Inter-bank call money rate shot up to 62.5 per cent yesterday, which is highest during the present government’s regime, as banks and financial institutions were facing fund shortage.

The call money rate moved up to 50 per cent on Monday.

“The increase in CRR and SLR of commercial banks and a large amount of share selling pressure put extra pressure on money market.” said Managing director of the Eastern Bank Ali Reza Iftekhar on Tuesday.

He also said the major telecom companies’ have withdrawn cash from the commercial banks ahead of the year ending for making their dividend payments and fees to government exchequer.

A fund manager of a commercial bank said that most of the commercial banks were borrowing from call money market ranging from 35-60 per cent while NBFIs borrowed at rates ranging from 40 to 62.5 per cent.

In a bid to tame inflation by squeezing liquidity in money market, the Bangladesh Bank has increased statutory liquidity ratio (SLR) to 19 percent from 18 percent and cash reserve requirement (CRR) to 6 percent from 5 percent.

The banks and NBFIs should increase their SLR and CRR from today (Wednesday) as per a recent directive of the BB.

Bankers said call money rate usually goes up to 20 per cent before the Eid-ul-Azha because of heavy withdrawal of funds by the hide traders. Call money rate increased up to 85-90 per cent in 2005 during the BNP-led four party alliance regimes.

Although the BB injected Tk 11.4 billion into the money market under a special repurchase agreement (Repo) on Tuesday, the fund proved to be inadequate, fund managers said. The total amount of Tk 34.8 billion was transacted in the local call money market on Tuesday.

Source: daily-sun, Bangladesh/15th Dec 2010

Bangladesh Bank has recently finalized their independent pay scale for its employee. According to the new pay scale the Executive Director's scale is thirty four thousand and five hunderd taka (Tk.34,500) and on that s/he will draw a salary of fifty two thousand four hundred and fifty taka (Tk.52,450) whcih was fifty thousand nine hundred and fifty taka (Tk.50,950) before. It has been finalized yesterday afternoon in a Cabinet Secretarie's office in a meeting of the Secretaries of Bangladesh Bank's Independent Pay Scale Finalizing committee. It has been informed that the new pay scale will come in effect after the approval of the Minister Cabinet.

Cabinet Secretary M. Abdul Aziz chaired the meeting where Finance Secretary Dr. Mohammad Tareq, Banking Secertary Shafiqur Rahman Patwary and DG of Bangladesh Bank Murshid Kuli Khan were present. Assistant Director's Pay scale of Bangladesh Bank has beed settled to eleven thousand and five hundered (Tk.11,500) and scale of General Manager and other officers' increased upto thousand taka.

Source: Amar Desh/15 Dec 2010 

Dutch-Bangla Bank Limited (DBBL) signed an agreement with Bangladesh Bank on refinancing under Asian Development Bank (ADB) Credit Fund for development of the Small and Medium Enterprise (SME) sector.

Sukamal Sinha Choudhury, general manager of Bangladesh Bank’s SME and Special Programs Department and K.S. Tabrez, managing director of Dutch-Bangla Bank Limited (DBBL) signed the agreement on behalf of their respective organisations at the central bank's head office on Monday.Under this deal, the Bangladesh Bank will refinance DBBL against the loans made by the bank to small and medium enterprises located outside Dhaka and Chittagong Metropoliton areas under certain criteria. The amount of loans to each enterprise would range from Taka 50,000 to Taka 7 million. Md Harunur Rashid Choudhury, Executive Director of Bangladesh Bank, Md Mosaddiqur Rahman, Deputy Managing Director of DBBL, Mohammad Abu Kausar, Head of SME Division of DBBL and other high officials of both the organisations were present.

Source: The Daily Sun/15 Dec 2010

Janta Bank Limited started their new branch at Chinairbazar of sadar upazilla in Brahmanbaria. State Minister for Law and Parliamentary Affairs Kamrul Islam inaugurated the new branch of the bank on last Sunday.

                                                                               Janata Bank's 861st Branch in B'Baria

Former personal secretary of Prime Minister RAM Obaidul Moktadir Choudhury, Deputy Commissioner Abdul Hannan, Superintendent of Police Mukhlesur Rahman, the directors and other high officials of the bank were present at the launching ceremony while CEO of the bank Aminur Rahman was presided.

With launching a new branch, Janata Bank has so far 861 branches across the country. 

Source: The Daily Sun/15 Dec 2010

Standard Chartered Bank (SCB) Limited has been awarded the 'Bank of the Year' award in five countries including Bangladesh this year. The bank also won six more awards including 'Global Bank of the Year' and 'Bank of the Year in Asia', says a press release.

The winners of 'The Banker's Bank of the Year Awards' were judged on their ability to deliver shareholder returns and to gain strategic advantage. Jim McCabe, Chief Executive Officer, Standard Chartered Bank, Bangladesh said: "The award that the bank won in Bangladesh for the first time is a result of the trust and confidence shown to us by our stakeholders."

Peter Sands, Group Chief Executive, Standard Chartered Bank, said: "During the past 12 months, we have continued our strategy of becoming the world's best international bank."

Source: The Daily Sun/15 Dec 2010