The New Nation - Internet Edition

FBCCI invites application for internship

Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has invited applications from students of MBA of reputed institutions for internship programme.

The internees will be assigned to research on trade policy, trade agreements, market access, WTO compliances, corporate management, private sector development, said a press release today.

Suitable candidates are requested to contact through chairman of their respective department or faculty dean to the secretary general of FBCCI.

Applications should be reached to the Federation Bhaban, 60 Motijheel Commercial Area, Dhaka-1000, by July 10 next.

Country’s 48 banks’ default loans now stand Tk 23000cr: Tk 19000cr identified as bad debt, political interferences blamed for default culture

BUSINESS REPORT

The defaulted loans of the country's 48 public, private and specialised banks amounted to Tk 36,000 crore, of which, Tk 13,000 crore have already been written off.

On the other hand, Tk 19,000 crore of the remaining 'visible' defaulted loans of Tk 23,000 crore have already been identified as bad loans.

M Abdur Rahman, founder chairman of Peoples Development Services Corporation Ltd (PDSC) yesterday said this at a function organised on the occasion of the 12th anniversary of PDSC at Dhaka Reporters Unity in the city.

He said it becomes very difficult for the banks to realise the total Tk 32,000 crore including Tk 19,000 crore of bad debts and Tk 13,000 crore of default loans from different individuals.

The banks have no alternative to handover the responsibility to the recovery agents like the PDSC for realising the amount from the defaulters since they have not enough manpower and experts regarding the matter, said Rahman.

The PDSC chairman said despite the realisation of loans is sometimes very complicated, risky and expensive for banks the PDSC is ready to take all of the risks.

The chairman urged the government and Bangladesh Bank to provide sufficient commission and legal aid for the realisation of defaulted amounts, which would certainly help to meet the budget deficit.

Khondkar Ibrahim Khaled, former Deputy Governor of Bangladesh Bank and Chairman of Bangladesh Krishi Bank, held the interferences of political parties responsible for growing amount of default loan of public banks.

Ibrahim Khaled also suggested PDSC chairman to turn his organisation into asset management company by carrying out credit rating, appraisal and recovery tasks altogether.

IBBL’s deposit rises by 24pc, investment by 32pc in a year

BUSINESS REPORT

Total deposit of Islami Bank Bangladesh Limited stood at Tk 179,379 million as on May 31, 2008 showing a growth of 24 per cent against the corresponding period of the previous year.

In the same period the bank invested Tk 191,728 million with a growth of 32 per cent. The bank handled foreign business of Tk 186,586 showing a growth of 93 per cent against the corresponding period of the previous year.

The volume of import of the bank during the period was Tk 94,020 million registering a growth of 128 per cent, export was Tk 38,339 million registering a growth of 49 per cent and remittance was Tk 54,227 million showing a growth of 82 per cent.

The information was disclosed in a Performance Review Meeting of Zonal Heads of Dhaka North, South and Central Zones and Branch Managers of Dhaka City held recently at Board Room of the bank at Islami Bank Tower. Presided over by M Fariduddin Ahmad, Managing Director of the bank, the meeting was attended, among others, by top executives of head office including Mohd Shamsul Haque, Mohammad Abdul Mannan and Md Habibur Rahman, Deputy Managing Directors.

Mominul Islam Patwary, Chairman, Executive Committee of the bank was present in the closing session as the chief guest.

Titas Gas to sell 25pc share on stock market

The government will sell its 25 per cent share in a state gas company worth about Tk 2.15 billion ($32 million) at a face value of Tk 100 each, a senior official said on Thursday.

These shares, or 25 per cent of the fully-government-owned Titas Gas Transmission and Distribution Company will make their debut in the Dhaka and Chittagong stock exchanges on July 2, said M.Tamim, Special Assistant to the Chief Adviser for Power, Energy and Mineral Resources Ministry.

The aim of the offloading to the public through the bourses was to boost the country's capital market and industrial initiatives, Tamim said at a meeting of investors and energy officials.

