BB’s Automated Clearing House begins trial run

http://www.newagebd.com/2009/nov/09/busi.html#2

BB’s Automated Clearing House begins trial run
United News of Bangladesh . Dhaka

Bangladesh Bank on Sunday launched the trial run of newly introduced Automated Clearing House, as part of its move to digitalise the country’s banking system.

Under the new automated system, banks will not need to send their cheques physically to the clearing house at the central bank for effecting fund transfer. Now the banks can do the job online from their own offices using machine readable cheques and the funds will be transferred electronically.

However, the banks can also drop their cheques at the ACH at Bangladesh Bank where the machine can take image and data of 300 cheques per minute.

The new magnetic ink character recognition encoded cheques have already been introduced by different banks to integrate with the new system. The encoded cheques will reduce the cheque clearance time to only two hours from the two days required so long.

Initially, the new ACH will run for about 1100 branches of different banks within the Dhaka city. Gradually all the branches across the country will come under the new system.

Bangladesh Bank is implementing the ACH with $8.5 million financial support of the DFID, UK.

Formally launching the trial run of the new ACH system, Bangladesh Bank governor Atiur Rahman said the new system would take few months to be fully operational.

On the first day, three banks — Dutch Bangla Bank, Janata Bank and Dhaka Bank — commenced their online cheque clearing.

The BB governor said the trial run of ACH would continue until all the banks were ready to be integrated into the new system.

He noted that so far 35 of the 39 banks, both private and state-owned, completed all preparations to introduce the new system.

The central bank governor hoped that the rest of the banks will complete their preparations within few months to get the new ACH system fully functional.

He said the main benefit of the new ACH system will go to the business firms and to the remittance earners as they will get their payments within a day instead of waiting for days.

This will facilitate the online banking as well.

‘ACH system is based on latest state-of-the art technology. It’s a most secured system,’ he said.

The BB governor also said the existing clearing system would also continue alongside the new one.

He said the new automated system will contribute one per cent to the GDP through expediting the business transactions.

The function at the central bank was also addressed by deputy governor Ziaul Hasan Siddiqui, ACH project director Chowdhury Mohidul Haque and DFID Bangladesh chief Chris Austin.

A BRAC Bank press release on Sunday said the bank today starts the systems integration testing with the central bank for the Bangladesh Automated Clearing House.

BRAC Bank has been short-listed by the Bangladesh Bank for the BACH project to go live as a pilot basis. BRAC bank has been keeping the pace of developments to meet up the deadline of Bangladesh Bank, the release said.

MoU for postal money order thru’electronic fund transfer signed

http://www.thefinancialexpress-bd.com/2009/11/08/83705.html

MoU for postal money order thru’electronic fund transfer signed
Bangladesh Post Office has recently signed a memorandum of understanding (MoU) with Information Technology Consultants Ltd (ITCL) for introducing postal money order service through Electronic Fund Transfer (EFT) solution.

M Mobasherur Rahman, director general of Post Office, and Kazi Saifuddin Munir, managing director and CEO of ITCL, signed the MoU on behalf of their organisations.

Among others, AKM Rafiqul Alam, additional director general (Postal Service) and AKM Rafiqul Islam, director (Mails) of the post office, and Zubaer Ahmed, senior executive officer of business development, and Nurul Huda, relationship manager from ITCL, were present in the signing ceremony.

Turnover may rise to Tk 3,000cr by year-end, says DSE chief

http://www.thedailystar.net/newDesign/news-details.php?nid=113091

Turnover may rise to Tk 3,000cr by year-end, says DSE chief
Bss, Dhaka

Daily turnover on Dhaka Stock Exchange may increase to Tk 3,000 crore by year-end if the current trend of investor confidence continues, said DSE President Rakibur Rahman yesterday.

Participants of the seminar were also optimistic about a stronger and more stable capital market when they discussed a new system of raising capital through issuing primary shares.

DSE organised the seminar in the city, bringing in stock-market stakeholders, experts and potential issuers together to discuss the potentials and the problems of book building methodology, a new system of determining the issue prices of an initial public offering.

Most participants have seen the new system as a supportive tool to ensure long-term stability and transparency in the capital market.

The DSE president was seemingly upbeat while making his opening remark before a big gathering of capital market experts, stockbrokers, present and potential issuers, merchant bankers and high officials of the stock market watchdog.

He observed that investor confidence had got the stronger ground, shrugging off all confusion and fear.

“We used to be scared to see the index beyond 3000-mark or the daily turnover above Tk 1,000 crore. But the situation had changed and the index remained stable over 3,000 points for a while when the October average of daily turnover was Tk 1,200 crore,” he said.

Rahman dismissed any confusion about the present bullish trend. “The market is on the right track,” he said.

Rahman suggested the government increase the inflow of good shares to keep the trend up by balancing demand and supply of shares.

“The government does not require doing business in hospitality, aviation and other services sectors, rather it can get more return by offloading shares from such public-run organisations,” the DSE president observed.

