Managing Director Mahbubul Alam and Deputy Managing Directors Syed Imtiaz Hasib and Shahid Hossain of Southeast Bank Limited seen with the participants of the workshop on 'SWIFT Operations' for the officers of the Bank organised by its training institute in the city recently.

Southeast Bank Limited (SEBL) organised a workshop on 'SWIFT Operations' for the bank's officers at its training institute in the city recently, said a press release.

SEBL Managing Director Mahbubul Alam while inaugurating the workshop emphasised the need for participants' proper understanding and application on the operational procedures of foreign trade along with the technicalities of SWIFT Operations ensuring online real time worldwide financial messaging network to ensure efficient customer service.

He also urged the participants to continue search for knowledge and update themselves with the latest banking practices to increase their professional skills and facilitate country's foreign trade.

Syed Imtiaz Hasib and Shahid Hossain, deputy managing directors and Shamim Ara Khanom, vice president of SEBL also spoke at the inaugural session.

Kazi Md Erfan Ul Haque, SWIF In charge made presentation on the topic.

Financial Express/Bangladesh/ 13th March 2012

The use of electronic plastic cards, known as ATMs, is on the rise, driven by demand from Bangladesh's booming middleclass that makes up one-fifth of the population, bankers say.

As customers prefer smooth and hassle-free banking transactions, they have said banks are trying to net customers by cutting back charges.

"Our 30 million-plus middle class is the key driver of growth of ATMs," Monindra Kumar Nath, Deputy Managing Director of Mercantile Bank Ltd, said.

"Even a few years ago, they (middleclass) were scared to use this due to higher charges. Now the bulk of the demand for such cards is coming from them only for lowering fees," he added.

He said that annually, card holders of the Bank are increasing at a rate of more than five per cent.

In 2009, customers of his Bank took 10,400 debit cards and withdrew cash worth more than Tk 800 million from automated teller machines (ATMs) while in 2010 customers holding debit-card were 16,300 in number and withdrew cash worth more than Tk 2.07 billion, Mr Nath said.

Last year, the number of debit-card holders increased by five per cent. The customers took 25,500 debit cards and they withdrew more than Tk 2.6 billion by using these cards, he said.

Moreover, 4,500 customers were provided with credit card in 2010 and they transacted nearly Tk 0.19 billion and in 2011 the Bank provided 5,400 credit cards through which the customers made transactions worth more than Tk 0.24 billion, Mr Nath said.

In just two months to February this year, the number of ATM booths reached 56, compared with 31 in 2010, he added.

"As the customers now prefer branchless transaction using electronic cards, the management has decided to install ATMs on all branch premises and in important places across the country to meet the demand," Mr Nath added.

Chief of Communication of Mutual Trust Bank Ltd Mohammed Sami-Al Hafiz told the FE the electronic card-bearing customers of the Bank are increasing significantly as they do not want to waste time by waiting in queues for long.

Every month the number of users is rising by more than 13 per cent as the customers are getting cash from any place at any time, Mr Hafiz said.

Deputy Managing Director of Islami Bank Bangladesh Ltd (IBBL) Abul Bashar told the FE: As the Bank grabbed a majority portion of customers among private banks, the management has planned to provide branchless money-withdrawing services.

"Now we have introduced only debit card and credit card for customers and as soon as possible many kinds of electronic cards with different names would be launched," Mr Bashar said.

In every month 20,000-25,000 customers are taking electronic cards and this number is increasing day by day, Mr Bashar added.

Now more than 0.2 million customers are using the card and by the end of this year the ATM card holders would be estimated at 0.5 million, he said further.

Head of IT Division of Prime Bank Ltd Iqbal Hossain told the FE: More than 10,000 customers are now taking ATM cards monthly but a year ago only 2,000 to 3,000 customers were taking this card in a month.

At present more than 0.2 million customers of the Bank are using electronic cards and by the end of this year the number will surpass 0.3 million, Mr Hossain said.

Head of IT Division of Trust Bank Ltd S M Akram Sayeed told the FE: The Bank has only debit card and the demand for cards is skyrocketing.

The number of card-holders of the Bank in 2010 was calculated at 18,906 while in 2011 the number was 111,157 and by the end of this year the number would exceed 0.2 million as thousands of people are applying for debit cards, Mr Sayeed said.

Misum Maleha Munni, a customer who was waiting for withdrawing cash on the premises of an ATM booth of Dutch-Bangla Bank Ltd (DBBL) at city's Elephant Road, told the FE: There is no need to expand branches but ATM booths should be increased across the country because we are getting necessary cash and information using electronic cards.

"I never thought of getting such kind of time-saving transaction facilities using the plastic cards in a developing country like ours, which made our life easier and smooth," the customer added.

Financial Express/Bangladesh/ 13th March 2012

The average profitability of the country's commercial banks witnessed a modest decline in 2011 as the quality of the trading portion of their assets deteriorated mainly because of the stock market debacle, officials said.

The earnings of banks, in terms of both return on assets (RoA) and return on equity (RoE), came down to 1.54 per cent and 17.02 per cent respectively in the last calendar year from the corresponding levels at 1.8 per cent and 21.0 per cent in 2010, according to the latest central bank statistics.

The profitability of four state-owned commercial banks (SCBs) increased marginally through improvements in their positions in relation to RoA and RoE in 2011 when the profitability of the private commercial banks (PCBs) recorded a decline, the central bank said in its report on profitability positions of banks on December 31 last.

