Non-performing loans jump over 21pc to stand at Tk 621.72b in last calendar year

The non-performing loans (NPLs) jumped by more than 21 per cent or Tk 108.01 billion in the last calendar year despite close monitoring by the central bank. The amount rose to Tk 621.72 billion as on December 31 last year from Tk 513.71 billion on the same day of the previous year, according to the latest statistics of Bangladesh Bank (BB). Officials, however, said stronger recovery drives by the commercial banks and the rescheduling of loans pushed down the NPLs in the final quarter of the last calendar year. During the October-December period of 2016, the NPLs dropped by more than 5.0 per cent or Tk 35.59 billion to Tk 621.72 billion from Tk 657.31 billion in the Q3. It was Tk 633.65 billion in the Q2. The share of NPLs also came down to 9. 23 per cent during the period under review from 10.34 per cent three months back. It was 8.79 per cent as on December 31, 2015. “The volume of classified loans normally falls during the final quarter of each calendar year,” a senior official of the BB told the FE Thursday. He also expressed concern that the amount of NPLs might rise in the first quarter of this year due to slow pace of recovery by the commercial banks. The classified loans covered substandard, doubtful and bad/loss of total outstanding credits, which stood at Tk 6,739.20 billion as on December 31 last. It was Tk 5,846.15 billion a year ago.

Source: http://www.thefinancialexpress-bd.com/2017/02/24/62616/NPL-volume-bulges-further

Banking Division keen on limiting time frame for pvt bank directors

Bank and Financial Institutions Division is going to amend three provisions of Bank Company Act for limiting time and space for the private bank’s board of directors, official sources said. A source in the Banking Division said the amendment to the Bank Company Act will be finalised at an inter-ministerial meeting at the division. The meeting will focus on a major change to provisions that will allow for four directors instead of existing two from a family. The division will not amend 15(2) provision, according to the demand of the Bangladesh Association of Banks (BAB) under the Act as the shareholders of banks hold their posts for a lifetime as directors of bank, an official has said. As per the proposed amendment, no director can continue for more than six years in two terms. One can become director again after taking a pause for one term. According to the source, the division will discuss with the authorities concerned during the Monday’s meeting for relaxation of some provisions of the Banking Companies Act, especially the requirement to obtain approval from Bangladesh Bank for appointing directors.

Source: http://www.dhakatribune.com/business/banks/2017/02/25/banking-division-keen-limiting-time-frame-pvt-bank-directors/

BB’s initiative to develop saving habits may go in vain

The country’s scheduled banks are still reluctant to extend their services to street children and child workers as they (banks) opened only 3,582 accounts for them (children) as on December 30, 2016, sources said. On March 10, 2014, Bangladesh Bank in a circular asked all banks to allow street children and child workers to open bank accounts with a Tk 10 minimum initial deposit. The central bank took the initiative to help street children develop saving habits and eventually help them step forward towards a better future. According to the latest BB data, the total deposits in the street children’s accounts stood at around Tk 25 lakh at the end of December 2016. Seventeen of the 57 scheduled banks have so far opened these accounts. The banks are Sonali Bank, Janata Bank, Rupali Bank, Agrani Bank, Bangladesh Krishi Bank, Bangladesh Development Bank, Bank Asia, Mercantile Bank, Mutual Trust Bank, National Bank, NCC Bank, One Bank, Pubali Bank, The City Bank, Trust Bank, Al-Arafah Islami Bank and Uttara Bank.

Source: http://thedailynewnation.com/news/125548/bbs-initiative-to-develop-saving-habits-may-go-in-vain.html

Planning Commission sees higher demand for easy local funds than foreign aid

The Planning Commission faces difficulties in finalising the draft revised development budget for the current fiscal amid a rush for easy local funds rather than available foreign aid, officials said. They said the Commission is likely to place a proposed revised annual development programme (RADP) before the National Economic Council (NEC) next Tuesday, with cutbacks on the project aid (external resources) by Tk70 billion from the total Tk 1.107 trillion original ADP allocations. With Planning Minister AHM Mustafa Kamal in the chair, PC high officials sat for an extended meeting of the Commission at its office in Dhaka Thursday for finalising the draft RADP for the current financial year (FY), 2016-17. Commission officials said they had proposed to cut the project-aid component of the development budget by Tk70 billion from the total Tk 400 billion in the original Tk 1.107 trillion ADP while keeping aside almost same the allocation of Tk 707 billion from the internal resources.

Source: http://www.thefinancialexpress-bd.com/2017/02/24/62614/Local-funds-see-higher-demand

StanChart arranges loan package for Bangladesh power sector

Standard Chartered has arranged a financing package of US$197mn for a power plant in Bangladesh, according to gtreview.com. Siemens Bank will co-finance the total, which will account for 80 per cent of the required capital for North-West Power Generation Company Ltd (NWPGCL)’s combined-cycle dual fuel power plant near Sirajganj. The remaining 20 per cent will come in the form of equity from NWPGCL. The Multilateral Investment Guarantee Agency (Miga – the World Bank’s insurance arm), will provide a guarantee for US$69.5mn of the finance, as part of its efforts to stimulate private investment in low-income countries. The guarantee provides coverage for up to 15 years against the risk of non-honouring of sovereign financial obligations, and is the fifth in a series of power projects being guaranteed in Bangladesh.

Source: http://www.thefinancialexpress-bd.com/2017/02/24/62612/StanChart-arranges-loan-package-for-Bangladesh-power-sector

Govt microcredit changes fortune of rural people

The micro-credit programmes being implemented by different government departments under social safety-net have changed fortune of thousands of rural poor freeing them from money lenders, reports BSS. The Upazila Cooperatives Offices, Department of Youth Development, Bangladesh Rural Development Board (BRDB) and other departments are implementing the micro-credit loan programmes at only eight per cent service charge. Deputy director of BRDB Abdus Sabur said, “More than 93,400 poor people have improved their livelihoods utilising our revolving micro-credit loans and helped them coming out of the clutches of illegal money lenders in the district.” “Of them, 40,481 poor families have improved livelihoods properly utilising the micro-credit loans under the ‘Ekti Bari, Ekti Khamar – One House, One Farm’ project, “ he said.

Source: http://www.daily-sun.com/printversion/details/208301/Govt-microcredit-changesfortune-of-rural-people