DSE to introduce online trading

http://www.newagebd.com/2009/nov/04/busi.html#1

DSE to introduce online trading
Staff Correspondent

Dhaka Stock Exchange will introduce internet-based trading system within six months to expedite stock trading.

‘For a fast moving market, it is needed to introduce the system,’ DSE president Rakibur Rahman told reporters after a meeting with the US ambassador James F Moriarty at the bourse’s auditorium Tuesday.

‘We’ll try to introduce the internet-based trading system by six months,’ he said.

Internet-based or online trading system means buying and selling stocks by giving the order though internet, usually on a broker’s form. In this system, buy or sale confirmation is done by mail or e-mail.

The DSE president said the settlement period would also be reduced to one day from existing three days if commercial banks launch online money transaction from one bank to another by December in compliance of the central bank’s directive.

On Monday, Bangladesh Bank issued a circular that said from now onwards the subscribers would be able to pay utility bills online from their bank accounts and also transfer funds to other banks. It added that transactions between buyers and sellers can also take place online, enabling e-commerce facilities in the country.

Through the online trading system, anybody can observe the market situation on the internet and place buy and sale order through one’s respective broker.

Quoting the US ambassador the DSE chief said, ‘He appreciated the development of the Bangladesh stock market and called to enhance transparency and accountability in the market to protect the small investors’ interest.’

Stock index soars to new high

http://www.thedailystar.net/newDesign/news-details.php?nid=112429

Stock index soars to new high
Star Business Report

The benchmark index of the premier bourse crossed the 3,400-point mark for the first time yesterday, riding on banking stocks as most banks posted better-than-expected quarterly financial results.

The DSE General Index (DGEN) gained 20.89 points, or 0.61 percent, finishing the day at 3,412.92.

The listed banks were disclosing their financial statements for the third quarter to September 30, 2009 during the last few days.

“The banking sector gained the most today [yesterday] following good third quarter results,” said an analysis by Brac EPL, an investment bank.

Among the biggest gainers, Dutch-Bangla Bank advanced by 8.18 percent, while Uttara Bank by 10.40 percent and NCC Bank by 5.53 percent.

Prices of the banking stocks, the bellwether of the market, remained low for a long time on concern of negative impact on their earnings in the wake of global recession.

But the third quarter results led the sector to rally, said a Dhaka Stock Exchange member.

The broader DSE All Share Price Index increased 17.68 points, or 0.62 percent, to 2,853.71.

The Gainers and losers were similar in number as 116 went to the positive territory, while the same were in the red side. Three securities however remained unchanged.

A total of 3,34,24,897 shares and mutual fund units worth Tk 951.78 crore were traded on the Dhaka bourse.

Titas Gas topped the turnover leaders with 10,59,000 shares worth Tk 74.29 crore being traded.

Uttara Finance, that rose 10.85 percent, was the biggest gainer on the DSE, while Bangas was the top loser that declined 9.98 percent.

Chittagong stocks also posted rise yesterday. The CSE Selective Categories Index gained 35.6 points, or 0.48 percent, to 7,389.71. The CSE All Share Price Index increased 54.7 points, or 0.46 percent, to 11,730.4.

A total of 49,64,266 shares and mutual fund units worth Tk 94.27 crore changed hands on the Chittagong Stock Exchange. Of the traded issues, 71 advanced, 85 declined and two remained unchanged.

Saiham Textile Mills, which went up by 16.98 percent, was the largest gainer, while Mercantile Insurance that declined by 15.25 percent was the biggest loser.

AB Bank topped the turnover leaders with 75,125 shares worth Tk 7.05 crore being traded on the port city bourse.

Financial sector logs hefty profit

http://www.thedailystar.net/newDesign/news-details.php?nid=112427

Financial sector logs hefty profit
Sajjadur Rahman

Bangladesh’s financial sector has recorded impressive profit growth in the first three quarters of 2009, showing strong resilience against fallout from global recession.

The sector — both banks and non-banks — posted 30 percent growth in net profit in the January-September period, compared to the same period a year ago.

Sector people linked the growth to a booming capital market, growth in remittances and a revival of congenial investment climate in the third quarter.

“Institutions with operations in capital market have achieved substantial gains this year,” said Mafizuddin Sarker, managing director of LankaBangla Finance, a joint venture leasing and finance company.

LankaBangla Finance’s net profit grew nearly 45 percent to more than Tk 52 crore for the first three quarters, compared to the same period of 2008.

Pubali Bank’s net profit rose 25 percent to Tk 90 crore in the first three quarters from the same period a year earlier.

“Capital market operation has contributed substantially to growth,” said Helal Ahmed Chowdhury, managing director of the bank, a relatively a new entrant to the capital market operations.

Most banks out of the 48 banks and 29 non-bank financial institutions have achieved significant growth during the period, offsetting fears that the global economic slowdown would cost Bangladesh and its financial sector heavily.

These financial institutions are the prime source of funding for investment in industries and trade.

AB Bank, one of the largest private banks, has logged Tk 210 crore in net profit in the Jan-Sept period of 2009, up from Tk 181 crore in the same period a year ago.

