Speakers asked the newly recruited bankers to equip themselves with professional knowledge as it is vital for attaining success in the banking sector for overall socio-economic development of the region. They urged them to make their banking activities free from corruption and monopoly so that the clients could derive total benefits of their services.

They were addressing the closing and certificate-giving ceremony of a six- week foundation training course for the newly appointed senior officers of Rajshahi Krishi Unnayan Bank (RAKUB) at its training institute on Thursday.

RAKUB Chairman Prof Dr Shah Nawaz Ali addressed the session as the chief guest while Managing Director Pradip Qumar Dutta, Director Prof Dr Rustam Ali Ahmed and Deputy Managing Director Abu Hanif Khan spoke as special guests with principal of the institute Mozammel Haque in the chair.

The Independent/ Bangladesh/ 19th May 2012

Syed Manzur Elahi, former adviser to the caretaker government and MTB’s Founding Chairman, inaugurates the 100th ATM booth of Mutual Trust Bank Limited (MTB) at MTB Centre at Gulshan in Dhaka.

Mutual Trust Bank Limited (MTB) opened its 100th ATM booth at MTB Centre, Gulshan in the city recently.

Syed Manzur Elahi, former Adviser to the Caretaker Government and MTB’s Founding Chairman inaugurated the booth as chief guest which MTB Chairman Dr. Arif Dowla was present as the special guest.

MTB Directors M.A. Rouf JP, Md. Abdul Malek, Anjan Chowdhury, Md. Hedayetullah Ron, Md. Wakiluddin, Khwaja Nargis Hossain and Managing Director and CEO Anis A. Khan, MTB Privilege customers, senior officials of corporate houses, elite and dignitaries also attended the event.

Syed Manzur Elahi expressed his happiness at the opening of MTB’s milestone of 100 ATMs, within just over a year, since the first ATM was inaugurated, at the same venue, on March 27, 2011, by the late MTB Chairman Samson H Chowdhury.

Dr Dowla said that MTB is continuously looking for ways to enhance the banking experience of its customers and the expansion of its ATM network, within such a short time, is a testament to that fact.

At present the MTB’s ATM network covers Dhaka, Chittagong, Sylhet, Moulvibazar, Sunamganj, Habiganj, Brahmanbaria, Cox’s Bazar, Bogra, Gazipur, Comilla, Laksham, Chauddagram, Narayanganj, Jessore, Kushtia, Pabna, Rajshahi, Joypurhat, Thakurgaon, Tangail, Madaripur and Mymensingh areas.

The Daily Sun/ Bangladesh/ 19th May 2012

Bangladesh Bank (BB) has directed all the dealer banks to remain alert against transfer of funds abroad by the owners of Jubo Karmasangsthan Society (Jubok) by selling Jubok assets.

The Foreign Currency Policy Department of BB, through a circular recently, advised the relevant banks to undertake utmost cautionary measures in this regard.

Activities of the controversial NGO, which owes a staggering Tk 23 billion to its clients, were suspended in 2006 on charges of illegal banking practices.

Rafiqul Islam, chairman of a commission formed to facilitate return money to the persons who invested in Jubok, recently said they have been failing to prevent some owners and associates of Jubok from selling properties of the now-defunct company.

The commission currently has no power to stop them, he said, adding that they will be empowered soon to stop such activities and take the assets under commission’s possession.

We are apprehending that the main bank accounts of Jubok are yet to be freezed and the company also has some deposits outside the banking system, Rafiqul said.

He, however, admitted that the commission has not make any remarkable headway in returning the dues of the depositors due to bureaucratic complications, lack of timely cooperation from Bangladesh Bank and manpower shortage.

The Daily Sun/ Bangladesh/ 19th May 2012

Thirteen out of 29 non-bank financial institutions (NBFIs) have increased their minimum paid-up capital to Tk 1 billion each from Tk 500 million following a central bank directive.

Bangladesh Bank (BB), earlier in July last year, asked the NBFIs to double their minimum paid-up capital or the portion of the authorised stock to Tk 1 billion by June 2012.

The rest of the NBFIs have been working to raise their paid-up capital and meet the target by the 30 June deadline, insiders said.

Only three NBFIs had paid-up capital of Tk 1 billion each in September 2011 while the number was nine at the end of 2011, according to BB data.

The central bank in its directive further asked the NBFIs to issue rights and bonus shares to raise their paid-up capital within the stipulated timeframe.

