Business Supplement

4
Sunday, July 30, 2017
DT
Week in Review
Corporate News
5
Sunday, July 30, 2017
DT
BB lowers private sector credit target
The central bank lowered its target
for credit growth in the private sector
on July 26 amid a sluggish investment
trend.
Bangladesh Bank (BB) reduced the
private sector credit growth target to
16.3% in its monetary policy statement
(MPS) for the July to December (H1)
period of fiscal year 2017-18.
The target was 16.5% in the second
half of the last fiscal year, which ended
on June 30.
After discussing with stakeholders
and economists, BB Governor Fazle Kabir
announced the monetary policy at the
central bank’s headquarters on July 26.
He said the bank was targeting
12.1% credit growth in the public sector
and an overall domestic credit growth
ceiling of 15.8%.
“We have set 15.8% as domestic
credit growth because the credit flow
in the last fiscal was lower than the set
target,” the governor said.
The credit growth has only been
lowered for the public sector, not the
private sector. The Exporters Association
of Bangladesh (EAB) president,
Abdus Salam Murshedy, was critical of
the central bank policy.
“Both the exports earnings and
private sector investment growth are
showing little growth, but Bangladesh
Bank has contracted the credit growth
target in its monetary policy for the
next six months,” he told the Dhaka
Tribune.
“If Bangladesh Bank increases the
credit growth, it will encourage both
banks and investors to disburse more
and expand businesses.”
When journalists asked the governor
whether the MPS is contractionary,
since the credit growth target has been
lowered, the response came from a
deputy governor.
Deputy Governor SK Sur Chowdhury
replied: “The recent rise in foodstuff
prices are an omen for inflation.
Hence we have set the domestic credit
growth target at 15.8% (but) it will be
adjusted if needed.”
Fazle Kabir said the policy will help
the Bangladesh economy to achieve
7.4% GDP growth at the end of the
current fiscal year, while limiting the
inflation rate to 5.5% as per the government
target in the budget for this
fiscal year.
Dhaka Tribune
The inflation rate at the end of last
FY stood at 5.4% against the pre-set
target of 5.8%.
The governor also suggested that
in order to meet the budget deficit, the
government should increase borrowing
credit for state-owned banks, and cut
dependency on national savings certificates
by lowering the existing interest
rate on NSCs and fixing a ceiling for
their sales. •
Offshore
banking units
credit exceeded
$6bn in 2016
Bangladesh’s private sector borrowing
from foreign banks through the
country’s private commercial banks’
offshore units jumped to $6.26bn
in 2016 rising 31% from $4.7bn in
2015, said a report released by the
Bangladesh Institute of Bank Management
(BIBM) on July 27.
According to the report, the
country’s foreign borrowing totalled
$1.58bn in 2012, which increased
to $2.03bn in 2013 and $3.78bn in
2014.
A six-member team led by BIBM
Research Director Shah Md Ahsan
Habib presented the report titled
“Prospects and Challenges of Shortterm
Foreign Currency Financing of
Bank” at a workshop organised at
the BIBM premises.
Individuals or institutions can
take short-term foreign loans
through offshore units of commercial
banks.
Usually, the loan is taken deferring
the payment against letters
of credit. The tenure of the loans
tends to be one year and the rate of
interest a maximum of 6%.
The multinational companies
and garment factories take most
of the foreign loans through the
offshore units, said the report. •
Bangladesh Export Processing Zones Authority (BEPZA) and MRDI have jointly organised a training
programme on financial management in Dhaka for creating awareness among female workers of EPZs, said
a press release. Chief engineer of BEPZA, Md Ashraful Kabir was present at the programme among others
Dhaka Bank Limited has recently signed an agreement with RAK Ceramics (Bangladesh) Ltd on
providing cash management services to the distributors of RAK Ceramics, said a press release. The
bank’s managing director, Syed Mahbubur Rahman and SAK Ekramuzzaman, managing director of RAK
Ceramics (Bangladesh) Ltd have signed the agreement
Meghna Pulp and Paper Mills Ltd has recently made its first export consignment to Nepal, said a press
release. An inaugural ceremony was held in this regard, which was inaugurated by Tanveer Ahmed
Mostafa, director at Meghna Group of Industries
Pubali Bank has recently held a fundamental training course, said a press release. The bank’s managing
director, Md Abdul Halim Chowdhury was present at the inaugural ceremony as chief guest
No bidders in Sonali Bank’s Hallmark auction
The state-run Sonali bank has found
no bidder during an April auction
to sell five corporate entities of the
little-known Hallmark Group, while a
new auction will be held for Hallmark
Spinning Mills next month.
