The New Nation - Internet Edition

BSB recovers Tk 98cr loan during fiscal 2007-08

Bangladesh Shilpa Bank (BSB) has recovered about Tk 98 crore loan during the fiscal 2007-08 which was eight percent higher than the recovery target.BSB Managing Director M Mizanur Rahman revealed this figure Wednesday, said a press release. During the period, the bank sanctioned loan of Tk 56.23 crore to 19 projects, which will create employment opportunities for about 1040 persons. It also disbursed loan amounting to Tk 37 crore against 43 projects. At the same time, 20 projects liquidated their loan accounts with the Bank. The bank repaid about Tk 58.48 crore to Bangladesh Bank, Bangladesh government and other agencies toward Debt Service Liability (DSL).

LR Global formal operation begins

BUSINESS REPORT

The Securities and Exchange Commission (SEC) Chairman Faruq Ahmad Siddiqi Tuesday said that launching of LR global Bangladesh Asset Management Company is a testimonial of foreign fund managers' renewed interest in Bangladesh capital market.

"This is a significant event," he said, adding that it shows that foreign investors are showing an increased interest in Bangladesh capital market. "I think this is a demonstration of their growing confidence in the overall growth of Bangladesh."

The SEC chairman made the observations at the launching ceremony of LR global Bangladesh Asset Management Company at a hotel in the city.

Bangladesh Enterprise Institute President and former Foreign Secretary Farooq Sobhan attended the programme as guest of honour. Former President and CEO of Rockefeller and Company and Principal of LR Global William L. Asmundson, LR Global Bangladesh Asset Management Company Director Saiful Islam and Mr Don LaGuardia, Chairman of the company also spoke on the occasion.

The opening ceremony was attended by dignitaries of corporate world of Bangladesh.

LR Global Bangladesh Asset Management Company Limited is a subsidiary of US based opportunistic investment firm LR Global which focuses on the developing markets. The company plans launching of a mutual fund worth Tk 100 crore this year.

Don LaGuardia, Chairman of the company said from a modest initial investment we have grown to approximately $440 million, relying heavily on this network of in-country partners and contacts to help identify special opportunities in select Central and Southeast Asian and African markets, of which Bangladesh is among the most promising.

"In fact, we have invested $50 million - more than Tk 3.4 billion-in your country over the past 18 months. Furthermore, in 2007 our investments in Bangladesh represented 17 per cent of total foreign turnover on the Dhaka Stock Exchange, as well as a sizeable portion of our fund," LaGuardia said.

William L. Asmundson, Chairman of LR Global said LR Global is enthusiastic about the long-term prospects of the Bangladesh economy and both its equity and fixed income markets.

"In our view, your economy has the potential to grow at a 6-8 per cent annual rate for at least the next five years as Bangladesh attracts new businesses, including those diversifying production facilities away from China due to environmental concerns, rising inflation and labor shortages," Mr. Asmundson said.

Highlighting the substantial spending on power generation and other infrastructure projects to attract investment in existing as well as new industries, he said the country's capital needs are greater than can be funded locally. Therefore, it is essential that a hospitable environment for foreign direct investment and remittances by Bangladesh citizens living abroad be maintained.

On expanding the privatization program of state-owned enterprises and encouraging privately owned entities to list their shares on the Dhaka Stock Exchange, he said currently, the Dhaka Stock Exchange has a market value of approximately US$12.8 billion, a relatively low 18% of GDP.

Moreover, roughly one-half of this value is represented by bank stocks. Excluding the market value of shares that are closely held and not readily tradable would significantly reduce the "free float." Many international investors consider the Bangladesh stock market to be too small to invest in. As the stock market broadens and deepens and the total tradable volume rises, foreign investor interest will increase.

LR Global's current focus in Bangladesh is to identify and invest in undervalued businesses participating in the infrastructure development necessary to achieve its economic growth goals.