Of the banks, Eastern, IFIC, First Security, Prime, Mutual Trust and Mercantile also grew by double-digit rates during the period. Islami Bank’s profit grew only 4 percent, which is negative for Premier Bank.

Eastern Bank’s net profit increased by 60 percent to Tk 115 crore in the first three quarters of the current year from the same period of last year, while it is Tk 62 crore for IFIC Bank, up from Tk 50 crore a year ago.

First Security Islami Bank earned Tk 21 crore in net profit, up from Tk 8 crore in the same period a year ago.

Net profit of the non-banks that include IDLC, Union Capital, Phoenix Finance and Investment, Uttara Finance and Prime Finance and Investment grew significantly in the period.

IDLC’s net profit increased by 55 percent to Tk 45 crore in the period. Prime Finance’s profit rose to Tk 41 crore from Tk 24 crore, Union Capital rose to Tk 11.24 crore from Tk 9 crore, Phoenix rose to Tk 14.36 crore from Tk 9.15 crore, Uttara Finance Tk 34.5 crore from Tk 23 crore.

“Banks and financial institutions have been optimising the still-untapped opportunities in the capital market,” said Anis A Khan, managing director of Mutual Trust Bank that has recorded 252 percent growth in net profit during the first three quarters of 2009.

Mutual Trust Bank’s net profit reached nearly Tk 37 crore this year from Tk 10.5 crore a year ago.

“Our capital market is still underserved compared to the total economy. There is ample scope to grow up,” Khan said.

sajjad@thedailystar.net

Bangladesh Bank introduces online payment system

http://www.thedailystar.net/newDesign/news-details.php?nid=112433

Banking enters new era
Bangladesh Bank introduces online payment system

Rejaul Karim Byron and Nafid Imran Ahmed

Hassles are about to be over. Shoppers will no longer have to go to market spending hours in traffic jams. One does not need to stand in long queues to pay utility bills. All are now possible on the internet.

Bangladesh Bank yesterday introduced online payment systems facilitating fund transfers and payment of utility bills on the net. The new move allows people to use local currency credit cards for online transactions within the country.

Although these services are being introduced on a smaller scale, it is seen as the first step toward a full-fledged online banking.

This move will certainly enhance the use of e-commerce and online banking services facilitating subscribers of all commercial banks in Bangladesh.

The central bank issued a circular to all commercial banks saying subscribers to internet banking will now be able to pay utility bills online from customers’ accounts to billing accounts.

“This will create a revolution in e-commerce and online banking,” said Bangladesh Bank Governor Dr Atiur Rahman.

Online fund transfer between two accounts under the same name in the same bank will also be possible.

The circular mentioned that e-commerce-based transaction between buyers and sellers can also be done through internet banking. Online transactions by credit card in local currency will also be possible.

“This is the first and the most significant step towards electronic transaction in the country,” Munir Hasan, consultant, Access to Information (A2I) project under the Prime Minister’s Office, told The Daily Star.

Vice Chairman of Association of Bankers Bangladesh Nurul Amin, also managing director of National Credit and Commerce Bank Ltd, said: “Banks need to be prepared for offering such services. Customisation and integration are necessary for this purpose.”

Security measures along with a legal framework need to be put in place to safeguard both customers and banks, he added.

These transactions will only be possible now within the accounts under the same bank offering online banking.

Online transaction between banks will be possible with the introduction of e-Payment Gateway, an e-commerce application service provider service that authorises payments for e-businesses and online retailers.

Bangladesh Bank had taken the initiative to implement the e-Payment Gateway back in 2008.

According to a report, the system should be ready for deployment within the next six to eight months and is expected to be operational at the beginning of the next financial year.

“We collect payment manually from 300-400 clients every day. The system consumes huge time and money. Now we are ready to start online payment collection on a pilot basis. We were waiting for this to happen for quite long,” said Fahim Mashroor, chief executive officer of Bdjobs.com.

Shoeb Ahmed, former general secretary of Bangladesh Association of Software and Information Services, also appreciated the initiative.

He said, “Banks are probably ready for this. But stakeholders and government bodies should be prepared for online banking, otherwise it might not be utilised properly.”

Shoeb said they proposed that the government establish a central payment gateway.

Physical credit and debit card payments are available across the country. Banks need to introduce Application Programme Interface (API) to implement the online credit card payment system. API ensures secure payment on the internet by providing both credit card and PIN numbers.

All banks have been advised to remain alert to the misuse of online payment system for money laundering. They will have to report to the financial intelligence unit on whether any irregularity or crime has been committed in violation of the anti-money laundering act.

Ctg entrepreneurs showing interest in stock market

http://www.thefinancialexpress-bd.com/2009/10/29/82839.html

Ctg entrepreneurs showing interest in stock market

Kayes M Sohel

from Chittagong

Reputed entrepreneurs of Chittagong are gradually looking at the stock market as an alternative source of fund mobilization for their new business set-ups and the on-going 3rd CSE Capital Market Fair is giving them the opportunity to gain the knowledge.

Experts see their interest on stock market as a sign of enrichment and depth of the country’s stock markets as the cheaper source of fund raising than banks.

