The New Nation - Internet Edition

Banks make record operating profit despite global recession

NATION BUSINESS REPORT

In spite of the collapse of many banks in the United States and Europe amid global financial meltdown, the country's private commercial banks (PCBs) attained higher operating profit in 2008.

The initial figures of operating profit of at least 10 PCBs indicated that they have earned profits in 2008 following higher import payments and enhanced credit flow to the private sector.

Sources at Bangladesh Bank said that the PCBs were able to maintain upward trend of operating profit last year owing to the increased credit flow to the private sector as well as import payment growth.

The country's banking sector remained insulated from the global recession, the source further said.

According to a senior official of the central bank, most of the third and second generation banks could not achieve their internal operating profit target due to raising cost of funds for increasing the interest rates on deposit.

The operating profit does not indicate the real financial picture of the banks, as they have to leave aside provisioning against bad debts and taxes that are paid to the government from the operating profit.

According to the information provided by the Offsite Supervision Department of Bangladesh Bank, Islami Bank Bangladesh Ltd made the highest amount of operating profit of Tk 630 crore in 2008, which was Tk 416 crore in 2007. Other banks which earned the operating profits are: Prime Bank Ltd Tk 480 crore, Pubali Bank Ltd Tk 365 crore, National Bank Ltd Tk 352 crore, EXIM Bank Ltd Tk 270 crore, United Commercial Bank Ltd Tk 260 crore, Dutch-Bangla Bank Ltd Tk 218 crore, Mutual Trust Bank Ltd Tk 123 crore, Trust Bank Tk 135 crore, NCC Bank Ltd Tk 233 crore, Shahjalal Islami Bank Ltd Tk 207 crore, Commerce Bank Ltd Tk 18 crore, Al-Arafah Islami Bank Ltd Tk 158 crore, BASIC Bank Ltd Tk 174 crore, City Bank Ltd Tk 160 crore and Social Investment Bank Ltd Tk 100 crore.

The operating profit of the 28 PCBs out of a total of 30 increased by nearly Tk 1404 crore to Tk 5138 crore in 2007 calendar year, from Tk 3734 crore in 2006, banking sector sources said.

The country's imports grew by 31.66 per cent during the first four months of the current fiscal over that of the corresponding period of the previous fiscal, the central bank officials said.

The value of letters of credit (LCs) against imports worth $7.898 billion was settled during the July-October period of the 2008-2009 fiscal compared with $5.999 billion in the same period of the previous fiscal, according to the central bank statistics.

On the other hand, credit to the private sector rose by 24.72 per cent to Tk 397.36 billion in October last from 16.19 per cent to Tk 223.99 billion of the corresponding period of the previous year, the central bank's data showed.

Render support to start cancer hospital in country: Barrister Rafique-ul-Huq

NATION BUSINESS REPORT

Barrister Rafique-ul-Huq has made an appeal to people of all strata of the society to come forward to start the cancer hospital in the country.

He said this while accepting a cheque of donation for Ahsania Mission Cancer Hospital.

Barrister Ajmalul Hossain QC handed over a cheque for Tk 40 lakhs to Ahsania Mission Governing Body Chairman Barrister Rafique-ul-Huq on December 31 last at the Mission Bhaban at Dhanmondi in the city.

Dhaka Ahsania Mission President Kazi Rafiqul Alam and among family members of the donor, Altaful Hossain, Kaniz Fatima Hossain, Nasreen Hossain, Ashraful Hossain, Anjuman Ara Hossain, Syed Afzal Hossain and Syed Arman Hossain were present on the occasion.

Barrister Rafique-ul-Huq further said the under-construction Ahsania Mission Cancer Hospital at Uttara is almost at the final stage. It is expected that by 2009 it would be possible to start the first phase of this hospital and render treatment services. A big amount of money is needed to complete the remaining work of the under construction Ahsania Mission Cancer Hospital. For this, he appealed particularly to businessmen, professionals and benevolent donors to come forward.

Expressing his feeling Barrister Ajmalul Hossain QC hoped that the hospital would play a significant role in the field of cancer treatment for poor and needy patients in the country.

For this donation, four two-bed cabins will be inscribed in the name of his deceased father Barrister Asrarul Hossain and mother Rabia Hossain.

