Category: BANKING

BRAC Bank Ltd reported a remarkable 69% year-on-year profit increase in Q3 2024, reaching Tk 419.62 crore. The growth was driven by higher investment income and strong commission and fee-based revenues. The bank’s consolidated EPS rose to Tk 1.97 from Tk 1.22, while net operating cash flow per share doubled to Tk 49.51. The improved performance was attributed to increased deposit mobilization and stronger net asset value backed by profit growth.READ FULL

Bangladesh Bank has announced nationwide bank closures tomorrow for Durga Puja, following a government holiday declaration. The notice, issued through the Department of Offsite Supervision, applies to all banks except branches at seaports, land ports, and airports, which will remain operational under special arrangements. The closure aligns with the national observance of this major Hindu religious festival.READ FULL

Bangladesh’s foreign exchange reserves dropped from $20.8 billion on September 8 to $19.38 billion on September 18, primarily due to a $1.37 billion payment to the Asian Clearing Union for import bills. The central bank has stopped selling dollars from its reserves since the political changes in August, and the decline is not expected to affect the reserves significantly. The Bangladeshi Taka has also weakened against the US dollar due to dollar shortages and pressures on banks to settle import payments.READ FULL

The World Bank and Asian Development Bank have agreed to provide $2.5 billion in loans to Bangladesh for banking and financial sector reforms. The World Bank will contribute $1 billion, while ADB will provide $1.5 billion. The loans will support modernization of Bangladesh Bank and overall banking sector reforms. Conditions for the loans include creating private sector asset management companies and updating definitions of defaulted loans. Bangladesh’s central bank governor also met with US officials to discuss macroeconomic improvements and potential US support for financial sector reforms.READ FULL

The Bangladesh Bank has won the “AFI Global Youth Financial Inclusion Award 2024” for its efforts to increase financial inclusion among youths. The award was presented on September 4 at the AFI Global Policy Forum in El Salvador. The central bank’s initiatives include developing financial literacy guidelines, creating a start-up fund for young entrepreneurs, launching a financial literacy website, and integrating financial education into the national curriculum. Additionally, 4.3 lakh school bank accounts have been opened through various banks to promote financial inclusion.READ FULL

Bangladesh Bank reported record profits for fiscal year 2023-24, with total profits reaching Tk 40,000 crore and net profits of Tk 15,100 crore. The increase is attributed to significant US dollar sales from reserves and increased short-term lending to commercial banks. The bank lent Tk 32.21 lakh crore to commercial banks and sold $12.79 billion from foreign exchange reserves. After expenses, Tk 15,100 crore was deposited into the government treasury. Central bank officials will receive a bonus of five and a half months’ basic salary.READ FULL

National Bank Ltd (NBL) elected Abdul Awal Mintoo as chairman and Moazzam Hossain as vice-chairman, forming a new board two days after Bangladesh Bank dissolved the previous one. This marks the third board change since December 2023. The bank has been facing losses due to high default loans. Mintoo, a businessman and BNP vice-chairman, replaces directors associated with the S Alam Group, linked to the recently ousted Awami League government.

Bangladesh Bank (BB) will dissolve the board of Islami Bank within a couple of days and form a new board, according to BB Governor Ahsan H Mansur. The central bank will also take over all shares of the S Alam Group against its liabilities, though the group may get the shares back if it repays the money. This move comes amid unrest at the Shariah-based bank, which was taken over by the S Alam Group in 2017 with alleged political patronage. Daily Star

Six Bangladeshi banks, including four Shariah-based ones, are facing significant current account deficits totaling Tk 14,621 crore despite receiving special liquidity support from the central bank. First Security Islami Bank has the highest deficit at Tk 6,693 crore. Most of these banks are linked to the S Alam Group. The Bangladesh Bank has been providing support without securities, raising concerns about the banking sector’s health. Experts criticize this practice, suggesting it indicates deeper issues in the country’s financial system. Daily Star

Bangladesh’s top mobile operators, Grameenphone and Robi, have each secured 20 MHz of spectrum in the 2.6 GHz band for Tk 1,160 crore under a 15-year contract. This allocation aims to improve service quality, reduce network congestion, and support 4G and 5G services. The deal follows a 2022 spectrum auction and resolves issues related to US dollar rate fluctuations. The operators will pay in 10 annual installments.

S Alam Group and Nassa Group, led by individuals close to former PM Sheikh Hasina, received interest waivers totaling Tk 2,544 crore from National Bank and Janata Bank, bypassing banking rules. The central bank provided no-objection certificates for these waivers, which violated regulations on interest forgiveness. This highlights the influence of oligarchs on Bangladesh’s banking sector during the previous government’s tenure, raising concerns about governance and fairness in the industry.

