The New Nation - Internet Edition

Economic crisis deepens in Europe, Asia

AFP, London

The global financial crisis took a fresh toll on economies from Asia to Europe on Friday, with Japan and India suffering setbacks and Sweden the latest European nation to fall into recession.

Japan slipped deeper into recession with factory output tumbling 3.1 percent and consumer spending dropping 3.8 percent in October, official data showed.

The figures were "stunningly bad," said Societe Generale's chief Asia economist, Glenn Maguire.

"Japan's industrial activity is set to worsen in the near- term, perhaps by an unprecedented degree, as exports to the US have plunged over the past year," he warned. Rising economic powerhouse India, struggling with extremist attacks in the financial capital Mumbai, said its economic growth slowed to 7.6 percent in the third quarter of 2008 from 7.9 percent in the second.

While still a respectable performance at a time when many developed economies are in recession, the slowdown in India highlighted the extent to which the US-born financial crisis has spread around the world.

The Russian central bank raised its key refinancing interest rate again to 13 percent from 12 percent on Friday to "lower the level of capital outflows and contain inflationary tendencies." The global economic crisis has prompted investors to pull their cash out of developing economies such as Russia that are still seen harbouring risk, and to transfer it to more established havens.

There was also bad news from South Korea, where industrial production fell 2.3 percent in October in a sign that the export- driven economy was slowing faster than expected. Some analysts see little prospect of a recovery in the current climate of fear and gloom over the global economy. US stocks climbed Friday, however, driven by momentum from strong gains this week inspired by a sense that the credit crisis may be easing.

"The leaders will review progress being made to address the current financial crisis, advance a common understanding of its causes and in order to avoid a repetition, agree on a common set of principles for reform of the regulatory and institutional regimes for the world's financial sectors."

The announcement came as one of Bush's closest allies, British Prime Minister Gordon Brown, acknowledged his country was "likely" entering recession.

"Having taken action on the banking system, we must now take action on the global financial recession, which is likely to cause recession in t Britain, too," Brown said in parliament. Crucial data is expected to show on Friday that the British economy shrank in the third quarter after zero growth in the second. The technical definition of a recession is two straight quarters of negative economic growth.

A similarly gloomy forecast came from Swiss bank UBS, which said Europe faced "inevitable" recession that would begin "almost in sync" with the United States.

The British pound plunged to a five-year trough, closing in New York at 1.6139 dollars. The euro took a pummeling, too, falling below 1.30 dollars for the first time since February 2007 amid interest rate cut expectations.

There were more signs of trouble in emerging markets, with South Africa's rand falling to a six-year low against the dollar. Crude oil prices careened lower after surging US energy reserves highlighted falling demand in a cooling global economy. New York's main contract, light sweet crude for December, skidded 5.43 dollars to close at 66.75 dollars a barrel. In London, Brent North Sea crude for December delivery tumbled 5.20 dollars to settle at 64.52 dollars.

In Canada, the Toronto stock exchange shed 558.92 points, or 5.71 percent, to close at 9,236.68. Gold mining and oil shares led the retreat.

The turbulence came despite fresh attempts by the US Federal Reserve to restore confidence in the fragile financial system, and new evidence that the credit freeze might be thawing, with interbank lending rates showing modest declines.

Prices of onion, potato, edible oil up ahead of Eid-ul-Azha

NATION BUSINESS REPORT

Prices of onion, potato, edible oil continued to rise in the city's retail markets during the last one week while prices of other essentials including rice, atta, flour and lentil remained unchanged, traders said yesterday.Besides, prices of vegetables have gone down slightly owing to adequate supply. Onion (local variety) was selling at Tk 38-42 per kilogram at the city's retail markets yesterday, while the imported (Indian) variety of onion was selling at Tk 28-30 per kilogram.

Traders said prices of local onion increased by Tk 6 to Tk 8 per kg while imported ones rose by Tk 4 to Tk 6 per kg at the retail level in the city due to shortage in supply as the onion farmers are buying the old stock to preserve as seeds. Prices of imported onion increased in the local market due to a rise in their prices in the Indian market, another trader said.

Now, a kilogram of local onion was selling between Tk 46 and Tk 48 and imported Indian onion at Tk 36-Tk 38 in the city's retail markets. Garlic was selling between Tk 40 and Tk 45 per kg while ginger was selling at Tk 75-Tk 80 per kg which was Tk 50-Tk 60 per kg a week ago.

Prices of non-brand edible oil including soybean oil and super palm oil increased by Tk 4 to Tk 6 per litre at the city's retail level and a kilo of soybean oil was selling at between Tk 108-Tk 110 and super palm oil at between Tk 90-Tk 95 respectively.

During the last week, prices of a five-litre can of edible oil of different brands in five-litre cans increased by Tk 10 to Tk 15. It was selling at between Tk 565 to Tk 580.

Prices of vegetables came down by Tk 4 to Tk 5 per kg in the city's retail markets, traders in the city said.