Transactions thru' electronic cash registers at shops begin: 3000 large, medium shops start operation of ECRs

NATION BUSINESS REPORT

More than 3000 large and medium shops under the country's six city corporations started operating their business transactions through electronic cash registers (ECRs) from yesterday.

The government made the installation of ECR mandatory aiming to enhance the VAT collection.

Businesses in district towns will come under the purview of this rule from July 1, 2009.

Most of the big business houses already installed ECRs in their establishments. Selling and import data of ECR machine show that a number of businesses under city corporation areas have already purchased the machines which went on operation from the first day of the new year.

The government has issued order to increase collection of value added tax (VAT) from service sectors. Collection of sales tax from service sectors is poor compared to its growth due to non-recorded data.

Once the ECRs are installed, the procedures for tax collection from business houses will be easier due to transparent sales data, VAT officials said.

It will also help check concealment of actual income for evading income tax, they added.

The National Board of Revenue (NBR) has carried out a massive campaign in six divisional cities during the last 15 days to familiarise the concept of ECR.

The NBR has received a satisfactory response from the business houses in this connection.

Six seminars, workshops and several exchange sharing meetings have been held with stakeholders, shop owners' associations, chambers and business community on introduction of ECR.

Under VAT law 1991, the NBR could initiate legal action against the businesses for non-compliance of its order but it will adopt a flexible and polite approach in the first phase on inspecting the business houses and shopping malls.

Month-long DITF likely to draw 40 lakh visitors

NATION BUSINESS REPORT

The 14th Dhaka International Trade Fair began at Sher-e-Bangla Nagar in the city from yesterday with offering an opportunity of sale and purchase of industrial and household goods and products.

President Iajuddin Ahmed inaugurated the month-long fair yesterday.

The Export Promotion Bureau under the Commerce Ministry organising the fair with the objective to provide opportunities to new manufacturers to compare their products with those by foreigners in terms of quality and price at the trade extravaganza.

This year, as many as 22 business organisations from 12 countries are taking part in the fair where the bureau has given allotment to 467 organisations for setting up stalls and pavilions, mostly from Bangladesh. The countries participating in the fair are Sri Lanka, the USA, Germany, Japan, Singapore, Thailand, China, Turkey, India, United Arab Emirates, Malaysia and Pakistan.

The fair remains open from 10:00am to 10:00pm every day while the entry fees have been fixed at Tk 12 for adults and Tk 7 for children.

The Export Promotion Bureau, which has spent Tk 7.5 crore for holding the fair, hopes that this year's fair would attract about 40 lakh visitors. Apart from shopping, there will have facilities for taking foods, rest, utility services and mother and children centres at the fair venue.

The products to be displayed at the fair include textile and garments, leather and leather goods such as footwear, machinery, carpets, cosmetics and beauty aids, electrical and electronic items, food items, gift and novelty items, handicrafts, household appliances, furniture, building materials, sports goods, sanitary ware, toys and stationery and watches, clocks and jewellery.

Best Air announces 44pc cut of fuel surcharges

NATION BUSINESS REPORT

The fuel surcharge that would be axed for tickets issued on or after Thursday, January 1, 2009 would be almost US$35 per sector.

Farhad Hossain, Director Marketing and Sales said, 'From 1st January, 2009, 50 per cent of fuel surcharge would be deducted for all Best Air bookings.'

He also mentioned that despite recent falls in oil price, the airline's fuel costs were still higher than when surcharges were first introduced last year. Even then considering the passenger right to benefit from the downfall of the world fuel price Best Air has taken this decision.

'Fuel cost remains a major burden to our business and, even with surcharges, we have absorbed significant amounts of the additional record fuel costs incurred in 2008,' he said.

Oil was trading as low as $US32.40 on December 19, but on December 31 it picked up to $US40 a barrel, an increase of more than 20 per cent. Despite all these in view Best Air will always endeavor to bring passenger satisfaction to the maximum.

Best Air fuel bill for 2009 will be lower than the last financial year, he predicted.

Sk Kabir elected chairman of Sonar Bangla Insurance

Sheikh Kabir Hossain and M Moazzam Hossain have unanimously been elected chairman and vice-chairman respectively of Sonar Bangla Insurance Limited.

The election was held at the 68th meeting of the board of directors of the company at its head office in the city recently, said a press release.