S Alam Group’s control over six banks, including Islami Bank, has put them at risk due to alleged money laundering and loan irregularities. These banks face deficits and struggle to meet central bank requirements. The former Bangladesh Bank governor provided special facilities to keep them operational, but these are now being curtailed following political changes. Experts call for an independent study to assess the banks’ actual situations. prothom alo

The Bangladesh Financial Intelligence Unit (BFIU) has ordered banks to freeze accounts of former home minister Asaduzzaman Khan Kamal and his family members. This action follows reports of suspicious transactions. The freeze applies to all types of withdrawals from accounts belonging to Kamal, his wife Lutful Tahmina Khan, and their children. The BFIU’s decision was communicated to banks via an official letter. Daily Star

Finance Adviser Dr Salehuddin Ahmed promised strict action against those involved in a shooting at Islami Bank. Five people were injured when a clash erupted between two groups at the bank’s head office in Motijheel, Dhaka. The conflict arose when ‘Anti-Discrimination Banker Society’ members attempted to hold a rally, opposed by officials aligned with S Alam Group. Ahmed also mentioned addressing challenges at Bangladesh Bank as a priority. Dhaka Tribune

The Bangladesh Bank has instructed commercial banks, to limit cash withdrawals to a maximum of Tk2 lakh per customer this week.This decision was communicated to the managing directors of the banks through an emergency message.The directive cites security concerns that are causing difficulties in transferring funds to branches, necessitating the restriction on withdrawals.The message also instructs banks to enhance the monitoring of cheque transactions and to halt any suspicious activities. Dhaka Tribune

Bangladesh is facing a severe cash crisis following political unrest. After PM Sheikh Hasina’s resignation on August 5 amid student protests, widespread looting ensued. Police work abstention due to safety concerns has worsened the situation. Many ATMs are empty or closed, and banks have limited cash withdrawals to Tk 1 lakh. The central bank has advised banks to restrict cash distribution due to security concerns, exacerbating the cash shortage for citizens. Daily Star

Islami Bank Bangladesh rejected two large withdrawal attempts: Tk 548 crore by Top Ten Trading Company and Tk 325 crore by a company linked to S Alam Group. Bank officials suspect involvement of absent deputy managing directors Md Akiz Uddin and Miftah Uddin. Bank employees protested, demanding investigations into S Alam Group’s activities and recent appointments. Additional managing director Muhammad Qaisar Ali reportedly resigned and left with army assistance amid the turmoil following Prime Minister Sheikh Hasina’s resignation. Daily Star

Bangladesh Bank has lifted restrictions on journalists’ access to its headquarters, as announced by Deputy Governor Kazi Sayedur Rahman during a meeting with the Economic Reporters’ Forum (ERF). ERF President Refayet Ullah Mirdha urged the central bank to investigate defaulted loans and take action against money launderers and corrupt individuals in the banking sector. The Bank’s Governor, Abdul Rouf Talukder, was not present at the meeting.

The Bangladesh government has declared a three-day general holiday (August 5-7) following violent incidents during student protests. Banks and stock markets will remain closed. Many banks in Dhaka had already suspended operations due to unrest. ATMs, internet banking, and mobile financial services will continue to function. The decision comes after anti-discrimination student movements turned violent, prompting concerns about safety and security in the capital. Prothom Alo

Starting Wednesday, all banks in Bangladesh will resume their normal operating hours of 10:00 am to 6:00 pm, as per a circular issued by Bangladesh Bank on Tuesday. Transactions will occur from 10:00 am to 4:00 pm, while banks will remain open until 6:00 pm to complete post-trading activities.

BRAC Bank has introduced the “VISA Platinum Flexi Credit Card” targeting young professionals. The card offers lifestyle, travel, hotel, and dining benefits at a competitive annual fee. It includes welcome discounts at various outlets and bonus reward points for e-commerce transactions. The card features contactless technology and flexible payment options. Cardholders can earn double reward points on POS and e-commerce transactions on Fridays. The bank aims to support the lifestyle and achievements of the next generation with this new offering. Daily Star

From today, banks in Bangladesh will remain open from 10:00am to 6:00pm, with transaction hours ending at 4:00pm. However, banking activities are yet to gain full momentum as clients and bankers are still in a festive mood following Eid celebrations, according to bankers. They expect banking operations to run in full swing from next week. Prior to Eid, banks were open from 10:00am to 5:00pm, with transaction hours until 3:30pm.

The Reserve Bank of India (RBI) has imposed a fine of ₹96.4 lakh on Bangladesh’s state-owned Sonali Bank PLC for non-compliance with certain norms, including the Know Your Customer (KYC) Directions, 2016. The RBI also fined the Central Bank of India ₹1.45 crore for irregularities in loan sanctioning and handling unauthorized electronic transactions.