“Stock-market is the cost-effective and tension-free means to finance new-business set-ups and expansion,” Abdus Salam, senior vice-president of Chittagong Chamber of Commerce and Industry (CCCI), told FE.

“Usually, entrepreneurs like me go to the banks and other financiers for taking credit at higher interest rate and after getting loans, they always remain in tension to repay the loan in time before going into production,” said Mr. Salam, also a reputed industrialist in Chittagong.

“If I, as an entrepreneur, raise funds from the stock market at low interest, then there is need for me to go to the bank,” he said.

The CCCI boss also said, “Initiatives have also been taken to encourage other entrepreneurs to list their industries with the stock exchanges.

He, however, said the rules and regulations should be industry-friendly so that the entrepreneurs can easily raise capital from the stock market.

Ziaul Haque Khondker, chairman of Securities and Exchange, inaugurating the Third CSE Capital Market Fair at the Chittagong Club auditorium previous day called upon the big Chittagong-based companies to list with the stock exchanges.

Although some big companies from the region such as S Alam Group and BSRM are listed, there are many others yet to be listed.

PHP, KDS, Mostafa Group and BSA are some of the big Chittagong giants that are not listed with the stock exchanges, although they often borrow from the banking sector or other financiers.

Mohammed Akther Parvez, director of PHP Group, said they are already in process to list some of their companies with the stock exchanges.

“PHP Float Glass Industries would be listed first,” he said, adding that they are also working to bring products such as mutual fund for the stock market.

Saiful Alam Masud, chairman of S Alam Group, said the SEC’s plea will encourage many Chittagong-based entrepreneurs to raise fund from the stock market. “They (entrepreneurs) will start thinking about the issue.”

“Listing of big industries will increase the market depth further. Not only that, both the entrepreneurs and investors will be benefited,” he said.

Meanwhile, the two-day capital market fair, organsied by Chittagong Stock Exchange, ended yesterday with huge response.

A total of 30 institutions, including CSE Brokerage firms, merchant banks, leasing companies, banks and other CSE listed companies with their products and services participated in the fair.

Foreign investors urged to seize scope of raising funds from domestic sources

http://www.thefinancialexpress-bd.com/2009/10/29/82833.html

Foreign investors urged to seize scope of raising funds from domestic sources

FE Report

Bangladesh offers immense opportunities for raising funds from banks and other domestic sources for necessary business expansion, said former finance and planning adviser to caretaker government Dr AB Mirza Azizul Islam at a seminar Tuesday.

“The country’s banking sector was not exposed to the toxic items that led to the global financial meltdown, and the capital market here is one of the best performing markets around the world,” he said.

Bangladesh’s capital market is vibrant and sound, its capitalisation accounts for around 21 per cent of the gross domestic product (GDP), while the banking sector has escaped the fallouts from the global meltdown, he said.

Urging the German entrepreneurs to invest in a number of prospective sectors here including manufacturing, agro-processing, telecommunication, energy, transport and water resources, Dr Islam said the country has a liberal foreign direct investment (FDI) policy, which ensures full repatriation of investment.

The former adviser was speaking as the special guest at the seminar on ‘Investment climate and economic prospects for Bangladesh,’ organised by Bangladesh-German Chamber of Commerce and Industry (BGCCI) at a city hotel.

A high-power business delegation from OAV-German Asia Pacific Business Association took part in the seminar, also attended by Chairman of Policy Research Institute (PRI) of Bangladesh Dr Zaidi Sattar.

The PRI chief identified the energy supply crunch as the country’s main constraint for achieving rapid growth.

“The country has been maintaining a GDP growth of six per cent on an average for several years, but to attain higher GDP growth of 8-10 per cent the country needs to improve the energy sector,” he said.

The GDP growth would not be sustained without developing the energy sector, said Dr Sattar, a former World Bank senior economist.

He said non-integration of the country’s financial system with the global system might be a weakness too, as they were losing a lot of opportunities due to it.

The country might require investments worth US$50 billion in next 10 years. Increased investment from the public sector and FDI would thus be required along with the private sector investment, he added.

“Bangladesh could be a very good destination for Germany, not only for importing goods but also for marketing their products in a large market with a population of 150 million,” said Managing Director of Citibank NA in Bangladesh Mamun Rashid.

Director of German KFW in Dhaka Christopher Isenmann said Bangladesh’s GDP growth could be beyond seven per cent, if the bottlenecks like energy supply crunch and poor transportation system could be removed.

German Ambassador in Bangladesh Holger Michael said: “Bangladesh offers plenty of new investment opportunities. There might be some problems and constraints to investing here, which could be removed with support from the BGCCI.”

Janata Bank signs online banking deal with Data Soft Systems

http://www.thefinancialexpress-bd.com/2009/10/28/82745.html

Janata Bank signs online banking deal with Data Soft Systems
FE Report

Janata Bank Limited (JBL) has signed an agreement with Data Soft Systems Bangladesh Limited (DSSBL) for supply, customisation, installation and commissioning of centralised real time online banking system for the bank by Temenos T24 Core Banking System at the JBL boardroom in the city recently, said a press release.

