Deposits in school banking accounts rise to Tk 1,100cr

Total deposits in the bank accounts owned by schoolchildren in the country increased to Tk 1,100.37 crore as of March 31, 2017 from that of Tk 1,020.79 crore as of December 31, 2016.A Bangladesh Bank official told New Age on Thursday that deposits in the school banking accounts increased in recent months as banks had recently taken a number of initiatives to facilitate opening such accounts.He said that banks were now trying to open lower-cost savings accounts like students accounts under the school banking programme that resulted in an increase in the number of schoolchildren accounts and the deposits in the accounts.The BB data showed that the number of schoolchildren bank accounts increased to 13.74 lakh as of March 31, 2017 from 12.57 lakh as of December 31, 2016.The number was 10.66 lakh as of March 31, 2016.According to the BB official, banks usually count more interest rates for their fixed deposit schemes than they do for school banking accounts.Banks are now reluctant to open FDRs as they have been facing huge excess liquidity for long due to the ongoing dull business situation in the country.

Source: http://www.newagebd.net/article/21758/deposits-in-school-banking-accounts-rise-to-tk-1100cr

Banks asked to release foreign exchange to overseas students

Bangladesh Bank on Thursday asked the commercial banks to release in favour of overseas students foreign exchange required to make payment by the students against their health coverage, health insurance and medical insurance fee for permissible courses.The BB issued a circular to all banks asking them to follow the directive as such fees are now mandatory for visa and admission in permissible courses of the students.A BB official told New Age on Thursday that overseas students were earlier not required to pay such fees against their health coverage, health insurance and medical insurance.But, some foreign educational institutions have recently made it mandatory to make payment against such insurances.

Source: http://www.newagebd.net/article/21699/banks-asked-to-release-foreign-exchange-to-overseas-students

BSEC allows IBBL, NBL, LankaBangla to float bonds

The Bangladesh Securities and Exchange Commission on Thursday allowed two banks and a non-bank financial institution to float bonds worth Tk 1,400 crore in total.The capital market regulator gave the approval in a commission meeting presided over by its chairman M Khairul Hossain.As per the BSEC’s approval, Islami Bank Bangladesh Limited will float non-convertible mudaraba subordinated bonds worth Tk 500 crore, National Bank will issue non-convertible second subordinated bonds worth Tk 400 crore and LankaBangla Finance will float non-convertible unsecured subordinated bonds worth Tk 500 crore.The face value of each unit of banks’ bonds will be Tk 1 crore, while the face value of LankaBanglaFinance’s bonds will be Tk 1,000 each.The bonds to be issued by Islami Bank and National Bank will be fully redeemable in seven years, while LankaBangla’s bonds will be redeemable in 3 years.
Only corporate bodies, financial institutions and funds will be allowed to subscribe the bonds through the private placement.Green Delta Insurance will work as the trustee for all the three bonds.

Source: http://www.newagebd.net/article/21696/bsec-allows-ibbl-nbl-lankabangla-to-float-bonds

New banks spend more on CSR to avoid tax

New banks are found to be spending an excessive amount of money in the name of Corporate Social Responsibility (CSR) to avoid taxation, according to a study.For some banks, it was noticed that this spending was 205% of their previous year’s net profit.A Bangladesh Institute of Bank Management study revealed the fact at a seminar titled “An evaluation of the performance of new commercial banks” held at BIBM auditorium in the city on Thursday.The study was carried out by a four-member BIBM team led by its Associate Professor Sohail Mustafa.As per the Bangladesh Bank guidelines, banks are allowed to spend 10% of their net profit on CSR fund, but the report found that NRB Global Bank spent 205% in 2016, which was unusual.In 2015, Union Bank spent 99%, Midland Bank 92% and NRB Global Bank 35%. In 2014, NRB Global spent 49%, NRB Commercial 37% and Union Bank 15%.The report said basically, the banks went on excessive expenditure in the name of CSR with a view to getting an exemption from tax.

