The New Nation - Internet Edition

Forex reserves stand $5.17b as flow of remittances falls: Situation to become normal soon, BB officials say

Nation BUSINESS REPORT

Flow of inward remittances from America and European countries has gone down though the export earnings and foreign aid have increased substantially.

Sources at the Bangladesh Bank said yesterday that expatriate Bangladeshis are showing reluctance to send their money as major currencies are losing value amid a global financial crisis that indicates a possible recession.

The central bank sources said inward remittances from Bangladeshis working abroad fell by 17.40 per cent in October than in the previous month mainly due to the decline in exchange rates of the euro and the Great Britain pound against the US dollar.

'Bangladeshi currency has slightly appreciated against the US dollar, which also is seen less rewarding for remitters. So, NRBs have chosen to send less money home until the currency market situation changes,' said a senior official of Bangladesh Bank.

The official, however, said that they expected the flow of inward remittances would increase this month ahead of the Eid-ul-Azha festival.

Remittances traditionally surge ahead of eid festivals when Bangladeshi expatriates send more money home to help their families meet eid expenditures. In September, the month before the Eid-ul-Fitr, NRBs sent home $794.18 million.

But the amount fell to $655.98 million in October, according to the central bank statistics released last week.

The foreign exchange reserves went down to $5.80 billion on October 23 last. Later, on October 29 the reserves declined to $5.49 billion.

The country's foreign exchange reserve stood at $5.17 billion on November 3 after a routine payment of $500 million to the Asian Clearing Union, officials said.

Murshid Kuli Khan, Deputy Governor of Bangladesh Bank, said there was nothing to be worried. Country's foreign exchange reserves are still above $5.0 billion.

On the other hand, he said the fluctuation of reserve position was normal.

"Though the foreign exchange reserves have slightly gone down, it will become normal within the next few days," he said. Khan said the month of October was the next month after the Eid-ul-Fitr. Normally, the flow of inward remittances goes down on the following month of Eid. The flow of inward remittances will go up in November, he said.

Officials at the Bangladesh Bank said Taka has gained against four major currencies amid a global economic turmoil that rattled financial markets in the USA, Europe and Asia. The local currency got its position stronger against Great Britain pound, euro, Pakistani and India rupees, while it gained slightly against the US dollar and declined against the Japanese yen.

The economic situation of Middle East countries would not deteriorate immediately as the international oil cartel will reduce their production to stabilise the global oil market,' a senior official at the Bangladesh Bank told The New Nation.

He said that currently oil demands in the developed countries were declining, causing drastic fall in oil prices.

Another central bank official, however, felt that global financial crisis would affect Bangladesh's remittance incomes.

The declining trend is evident in the accounts books of commercial banks, which were channelling less remittance into the country now than in the previous months before the global crisis surfaced.

The country's export earnings might also be affected if the crisis prolonged, economists and business leaders earlier warned.

Central bank officials, however, did not see any reason to fear that the declining trend in remittance inflow would affect the country's inter-bank foreign exchange market, since banks are now facing much less pressure for opening import letters of credit.

Bangladeshi expatriates sent $2.992 billion in the first four months of the current fiscal, 36.80 per cent higher than the amount sent in the same period last year.

Banks, NBFIs submit updated information to central bank

Nation BUSINESS REPORT

Commercial banks and non-banking financial institutions (NBFIs) have provided their updated information about default loans to the central bank.

"We have submitted our updated information about default position as on October 31 to the central bank Saturday," a senior official of a commercial bank told The New Nation yesterday.

On Thursday last, the Bangladesh Bank (BB) asked banks and NBFIs to keep their credit information bureau (CIB) cells open Friday and Saturday to provide default loan-related information to it.

The official also said the bank is now working to update information about the loan defaulters in line with the Election Commission (EC) advice.

The EC earlier asked the commercial banks and NBFIs for updating their information about the loan defaulters who might be candidates for the next elections.

As part of the move, the EC has sent a list of elected MPs from 1973 to 2001 to them (banks and NBFIs) to prepare a list of possible loan-defaulters who are likely to be candidates for the next parliament and upazila elections.

Loan and utility bills defaulters cannot participate in the national election as per the existing Representation of the People Order (RPO).

According to the RPO, a person will be disqualified for the elections, if he or she is a loanee, other than of small loans for agricultural purposes, and has defaulted in repaying before fifteen days from the day of submission of nomination paper any loan or an instalment thereof, taken by him from a bank or financial institution.