The five bids aimed to bag
Tk340.24 crore for the bank while the
new one will be auctioned at Tk125.23
crore, official sources said.
Sonali bank monthly progress
report sent to the Financial Institutions
Division on Recovery of Money from
Hallmark Scam revealed the fact.
The auction for fund raising came
years after the Hallmark sister concerns
failed to repay loan obtained through
forgery and also after decree issued by
Artho Rin Adalat.
A source in the Financial Institutions
Division said the state-run bank has
already informed the division that it did
not find any bidders for five scam-hit
firms of Hallmark.
The bank can put bids for another
two times, added the source.
An unholy nexus is working behind
scene so that no bidders show up,
added the source.
The Anti-Corruption Commission
has started investigation into the Sonali
Bank’s illegal lending of Tk3,547 crore
to Hallmark Group and other companies,
and those involved in the scam.
The amount embezzled by the six
entities of Hallmark Group is equivalent
to almost 15% of the total estimated
cost of the $2.9 billion Padma Bridge
project.
Of Tk3,547 crore, Hallmark Group
alone took away Tk2,686.14 crore.
The bidders have not shown any
interest to buy the Hallmark sister
concerns – Hallmark Accessories limited
currently valued at Tk14.41 crore,
Hallmark Style Limited Tk13.09 crore,
Hallmark Packaging Limited Tk2.15
crore, Bobi Denim Composite limited
Tk13.09 crore and Wall-mart fashion
Limited 297.54 crore.
The two other Hallmark business
entities that will also go for auctions
are Hallmark Fashion Limited valued
at Tk586.77 crore and Bobi Flatbed
Printing Limited Tk16.93 crore.
Sonali Bank Chairman Md Ashraful
Moqbul termed the progress of Hallmark
case satisfactory.
Asked more about it, he said officials
handling the cases will be able to
tell more about it.
Prof Dr Toufic Ahmad Choudhury,
director general of BIBM, said: “It is a
good news that Hallmark properties
have gone for auction against its big
chunk of loan obtained through massive
forgery from the country’s largest
state-owned bank.” •
Workshop on Ideation and
Project Planning held in city
An inter-university workshop on social
project development was held in a city
hotel in the capital recently.
Casper Foundation – a non-profit
organisation working with local universities
on innovative and sustainable
social outreach projects – hosted
the event titled “Ideation and Project
Planning” sponsored by Paradise
Cables Limited and East Coast Group.
The Dhaka Tribune and Radio
Foorti 88.0FM were the exclusive
media partners for the event.
The workshop was designed to
provide its participants with knowledge
and information on Idea generation,
developing needs assessment
and project planning.
A total of five universities participated
in the event. The five are BRAC
University, Eastern University, University
of Liberal Arts, East West University
and United International University.
The workshop had three sessions
focusing on factors coming across before
idea development, interactivity
between participants and innovative
sustainable ideas necessary social
development.
Riasat Alam, manager, Private Sector
Engagement, iDE Bangladesh, and
Taufiq uz Zaman, CEO and Founder
– Casper Foundation, conducted the
workshop. •
National Bank Limited has recently inaugurated an ATM booth at its Goalchamat branch in Faridpur, said
a press release. The bank’s director, Md Mahbubur Rahman Khan inaugurated the booth
BRAC Bank Limited has recently organised a workshop on cyber security and financial crimes in
contemporary banking system in Dhaka for Additional Superintendent of Police, said a press release.
The bank’s managing director, Selim RF Hussain and Masud Karim, director (training) at Police Staff
College Bangladesh were present at the programme
Bangladesh Research and Education Network (BdREN) under Higher Education Quality Enhancement
Project (HEQEP) in association with University Grants Commission (UGC) has recently organised a
training programme on system administration on Linux platform, said a press release. Chairperson of
UGC, Professor Abdul Mannan was present at the inaugural session as chief guest
Green Delta Insurance Company Limited has recently held its 32nd half yearly business conference, said
a press release. The company’s chairperson, Md Abdul Karim was present at the conference
Social Islami Bank Limited has recently held its 398th board meeting, said a press release. The bank’s
chairperson, Major Dr Md Rezaul Haque (retired) presided over the meeting
Federal Insurance
Company Ltd has
recently re-elected
its chairperson, Elias
Siddiquee and its vicechairperson,
Alhaj Md
Abdul Khaleque, said a
press release