"To have a good health of the capital market and also to assist industrial ventures the government has decided to offload 25 percent of its stake in the Titas to the people," Tamim said.

The number of shares on offer would be 21,411,728 shares worth nearly Tk 2.15 billion, from its existing paid up capital of Tk 8.7 billion ($127 million), said Salahuddin Ahmed khan, chief executive officer of the Dhaka Stock Exchange Limited.

Titas Gas, the fifth state-owned company to be listed with the stock exchanges, presently has nearly 74 per cent market shares in distributing gas to end users and daily average gas supply quantity is about 1,300 million cubic feet per day.

Earlier, state-run Jamuna Oil Company and Meghna Petroleum offloaded 30 per cent of their shares each in January this year, and Dhaka Electric Supply Company and Power Grid Company Bangladesh, also state owned, sold off 25 per cent shares each in 2006.

"The government is committed to ease the pressure on banking system for investment for the manufacturing firms and for that is continuously offloading the shares even of profit-making entities," Tamim said.

Titas, incorporated on November, 1964, as public limited company, with Tk 9.72 billion net assets and Tk 2.6 billion profit after tax, has a sales growth of about 13 per cent in the year fiscal year to June 2007, officials said.

"The government will offload more shares of another 21 state-owned companies including nine from energy and power to make a balance between demand and supply in the capital market," Tamim said.

Country to import oil from Kuwait at higher premium

BUSINESS REPORT

Bangladesh will import 1.152 million tonnes of oil from Kuwait for consumption over the July-December period by paying a higher premium, a senior energy official said yesterday.

The purchase was proposed by the state-run Bangladesh Petroleum Corporation (BPC), the country's sole importer and distributor of fuel oil, and is likely to be approved by a government purchase committee on Sunday, said Mohammad Mohsin, secretary of government energy and mineral resources division.

"The BPC has agreed to pay a higher premium cost to import diesel, kerosene, jet fuel and petroleum oil," he told Reuters. The BPC annually imports nearly 2.2 million tonnes of refined oil from the state-run Kuwait Petroleum Corporation (KPC), almost 70 percent of total demand for petroleum products. The total demand for refined and crude oil in the country is 3.8 million tonnes.

This time the KPC has raised the premiums of diesel to $6.6 per barrel from $5.4, kerosene and jet fuel to $7.0 from $5.65 and petroleum with high octane to $8.1 from the existing $7.7 per barrel, which will cost Bangladesh in addition nearly Tk 600 million ($9 million). This would be the largest hike in premium imposed by the KPC. In the past it used to increase or decrease premiums by 5 to 50 cents, officials said.

The KPC was asking even higher premiums for its oil, Mohsin said. "Their (KPC) demand for premium was more, as at the moment the rate of premium is higher across the world after oil prices had gone abnormally high." Premiums are to be paid on top of actual prices, to cover carrying, insurance and other costs.

During the fiscal year ending on June 30, 2008, Bangladesh's oil consumption fell by about 12 percent to 3.4 million tonnes, largely because of increased use of compressed natural gas (CNG) by the transport sector. "We have imported around 3.4 million tonnes of oil in the current fiscal year, 400,000 tonnes less than the previous year," said Anwarul Karim, chairman of the BPC.

Oil hits near record $143 on rising investor flows

New York, Reuters

Oil prices rose to a record near $143 a barrel yesterday as a drop in global equities markets sent fresh investors into commodities.

US crude settled 57 cents higher at $140.21 a barrel, as profit taking sent prices from the record $142.99 hit earlier. London Brent crude settled up 48 cents at $140.31 a barrel.

Global stocks slumped to three-month lows on concerns about the outlook for corporate profits and inflation, putting the Dow Jones industrial average on the verge of entering a bear market for the first time since 2001.

"The renewed attraction of commodities as an investment vehicle is contrasting with the unattractiveness of the stock market," analysts Ritterbusch and Associates said in a research note. "As additional traders abandon the stock market, the appeal of commodities as a trading vehicle is enhanced."