Besides, the person will be disqualified for the elections, if he or she has personally failed to pay the telephone, gas, electricity, water and any other bill of any service-providing organisation of the government before fifteen days from the day of submission of nomination paper.

7 BB assocs to give 'open letter' demanding separate pay scale

NATION BUSINESS REPORT

Official and employees of seven organisations of the central bank have decided to give an 'open letter' to the Bangladesh Bank governor demanding separate pay scale.

They will send the letter to the Governor Dr Salehuddin Ahmed, this week, said the central bank sources.

'The central bank had requested the finance ministry for approving the proposal of separate pay scale for its staff but the finance ministry did not send the proposal to the cabinet for approval on various pleas,' a executive committee member of the Bangladesh Bank Welfare Association told The New Nation, expressing anonymity.

The member also said the central bank staff are getting lower salaries compared with the neighbouring countries - India, Pakistan and Sri Lanka.

Seven associations of the Bangladesh Bank include the Bangladesh Bank Officers Welfare Association, Bangladesh Bank Officer Association, Bangladesh Bank Employee Association and Bangladesh Bank Karmachari Sangha.

Earlier, the finance ministry had asked the Bangladesh

Bank to seek recommendation of the National Pay Commission on its proposed separate pay scale.

Two months ago, the finance ministry turned down the BB proposal arguing that a separate pay scale for the central bank employees could create disparity between the government and central bank employees.

Premier Bank monthly managers' meeting held

The monthly managers' meeting of The Premier Bank Limited was held at bank's head office on Saturday.

BH Haroon, Vice Chairman of the Board of Directors of The Premier Bank Ltd was present as the chief guest.

Managing Director of the bank Khondker Fazle Rashid presided over the meeting

Among others, Additional Managing Director Md Mokhlesur Rahman, Head of Corporate Banking and SEVP Dewan Anwarul Latif also present on the occasion.

All Branch Managers' and Divisional Heads at the Head Office were also present at the meeting.

The meeting were discussed various issues ie future business, funding and non-funding, new schemes, low cost deposit, credit card, recovery and branch networking etc.

ADTL inaugurates satellite township project 'Angel City'

NATION BUSINESS REPORT

Advanced Development Technologies Ltd (ADTL) inaugurated its satellite city, 'Angel City' situated at Savar, ceremonially at its Advance Centre corporate office in the city on Saturday.

ADTL Chairman SM Anwar Hossain inaugurated the mega project while presiding over the programme, says a press release.

ADTL Marketing Director Dulal Abdul Hafiz, Operative Director SM Arif Reza Hossain and Chief Architect Shabana Ashraf Khan were also present at the programme.

The ADTL chairman, in his speech, said, "The capital city, Dhaka has shrunk into the old quarters and posed a serious threat to our health. As people are desperate to get rid of city's hassles and suffocation, ADTL presents Angel City where you will enjoy serenity."

He said the satellite city is a place with invigorated pedestrian walkways and smooth thoroughfares, For those who demand living in nature, Angel City offers the very best with expansive water views of blue lagoon and green surroundings.

Located at Komopara, Angel City stands by the main highways near Savar Martyrs' Memorial. Initially the project is spread over a land parcel of 60 bigha consisting of about 2000 economy price affordable apartments, he added.

Being managed by a team of qualified and competent architects, the Angel City encompasses amenities such as police camp of its own ensuring foolproof security, nursery school, primary school, community health club, clinics, mosque, playground, exclusive 7-storied car parking building, kitchen market, lavish open space, road networks with all vital points of the city etc.

Sonali Bank holds 'Customer Service Improvement' confce

NATION BUSINESS REPORT

Sonali Bank Limited arranged an exceptional conference on 'Customer Service Improvement' for its officers and staff working in the branches of Dhaka Metropolitan area as second officer, cash incharge and Incharge of Bills & Remittances at ICMAB auditorium in the city recently.

Presided over by General Manager, Dhaka Division Mahe Alam, SA Chowdhury, CEO and Managing Director of the bank attended as the chief guest.

The importance of branches 2nd Officer, Cash Incharge and the in-charge of remittance department is as important as branch incumbent. Concerted efforts by the officers working in these desk resultant to a better customer service and ultimately bank reached at its desired goals, Mr. Chowdhury said while addressing the conference.

The importance of Customer Relationship Management in this market-based society is undeniable.

As such the officials working in the desk is to develop relationship with the customer by means of their good manner and behaviour, Mr. Chowdhury further added.

The meeting was also addressed by DMDs Raihana Anisa Yusuf Ali and Kazi Faqurul Islam and GMs Prodip Kumar Dutta, Md Abdus Salam, Md Mofizul Haque Bhuiyan.