"We've prepared the report based on un-audited and provisional figures, provided by the all 47 scheduled banks," a senior official of the Bangladesh Bank (BB) told the FE Monday.

The RoA and RoE of SCBs rose to 1.34 per cent and 19.66 per cent respectively in last calendar year from 1.1 per cent and 18.4 per cent in the previous one.

The RoA and RoE of the PCBs, however, fell to 1.59 per cent and 15.69 per cent respectively in 2011 from 2.9 per cent 17.0 per cent correspondingly in the previous year.

The central bank official further said the RoA and RoE of six to eight PCBs may fall further if the actual figures about their provisioning, covering their other assets mainly investments in the capital market, are finalised.

The operating foreign commercial banks (FCBs) in the country showed improvements in their RoA - from 2.9% in 2010 to 3.24% in 2011 - but their RoE witnessed a modest decline - from 17.0% in 2010 to 16.58% in 2011. All the nine FCBs, having their operations in Bangladesh, earned an aggregate amount of Tk 22.97 billion as operational profits in 2011.

The contributions of FCBs to the exchequer, in the form of taxes, are expected at Tk 8.81 billion in 2011 when their requirement for provisioning against bad debts would stand at Taka 1.67 billion, according to the BB report.

Total operating profits of all commercial banks stood at Tk 197.38 billion by the end of December 31 last year, the BB data showed.

The banks, however, earned Tk 91.21 billion as net profit in 2011 after adjustment of their requirements for provisioning against bad debts and also making provision for tax payments, worth Tk 33.55 billion and Tk 72.62 billion respectively.

"The profitability of PCBs has decreased slightly in 2011 mainly due to nominal or negative growth in their non-banking businesses including their investments in the capital market," a senior official of leading PCB told the FE.

He also said some PCBs had to keep a substantial amount of pre-tax operational profit for provisioning against valuation loss of their holdings in the stock market.

The country's stock market that has lost substantially so far this calendar year, in terms of market capitalisation of all the listed issues, leading to a sharp drop in its index in the recent months.

The benchmark index of Dhaka Stock Exchange (DSE) -- the country's prime bourse -- which is generally known as DGEN, came down to 4350.47 point Monday from its highest 8918.51 on December 05 last, the DSE data showed.

In 2011, the commercial banks, particularly the primary dealer (PDs) banks, also incurred losses on account of their investment in the government-approved securities because of lower yield on the treasury bills and bonds at a rate which is lower than their cost of funds.

"The average yield on the government securities was at 8.76 per cent which was significantly lower than our cost of funds," another private banker said, adding that 12 PDs have invested worth around Tk 180 billion, in excess of their statutory liquidity ratio (SLR) requirement with the central bank.

Currently, three treasury bills (T-bills) and four bonds are being transacted through auctions to adjust the government borrowings from the banking system.

The T-bills have 91-day, 182-day and 364-day maturity periods.

On the other hand, four government bonds -- five-year, 10-year, 15-year and 20-year -- are being traded in the market.

The central bank had earlier selected 15 PDs -- 12 banks and three non-banking financial institutions (NBFIs) -- to deal with government securities in the secondary market.

Financial Express/Bangladesh/ 13th March 2012

M Azizul Huq, member of Shariah Council of Bank Asia, presides over the Shariah Council meeting of the Bank in the city recently.

The 8th meeting of the Shariah Council of Bank Asia was held at Purana Paltan in the city recently.

M Azizul Huq, a member of the Shariah Council of the Bank, presided over the meeting, said a press release.

Md Mehmood Husain, president and managing director, SM Khorshed Alam, deputy managing director and Md Arfan Ali, senior executive vice president of the Bank were present at the meeting.

Others members of the Shariah Council -- Mohammed Lakiotullah, vice chairman of Bank Asia, Dr. Muhammad Mustafizur Rahman, Muhammad Mukhlesur Rahman, Mohammad Mofazzal Hossain Khan, M Fariduddin Ahmed, Mufti Mawlana Abdul Mannan and Dr. Muhammad Harun Rashid also attended the meeting.

The meeting discussed Shariah inspection report for the year 2011, financial statements of the Islamic Banking and various aspects of Shariah issues related to Islamic Banking.

The meeting also expressed satisfaction for overall performance of Islamic Banking division of Bank Asia.

The Daily Sun/Bangladesh/ 13th March 2012

Ataur Rahman-Md Kawsar-Abu Naser-Md Mosharraf

Islami Bank Bangladesh Limited (IBBL) recently promoted four of its officers to the post of Executive Vice Presidents.

Among them, Md Ataur Rahman, promoted to Head of Public Relations Department, Md Kawsar Ul Alam, to Incumbent of Head Office Complex Corporate Branch, Abu Naser Mohammed Nazmul Bari, to Head of Noakhali Zone and Md Mosharraf Hossain, to Head of Foreign Remittance Services Division, says a press release.

Md Ataur Rahman started his career as journalist and joined IBBL as senior officer in 1985. He has post-graduate degrees in Political Science and in Public Administration from Rajshahi University.

Md Kawsar Ul Alam started his banking career as assistant probationary officer of Islami Bank in 1986. He who obtained Msc degree from Dhaka University in 1987 discharged his duties in different positions in IBBL.

The Daily Sun/Bangladesh/ 13th March 2012