Helal Ahmed Chowdhury, managing director of Pubali Bank Ltd, was honoured with the ‘Best Banker 2010’ award by local business magazine Arthakantha. Commerce Minister Faruk Khan handed over the award to him at a function in a city hotel recently, said a press release. Helal Ahmed was adjudged the best banker of 2010 for his outstanding performance in banking sector. FBCCI President A K Azad also attended the function, presided over by Arthakantha Editor Md Rafiqul Islam. A discussion meeting titled 'Government and Merchant role of controlling commodity prices' was also held during the award giving ceremony. Ex-Vice President of FBCCI Kamaluddin Ahmed was the keynote speaker at the function. DCCI President Asif Ibrahim, Trading Corporation of Bangladesh Chairman Sarwar Jahan Talukder, CAB President Kazi Faruk, Dhaka University Professor Selim Raihan, Bangladesh Edible Oil Wholesale Trade Association President Md Golam Mowla, President of Bangladesh Sugar Trade Association Anwar Habib, were also present at the function.

News: Daily Sun/Bangladesh/ Apr-07-2011

Bangladesh Bank governor Dr Atiur Rahman on Tuesday claimed that the country’s financial sector has remained stable and there is nothing to worry about Bangladesh’s economy.

“Despite global economic recession, country’s financial state has remained stable due to different policy measures taken by the central bank and the government. I think there is nothing to be worried over Bangladesh’s economy,” he said.

The central bank governor made the remarks at an opinion exchange meeting with the leaders of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at the Bangladesh Bank conference room.

Bangladesh Bank deputy governors M Nazrul Huda, Ziaul Hasan Siddiqui and Murshid Kuli Khan, its executive director M Jahangir Alam, FBCCI president AK Azad and its directors were present.

Dr Atiur said the actual GDP (gross domestic product) growth would reach near 7 percent in the current fiscal and cross 7 percent in the next year.

He said the central bank has been repaying loans to the lenders timely as per conditions. “Remittance inflow and RMG export are playing a positive role behind such repayment of loans.”

The BB governor said the remittance inflow is also playing a positive role in the country’s balance of payment.

He said: “We’ve almost attained self-sufficiency in food addressing 96 percent of total demand. Besides, sufficient foods are being imported. So, stability of food prices will make significant contribution to help contain inflation.”

Dr Atiur termed as temporary the adjustment pressures faced by the businessmen and entrepreneurs following various measures taken relating to monetary policy and credit policy. These steps were taken to ensure economic stability.

“These are not the indicators of weakness of economy; rather these are growth-related pain,” he said.

The meeting widely discussed the issue of withdrawal of central bank’s ceiling on the highest bank interest while providing loans.

Meanwhile, Bangladesh Bank (BB) on Tuesday ruled out a liquidity crisis in the country’s baking sector saying that the speculation is not based on fact.

The banking sector currently has liquidity worth over Tk 240.57 billion that is maintaining uptrend in the last few weeks, according to the central bank in its latest review released on Tuesday.

The central bank observed that the rate of call money interest remained normal, and the call money rate was highest 6.25 percent in the private sector banks. Meanwhile, the BB has been continuing supplying liquidity to the banks through Repo.

The BB also said that the banks are not running short of foreign currency. “The claim of foreign currency crisis in the banks is not true. The current foreign reserve is US$ 10792 million.”

News: Daily Sun/Bangladesh/ Apr-06-2011

Bangladesh Bank in a statement yesterday said it withdrew the 13 percent lending cap for the scheduled commercial banks in line with its flexible principle of interests adopted in 90s, but it would continue its moral suasion to keep it at 15 percent or below.

The statement also said the media reports on liquidity crisis is not based on facts, and the inter-bank call money rate is under control. It is not true that banks are suffering from acute crisis of foreign currencies, the statement added.

Since January 1990 the banking sector had been enjoying the flexible interest policy of the central bank, the objective of which was to let the market itself fix the interest rate for both the lending and the deposit based on demand and supply of funds.

