Encouraged by Bangladesh Bank (BB) and largely untapped potentials, country’s commercial banks this year will focus more on rural areas to open their branches, bringing in a major and first time switchover in expanding their businesses. Some 19 commercial banks this year got the central bank’s nod to open 168 branches across the country, of which 85 will be in the countryside, leaving lower number of 83 for cities and towns, according to BB.

“More branches in rural areas will offer banking services to a large number of people who have been deprived of institutional financial services for years,” Governor Dr Atirur Rahman told BSS.

The governor, who has been driving the central bank in many ways towards achieving inclusive growth, believes expansion of rural banking will propel growth by bringing in a huge number of people under banking and financial services.

“The rural banking will also help control inflation with injecting more money in the banking system from the people who otherwise invest or keep their savings in mostly non-productive sectors, a major cause of inflation,” he said.

Last December the central bank decided that banks should open equal number of branches in rural and urban areas, which was four urban branches for opening one in villages as per earlier directive of BB, issued in 2006.

“We have changed the ratio of rural and urban branches to make banks going rural instead of concentrating their business and services in cities and towns,” Dr Rahman said.

Defining the rural and urban areas, BB Executive Director for the Banking Regulation and Policy Department Naushad Ali Chowdhury said the areas under city corporations and municipalities are considered as urban areas. So, he said, the branches outside city corporations and municipalities will be treated as rural branches.

Prime Bank got permission for opening the highest 12 branches for 2012 after the Bank got top position in CAMELS rating. The central bank offered the banks open new branches as per their CAMALS rating. Some other performances were also considered for the banks that got three and lower rating under CAMELS.

CAMELS is an international bank-rating system where bank supervisory authorities rate institutions according to six factors including Capital adequacy, Asset quality, Management quality, Earnings, Liquidity and Sensitivity to market risk.

Eleven banks got permission for opening 10 branches each. The banks are Pubali Bank, Islami Bank, National Bank, UCBL, Southeast Bank, Dutch-Bangla Bank, Al- Arafa Islami Bank, Mercantile Bank, Premier Bank, Mutual Trust Bank and Bank Asia.

The Daily Sun/Bangladesh/ 20th March 2012

Mutual Trust Bank Founding Chairman Syed Manzur Elahi speaking at a workshop on corporate governance for sustainable banks attended by directors and chairman of leading private sector Banks Sunday. Zuber Soomro, former head of Citi Bank NA, Pakistan, K Mahmood Sattar, CEO of Citi Bank, Barrister Sheela Rahman, and Pradip Kar, former Head of Securities and Exchange Board of India, also spoke at the workshop. Shireen S Mainuddin, Managing Director of ASAAN, moderated the workshop held at the Westin Dhaka.

Financial Express/Bangladesh/ 19th March 2012

Probashi Kalyan Bank (PKB), a specialised bank for expatriates' welfare, has decided to set up liaison offices in five key places for Bangladeshi migrant workers by next month to provide its services.

Officials of the special financial institution said the move will encourage the country's millions of workforce who are employed abroad to remit money through official channel and accelerate the flow of remittance as a significant amount of such money comes through illegal ways every year.

"We'll open liaison offices in the Kingdom of Saudi Arabia (KSA), the United Arab Emirates (UAE), Kuwait, Lebanon and Malaysia by April," PKB Managing Director (MD) CM Koyes Sami told the FE after holding a meeting with labour attaches of Bangladesh in 15 missions abroad.

A bank official will remain attached with Bangladesh missions in these countries and the main responsibility of this official will be to help migrant workers open accounts and encourage them to send money to Bangladesh.

"We'll also open such offices in other missions later on," he said, adding the bank will provide insurance coverage to the fixed-deposit holders and loan takers. "We need to spread the message of functioning of the bank to all the migrant workers," the MD said. 

The bank's authorities requested all the labour attaches who participated in the meeting to act as spokesmen of the bank so that the remitters could know better about the banks.

More than five million Bangladeshis have been working in these five countries in various sectors like construction, garment factories, agro-farms and as house servants who contribute significantly to the country's struggling economy.

Mr Sami said the expatriates' welfare bank had extended its activities to place its services to the doorsteps of migrant workers and their families. As part of it, it has already opened branches in all divisional headquarters of the country.

Syed Zahid Hossain, first secretary (labour) of Bangladeshi High Commission in Singapore, said the bank authorities should immediately take some measures, including developing collaboration with remittance houses, money exchange outlets and local banks in the countries.

First Secretary (labour) of Bangladesh High Commission in Libya Ahsan Kibria said attention of the remitters can be drawn by providing highest rate of interest compared to other banks. 

"Software of the online-based bank needs to be made easier so that the workers can communicate with the bank regularly through internet without coming to the office," he added.

According to Bangladesh Bank, the country received US $ 974.46 million remittance in February compared to US $ 827.46 million in the corresponding period a year ago, recording a 17.69 per cent growth.

The total remittance received in first eight months of the current fiscal year stood at US $ 7.5 billion against $ 7.31 billion in the corresponding period a year earlier.

Financial Express/Bangladesh/ 19th March 2012

Agricultural professional organisation National Agricare Group and BRAC Bank signed a Memorandum of Understanding (MoU) recently,says a press release.

Both the institutions have reached to an agreement to conduct agricultural loan among the successful distributor of National Agricare Group.The agreement was signed   by KSM Mustafizur Rahman, managing director of National Agricare Group, and Md Mamdudur Rashid, deputy chief managing director of BRAC Bank.

A S M Ali, financial consultant, Tareq Mahmud, deputy manager (accounts), Md Asrafur Rahman , sales promotion coordinator of National Agricare Group,  and Abdur Rahman, head of SME of  BRAC Bank were also present.

The Independent/Bangladesh/ 19th March 2012

Pubali Bank (PBL) and Runner Motors Limited signed a memorandum of understanding (MoU) with a view to supply farm equipment (tractor) to farmers.

The signing ceremony took place at Pubali Bank head office recently, says a press release. B M Shahidul Haque, deputy general manager, Kawran Bazar corporate branch of Pubali Bank Ltd, and Hafizur Rahman Khan, chairman of Runner Group, signed the MoU.

Helal Ahmed Chowdhury, managing director of Pubali Bank Limited, was also present.As per the MoU, a farmer can get loan from PBL on easy terms to buy farm machinery.

The Independent/Bangladesh/ 19th March 2012