DHAKA: The Asian Development Bank (ADB) for the first time has approved a large fund of US $250 million to support microfinance initiative in its member countries.

The ADB at a meeting at its Manila headquarters today approved the fund, which will be disbursed under the Microfinance Risk Participation Programme of the Bank, said a press release.

The programme will allow ADB to partner with financial institutions that actively lend to microfinance institutions (MFIs) in ADB’s developing member countries and to share the default risk on underlying MFI loans.

The programme will also support the expansion of lending to MFIs, in turn enabling increased provision of financial services to the underserved.

This will help address the significant unmet demand from the poor for financial services, and provide additional funding for micro-borrowers.

Under the terms of the programme, ADB will typically assume up to 50 per cent of the default risk on loans made to MFIs, in aggregate up to a maximum of $250 million.

According to ADB, the microfinance industry has boomed in recent years with Asian institutions estimated to have over 47 million borrowers as of the end of 2008, with outstanding loans of over $10 billion. —BSS

The 137th branch of National Bank Limited (NBL) was inaugurated at Halishahar in Chittagong recently.

Alhajj Khalilur Rah- man, sponsor Director of the bank formally inaugurated the branch as chief guest, said a press release.

Neaz Ahmed, Managing Director, Md Badiul Alam, Additional Managing Director, S M Jaffar, Deputy Managing Director of the bank spoke on the occasion.

Doctor Nizamul Haque, Professor of Dhaka University was present on the occasion as special guest.

Nazib Uddin Bhuiyan, Deputy Managing Director of the bank delivered his welcome addresses and Md Liaquat Ali Chowdhury, Assistant Vice President and Manager of Halishahar branch delivered vote of thanks.

Local elites and businessmen were also present in the opening ceremony. Saidur Rahman, Vice President of the bank moderated the programme.

Source: daily-sun, Bangladesh/14th Dec 2010

Committee on Implementation of Separate Pay Scale (CISPS) will sit today (Tuesday) to finalise the separate pay scale for the central bank as well as Sonali, Janata and Agrani, an official of the finance ministry said on Monday .

“We will examine the possible options of last three meetings to increase salaries of staff of Bangladesh Bank (BB) and three State-owned Commercial Banks (SCBs),” said a member of the CISPS.

In the proposed structure, a central bank executive director or deputy managing director of a state-lender will get Tk 20,000 more salary than a government secretary, whose take-home salary is Tk 40,000.

Such a big gap between senior bankers and bureaucrats will encourage other enterprises and autonomous bodies demand pay hikes, which could put the whole thing in jeopardy, the finance ministry official said.

According to the revised proposal, monthly gross salary of sub staff members and senior executives will range between Tk 7,000 and Tk 67,500.

Earlier, recommendations made three months ago were turned down as the government committee said the proposed salary hike was too much-- 67 per cent higher than the current level.

The committee then asked the authorities to send a new pay proposal. Finance Minister AMA Muhith said the committee would make a unique salary scale for the central bank and state-owned banks, which could be followed by other government enterprises.

“Committee will finalise the separate pay scale of staffs of the BB and three state-owned banks within current month,” he added.

Banking Division Secretary Shafiqur Rahman Patwari told daily sun on Tuesday that the government committee had some queries regarding separate pay scale.

“The committee will sit on Tuesday for analysing the latest proposal,” he added.

Source: daily-sun, Bangladesh/14th Dec 2010

First Security Islami Bank Limited (FSIBL) was recently awarded the Corporate Social Responsibility (CSR) Award 2009 by Bankers’ Forum.

AAM. Zakaria, Mana- ging Director, First Security Islami Bank Limited received the award from former Bangladesh Bank governor Dr Salehuddin Ahmed at a function held at CIRDAP auditorium in the city, said a press release.

The bank was awarded the CSR award in recognition of its active participation in the field of Corporate Social Responsibility (CSR) Prog- ramme.

Source: daily-sun, Bangladesh/14th Dec 2010

Eastern Bank Ltd yesterday launched a new service to help non-resident Bangladeshies (NRBs) to invest in the capital market of the country.

Ali Reza Iftekhar, managing director and chief executive officer of the bank, formally inaugurated the service named ‘Swadesh Biniyog’ at a press conference in Dhaka yesterday.

NRBs will be able to take part in initial public offerings (IPO), sell the shares, acquired through IPOs, in the secondary market, and buy and sell shares into the secondary market through the service.

To avail the facilities, expatriates have to open a Bangladesh Bank approved Non-Resident Investors Taka Account (NITA), a beneficiary owner (BO) account and give power of attorney to the bank for the transaction.

EBL has been providing with innovative services to NRBs for last few years, Iftekhar told the function

When asked, he said their minimum and maximum charges would range from Tk 500 to Tk 5,000 for each transaction.

To facilitate such transactions, EBL has also signed a Memorandum of Understanding with EBL Securities Limited, a brokerage house and also a subsidiary of Eastern Bank Limited.

Source: daily-sun, Bangladesh/13th Dec 2010