Sheikh Kabir Hossain is the vice-chairman of Islamia Eye Hospital in Dhaka. He was the chairman of Bangladesh Red Crescent Society and Holy Family Red Crescent Medical College.

Moazzam Hossain is a businessman and industrialist. He is the chairman of Ekushey Homes Limited, Aster Apparels Limited, E-Securities Limited, People's Investment Limited, Admiral Bricks & Ceramics Limited and Agrovita Limited.

Delta Life Insurance signs construction consultancy deal

NATION BUSINESS REPORT

Delta Life Insurance Company Limited (DLICL) signed a consultancy services agreement on December 30 last with Vaastukalpa Architects Ltd for construction of a 20-storied building for their divisional office at Bhandary City, Katnarpara, College Road, Bogra.

DLICL Managing Director Das Deba Prashad and Project Coordinator of Vaastukalpa Architects Ltd SM Nazimuddin signed the agreement of behalf of their respective companies.

Among others, DLICL Board of Directors Chairman Syed Moazzem Hussain, Director and Chairman of Building and Claims Committee Nurul Huda, Building Committee Members Dr. Syed Mukarram Ali, Dr M Raushan Ali, Mohd Syedul Islam, Muyeenuddin Siddiqui, Mrs Farida Mostafa and Badrul Alam, DMD ABM Saiful Haque, Company Secretary Sultan-ul-Abedin Mollah and Project Director and EVP Brig Gen M Mosharraf Hussain were present at the signing ceremony.

DCCI board of directors meet Commerce Adviser

NATION BUSINESS REPORT

The newly elected Board of Directors of the Dhaka Chamber of Commerce and Industry (DCCI) led by its President Zafar Osman met Commerce Adviser Dr Hossain Zillur Rahman at his office in the Secretariat on December 31 last. Commerce Secretary Firoz Ahmed was present at the meeting.

Senior Vice-President M.S. Shekil Chowdhury and Vice President Sirajuddin Malik of DCCI were in the delegation.

During the meeting a wide range of issues including world economic slowdown and its impact on Bangladesh came up for discussion.

The Commerce Adviser praised the role of DCCI in development of trade and commerce of the country and expressed his hope that DCCI would continue upholding the interest of the SMEs as this constitutes the backbone of the country's economy.

He recalled his interactions with DCCI on various occasions and praised the dynamism of its leadership.

He hoped that DCCI would come up with innovative concepts and proposals in the formulation of various national policies in future as it had done in the past.

DCCI President Zafar Osman expressed his thanks on behalf of the board of directors for the continuous support and cooperation that DCCI has been receiving from the Ministry of Commerce in general and Commerce Adviser in particular.

He also thanked the Adviser for his role in bringing the political parties on the road to democracy and election.

IIBL board meeting held

The 98th meeting of the board of directors of Islami Insurance Bangladesh Limited was held recently in the head office of the company at BIWTA Bhaban, Motijheel C/A, Dhaka.

Alhaj M Tajul Islam, Vice Chairman of the company presided over the meeting. The meeting was attended by other members of the board viz Alhaj Md Ismail Nawab, Vice Chairman, Tofazzal Hossain, Chairman Executive Committee, Abdul Halim, Director, Nur Mohammad, Director, MA Hannan, Director and Managing Director (c.c.) Md Mujibur Rahman.

The meeting discussed the business position and performance of the company. After evaluation of different programmes and administrative efficiency as well as reviewing performance, the meeting made some important decisions for the improvement of the business of the company.

Future Group begins professional courses

NATION BUSINESS REPORT

Future Group starts various courses from January 2009 for students and professionals with a view to breaking down the barriers of traditional teaching methods.

Future Group is an education based group of companies who have offered some innovative and unparalleled courses such as call centre training, Certificate in Photography, Radio Jockey, TV and Radio news presentation training, IELTS Training and other language related courses.

The Future Group is planning to publish some international standard books, educational CDs and softwares which would revolutionise the existing teaching-learing situation.

BTRC drive soon against illegal ISPs, CCSPs

Bangladesh Telecommunications Regulatory Commission (BTRC) will soon start its drive against the unauthorised Internet Service Providers (ISPs) and Cyber Café Service Providers (CCSPs).