JBL Deputy General Manager (IT System Department) Shafiqul Alam Chowdhury and DSSBL Managing Director Mahboob Zaman signed the agreement on behalf of their respective organisations.

Also present at the signing ceremony were Janata Bank MD and Chief Executive Officer (CEO) SM Aminur Rahman and Temonos Business Dev Manager Rivindra Pathare along with directors and senior executives of the bank.

JBL Chairman Abul Barakat presided over the signing ceremony.

The JBL chairman expressed the hope that by implementing the online banking system, the bank would not only be the market leader by providing better customer service, but also be a part of Digital Bangladesh Campaign.

New bank hours

http://www.thedailystar.net/newDesign/news-details.php?nid=109927

New bank hours
Star Business Desk

The new office timing for Bangladesh Bank and scheduled banks with offices in Dhaka will be from 10am to 6pm from Sunday, the central bank said in a statement.

The banking transaction hours will be between 10am and 4pm. There will be a break from 2pm to 2.30pm for prayers and food.

Functioning hours for BB and the other scheduled banks will remain unchanged until further notice.

The cabinet approved new office timing on Monday for the capital to get rid of severe traffic congestion.

Money transfer by mobile

http://www.thedailystar.net/newDesign/news-details.php?nid=108461

Money transfer by mobile
The electronic transaction project will take off in six months

Md Hasan

Money transfer is about to go digital in six months, as Bangladesh Bank has approved the launch of an electronic prepaid card system that will have a mobile payment option.

The central bank permitted Trust Bank Ltd to act as a settlement bank for digital money transfer.

“The Electronic Prepaid Card System will be a multiple bank, multiple channel platform, where Trust Bank will act as the settlement bank,” BB said in a recent notice.

With the card, a customer will be able to deposit and withdraw cash directly from ATMs and all other channels. A card will have a secret PIN to access the service. Also, the system allows an authorised user to transact by mobile.

In case of foreign remittance, any amount could be withdrawn by prepaid card, but the amount is limited to a maximum of Tk 10,000 for now, Bangladesh Bank officials said.

In line with the central bank directive, any bank having Q-cash or a similar platform can issue prepaid cards for customers to transact money. Presently, 23 banks are linked with the Q-cash network.

Besides the prepaid card system, Eastern Bank received approval to handle international and domestic remittance transfers. Dhaka Bank is allowed to disburse foreign remittance through mobile operator Banglalink’s outlets.

Neither of the new systems allows cross-border money transfer.

Industry insiders said people would be able to easily transfer money to their loved ones at a fifth of the cost under the present system.

According to BB statistics, remittance inflows soared by 30 percent from $721.92 million in August 2008 to $937.91 million in August 2009 — a contribution of 60 lakh Bangladeshis living in parts of the world.

In a letter on September 1, the central bank approved Trust Bank to introduce the Digital Money Prepaid Card System with mobile payment facilities within the next six months, in association with Digital Technologies Ltd and Information Technology Consultant Ltd.

Under the digital money transfer system, intra- and inter-bank account-to-account transfers, transactions at ATMs through Q-cash and other similar platforms will be settled.

A digital wallet is an electronic prepaid card with mobile banking (M-banking) that utilises the ATM (automated teller machine) and all kinds of electronic communication technologies, including mobile phone.

To obtain the digital prepaid card, customers will have to fill out an application form at banks or agents. The bank will verify the customer under its ‘know your customer’ (KYC) process to issue a digital money prepaid card.

The customer’s information must match the information with the bank and the information he or she provided to telecom companies, through host-to-host connectivity.

The Q-cash host will tag the cardholder’s cellphone upon getting confirmation from the telecom host, and then the customer will be notified immediately upon successful digital money tagging.

Since the customer owns the card, he or she can transfer money and carry out transactions at a point of service (POS) at bank-approved merchant stores and service points, like gas stations, hospitals and cinema halls.

In the case of person to business payments, like utility bills, insurance premiums, loan instalments, E-top-up for mobile phones, and e-ticketing, the prepaid card will be used.

In the case of government to person payments, like agriculture subsidies, widow allowances, freedom fighters allowances, payment will be transferred through the card.

Trust Bank will have to submit contract agreements between its partners before launching the project. The pay points must be accredited by Trust Bank under an approved accreditation policy and the bank shall undertake all responsibilities of pay points.

Trust Bank will be responsible for mitigating of all kind of risks, including credit risks, liquidity risks, operational risks, fraud risks and technical risks associated with the digital money system.

Kazi Saifuddin Munir, managing director of Information Technology (IT) Consultants Ltd, said, “We are ready to initiate the prepaid card system for money transferring by December on a pilot basis.”

IT Consultants Ltd, the lone payment service operator in Bangladesh providing the Q-Cash inter-bank switching platform and connectivity, thinks that if all the banks come under a single network, remittance or any other transaction would be easier.

Munir said through a designated short mobile code number, a customer can transact money. However all transactions would be settled through the banking channel.

“The mobile application will be used to just enter the system,” he said. Banking and mobile application systems will be merged in a sense to settle the transaction.