Source: http://www.dhakatribune.com/business/banks/2017/08/10/study-new-banks-spend-csr-avoid-tax/

Health insurance regulations for students applying abroad to be relaxed

The Bangladesh Bank has decided to relax its foreign exchange regulations for students applying for studies abroad in consideration of health insurance coverage.The central bank issued a circular on Thursday where it stated that students who intend to study abroad are required to make a payment on account of health or medical insurance.Health insurance is one of the prerequisites for admission or visa procedures in most of the countries.The Bangladesh Bank will allow Authorised Dealers (ADs) to release the required foreign currency provided that a student can show the supporting documents from the concerned educational institution, the circular added.Other regulations regarding the release of foreign currency for students applying for admission or studying abroad will remain unchanged, the circular further added.

Source: http://www.dhakatribune.com/business/banks/2017/08/11/health-insurance-regulations-students-applying-abroad-relaxed/

4032 students receive DBBL scholarship

Dutch-Bangla Bank Saturday awarded scholarship to 4,032 students who passed SSC and equivalent examinations in 2017 and are now studying at higher secondary level in different colleges of the country at a ceremony held at Shaheed Surhawardy Indoor Stadium in city. Finance minister Abul Maal A Muhith was present as the chief guest while the Minister for Law, Justice and Parliamentary Affairs Anisul Huq and Governor of Bangladesh Bank Fazle Kabir were present as special guests and handed over the scholarship awarding letters among the recipients. Chairman of Board of Directors of Dutch Bangla Bank Sayem Ahmed presided over the function. Speaking at the programme, finance minister Muhith said Dutch-Bangla banks created an exemplary model of corporate social responsibility by awarding underprivileged but meritorious students.

Source: http://print.thefinancialexpress-bd.com/2017/08/13/180403

NCC Bank Limited has signed a corporate

NCC Bank Limited has signed a corporate agreement with Asgar Ali Hospital Dhaka recently. Under this agreement NCC Bank’s credit cardholders will get special discount & SmartPay EMI facilities up to 12 months @ 0% interest. In presence of A Z M Saleh, Deputy Managing Director of NCC Bank and Engr. Md. Yousuf Ali Prodhan, Senior General Manager of Asgar Ali Hospital, Khaled Afzal Rahim, Head of Cards of NCC Bank and Kabir Uddin Tusher, General Manager of Asgar Ali Hospital signed the agreement on behalf of their respective organisations.

Source: http://print.thefinancialexpress-bd.com/2017/08/13/180422

MTB signs agreement with Sonali Life Ins

Mutual Trust Bank Limited (MTB) has recently signed an agreement with Sonali Life Insurance Company Ltd, said a statement.Under this agreement, policy holders of Sonali Life Insurance Company Ltd. can deposit their premium using customised deposit slip at any nearest MTB branch.Sonali Life Insurance Company will become fully integrated and online with MTB with all deposit transaction and notifications occurring in real time. Simultaneously policy holders can find the real time deposit information through MTB’s web-based banking service as well as SLICL’s web based services as both company systems will be integrated extensively. Sonali Life Insurance Company Policy holders who are under the privilege card program will also be issued with a co-branded debit card through which they will be eligible to earn massive discounts at more than 200 retail organizations.

Source: http://print.thefinancialexpress-bd.com/2017/08/13/180420

Md Mehmood Husain, Managing Director & CEO

Md Mehmood Husain, Managing Director & CEO of NRB Bank Limited seen in an event where the bank inked a deal with Linnex Technologies Limited. Under the agreement, debit & credit cardholders of NRB Bank Limited will enjoy 10 per cent discount on any Linnex products at their authorised dealer’s outlet and credit cardholders will get 12 months EMI facility.

Source: http://print.thefinancialexpress-bd.com/2017/08/13/180404

Consumer credit jumps 31pc

The banking sector posted a significant jump in consumer lending last year riding on growing purchasing power of the middle class.Consumer credit rose 31.29 percent year-on-year to Tk 29,500 crore in 2016 from Tk 22,460 crore a year ago, according to Bangladesh Bank data. The segment accounted for 4.37 percent of the total outstanding loan in the economy.“Consumer credit has been rising for several years as the purchasing power of the people has increased,” said MA Halim Chowdhury, managing director of Pubali Bank.He said the middle class is expanding with improving living standard, which is pushing demand higher.The salary hike of government employees also accounted for the growing consumption habit, he added.Consumer financing is now more affordable as the lending rate is lower than the average interest rate, said a senior executive of a private bank.

Source: http://www.thedailystar.net/business/consumer-credit-jumps-31pc-1447726