function said that BDBL will be turned into an investment banker as the government will provide it some funds this year. The bank demanded for a fund of Tk 3.00 billion.

The government would allow the bank enter the capital market, said the minister.

The BDBL started is journey through a merger between Bangladesh Shilpa Bank and Bangladesh Shilpa Rin Sangstha during January last year. The authorised capital of the bank was Tk 10 billion, while its paid-up capital was Tk 4 billion.

Banking and Financial Institution Division Secretary Shafiqur Rahman Patwari, BDBL managing director M Zillur Rahman, directors and other high officials of the Finance Ministry were present.

News: Daily Sun/ Bangladesh/ Aug-10-2011

Pubali Bank Limited (PBL) introduced Islamic banking services at its principal, stadium branches in Sylhet branch on the basis of Islamic Shariah.

The 5th meeting of Pubali Bank’s Shariah Supervisory Committee held at the bank’s board room yesterday reviewed the overall position of the Islamic Banking. M Azizul Huq, chairman of the committee presided over the meeting, said a press release.

Ahmed Shafi Choudhury, director of the committee, Helal Ahmed Chowdhury, managing director, Prof M Muzahidul Islam, Islamic economist, Prof M Mansurur Rahman, Mowlana Abdullah Bin Sayeed Jalalabadi and Abdul Gofran, head of Islamic banking wing of the bank were also present at the meeting.

News: Daily Sun/ Bangladesh/ Aug-10-2011

Bangladesh Bank has taken initiative to amend some sections of Islamic bond rules in a bid to make it more attractive.

BB officials, chaired by executive director SK Sur Chowdhury, yesterday sat with the CEOs of the Islamic banks at the BB headquarters to obtain opinions from them, said BB sources. The chief executives, however, said they will put their opinion to the Central Bank following a discussion at the Central Shariah Board.

An official who attended the meeting said Islamic bond rules need to update to make it more attractive. If the rule is amended no money in the Islamic banks will lie idle and they themselves will be the best beneficiaries of the amendment.

BB will send a letter seeking opinion on the amendment this week. And they will get one month to send opinions which will be sent to the Ministry of Finance later for taking final decision with respect to the issue, he also informed.

 News: Daily Sun/ Bangladesh/ Aug-02-2011