As per the central bank notification, Eastern Bank Ltd (EBL) will conduct both international and domestic remittance by introducing three products –EBL Smart Remit Card, Smart Cash Point and Smart m-wallet.

The EBL Smart Remit Card will be a card based payment system, where senders can send money to receivers prepaid VISA card and the cash can be withdrawn using any VISA, ATM or point of service, at any appointed merchant.

EBL has not been approved transferring money from one m-wallet to another m-wallet holder.

Dhaka Bank Ltd has been approved to use Banglalink outlets for disbursement of foreign remittance. Under the approval, the bank can disburse foreign remittance through designated Banglalink outlets, which must be approved by the bank’s board.

In the remittance disbursement process, EBL and Dhaka Bank accredited cash points will be used only for delivery in local currency for inward remittance credited in Nostro accounts of the banks and not for any other inland or cross border transfer.

hasan@thedailystar.net

Country to get first ever pre-paid cash card soon

http://www.newagebd.com/2009/sep/04/busi.html#2

Country to get first ever pre-paid cash card soon
Bangladesh Sangbad Sangstha . Dhaka

The country will soon get the first ever digital pre-paid cash card as the Bangladesh Bank has decided to allow the commercial banks to issue such a modern facility in line with the vision for digitalising Bangladesh by 2021.

The central bank on Tuesday initiated the cash digitalisation process with the approval of a private bank’s proposal to introduce pre-paid cash card in the country.

The Trust Bank Limited, one of the leading financial institutions in the private sector, has got the permission from the central bank to introduce the pre-paid digital cash card.

People in developed countries can get the pre-paid cash card even from the post shops for all sorts of cash transactions.

In Bangladesh, initially the Trust Bank will issue the cash card and the other banks will get the similar permission later, a BB official told BSS here today.

The Trust Bank Limited in July this year formally sought the approval of BB for the cash card, which the bank will introduce in association with two other private companies-Digital Technologies Limited and Information Technology Consultant Limited.

Digital Technologies Limited will provide Trust Bank with the platform for mobile payment while Information Technology Consultant Limited furnish inter- bank switching and connectivity provider.

The central bank in a letter on Tuesday told the Trust Bank to introduce the cash card within six months from the date of approval.

The official said the pre-paid cash card could be used for withdrawal of cash from automated teller machine, bill payment, transactions at point of sale (POS) and for inter-bank and intra-bank account transfer.

The Trust Bank will set its rules and regulations for issuing the card to the interested people. The rules and regulations, however, will be easier than issuing debit and credit cards.

The pre-paid cash card will allow people to do their daily financial transactions without risking on carrying cash.

Remittance drives banks to open exchange houses abroad

http://www.thedailystar.net/newDesign/news-details.php?nid=101148

Remittance drives banks to open exchange houses abroad

Sajjadur Rahman

Private commercial banks (PCBs) are scrambling to open exchange houses abroad to cash in on increasing business driven by inward remittances, officials said.

At least half a dozen banks sought permission from Bangladesh Bank to open nearly 10 exchange houses in remittance destinations, such as Canada, Italy, Singapore and the UK, central bank officials said.

Currently, eight local banks — including the state-owned four — have 28 exchange houses abroad, BB data shows.

“Exchange houses will help rout more remittances through the banking channel,” said Shah Alam Sarwar, managing director of Premier Bank that has sought to open exchange houses in Singapore and the UK.

Bangladesh received $9.67 billion in remittance in fiscal 2008-09 despite the recession that hit many countries. The World Bank has projected that Bangladesh’s inward remittances for the current fiscal year may reach $11 billion.

Bankers and experts believe a huge amount of remittance is flowing through an informal channel popularly known as hundi for its faster and cost-effective services.

The central bank encourages banks to open their own exchange houses in foreign countries to send in more remittances through the banking channel. The BB has also allowed the banks to team up with local nongovernmental organisations to fast-track services to remittance beneficiaries.

“As part of the move, the BB is a bit more flexible than before in allowing banks to open exchange houses,” said a BB official, asking not to be named.

Earlier, state-owned banks had the monopoly in opening exchange houses. The PCBs had to rely on drawing arrangements (DA) with exchange houses abroad.

Currently, 40 banks have over 800 DAs with 280 exchange houses in different countries, but the BB official said DAs alone cannot boost the flow of inward remittances.

“If a bank has its own exchange house it gives remitters a morale boost,” said Shah Alam Sarwar of Premier Bank.

PCBs which have applied to the central bank to open their own exchange houses are: First Security Islamic Bank for Canada and Italy, Prime Bank for the UK, Premier for Singapore and the UK, and EXIM Bank.

EXIM has applied to open a number of exchange houses in different countries, the BB official said without disclosing the numbers and countries.