BRAC Bank gets new DMD

Syed Mahbubur Rahman has been appointed deputy managing director (DMD) of BRAC Bank Limited.

His appointment came into effect on October 27, 2008.

Prior to joining the BRAC Bank, he was the DMD of Prime Bank Limited. Mr Rahman started his career by joining the Saudi Bangladesh Agricultural and Industrial Investment Company (SABINCO). He also worked with IDLC, Standard Chartered Bank, ANZ Grindlays Bank and Citibank NA in different capacities. Mr Rahman has been working in the banking sector for about 20 years, mainly concentrating in the corporate banking business. During his long banking career he underwent various training courses and took part in seminars and workshops on different aspects both in home and abroad.

Mr Mahbub is an MBA from the Institute of Business Administration of Dhaka University.

Asian Paints (Bangladesh) Ltd had trip with dealers in Greece

Recently, APBL took 20 of its dealers along with some employees to Greece in the culmination of the annual foreign trip scheme. For many of the dealers, the journey was a one in a lifetime event as very few people from Bangladesh have been to Greece before. This is also an event as Asian Paints managed a group visa to Greece first time ever from Bangladesh. Asian Paints (Bangladesh) Ltd has been conducting these trips for some time and the dealers are quite happy with this initiative.

Asian Paints (Bangladesh) Ltd especially thanks Mr Roman (owner of Discovery Tours and Logistic) and all the participating dealers to make a successful tour.

BSRM goes public

BSRM Group started its journey back in 1950 and has emerged as the largest leading industrial conglomerate in the steel sector of Bangladesh. The Group believes in continuous development and upgradation of its industries with the latest technologies and state-of-the-art machineries in satisfying its valued customers with its unparallel products. The Group concerns are ISO-9001 :2000 certified as well as its products are also tested and certified by BUET, BDS, etc.

Based on the Group's commitment to maintain latest international standard the Group established BSRM Steels limited in 2002 and commenced commercial operation in April 2008 to become the largest reinforced bar manufacturing factory in the country with the rated capacity of 3,75,000 MT per annum. The world-leading manufacturer "Danieli Group" of Italy supplied the plant and its installation was done under their close supervision. The "Xtreme 500W" has already been well taken by the consumers and is treated as a brand name in its category in the said industry.

BSRM believes participation of mass people in ownership to enhance transparency in its operation as well as to ensure social commitment. Last month the IPO of BSRM Steels was approved by the Securities and Exchange Commission. Subscription money of general applicants will be collected allover the country through eight leading banks from November 09, 2008 onwards to November 13, 2008. The applications from NRB applicants will be received by the Company in its Dhaka Office during the same period. The Company expects immense participation of the public in the IPO.

IDLC holds training on anti money laundering

NATION BUSINESS REPORT

Industrial Development and Leasing Company (IDLC) Finance Limited, a multi-product financial institution, arranged a training programme on 'Anti-Money Laundering Ordinance, 2008 and Anti-Terrorism Ordinance, 2008', says a press release.

The programme was held at the corporate head office of IDLC Finance Ltd recently. Fifty executives from different business and operational units participated in the training programme.

General Manager Mahfuzur Rahman and Deputy Director Md Muniruzzaman (Anti-Money Laundering Department), Bangladesh Bank conducted the training courses.

IDLC General Manager Arif Khan inaugurated the training course and highlighted IDLC's policies on strict adherence to the regulatory compliance.

IDLC General Manager and Chief Financial Officer HM Ziaul Hoque Khan and DGM and Head of Personal Finance Shaikh Kamruzzaman were also present at the event.

IDLC will hold such training programmes twice a year, to keep its employees updated about the anti-money laundering regulations.

Int'l trade show for construction industry to begin in city on Jan 7

NATION BUSINESS REPORT

A four-day international tradeshow for the construction industry titled 'Zak Dhaka Build-2009' will begin at the Bangladesh-China Friendship Conference Centre in the city on January 7 next year.

Zak Dhaka Build has emerged as the premier international exhibition and symposium on Infrastructure equipment, building materials and construction technology trade show of Bangladesh, said a press release.

Zak Exhibitions (Singapore) Pte Limited is organising B 2 B trade show in Bangladesh for the first time.

Speaking about the event, CMD of Zak Group Syed Zakir Ahmed said, "We are successfully organizing construction industry related tradeshows in India. We are very happy at the encouraging response received for DHAKA BUILD 2009 which will see some of the leading global players participating in a Bangladesh construction related tradeshow for the first time."