Apollo Hospitals has recently signed a corporate agreement with Social Islami Bank Limited (SIBL) to provide priority corporate benefits and medical services for the bank’s card holders and their dependents.

Michael S. Potter, chief executive officer(CEO) of Apollo Hospitals, Dhaka and Muhammad Ali, managing director of Social Islami Bank Ltd, signed the agreement on behalf of their respective organisations, said a press release.

Dr. Shagufa Anwar, general manager for Business Development of Apollo Hospitals, said they will continue to provide premium services to their corporate clients. A M M Farhad, senior executive vice-president (SEVP) and head of Global Business of Social Islami Bank Ltd, was also present on the occasion.

News: Daily Sun/ Bangladesh/ May-18-2011

Bangladesh Bank has asked all private commercial banks and foreign banks operating in Bangladesh to disburse at least 2.5 per cent of their respective total loans/advances for agricultural and rural sectors. The central bank on Monday issued a circular to this effect that would come into force from July 1 this year, the beginning of the new fiscal.
Any bank failing to follow the central bank directive will have to deposit an amount equal to the shortfall in loans/advances to Bangladesh Bank for one year, the circular said. The central bank directive, however, will not be applicable for the state-owned banks as these banks have already been disbursing more than 2.5 per cent of their respective loans/advances for the agricultural and rural sectors.

News: The Independent/ Bangladesh/ May-17-2011

National Credit and Commerce (NCC) Bank has taken a new approach to banking for cluster financing to help innovative initiatives flourish across the country.

The private sector bank has already offered a maximum of Tk 5 lakh collateral-free loans to the entrepreneurs of different sectors in Tangail, Rajshahi and Syedpur districts.

In a press briefing yesterday, Managing Director Nurul Amin announced the initiatives on the occasion of its 25th founding anniversary.

NCC Bank's acting chairman and lawmaker Harunur Rashid, Additional Managing Director Golam Hafiz Ahmed and deputy managing directors AK Md Siddique, Mohabbat Khan and TM Faruque Chowdhury were also present.

Amin said the bank has taken the initiative to help prospective entrepreneurs in different parts of the country who are not getting any help now to flourish.

He said the initiative will help increase the country's growth and create employment.

Amin said the bank gave loans to 1,000 weavers in a remote village of Rampur at Kalihati upazila in Tangail district.

The loan amount of Tk 5 lakh was collateral free, but if a person seeks Tk 10 lakh loan, he needs to produce a guarantor. In case of cluster financing the rate of interest is 9 percent.

Amin said, in the first phase they have begun the financing programme in three areas and they have been evaluating it through the bank's branches. They have plans to expand the programme to cover other areas.

Besides, the bank is taking an area-based approach through which it plans to give adequate loans to entrepreneurs of an area where a crop or business has high prospects.

Amin projected the progress of the bank in the last 25 years and said, in 2010 the paid-up capital of the bank was Tk 600 crore, which was Tk 228 crore in 2009.

The amount of classified loan of NCC Bank is now only 2.27 percent.

The bank also plans to introduce a system for loan disbursement and realisation through mobile phone. The bank will soon start services of sending remittance through cell phones, Amin said.

NCC Bank has signed an agreement with a cell phone company for remittance services.

News: The Daily Star/ Bangladesh/ May-17-2011

Rejaul Karim Byron

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Bangladesh Bank (BB) has taken a tough stance against private and foreign banks who will fail to reach their targets of farm loan disbursement.

In case of failure, the banks will have to deposit the money with the central bank for one year.

The BB yesterday issued a circular in this regard. However, bankers have expressed their disappointment over the directive, but a BB official said the central bank can issue such a directive.

The private and foreign banks will have to fix a target of distributing agriculture or rural loans to the tune of 2.5 percent of their total loans disbursed till March 31 of the previous fiscal year, said the BB circular.

It also said, the bank concerned will review in every quarter whether the loans have been disbursed in line with the target. If it fails to meet the target, the unfulfilled portion of the target will have to be deposited with the central bank for one year.

The central bank will give interest at 5 percent on the deposited amount. The circular also said the banks will have to set their target considering the demand for agriculture and rural loans and the bank's ability and efficiency in disbursing loans in this sector every year.

The BB asked both public and private banks to contribute equally to the farm sector.

“Many private and foreign banks do not have any investment in agriculture and rural sectors. Though many banks have small investment, the amount is not satisfactory compared to their total loans and advances.”

The central bank said all banks should participate with a logical level of investment in giving agriculture and rural loans.

An official of the central bank said, according to banking regulations, the BB can give such directive to any bank. He said, in 2008 a specific guideline has been given to every bank for their participation in agriculture and rural loan disbursement.

He also said, in the first nine months of the current fiscal year eight private banks could not reach 20 percent of their target for distributing agriculture loans.

The official said, in the current fiscal year a bank set 16 percent as its target of disbursing agriculture loans, but another bank's target was at 0.4 percent.

He said the private and foreign banks do not show interest in disbursing the amount they set as target for agriculture loans. He also said, in India it is mandatory for the banks to disburse 18 percent of their total loan in the agriculture sector. If any bank fails to fulfill its target, the amount has to be deposited with Indian agriculture bank on a mandatory basis.

The official said there is also provision for such action in Sri Lanka and Nepal.

Managing directors of some private banks on condition of anonymity told The Daily Star that at present there is a slight liquidity crunch in their banks. They will hold discussions with the central bank on how much logical such a step will be.

A chief executive of a private bank said, “We are now forced to close the credit-deposit ratio. In such a situation, the circular may create money problem for many banks.”

Association of Banks, Bangladesh (ABB) President K Mahmood Sattar said he has not yet seen the circular. He said, if such a circular has been issued, he will talk about it with the central bank.

He said they will discuss with the BB what types of problems the banks will face in implementing the directive of the central bank.

News: The Daily Star/ Bangladesh/ May-17-2011

Sonali Bank Ltd, the largest commercial bank of the country, received best brand award from Bangladesh Brand Forum, a wing of international survey organisation Nielsen.

Mustaque Ahmed, managing director and CEO (additional charge), received the award on recently on behalf of the bank at a city hotel, said a press release.

It is noted that Sonali Bank Limited was also awarded the same consecutive previous two years.

Nealsen Bangladesh has been conducting this survey since 2008 in Bangladesh. Generally customers’ satisfaction, retail market share and sustainability were the main focus of the survey.

In Bangladesh, Nealsen Bangladesh carries out their survey in 19 different sectors. According the survey mass people regard Sonali Bank as the bank of all class.

News: Daily Sun/ Bangladesh/ May-16-2011