A kilogram of lady's finger was selling at Tk 28, brinjal at Tk 30-32 and a medium sized cauliflower at Tk 20- Tk 25, according to the traders in the city's retail markets yesterday.

Cucumber was being sold at Tk 35 per kg, tomato at Tk 70-Tk 80 per kg, potal at Tk 22-Tk 24, carrot Tk 24-Tk 30, radish Tk 15-Tk 20, bitter gourd Tk 25 and potato Tk 18-Tk 20 per kg and Tk 40-45.

Green chili was selling at Tk 70-Tk 80 per kg on an average in the different retail markets.

Traders said prices of the finer variety of local lentil and imported Nepalese and Turkish varieties remained unchanged at their previous rates in the local markets. A kilo of local lentil was selling at Tk 108-Tk 110 while imported lentil between Tk 88 and Tk 90.

Price of beef remained unchanged and a kilo of beef was selling at Tk 220-Tk230. Mutton was selling between Tk 280 and Tk 350 per kg in the city's retail level.

Prices of poultry birds were Tk 110-Tk115 per kg remaining unchanged during the last week at the retail level in the city. A dozen eggs were selling between Tk 84 and Tk 90 remaining unchanged from their previous prices.

In the retail level, minicate variety of rice was selling at Tk 39-Tk 40 per kg and nazirshail at Tk 38-Tk 40 per kg, remaining unchanged from their previous rates.

Besides, coarse varieties of rice, especially BR-28 and 29 and pari, were selling at Tk 29-Tk30 per kg during the last week, remaining unchanged from their previous prices, salesmen in the city's Shantinagar and Khilgaon markets said.

According to traders at the city's wholesale markets -- Babubazar and Nayabazar--, the minicate variety of rice was selling at Tk 1250-Tk 1400 per maund (37.300 kg) and the nazirshail variety at Tk 1200-Tk 1400 per maund.

BR-28 was being sold between Tk 1000 and Tk 1150 per maund while pari between Tk 1020 and Tk 1050 per maund at the wholesale level.

City Bank focuses on SME, retail banking

NATION BUSINESS REPORT

The City Bank Limited focuses on 'small and medium entrepreneurs and retail banking to widen its client base,' said K Mahmood Sattar, Managing Director and Chief Executive Officer of the bank.

'We also put emphasis on corporate, investment, treasury and market risks banking services,' he added. 'We have restructured our core business into these four segments. The main objective behind this restructuring was simply to bring in "specialisation" in the way we deal with and serve different customer groups.'

The City Bank's current business model encourages and supports its growth in retail and SME banking, he said, adding that 'the bank is very much on its way to opening a large number of independent SME centres across the country within a short time.'

Retail banking services of the bank include deposit, loan, debit card, credit card and remittance, while SME banking services are offered in packages styled City Muldhan, City Sheba and City Shulov.

Corporate banking services include working capital finance, trade finance, short/mid-term finance, Islamic finance, structured finance, cash management, and investment banking.

Treasury banking services include overnight deposits, term deposits, foreign exchange, local currency spot and forward and derivatives.

The bank, which is celebrating its 25th year of operations this year, launched a new logo and a pay-off line in July. 'Launching of the new logo and the pay-off line of the bank is a message about the modernisation process the financial institution has been undergoing,' said Sattar.

City Bank currently has 83 online branches spread across the country that include a fully-fledged Islami banking branch. It has 25 ATMs of its own and ATM-sharing arrangement with a partner bank that has 225 ATMs in place.

City Bank earned a net profit of Tk 34.35 crore in 2006-07 against previous year's Tk 24-crore net profit, according to the DSE official website.

As per un-audited half yearly accounts, as on June 30, 2008, the bank achieved a profit after tax of Tk 21.94 crore as against last year's Tk 33.95-crore half yearly post-tax profit. The net turnover in the period was Tk 150.95 crore.

City Bank is one of the oldest private commercial banks operating in Bangladesh. The bank started its journey on March 27, 1983 through opening its first branch at BB Avenue in Dhaka. The bank was listed with the Dhaka Stock Exchange on February 18 in 1986. It is also listed with the Chittagong Stock Exchange.

Southeast Bank opens 43rd branch at Savar

NATION BUSINESS REPORT

Southeast Bank Limited expanded its network further by opening its 43rd branch at Savar, Dhaka on November 27 last.

Jusna Ara Kashem, Director of the bank formally inaugurated the branch.

At the inaugural function, Azim Uddin Ahmed, former Chairman and present Director, Duluma Ahmed, Director, Rehana Rahman, Sponsor and former Director, Neaz Ahmed, Managing Director, bank's senior executives, Mayor of Savar Pourashava, local elites, businessmen, shop owners, industrialists, govt. officials, educationists and professionals were present.

In his speech, Azim Uddin Ahmed narrated the history of the establishment of the bank and its gradual expansion over the years as a modern banking institution of Bangladesh. He apprised his audience that Southeast Bank is a full house commercial bank with a rich basket of products and services. He expressed the optimism that alike other Branches of the bank, its Savar branch would also provide quality customer service with the help of latest technology at a very competitive price.