Over the past eleven years, LR Global has established a network of strategic alliances in several emerging markets or early-stage frontier markets like Vietnam, Kazakhstan, Azerbaijan, Cambodia and Bangladesh, among others. However, Bangladesh is the first country where we have a physical presence through a local entity, and have been granted an asset management company license.

Saiful Islam, Managing Partner of Equity Partners Limited and Director of LR Global Bangladesh Asset Management Company hoped the newly launched company will become a leading investment resource to manage the growing wealth in Bangladesh.

"With initial funding from LR Global Partners, it is our intention to raise additional capital from local institutional and retail markets-as well as international institutional investors-to float our first mutual fund amounting to Taka 1 billion within the next 4 months," Saiful said.

He said the LR Global also wants to introduce a private equity fund in 2009 as the most effective conduit to help fund the growing number of infrastructure projects.

And looking beyond this, we will launch two additional mutual funds by the 3rd quarter of 2010, each with its own unique investment mandate to address specific investor needs.

Founded in 1997 by LR Global Partners and the Rockefeller family, LR Global, currently manages assets worth $449 million.

ICB Financial Group Holdings committed to ensuring success of its bank in Bangladesh

BUSINESS REPORT

ICB Financial Group Holdings AG, the Swiss-based parent company of ICB Islamic Bank Limited, is committed to ensuring that the turnaround plans that the Bank's new management team is putting in place will be a success.

This commitment was given by Harith Harun, Chief Executive Officer of ICB Financial Group Holdings AG in a statement after the successful conclusion of the Banks' annual general meeting held at the BDR Darbar Hall, Peelkhana in Dhaka on June 30.

"We are very pleased with the support given by the local shareholders to our efforts as expressed by a number of shareholders who spoke during the meeting" Mr. Harith said.

"The support of the local shareholders as well other stakeholders of the Bank, including customers, employees, the authorities especially Bangladesh Bank, are crucial at this transition stage of the turnaround plans," he said.

Mr. Harith emphasised that the ICB Banking Group, currently operating in 12 countries in Asia, Africa and Europe, is investing in Bangladesh for the long-term. He said that ICB Banking Group wants to create a modem, efficient and profitable bank and to build it up to become one of the premier banks in the country. "Bangladesh is an important market for us and we are prepared to inject more capital to support the Bank's growth" he added.

Mr. Harith outlined the key strategic initiatives the new management has put in place as follows:

Strengthening the management team by bringing in experienced and skilled personnel" both local and expatriate, to fill the key positions.

Revamping the Bank's policies, procedures and internal control systems In accordance with international best practices.

Rebranding program to project a more modem, efficient and customer friendly image and atmosphere at the branches.

Replacing the Bank's IT system with a more robust, state-of-the-art fully integrated system not only to enhance operational efficiency but also to enable the Bank to offer a wider range of products and services to its customers.

Expanding the branch network to more locations in Dhaka and other cities and towns throughout the country.

Touching on the legacy non-performing assets of the Bank, Mr. Harith said that the Bank is aggressively pursuing all avenues to recover them.

Mr. Harith said the immediate task of the new management is to rebuild the confidence of the public particularly the Bank's longstanding customers while at the same time to bring in new businesses.

On the impressive performance of the Bank's shares on the stock market since they were relisted on June 24, Mr. Harith commented that it reflected the confidence the market has on the prospects of the Bank. "It augurs well for the future of the Bank and the investors will be well-rewarded once our efforts to turn around the Bank begin to produce the desired results," Mr. Harith said in concluding his statement.

Islami Bank given long term 'AA' rating

BUSINESS REPORT

Credit Rating Information and Services Limited reaffirmed Long Term Rating 'AA' and Short Term Rating ST-I. This rating was given on the basis of IBBL's wide branch network, strong marker share, stable customer deposit base, diversified and innovative Shari'ah based product lines, experienced management team, own professional and competent cadre at each management level, contribution to social responsibility, good financial performance, good asset quality, comfortable liquidity position and low cost of fund.

