The central bank yesterday capped the call money rate at 50 percent to ease money market volatility.

“Bangladesh Bank has directed us verbally to maintain the rate until further instruction,” said a fund manager of a private bank.

But top bankers questioned the rationale for the ceiling, which they believe too high compared to bank rates.

The call money market witnessed abrupt swings for the past two weeks and soared 180 percent on Sunday.

Bankers had been demanding central bank intervention, but it kept mum for what Bangladesh Bank (BB) officials said curbing the inflationary pressure by reducing money flow into the market.

“I don't know on what logic the central bank has set the ceiling at 50 percent. Still, the rate will contribute to increasing the cost of fund,” said a private bank chief executive officer.

The CEO said some banks borrowed money and lent at higher rates. He suggested a probe by the central bank.

Anis A Khan, managing director of Mutual Trust Bank, however, welcomed the BB move, which he said would help cool down the market.

The central bank has given Tk 7,825 crore through repo yesterday to help banks meet demand for cash, said Mizanur Rahman Zodder, BB's general manager.

Source: The Daily Star

Twenty Two (22) organizations of Bangladesh won the tenth Institute of Chartered Accounts of Bangladesh (ICAB) award this year. Based on the accounts and reports of several organizations, published in 2009, ICAB has awarded this award to Bank, non-bank, production, IT and non-governmental organizations. This ceremony took place yesterday evening in the Sheraton Hotel of the capital.

Mr. Abul Mal Abdul Muhit was present in the ceremony as a chief guest. ICAB chair Mr. Jamaluddin Ahmed, assistant chair Mr. Shahjahan Majumder and the chair of evaluation committee Mr. Abu Sayeed delivered their speech to the audience. Finance minister Mr. Abul Mal Abdul Muhit said that several organizations are doing well in making accounts report. He also said that such transparency is needed where money is related. Jamal Uddin Ahmed informed that since 2001 ICBA is presenting this award. As a result organizations put emphasizes on improving economic review of their organizations. This helps to attract foreign investors and make them interested to invest in our country.

Finance Minister distributed crest and certificates to the Chief Executives and senior officers of the organizations, present in the program.

Awarded Organizations in Bank Category: Prime Bank (1st), Eastern Bank (2^nd) and Dutch-Bangla Bank (3rd). Premier Bank, BRAC Bank and National Bank also won the honorary award in the same category. In the non-Banking category Green Delta and Reliance Insurance won the award. Prime Finance and Investment Limited, IDLC and Lanka Bangla also got the award in the same category. In the production sector Glaxo Smith Cline Bangladesh Limited became first. Singer and ACI won the second and third prize.

GrameenPhone was awarded in the communication and IT sector and BRAC became first in the NGO category where Sajeda Foundation and Bureau Bangladesh and Uddipon became second and third. Agrani Bank got this award from Governmental organization. Agrani Bank and Prime Bank also won prizes for corporate discipline and good administration.        

 News Source: Prothom Alo/20 Dec 2010

National Bank Limited has launched their 140^th Branch in Shikder Shopping Complex of Taltala Circle at Sokhipur upazilla in Tangail. The Chair of Executive Committee of the bank Ms. Parveen Haq Shikder inaugurated the branch as a chief guest last Sunday. Mr. Newaz Ahmed, the Managing Director of the bank chaired the inaugural ceremony.

Amongst other important personality Upazilla Chairman Mr. Shawkat Shikder, Mr. Khalilur Rahman, Chair, the business cooperative society and the manager of the bank Md. Abdul Hakim Miah delivered their speech.

 News Source: Prothom Alo/20 Dec 2010

Shahjalal Islami Bank Limited launched their 57^th branch in Goneshtala at Dinazpur. Additional Managing Director Mr. Mukhtar Hossen inaugurated the branch being a chief guest. The chairman of the inaugural ceremony was Md. Nazim Uddoula, Senior Vice President of the bank and the chief of Human Resource department. Other senior bank personnel and important local personalities were present in the program.

Mukhtar Hossen said that Shahjalal Islami Bank in trying to facilitate all people to access the modern banking facility and they are contributing in the expansion of business. Mukhtar Hossen also presented a brief picture of the Bank’s favorite “Amanat” and investment projects. He said, through the Dinazpur branch they will be able to contribute in all possible fields of prospect including everyday banking.

Press Release/20 Dec 2010

The 170th Board Meeting of Standard Bank Ltd was held at the bank’s head office in Dhaka recently.

Chairman of the Board of Directors Kazi Akramuddin Ahmed presided over the meeting, said a press release.

The meeting was also attended by Vice-Chairman Ferdous Ali Khan Managing Director SA Farooqui, Assistant Managing Director Md. Nazmus Salehin, Board Secretary AFM Nizamul Islam Chowdhury and the directors of the bank.

The meeting took various important decisions regarding bank's investment policy in the field of trade, commerce and industries and approved proposals received from different branches in respect of financing of working capital for industries and other import, export and commercial trading businesses.

Source: Daily-Sun, Bangladesh/20th Dec 2010