Oil prices have jumped more than 45 percent this year, extending a six-year rally, as supply struggles to keep pace with rising demand from emerging economies, such as China and India. Additional support has come from a flood of cash from new investors buying up commodities to hedge against inflation and the weak U.S. dollar, which fell further on Friday.

Gold hit a one-month record high, while U.S. corn futures jumped to a fresh record.

Rising fuel costs have stirred protests around the globe, prompting some U.S. politicians to call for a reduction in the amount of speculation allowed in the oil market.

The U.S. House of Representatives on Thursday approved legislation that directs the Commodity Futures Trading Commission to use all its authority to curb speculation in energy futures markets. Oil rose more than $5 on Thursday after Libya said it was studying possible options to cut output in response to potential U.S. actions against members of the Organization of Petroleum Exporting Countries.

Some experts insist supply and demand are behind oil's record rise, while others, including OPEC, say rising flows of speculative cash are behind this year's gains.

"We believe the factors driving oil prices higher are fundamental and not speculative," Deutsche Bank said in a research note. "Oil needs to rise to $150 a barrel for oil as a share of global GDP to reach the levels that occurred in the early 1980s."

"At that point, we will start to see more signs of demand destruction and an eventual tipping point in oil markets."

An oil price poll by Reuters showed analysts' expectations that oil will rise for the foreseeable future.

The poll showed U.S. crude in 2008 would average $113.24 a barrel, up by about $6 from the last poll in May.

UCB celebrates 25th anniversary today

BUSINESS REPORT

United Commercial Bank Limited, one of the first generation banks in Bangladesh, is celebrating its 25th anniversary today (Sunday).

On the occasion, various programmes have been taken in Dhaka and 87 branches of the bank across the country.

The bank started its journey in 1983 with the initiative of some home grown entrepreneurs. In spite of political and economical ups and downs in the history of the country the bank has been contributing positively in economic growth and better customer service for the last 25 years.

The bank has extended its network in almost all districts with 87 branches. The bank has contributed in some important sectors like garments, textile, SME, agriculture, transport etc. The bank is working continuously in building the nation.

To celebrate the day the bank has taken the brand positioning-'courage changes everything'. Special advertisements were published in newspapers and aired on different television channels. All the branches have been decorated with balloons, festoons and banners.

The customers are being welcomed with chocolate boxes. The employees will share sweetmeats among themselves.

Construction Industry Exhibition 2008: Lafarge Surma Cement Ltd awarded for Best Stall

BUSINESS REPORT

Bangladesh Association of Construction Industry (BACI) awarded Lafarge Surma Cement Ltd for setting up the Best Stall at Construction Industry Exhibition held at Dhaka Sheraton from June 21-23.

Sk Md Rafiqul Islam, convenor of Construction Industry Exhibition handed over the Best Stall Award certificate to Tauhidul Azim, Marketing and Customer Care Manager of Lafarge Surma Cement Ltd. Engr Shafiqul Haque Talukder and Engr Kaisar Ahmed, members of BACI were also present at the handing over ceremony.

ULAB signs MoU with Bangladesh Brand Forum

University of Liberal Arts (ULAB) and Bangladesh Brand Forum (BBF) signed a MoU on June 26 at ULAB's Dhanmondi campus.

Dr Kazi Anis Ahmed, Director, Academic Affairs, ULAB signed the MoU on behalf of ULAB and Professor Ferhat Anwar, Editorial Board Member, BBF signed the MoU on behalf of Bangladesh Brand Forum.

After signing the MOU Dr Kazi Anis Ahmed thanked and hoped that, through this MoU ULAB will get the opportunity to create new knowledge generation. It will be an exciting experience for ULAB.

On the occasion, Professor Ferhat Anwar talked about how to brand Bangladesh positively. He said that, Bangladesh Brand Forum is formed with the vision of aiding Bangladesh's corporate world into creating remarkable world class brands. In this regard ULAB can play a positive role in future.

ULAB VC Prof Rafiqul Islam, Prof Abdul Mannan and senior faculty members and ULAB staff were also present on the occasion.

