As a part of its corporate social responsibility programme, First Security Islami Bank Ltd has distributed blankets among the destitute children of Aparajeyo-Bangladesh recently.

The bank has taken the initiative jointly with the Bankers Forum, said a press release.

AAM Zakaria, managing director, Md Abdul Quddus, deputy managing director, Azam Khan, Head of marketing, development and PR of FSIBL and MA Khaleque, President of Bankers Forum were also present during the blanket distribution.

FSIBL always extended their assistance for the distressed community in various natural calamities, the news release added.

Source: Daily Sun/ bangladesh/ jan-13-11

United Commercial Bank (UCB) will diversify its loan portfolio this year as it seeks to pave the road to robust growth, the head of the bank said. M. Shahjahan Bhuiyan, managing director, has unveiled the strategic path in a recent business conference of branch managers of the bank. The bank aims to reduce the corporate loan share to 40 per cent from the existing 55 per cent and balance it by increasing small and medium enterprise loans to 40 per cent and retail loan to 20 per cent.

Mr. Bhuiyan said, "We're planning to reshuffle our loan portfolio to absorb the shock of increased cost of borrowing and generate at least 1.0 per cent extra from yield in advance". A recent analysis showed that yield from advances on corporate loan is around 13 per cent. By contrast, yield on advances to SME and retail loan is 14 and 16 per cent respectively. The bank MD estimated it can make additional profit of Tk 7.5 million to 10 million, if it can restructure the loan portfolio successfully.

The private lender is also stressing recovery of loans that were written off earlier by negotiations and court actions. Mr. Bhuiyan said the bank has also set the target of implementing Basel II capital adequacy requirement and aims to select an appropriate Core Banking System (CBS) this year. Implementing a robust CBS, he added, will enable the bank to centralise its banking and embrace technology-driven banking to face the competition successfully. "Diversification of portfolio, reduction of large loan and increased focus to retail and SME segments will be the key to our success in 2011", the bank chief said.

UCB, a first generation bank, has made robust growth last year and was ranked 8th in terms of operating profits, which amounted to Tk. 5.0 billion. Total deposit of the bank reached to Tk 1,131.9 billion and the bank set a target of Tk. 6.5 billion operating profit in 2011.

News Source: Financial Express/Bangladesh/12 Jan 2011

Stock market investors demonstrated in different merchant banks and brokerage houses in the capital yesterday against the latter’s failure to supply loan in line with the Securities and Exchange Commission’s (SEC) new directive.

The SEC, market regulator, on Monday increased the ratio of share credit to 1:2 from 1:1.5 to increase purchasing power of the stock investors.

The decision was followed by a massive 660-point fall in the key index of the Dhaka Stock Exchange (DSE) on Monday that prompted its regulator to suspend trading.

Investors’ demonstration led to a trade suspension of Al-Arafah Islami Bank and IDLC Securities for some time as lenders could not supply credit in line with the new directive yesterday.

Ekramul Haque, managing director of Al-Arafah, told daily sun they could not provide with loan at the new credit ratio due to fund shortage. “We will be able to overcome fund shortage by February”, he added.

Besides, Prime Bank Investment and Uttara Finance and Investment also faced demonstration for this.

BRAC EPL Investment Limited confessed that it could not provide loan following the new directive for fund shortage.

Small scale investors also alleged that merchant banks and brokerage houses gave loans to the bigwigs instead of them.

“We do not have Aladdin’s magic lamps that over night we can manage enough fund to meet the investors’ demand, said a merchant banker preferring not to be named. “The problem will be resolved but it will take time”.

Money market is still tight as the lenders are borrowing money at high rate fixed by the central bank, said Akter H Sannamat, managing director of Prime Finance and Investment Ltd.

Source: Daily Sun/  Bangladesh/ Jan-12-11

The branches of all scheduled banks in the municipal areas in Rangpur and Rajshahi divisions where the municipality elections would be held will remain closed on Wednesday (January 12).

The branches of the banks in municipality areas in Khulna and Barisal divisions will remain closed on Thursday (January 13) for the same reason, said a Bangladesh Bank press release.

Besides, the branches of the banks in the municipality areas in Dhaka division will remain closed on January 17 (Monday) and in Chittagong and Sylhet divisions on January 18 (Tuesday).

The decision was taken for the convenience of the officials of the banks of scheduled banks so that they could cast their votes and take part in the election activities.

Source: Daily Sun/  Bangladesh/ Jan-12-11

National Bank Limited (NBL) and Monohar ICM Krishok Club have handed over farm loans at a function at Rangpur Monohar High School ground in Rangpur recently, said a press release. The chief guest of the programme, Bangladesh Bank Governor Dr Atiur Rahman, distributed agricultural loan sanction letters issued by NBL among local farmers. Md Towhidul Islam Tuhin, president of Monohar ICM Krishok Club, presided over the meeting.

Haroon Or Rashid Chowdhury, executive director of Bangladesh Bank, M Badiul Alam, managing director (CC) of NBL, A K M Shafiqur Rahman and Nazib Uddin Bhuiyan, NBL's deputy managing directors, among others, were also present on the occasion.

News: Daily Sun/Bangladesh/11 Jan 2011