But, the worldwide economic meltdown forced the BB to impose the lending ceiling for agriculture, large and medium industries, housing and trade financing.

Recently, the money regulator lifted the lending cap of 13 percent leaving agriculture and term loans for industry, while the rate on export loan remained at 7 percent and that in case of imports of essential commodity--rice, wheat, edible oil, pulses, onion, dates and sugar—remained at 12 percent.

The clarification came from the regulator at a time when the decision sparked widespread criticism from the businessmen.

About the present liquidity position, the statement said presently the banking sector has an excess liquidity of Tk 240.57 billion, which is continuously on the rise for the last few weeks. According to latest data, inter-bank call money rate among the private banks is now 6.25 percent. Besides, repo auctions are on to pump necessary liquidity to the banking sector.

On foreign currency crisis, it said for the first nine months of the current fiscal year (July-March 2011) the inward remittance stood at US$ 8599m, which is $ 329m higher than that of the corresponding period of the previous year.

In the first eight months, the export earnings stood at $ 14 billion, while the remittance inflow was $ 7.5 billion against total import payments of $ 22 billion for the same period.

Letter of credit (LCs) opening has increased by 72 percent for capital machinery imports at present, the central bank claimed.

The allegations of the funds crisis is not true as the present foreign reserve is $ 10792m as the flow of remittance increased despite hike in total import bills, the statement claimed.

News: Daily Sun/Bangladesh/ Apr-06-2011

In response to a demand from the FBCCI to re-fix the bank interest rates, the Bangladesh Bank will request the banks to fix the rate at a tolerable level.

A delegation of the apex trade body led by its president AK Azad yesterday sat in a meeting with the BB officials at the BB premises.

BB Governor Dr Atiur Rahman presided over the two-hour long meeting that attended, among others, by deputy governors Nazrul Huda, Ziaul Hassan Siddiqui, Murshid Kuli Khan, and executive director Jahangir Alam.

In his written speech, the Governor said there is nothing to be concerned about the present economic situation of the country. He would sit with the CEOs of the banks about the interest rates.

He urged the businessmen to show more tolerance to some decisions of policy makers, for the greater interest of the economy.

Presently, the country is growing 96 percent of its food demand, which will help bring down the food prices and control the inflation, Atiur said.

After the meeting AK Azad said that businessmen are to take loans at 15 to 18 percent interest rates following the lifting of lending cap, which will increase the cost of doing business and ultimately influence the inflation.

BB officials, however, assured them of necessary steps regarding the issue, Azad said.

Deputy governor Nazrul Huda told journalists that leaders of the trade body were told that BB lifted the lending cap on logical grounds and it is not considering imposition of fresh cap now, but it will request banks to fix flexible rates.

The gap between the rates of lending and deposit is not more than 5 percent, he also remarked.

News: Daily Sun/Bangladesh/ Apr-06-2011

Dutch-Bangla Bank Limi- ted (DBBL) relocated its Bogra branch at Madhu Metro Tower, Satmatha, Sadar, Bogra on Sunday.

K S Tabrez, managing director of the bank inaugurated the new office.

A Milad-Mahfil was arranged seeking blessings of the Almighty Allah for successful operation of the branch, prosperity of the business community, depositors of the bank, stakeholders, said a press release.

Speakers at the function opined that the bank is not only rendering present day banking services to its customers but also the bank spends a significant portion of its profit to discharge corporate social responsibility from which the society at large is benefited.

K S Tabrez in his address said that DBBL provides a wide array of banking products and financial services to its retail and corporate customers. It has a wide variety of delivery channels like ATMs, fast tracks besides, branch networks at important places of the country.

He called upon the local people and business community to avail the most up-to-date banking facilities by maintaining a bank account with DBBL.

People from all walks of lives visited the new premises of the branch throughout the day and showed their spontaneous enthusiasm by opening account with the bank.

News: Daily Sun/Bangladesh/ Apr-06-2011