AB Bank Limited opened its 78th branch at "Munshi Tower" (1st Floor), Madhabpur, Habiganj, Sylhet on Thursday.

Deputy Commissioner of Habiganj, Mr. Mahmud Hasan graced the occasion as Chief Guest and officially inaugurated the new branch.

Additional Managing Director of AB Bank, Mr. Majedur Rahman and Deputy Managing Director, Mr. Shamim A. Chaudhury were also present along with him.

High officials from the local government and administration were also present in the inaugural ceremony. Other dignitaries of AB Bank attending the opening ceremony were Mr. Golam Mahmud Rizvi, Regional Relationship Manager, Mr. Syed Mahmudul Haque, Branch Manager, Madhabpur and other bank officials of the Madhabpur branch.

Source: The Financial Express, Bangladesh/10th Dec 2010

Despite tight monetary policy, the annual rate of inflation (12-month annual average CPI) increased to 8.12 percent at the end of September, according to Bangladesh Bank (BB) monthly economic update for November. The average inflation was 5.15 percent at the end of September last year, the report said.

According to the update, the rate of inflation on point-to- point basis also increased to 7.61 percent in September 2010 from 4.60 percent at the end of September 2009.

To combat the inflation, the central bank earlier taken some measures including raising the cash reserve ratio (CRR) to decrease money supply from banks.

The economic update, however, shows the domestic credit, particularly credit to private sector had been on rise in the past few months even after tightening of cash flow from banking sector. According to the report, the credit to private sector rose by around 26 percent in August. At the same time, export earnings and remittance also rose significantly, increasing the cash flow and eventually the inflation rate.

The report recorded 10.28 percent or US $86.14 million rise in remittance inflow in October over September's inflow of US $831.71 million. Export receipts in September amounted to US$ 1415.1 million, which is higher by US$ 354.9 million or 33.47 percent compared to export receipts in September 2009.

Sourche: The Bangladesh Today, Bangladesh/10th Dec 2010

The Norwegian Agency for Development Cooperation (NORAD) submitted its report on Wednesday on Norwegian support to Grameen Bank in Bangladesh in 1980s and 1990s.

Minister of the Environment and International Development Erik Solheim requested Norad to prepare the report after the Norwegian television series "Brennpunkt" raised the question of where the Norwegian aid money had gone.

Norad's report shows that Grameen Bank transferred a total of NOK 608.5 million to its sister company Grameen Kalyan in 1996. Norway 's share of this amount is estimated to be approximately NOK 170 million. The Norwegian Embassy in Dhaka reacted immediately when it discovered the transfer in 1997.

In the Embassy's view, the transfer was not in accordance with the agreement. The matter was raised with Grameen Bank. Following negotiations, it was agreed in May 1998 that NOK 170 million was to be transferred back from Grameen Kalyan to Grameen Bank.

"According to the report, there is no indication that Norwegian funds have been used for unintended purposes, or that Grameen Bank has engaged in corrupt practices or embezzled funds. The matter was concluded when the agreement concerning reimbursement of the funds was entered into in May 1998 under the government in office at the time," said Mr Solheim.

Source: The Bangladesh Today, Bangladesh/9th Dec 2010

The average inflation rate during the first quarter (July-Sept) of the current fiscal stands at 7.5 percent, Finance Minister AMA Muhith said in Parliament on Wednesday.

Placing a report in the House on the macroeconomic trend of the country in the first quarter of the current fiscal, he said that the government has taken steps to restrict additional money flow in the non-productive sector to keep the inflation rate in check. "An important pledge of the present government was to control the inflation," Muhith said, mentioning that the inflation rate of the last fiscal was 7.3 percent. He said that the process is on to control the inflation by OMS and uninterrupted supply and distribution of essential items.

In this connection, he said that money circulation increased 22.9 percent during the fiscal. "But the government is keeping its eyes on the money circulation so that the inflation could not rise further."

The Finance Minister said that the present government has fixed GDP growth at 6.7 percent for the current fiscal. In this context, the government has taken numerous steps for enhancement of investment, both public and private, infrastructure development for power, energy, communication and port, human resource development, expansion of social safety net, and social infrastructure development.

He said that the budget deficit during the first quarter of the current fiscal was Tk 2,938 crore, which is a little bit higher compared to the corresponding period of the last fiscal year. He said the export earnings during the first three months of the running fiscal increased around 30 percent compared to the same period of the last fiscal year.

The Finance Minister also mentioned that the import expenditure increased 37 percent in the first quarter, which indicated that the economic activities in the country are vibrant.

Sourche: The Bangladesh Today, Bangladesh/9th Dec 2010

Bangladesh Bank (BB) governor Dr Atiur Rahman has suggested the National Board of
Revenue (NBR) to make rational the rules and regulations for CSR (Corporate Social
Responsibility) to provide corporate houses more scope for social involvement.
The governor's suggestion came following the argument of the country's leading bankers
that the current CSR rules were not simple enough to follow. The bankers made this
observation at a discussion meeting on CSR, held at Hotel Sheraton on Wednesday where Dr
Rahman was the chief guest.

Editor of the Financial Express Moazzem Hossain moderated the programme, organized by
Management and Research Development Initiative (MRDI).

The bankers observed that the current CSR rules, made by NBR during the immediate past
caretaker government, incorporated some oblique clauses, which can easily be
misinterpreted. For instance, a clause regarding mandatory registration does not make it
clear whether the CSR implementing authorities or receivers or both of them need to fulfill
the criterion.

Referring to such oblique rule, the governor advised the NBR to adopt a coherent approach
towards the social activities with prudent policy support.
He also advocated the banker's plea for giving more tax incentives to their CSR programme.
The governor, however, urged the banks to carryout their CSR activities irrespective of tax
benefit as the activities would be a branding instrument for promoting their services and
business.

Dr Rahman also advised the government for framing a 'governance guideline' so the
corporate houses get a clear direction for targeted CSR programme. Otherwise, he said they
would end up in irrational CSR activities.

Chairman of the Association of Bankers, Bangladesh Limited (ABBL) urged the NBR to
provide more tax incentives to the banks and corporate so the banks can expand their CSR
activities.

Responding to the suggestions, NBR Member Md Aminur Rahman said the rules and
regulations could be made simpler, but providing more tax incentives need further scrutiny.
The banks and corporate are getting 10 percent tax deduction on CSR activities. The NBR
official said the government needs more tax for its own social safety-net programmes.
BB Executive Director Shitangshu Kumar Sur Chowdhury also spoke on the issue. Pak troops
conceded 1st casualty declining to relinquish power: Indian analyst.

Sourche: The Bangladesh Today, Bangladesh/9th Dec 2010