This information was disclosed in a coordination meeting of the top executives of Islmai Bank Bangladesh Limited. Presided over by M Fariduddin Ahmad, Managing Director of the bank the meeting was attended among others by top executives of head office, managers of corporate branches and heads of Dhaka North, South and Central Zones including Mohd Shmsul Haque, Mohammad Abdul Mannan and Md Habibur Rahman, Deputy Managing Directors of the bank.

It was disclosed in the meeting that total deposit of Islami Bank Bangladesh Limited stood at Tk 182,295 million as on June 30 last showing a growth rate of 22.96 per cent against the corresponding period of the previous year. In the same period the bank invested Tk 195,914 million with a growth of 33.70 per cent. The bank handled foreign business of Tk 220,633 million showing a growth rate of 86 per cent against the corresponding period of the previous year.

The volume of import of the bank during the period was Tk 107,739 million registering a growth rate of 111 per cent, export was Tk 465,61 million registering a growth rate of 50 per cent and remittance was Tk 663,33 million showing a growth rate of 82 per cent.

M. Faiduddin Ahmad, Managing Director of the bank stressed upon reaching the doors of all stages of people for deposit.

He said people of all segments should be involved with the bank. He viewed that investment should be dispersed to all stages of the society instead of confining it among the few. He stressed upon the creation of new and potential entrepreneurs.

He suggested to be vigilant enough to save the bank from over due culture and emphasised upon the recovery of investment.

Second NRB Mutual Fund: Lottery for distribution of ICB AMCL units held

BUSINESS REPORT

The lottery for distribution of units of ICB AMCL Second NRB Mutual Fund was held yesterday at the Plenary Hall, Bangladesh China Friendship Conference Center in the city.

Department of Computer Science and Engineering (BUET), Dhaka conducted the lottery of the Fund.

The meeting was attended by the Managing Director of Investment Corporation of Bangladesh (ICB) Md Ziaul Haque Khondker, General Manager of ICB and Chairman of the ICB Asset Management Company Limited MA Motalib Chowdhury, Chief Executive Officer of the ICB Asset Management Company Limited Md Wahiduzzaman Khandaker, Deputy Chief Executive Officer of the ICB Capital Management Limited sponsor of the said fund Ms Nasreen Sultana, representatives from SEC, CDBL, DSE and CSE. A good number of applicants were also present in the lottery.

Total size of the Fund is Tk 100 crore (1,00,00,000 units of Tk 100 each) out of which sponsor's contribution is Tk 10 crore (10,00,000 units) and balance Tk 90 crore (90,00,000 units) have been offered for subscription to the NRB, RB and Mutual Fund applicants. Out of 5,47,018 valid applicants, 5,07,274 applicants were Resident Bangladeshis, 39,731 applicants were Non-Resident Bangladeshis (NRBs) and 13 applicants were Mutual Funds. The Fund has received public subscription for Tk 490.32 crore (Tk 319.71 crore by General Public including Mutual Funds and Tk 170.61 crore by Non-Resident Bangladeshis) against public offer of Tk 90 crore.

The lottery was held in three categories. The result of the lottery could be seen on the website of the company www.icbamcl.com.bd. The date and time of distribution of refund warrants and allotment advice will be notified to the investors through national dailies.

GP signs BillPay service deal with Titas Gas

BUSINESS REPORT

Grameenphone (GP) and Titas Gas Transmission and Distribution Company Ltd (TGTDCL) have signed an agreement to jointly launch the electronic bill payment service BillPay, first of its kind for Titas consumers.

This service will shortly offer all Titas Gas consumers to pay their bills either from handsets with GP SIM or at any GP authorised BillPay center at anytime and from anywhere.

