Finance Minister AMA Muhith, seen among the awardees honoured by the NBR for paying highest VAT, at a function at city’s Bangabandhu International Conference Centre in Dhaka Tuesday.

Finance Minister AMA Muhith Tuesday said the new VAT law in the making will be finalised after discussing with all stakeholders, including the businesspeople.

“We believe in discussions, and so we will discuss with all stakeholders prior to formulation of the VAT law,” Muhith told a function marking the VAT Day 2012.

National Board of Revenue organised the event at city’s Bangabandhu International Conference Centre.

“As soon as the law was tabled at the cabinet meeting, it was said that there was some controversies regarding it,” Muhith said in response to a demand of business leaders for further discussing some aspects of the upcoming law.

AK Azad, President of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI), in his speech earlier, demanded that the government negotiate with district level businessmen before finalising the law.

The minister said, “I would like to say it (law) is not an old matter for the country. The country got its first VAT law in 1991, while such kinds of law evolved in the whole world in the 60s.”

Citing instances from the developed world where VAT played a key part in bringing transparency in corporate businesses, he said the system also contributed much to improving country’s businesses also.

“A revolution has taken place around the globe in accounts managements because of VAT,” he said, hoping that country’s accounting tasks would significantly be reduced by 2015.

Stressing the importance of the stratified tax collection method, he said the day is not far away when there will be no duties on external trades as the world is heading towards more openness.

In such situation, he said, the country might have to look for other means of tax collection.

The issue of increased tax collection also bears much importance as the next year’s budget will climb to 18.2 per cent GDP, from this year’s 15.5 per cent.

“The more resources the government holds, the more people to get benefits.”

The NBR says despite its limited application the system now constitutes 55 per cent of total tax collection by the internal resources collector.

The Daily Sun/Bangladesh/ 11th July 2012

Renowned economist Dr Wahiduddin Mahmud on Saturday said the government owned banks could not prosper due to high political influences in to their banking decisions. “Credit allocations by the banks based on political influences have barred the public commercial banks from thriving and that their burdens have been carried out by the private commercial banks,” Mahmud said.

He made the remarks while speaking as the chief guest at a seminar on “Encouraging banking sector to CSR activities” at the National Press Club in the city. Bankers’ Forum organised the seminar while its president MA Khaleque moderated.

The seminar was also addressed by Abdul Mannan, managing director of Islami Bank Bangladesh Ltd, and Helal Ahmed Chowdhury, managing director of Pubali Bank Ltd.

“Financial sector is a very fragile one, observed the economist, adding, “We should always keep an eye on this sector.” “If the financial sector is not freed from political influences, it will be very tough to protect the hard-earned reputation of this sector,” the economist said.  Too many financial institutions do not necessarily mean they have developed skills., he said.

The Daily Independent Bangladesh/ 8th July 2012

Alhaj Anwer Hossain Khan, Chairman of Shahjalal Islami Bank Limited (SJIBL), seen at the half yearly manager’s conference-2012 at a hotel in Dhaka Saturday.

Shahjalal Islami Bank Limited (SJIBL) organised the half yearly managers’ conference-2012 at a hotel in Dhaka Saturday.

The inaugural ceremony was presided over by Md. Abdur Rahman Sarker, managing director of the Bank, said a press release.

Alhaj Anwer Hossain Khan, chairman of the board of directors attended the conference as chief guest.

The meeting evaluated the performance of the six months of the current year and adopted strategies and action plans to achieve the target for the remaining months of the year.

Alhaj Akkas Uddin Mollah, former chairman, Alhaj Mohammad Hasan, Alhaj Md. Farooq, Alhaj Md. Sanaullah Shahid, Alhaj Tofazzal Hossain, Alhaj Abdul Halim, directors, Md. Mukther Hossain, additional managing directors, Md. Abdul Jabber Chowdhury and Shafiul Azam, deputy managing directors were present in the conference.

The Daily Sun/Bangladesh/ 8th July 2012

Md Nazrul Islam Majumder, Chairman of EXIM Bank, speaks at the half-yearly performance review conference-2012 at a hotel in Dhaka.

EXIM Bank Limited organised the half-yearly performance review conference-2012 for discussing the business activities of the bank at a hotel in Dhaka.

Md Nazrul Islam Majumder, Chairman of the Bank was present as chief guest while Md Farid Uddin Ahmed, Managing Director presided, said a press release Saturday.