“Bangladeshi banks have no exchange houses in Korea, Japan, Australia and some East European countries due to strict regulations there,” said the BB official.

sajjad@thedailystar.net

IBBL registers phenomenal growths in all areas of business

http://www.thefinancialexpress-bd.com/2009/06/21/70468.html

IBBL registers phenomenal growths in all areas of business

FE Report

Islami Bank Bangladesh Limited (IBBL) has registered phenomenal growths in all areas of business and has been enjoying the status of the largest private commercial bank of the country in terms of deposit, investment and foreign exchange business, said IBBL managing director (MD) M. Fariduddin Ahmad.

“We’ve been handling more than 25 per cent of country’s total foreign remittance,” said Mr. Fariduddin in an interview on the occasion of inauguration of 200th branch of the bank.

The excerpts of the interview are given below:

1. Islami Bank Bangladesh Limited touched the milestone of 200th Branch of the Bank, please let know your feelings

M. Fariduddin Ahmad : Islami Bank Bangladesh Limited launched its banking operations through opening of a Branch at 75 Motijheel Commercial Area, Dhaka on 30.08.1983 with a view to establishing an interest-free banking system. We have reached the milestone of 200th Branches through the inauguration of Fulbaria Branch at Mymensingh. We have covered all the districts of the country including three hill tract districts. This year more 11 Branches will be opened. Considering the importance of Small and Medium Entrepreneurs we opened 10 SME centers last year and another 10 SME Service Centres will be opened in the current year at different places of the country. You know Islami Bank was established in such a challenging moment when the conventional banking system was not ready to welcome a banking system to be run in accordance with Islamic Shari’ah. After completing 26 years of our operations it has been proved that Islamic banking system is the indispensable reality of present day world. We are receiving large number of requests from all over the country to establish Branch of our Bank. We are trying our best for fulfillment of those requests within our limits. We earned highest profit among the banks in the country. Being inspired by our success another 7 (seven) banks are functioning as full pledged Islamic Banks while some local and foreign traditional banks opened branches for Islamic Banking. Now Islami Bank Bangladesh Limited has become the bank of mass people and the people of the country treat this bank as “My Bank”. This bank is the bank for all irrespective of cast, creed and religion. And for the sincere attempts of all people this success was possible. The bank flourished its image at home and abroad. We are committed to our honorable shareholders, valued clients and stakeholders to ensure the establishment of interest free banking system as per Islamic Shari’ah. We are extremely delighted on this occasion. In the same time we congratulate all on the occasion of inaugurating the 200th Branch at Fulbaria in Mymensingh.

2. What do think about the risks in Islamic Financial Institutions in the perspective of recession in World Economy.

M. Fariduddin Ahmad : The financial crisis around the world is mainly responsible subsequent recession in world economy. The causes of crisis identified so far are excessive and imprudent lending by Banks and financial Institutions, inadequate market discipline, unjustified expansion of the size of derivatives, excessive leverage, severe credit crunch, transactions involving speculation & gambling and greed. Islamic Banks and Financial Institutions are not engaged at such type of transactions. Therefore, they are protected from adverse impact of the crisis and facing less risk.

3. Islami Bank Bangladesh Limited maintained its superiority in banking sector in spite of economic recession. What are the facts behind this?

M. Fariduddin Ahmad : Transactions of Islamic Banks and Financial Institutions are backed by assets. Hence no adverse impact was experienced by any Islamic Bank and Financial Institutions around the globe. Besides, the people have greater amount of confidence on Islamic Banks and Financial Institutions.

4. What is the position of your bank regarding deposit, investment and foreign exchange business till May 2009

M. Fariduddin Ahmad : The total deposit of the Bank stood at Tk.214,910 million as on May 31 2009 registering a growth rate of 20%. The total investment stood at Tk.215,270 million registering a growth rate of 18% against corresponding period of the previous year. The total foreign exchange business stood at Tk.179,480 million (import-61,360 million, export-42,970 million and remittance 75,150 million).

5. Islami Bank Bangladesh Limited is handling 25% of total remittance of the country. Explain the reasons.

M. Fariduddin Ahmad : Handling of 25% of total remittance of the country by Islami Bank Bangladesh Limited is an outstanding achievement. We have built up proper capabilities and capacities at all our offices and branches to handle Wage earners’ Remittance. We have established relationship for this purpose with large number of renowned and reputed Banks and exchange houses and posted our own manpower at the places where Wage Earners’ are in large number. At home all our Branches are connected online for handling Wage Earners remittance and our manpower are well trained to provide efficient and quick service to the Wage Earners.

6. Now-a-days different banks are giving emphasis on SME banking. Let us know about the SME banking of IBBL.

M. Fariduddin Ahmad : SME sector is playing vital role in country’s GDP through socio-economic development and employment generation. It is not possible for any country to develop its economy keeping the large number of people out of development program- realizing the fact IBBL opened 10 SME service centers last year and another 10 SME service centres will be opened this year. Giving importance on the SME investment the Bank has already introduced a separate division for SME. IBBL disbursed Tk.38,402 million till March 31 2008 which is 19.01% of total investment. The Bank also arranges training program for the entrepreneurs. The women are given special priority in this sector. Besides, separate investment scheme for the women has also been introduced.