BillPay is a reliable, fast and convenient service ensuring end-to-end transparency and ultimate convenience for the Titas Gas consumers. This is the first time a mobile operator has launched such a service with "universal access" for all regardless of having a mobile phone or not.

Khalequzzaman Faruque, Secretary of TGTDCL and Delwar Hossain Azad, Dy Director and Head of Financial Services of Grameenphone signed the agreement on behalf of their respective organisations.

Jalal Ahmed, Chairman, Petrobangla, Engr Md Abdullah, Managing Director, TGTDC and Rubaba Dowla, Director Marketing, Grameenphone were present on the occasion along with other senior officials of both organisations were present.

This service is planned to be launched shortly for Titas Gas consumers in Dhaka metro areas, Savar, Munshiganj, Mymensingh, Netrokona, Gazipur, Ashuganj, Bhairab, Narsingdi, Narayanganj, Manikganj, Sherpur, Jamalpur and surrounding areas. In the initial launch, TGTDCL consumers will enjoy easy access to convenient locations, open at 9:00am to 10:00pm everyday. Consumers with mobile phone will get an immediate confirmation of bills being paid correctly from Titas Gas. They will also be able to query present and past bill status instantly via SMS or receive assistance from the GP's modern, dedicated BillPay helpdesk.

BillPay is a practical demonstration of how the private and public sector can work together with a common goal to serve the people of Bangladesh efficiently and effectively. Initiatives like this are likely to drive a positive social change in the country.

Nationwide rollout of Citycell Customer Care Points

Citycell has significantly expanded its customer care capabilities with the rollout of Customer Care Points (CCPs) in more than 500 Thanas across Bangladesh.

The latest expansion of Citycell's network and CCPs enables customers to have all their service requirements satisfied at these one-stop service desks, each equipped with online connectivity. The wide network of CCPs is taking service closer to customers, ensuring that they no longer require to travel to Customer Care Centers located outside their district towns. Moreover, Citycell customers can conveniently and promptly avail required service from these Customer Care Points including RIM replacement, bill payment, reconnection, handset repair etc. They can also purchase Citycell connections, handsets, batteries etc. from these Points.

Citycell is a customer-driven organization whose mission is to deliver the latest in advanced telecommunication services to Bangladesh. Now with the best customer-to-service points ratio amongst all the telecommunication service providers, Citycell's customers can expect an even better level of service.

Mohammad Solaiman re-elected as Chairman of Mercantile Insurance

Alhaj Mohammad Solaiman has been unanimously re-elected as Chairman of Mercantile Insurance Co. Ltd in the 116th meeting of the Board of Directors held at the Board Room of the company.

Serajul Islam, Dr Md Mizanur Rahman and Abdur Rahman were elected as Vice Chairmen, while M Kamal Uddin re-elected as Chairman of the Executive Committee in the same meeting.

A leading businessman Mohammad Solaiman was born in a noble Muslim family at Patya in Chittagong district. He obtained Masters degree with Honours in Public Administration from Chittagong University. He is the Managing Director of Paradise Corporation and Paradise Electronics, a renowned business house in Chittagong. He is the Chairman of the board Audit Committee of Shahjalal Islami Bank Limited and Founder Director of Central Hospital, Eden Hospital and Hardco (International) School.

Solaiman is also involved in many social welfare and charitable organisations.

98,000 cleared for foreign employment in June alone It is an all-time record, says Foreign Adviser

UNB, Dhaka

Some 98,000 workers were issued emigration clearance for overseas employment in June, which is seen as an all-time record. "This is an all-time record, exceeding the previous one of September 2007 when 92,000 were cleared," Foreign Adviser Dr Iftekhar Ahmed Chowdhury, also in charge of the Ministry of Expatriates' Welfare and Overseas Employment, said to the media Wednesday. He further said, "While we are pleased with these numbers, we are also aware that much remains to be done, particularly in terms of upgrading skills." The adviser mentioned that programmes had already been undertaken in this respect.