AKM Nurul Fazal Bulbul, Maj (Retd) Khandaker Nurul Ashraf, Khandaker Md Saifur Alam, Abdullah Al Zahir Shwapan, directors, Dr Md Haider Ali Mia, AMD, Abdul Latif Bhuiyan, deputy director also attended the function.

Md Nazrul Islam Majumder said the Bank has been able to fulfill its target for the first six months.

The Daily Sun/Bangladesh/ 8th July 2012

Abdul Jalil

Mercantile Bank has attained tremendous progress within a short time because of its efficient board and management. During its 13 years of functioning, the board and the management worked together without any conflict or contradiction.

The Bank always runs its activities strictly following the guidelines of the central bank. None of the board members influence the administrative activities.

Abdul Jalil, Chairman of the Bank said this in an exclusive interview with daily sun.

The following is the details of the interview.

Daily sun: Would you please share with us the founding background of the Mercantile Bank.

Abdul Jalil: Mercantile Bank started its journey on June 2, 1999. At the start of its journey, I had to take the responsibility as chairman on request of every stakeholder. Since then, I have been holding the position with the decision of the board.

Daily sun: What improved services does your bank plan for the customer?

Abdul Jalil: Mercantile Bank always offers better services to its valued customers by introducing new and innovative planning. Presently, the bank has been offering NRB Banking, On-line Banking, ATM Card, SMS and SME services, Brokerage House etc to its customers considering their ever changing demands and choices.

Daily sun: Do you have any plan to add new products on the occasion of the 13th anniversary of the Bank?

Abdul Jalil: The Bank will launch new and innovative schemes as per the demand of the customers and keep pace with changes of the era. So, we have no separate planning, especially targeting the 13th anniversary.

Daily sun: What is the present loan and deposit position of the Bank? Is the board pleased with the existing position?

Abdul Jalil: At present, we have Tk 84.63 billion loan and Tk 112.42 billion deposit. The loan-deposit ratio is also in a good position. The board is also happy with the overall position of the Bank.

Daily sun: Would you please tell us the credit position in agriculture, SMEs, women entrepreneurship, and solar energy?

Abdul Jalil: For the year 2011-12, we have a target of disbursing Tk 1.43 billion as agriculture loan. So far, the Bank has distributed Tk 1.23 billion, which is 85 percent of the target.

Besides, it disbursed Tk 950 million crop loans out of the target of Tk 850 million for the year.

In the solar energy sector, the bank distributed Tk 7.50 million among 272 families of three Upazilas in Chittagong. In SME sector, a total of Tk 10.29 million has been distributed, of which women entrepreneurs were provided with Tk 330 million. Besides, the Bank so far disbursed Tk 550 million term loan.

Daily sun: Bangladesh Bank has categorised the responsibilities of the managing board members. Would you say whether your Bank maintains the central bank guideline?

Abdul Jalil: Mercantile Bank always runs its activities strictly following the guidelines of the central bank. None of the board members influence the administrative activities. That’s why there is no gap between the central bank and the bank management.

Daily sun: Bangladesh Bank has recently approved nine new banks who will start functioning soon. On the prevailing situation, do you think the approval of new banks is rational?

Abdul Jalil: Actually I don’t know the reason and background of approving new banks. But there are reasons to fear that some problems may arise with so many new banks. Particularly, there will be an unhealthy competition among the banks in term of deposit collection.

Daily sun: Would you please tell us about the CSR activities of the Mercantile Bank?

Abdul Jalil: We have established a foundation named Mercantile Bank Foundation aiming to run social activities side by side normal banking. Every year, we deposit 1 percent of the bank’s profit to the foundation. Under this foundation, we serve the causes of poor and destitute people. We have opened education scholarship, under which we provide Tk 100,000 to the poor but meritorious students who are unable to run their academic expenses. Under the CSR, we have so far provided Tk 2 million to Labour Foundation and Tk 5 million to Kidney Foundation. The Bank has built a separate room at the BIRDEM hospital, arranged transports to bangabandhu Sheikh Mujib Medical University (BSMMU), Noakhali Science and Technology University, an ambulance for Captain Mansur Hospital.

Besides, many poor individuals have been getting humanitarian support from our foundation.

The Daily Sun/Bangladesh/ 8th July 2012