Training on 'TQM in Business and Industries' ends at BUET

A two-day training course on 'Total Quality Management in Business and Industries' organised by Directorate of Continuing Education (DCE) of BUET has concluded.

Prof Dr Sarwar Jahan, Dean, Faculty of Architecture and Planning and Acting Vice-Chancellor, BUET handed over certificates among the participants as chief guest on June 25 at the seminar room of DCE.

Prof Dr MA Rashid Sarkar, Director, DCE presided over the ceremony, while Prof Dr Md Ahsan Akhtar Hasin, Head of IPE Department was the coordinator.

A total of 41 participants attended the course from different organizations.

IFC BICF-private-public partnerships crucial in fostering economic growth

The International Finance Corporation (IFC), Bangladesh Investment Climate Fund (BICF) is organising a seminar on Public-Private Partnerships (PPP) for economic zones. The half-day seminar to be held on July 1 at Hotel Sheraton will focus on the concepts and mechanics of Public-Private Partnerships (PPP) with case study examples with special emphasis on economic zones.

There is growing demand for large investment in infrastructure all over Asia and PPPs are a very useful means of accumulating capital. In a capital constrained emerging market economy such as Bangladesh, PPPs are of particular importance as they can help Bangladesh to achieve sustainable economic growth.

In this seminar, IFC-BICF will introduce and define the concept of Public-Private Partnership (PPP) in large infrastructure projects such as economic zones and is divided into three sessions with each focusing on different aspects of PPP.

The first session will cover basic concepts of a PPP, and panelists will give a background of PPP and the risks and benefits associated with it. The second session is designed to give an overview of government and private sectors' perceptions, goals, and expectations from PPP arrangements. Panelists of the third session, Legal and Financial Arrangements for PPPs, will focus on the more complex mechanics of a PPP and how it has worked in other projects. In all the sessions, different case studies from around the world will be shared to demonstrate the various concepts of PPPs.

Public-private partnership (PPP) describes a government service or private business venture which is funded and operated through a partnership between government and one or more private sector companies. Economic Zones are often developed with some kind of PPP arrangement in place. IFC BICF will bring together government and private sector representatives to discuss and highlight the potential benefits of PPPs as they relate to economic zones. IFC BICF will provide long-term institutional support to the Government of Bangladesh and will work closely with its agencies (e.g., BEPZA, BoI) to assist them in successfully designing, structuring, and negotiating PPPs.

The seminar will be conducted by Nazrul Islam, CEO of Infrastructure Investment Facilitation Center (IIFC) and Martin Norman, Program Manager Economic Zones, IFC Bangladesh Investment Climate Fund. Ifty Islam, Managing Partner of Asian Tiger Capital Partners will deliver the keynote address.

IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and intemational financial markets, and providing advisory and risk mitigation services to businesses and govemments. IFC's vision is that poor people have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries.

Sweet water fishes disappearing day by day in Barguna

BSS, Barguna

Different species of sweet water fishes have been declining in the district over the last few years for various reasons, said a survey report.

The reasons like gradual drying up of water bodies, non- excavation of ponds, uses of current nets and application of chemical fertilizers on croplands were responsible for polluting the beading grounds of sweet water fishes.

A survey conducted by the fisheries department showed that fish production has declined by 40 percent in the district during the last 10 years.

The report blamed for destruction of water bodies, ponds and beels that are the prime ground of fish production. The scarcity of fish is not only responsible for exorbitant prices of fish but also depriving the common people from protein.

A fisherman told this correspondent that the daily supply of fishes to the local wholesale markets was about 100 mounds about five years ago which now come down at half to that level.

In the past there were adequate supply of local species of fish such as koi, magur, shing, kalibous, boal, sarputi etc in the fish market. But at present, the volume of supply has come down considerably, the fisherman said.

Indiscriminate uses of current nets during the breeding season, he said, is one of the main reasons for gradual decreasing of fish resources in the rivers and other water bodies.

Besides, application of chemical fertilizers and pesticides on crop lands at a large scale contributed for disappearing the local species.