In his address of welcome, Neaz Ahmed, Managing Director highlighted the bank's overall performance over the years and urged the local people to avail modern banking facilities from the branch.

Refat Ullah, Mayor, Savar Pourashava, Noor Mohammed Nuru, President, Savar Bazar Road Baboshayee Samity, Mahbubul Alam, General Secretary, Savar Bazar Baboshayee Samity and local elites spoke in the function wishing operational success of the branch and assuring their sincere cooperation to that direction.

Md. Faruk Ahmad, Head of the Branch offered vote of thanks in the function.

The inaugural function was moderated by Shahid Hossain, Senior Executive Vice President and Head of Human Resources Division of Southeast Bank Limited.

The inaugural program ended off with a doa-mahfil at the branch premises seeking divine blessing for the well-being of the bank.

Special Development Meeting of Prime Islami Life Insurance held

NATION BUSINESS REPORT

'Special Development Meeting '08' of Prime Islami Life Insurance Ltd was held on November 18 last at BIAM auditorium in the city.

The meeting was presided by company's Managing Director Kazi Md. Mortuza Ali.

M A Wahhab, chairman of the company, was chief guest on the occasion.

Deputy Managing Director Mohammed Shah Alam, FCA, Company's Secretary and SEVP, Habibur Rahaman and SEVP (Dev-Admin) Faruk Ahmed Siddique were present at the meeting.

Project Directors, Zonal and divisional incharges spoke in the occasion. The speakers suggested various measures for business promotion and expressed hope to achieve the premium income target of 2008.

In his speech, M A Wahhab advised the development officers to engage in profession with integrity and dedication and take all out effort to check lapses of policies. Around five hundred development officers from various region of the country were present at the meeting.

NSU holds 2nd Inter-University Promologic 2008

North South University Debate Club (NSUDC) organized advertising competition of the country titled-"2nd Inter-Varsity Promologic 2008.

The month long program was launched on 15th of October. After a series of rigorous training and selection procedure, the top four teams proceeded to the Grand Finale which was held at Gulshan Club on November 25.

MA Awal, Chairman, NSU Foundation was present as the chief guest at the Grand Finale and Closing Ceremony and handed over the prizes to the winners. Dr Hafiz GA Siddiqi, Vice Chancellor as special guest, Dr SAM Khairul Bashar, Pro Vice Chancellor and Dr Mali Rashid Dean were present as guest of honour.

Nazim Farhan Chowdhury, Habibullah Karim, Debasish Deb, Geetiara Safiya Chowdhury were as the highly revered judges panel of the event. Promologic is a veteran annual advertising event which is designed to enhance the marketing and promotional capabilities of university students of Bangladesh. This year 24 teams consisting more than 120 of the most talented youth minds participated in this glorious of event. In the battle of the bests Team Ajaira from Institution of Business Administration came out the Champion followed by team Trendsetters as the Runner Up. Team Spice jets and Gnostic were second and third runner up respectively. North South University Debate Club (NSUDC) congratulates all the winners and participating teams.

Akij Group launches Enric CNG Compressor

Akij Gas Company Ltd has introduced new product 'CNG Compressor' manufactured by famous Chinese company Enric Compressor Company Ltd in the market of Bangladesh.

The product was launched at Seraton Hotel in the capital on Monday.

Liu Tong, Vice General Manager of Enric (Bengbu) Compressor Company Ltd, made a presentation on 'CNG Compressor' and explained the technological development, technical side and facilities of the product.

Petrobangla Chairman Jalal Uddin Ahmed, Akij Group Chairman Dr Mohiuddin, DCCI President Hossain Khaled and Akij Group Managing Director Sheikh Ainuddin spoke on the occasion. Sheikh Ainuddin said the quality of CNG Compressor is world standard and its price is comparatively low. So the product has gained popularity among the customers. Besides, one of the special facilities is that the key components of the product are made by Enric Company itself. As a result, the spare parts of it are available in the market.

Industrialists, businesses, CNG entrepreneurs and owners were also present at the presentation among others.

ICMAB holds Training on IFRS

In order to strengthening the accounting and auditing standards and practices in Bangladesh, the Institute of Cost and Management Accountants of Bangladesh (ICMAB) has organized a two-day long training on 'International Financial Reporting Standards' (IFRS). The first of such training started on November 10, 2008 at ICMAB Ruhul Quddus Auditorium, Nilkhet in Dhaka on the 2nd day of the training on November 11 at ICMAB. Md Mokhles Ur Rahman, Additional Secretary, Government of Bangladesh, now Chairman, Bangladesh Sugar and Food Industries Corporation (BSFIC) was present as the Session Chairman.

M Abdul Aziz, FCMA past President and Chairman, Seminar and Conference Committee of ICMAB, AKM Delwer Hussain, FCMA past President and sitting Vice President and Mohammad Nesar Uddin ACMA, Vice President, Islami Bank Bangladesh Ltd seen in the picture.