Asad Khan, chairman of Bangladesh Leasing and Finance Companies Association (BLFCA), told daily sun that most of the firms have already raised their paid-up capital and the country’s non-banking sector would be able to stand on a strong financial footing soon.

Khan, managing director of Prime Finance and Investment Limited, also described the directive to double paid-up capital of NBFIs as a positive approach by the central bank.

The non-bank financial institutions have been increasing their paid-up capital in recent times and currently they have over Tk 24 billion for long-term investment, he said.

The amount can be and needs to be bigger, he added.

BLFCA sources said 16 out of 22 listed NBFIs are yet to fulfill certain conditions to maintain optimum business standards while seven others are considered to be compliant.

Companies who are yet to fulfill the conditions are – Bangladesh Industrial Finance Company Ltd (BIFC), Bangladesh Finance and Investment Company Ltd (BFIC), FAS Finance and Investment Ltd, First Lease Finance and Investment Ltd, GSP Finance Company (Bangladesh) Limited, Islamic Finance and Investment, Midas Financing Ltd, National Housing Finance and Investment Ltd, Phoenix Finance and Investment, Uttara Finance and Investment Ltd, Hajj Finance Company Ltd, Industrial and Infrastructure Development Finance Company (IIDFC), IDCOL Ltd, National Finance, Reliance Finance, Saudi-Bangladesh Industrial and Agricultural Investment Company (SABINCO) and UAE-Bangladesh Investment Company Ltd (UBICO).

Some executives of those firms said they have an option to appeal to the central bank to extend the deadline for raise the paid-up capital to Tk 1 billion.

Hajj Finance Company Ltd has already sought more time from the central bank, BLFCA officials said.

They also expressed the hope that the firms would be able to fulfill the paid-up capital requirement soon since the country’s economic situation is currently considered favourable for the NBFIs.

Prime Finance and Investment Ltd, which currently maintains a paid-up capital of Tk 2.27 billion, has emerged as the biggest capital holder among the private sector NBFIs.

State-run Investment Corporation of Bangladesh (ICB) has Tk 3.38 billion in paid-up capital.

Industrial Promotion and Development Company of Bangladesh Limited (IPDC), IDLC Finance Ltd, Delta Brac Housing Finance Corporation Ltd (DBH), Bay Leasing and Investment Ltd, Premier Leasing and Finance Ltd, Union Capital Ltd, United Leasing Company Ltd, Far-East Finance and Investment Ltd, Lanka Bangla Finance and International Leasing and Financial Services Ltd (ILFSL) have already increased their paid-up capital to Tk 1 billion each.

The Daily Sun/ Bangladesh/ 19th May 2012

Syed Rezwanul Kabir, Managing Director of SMEF, and MIDAS Managing Director Shafiqul Azam, seen signing a loan agreement at SME Foundation office in Dhaka.

SME Foundation has pumped more funds for single-digit financing to small entrepreneurs under its credit wholesaling programme.

Serving the potential SMEs outside the coverage of conventional banking, especially the women, with collateral-free loan at single-digit interest rate is the main focus of the programme, officials said.

The Foundation on Thursday signed a deal with a non-banking financial institution – MIDAS, through which Tk 50 million will be disbursed to potential entrepreneurs.

SMEF managing director Syed Rezwanul Kabir and MIDAS managing director Shafiqul Azam signed the loan agreement on behalf of their respective sides.

Under the agreement, MIDAS will provide SME entrepreneurs with credits at only 9 percent rate, while it gets the money from the SMEF only at four percent rate, officials added.

Earlier, MIDAS received a total of Tk 20 million from SMEF, which was disbursed among 60 beneficiaries in light engineering cluster of Bogra.

Two commercial banks and MIDAS have so far disbursed such loans totaling Tk 67.5 million. The number of total beneficiaries was 161.

“Financing support from conventional banking is not enough for intended growth of SME sector,” Industries Minister Dilip Barua, the chief guest of the event, said.

“SME Foundation is playing a very significant role in providing financing to such risky investments,” the Minister, also the Chairman of SMEF, added.

“We want to put more emphasis on entrepreneurship and discourage trading,” he commented.

“So, we’re trying to identify new SME clusters across the country to support them with single-digit lending,” he added.

Speaking on the occasion, MIDAS chairperson Rokia A Rahman said the loan will be disbursed in agro clusters in Jessore and light engineering clusters of Bogra.

The Daily Sun/ Bangladesh/ 19th May 2012