7. What is the contribution of IBBL in national economy?

M. Fariduddin Ahmad : Islami Bank Bangladesh Limited is playing vital role in national economy. The bank is investing in industry, commerce, education, real estate and health sector. IBBL invested almost 55% of total investment in industrial sector. IBBL disbursed more than Tk.20,970 million among 0.6 million people of 11,000 villages under Rural Development Scheme with a view to alleviate poverty from rural areas of the country. IBBL is one of the 10 highest tax payers in the country. IBBL built up quality manpower for banking sector. Islami Bank Bangladesh Limited is a model of Islamic banking in the world.

8. Most of the banks are functioning in city level. What is the position of Islami Bank in the development of rural economy.

M. Fariduddin Ahmad : Most of the people of our country live in the village. No nation can be developed if most of its people remain outside of development-realizing this fact IBBL opened 92 out of 200 Branches in rural areas. Besides, IBBL is trying to alleviate poverty from rural areas. IBBL introduced a special scheme named Rural Development Scheme for the rural people. Under this scheme small investment is allowed without security. Most of the investment clients under this scheme are women. About 600,000 people are the beneficiaries of this scheme.

9. What is the present status of automation in your Bank.?

Islami bank Bangladesh Limited developed the software for banking operations with the help of its own manpower. The Bank is going to set 200 own ATM booths and 500 POS. Now the customers can get the account information through SMS. All the Branches are well equipped with modern technology. Our SPOT Cash service ensures the payment of remittance within a couple of minutes.

Besides, IBBL introduced the following state-of-the-art technologies and services:

Web Portal for corporate clients facilitating them to see their account details over the internet.

Push/pull service for making query about account information and getting results in SMS feedback.

Automated Teller Machines (ATM)- IBBL has already 27 shared ATMs. Within September of the year more 50 own ATMs are going to be set up.

Data Centre (DC)- With 75 Branches, the largest number of Branches connected to Data Center providing smooth services.

Data Recovery Site (DRS): Own Data Recovery Site is going to be set up at the earliest.

One stop service is available in all corporate Branches.

Online facilities are available throughout the country.

10. What corporate social responsibilities are performed by your Bank?

M. Fariduddin Ahmad : IBBL is always aware about social responsibilities. It has a slogan “Pioneer in Welfare Banking”, so IBBL remembers this in all its activities. IBBL is the first in banking sector to introduce social activities. Apart from running the business with a welfare oriented view, the bank is committed to fulfill its corporate social responsibility and as such carrying out different welfare and humanitarian activities through the Islami Bank Foundation. The programs of Islami Bank Foundation are Income Generating Programs, Educational Programs, Health and Medicare Programs, Humanitarian Help Programs, Relief and Rehabilitation Programs etc. Other special schemes are Islami Bank Hospitals, Islami Bank Community Hospital, Islami Bank Medical College, Rajshahi, Monoram Islami Bank Crafts & Fashion, Service Centres, Islami Bank Institute of Technology, Islami Bank International School and College, Distressed Women Rehabilitation Centre, Bangladesh Cultural Centre, Islami Bank Medical College Nursing Institute, Islami Bank Health Technology Institute.

Islami Bank Bangladesh Limited is always aware of helping the poor students. Scholarship programs are implemented by Islami Bank Foundation with a view to encourage education.

Under the beautification program of Dhaka City Corporation, Islami Bank Bangladesh Limited is doing the work to enhance the beauty of the road of Dhaka City Corporation starting from Rajarbagh Traffic Signal to Kamalapur Railway Station by plantation of beautiful plants and trees on Road Island.

Islami bank Bangladesh Limited decided to provide financial support in favor of 4 families of army officials martyred in the incident of BDR Headquarters. Under this each family will be given Tk.40,000/- per month which will continue for 10 years.

11. What are your future plans?

We are very much confident to establish Islamic Banking in this country with the heartiest support of the people of the country. In this regard we are going to take many future plans to enrich the service of this Bank to every door of the people of the country. Our future plans are-

l We like to strengthen the program of eradication of poverty

l We like to enrich our self-estimation through solving unemployment problem.

l We like to shorten the gap between urban & rural life style.

l We want to open branches in less developed areas of the country.

l We like to stretch industrial sector by expanding our industrial investment.

l We like to invest in medium & small industrial sectors through which investment & asset may not be coiled in some of listed people or selected areas.

l We have a plan for developing a ‘Rural Development Organization’ for reaching the farthest corner of the country.

l We have a plan to initiate a ‘Khidmah card’ contesting against conventional ‘Credit Card’ considering Islamic Shariah.

l Expatriate Bangladeshis contribute a lot in the national economy. We are going to initiate new products for them through which they can invest their money after coming back to the country. We think they could apply their capacity in the project financing in home as they depicted in abroad. Thus they may be rehabilitated properly. Moreover they could assist for building up new industrial zone through remitting continuously.

l We dream for roaming all over the world with the assistance of Islami Bank Bangladesh Limited. And as a part of the dream we are planning for opening branches & booths in different parts of the world, specially, in London & Dubai.

l We wish to settle ourselves into the hearts of the people of the country and their cordial utterance should be “Islami Bank, My Bank, Our Bank.”