Sunday World Business News

AB Bank wants to flourish further, strengthen presence Staff reporter
AB Bank wants to be a strong regional player in Southeast Asia, said Sajedur Seraj, vice-chairman of the bank. The bank needs a strong capital base to do that and is working to that end, he said. ‘At present, the bank has a capital base of over Tk 400 crore but we need to increase it in line with Basel II accord,’ he said. The board and management of the bank are relentlessly trying to satisfy the customers regardless of their social status, said Seraj, who is a finance graduate from UMIST, UK. ‘The 70 branches of the bank are being renovated so that our customers can feel comfortable when they enter any of them,’ he said. The bank has taken up a plan to open branches in all the district headquarters as soon as possible and maintain a strong presence in the country, he said. The branches will act as hubs and will enable the bank to expand its rural operations by opening small and medium enterprise (SME) outlets in various parts of the country, he added. ‘We have a plan to reduce the cost of rural branches so that additional money can be invested in different sectors with particular focus on SME,’ said Seraj. SME financing is important because if a big client who has borrowed Tk 100 crore fails, it may put the bank in trouble, but if there are 100 SME clients and 5 per cent of them fail, there will be no real problem for the bank, he explained. An institutional shape has been given to the bank and people are working in a systematic manner, while customers and shareholders get the prime focus, the vice chairman said. ‘The bank started its operation 25 years ago and, due to its institutional shape, it has been running successfully since its inception,’ he said. The AB Bank started its operation as the first private sector bank in 1982 with one branch, and its assets grew to about Tk 4,800 at the end of 2006. Its deposit stood at Tk 4,207 crore and loans and advances were Tk 3,129 crore at the end of 2006. The entrepreneurs of the bank started with a clear vision and goal and achieved it by building up an efficient and dedicated workforce, he said. ‘There is very good coordination and relationship between board and management, and it helps the bank to grow without any hindrance,’ he explained. ‘But the most important thing is that there is very good coordination between the board members.’ Referring to the competition, he said that if a bank can create a good image and customers feel that their money is safe with the bank and they will get the best service available, the bank will definitely grow, he said. The AB Bank has created an image which makes the customers feel that they are the first priority of the bank, he added. When the topic of interest was brought up, he said rates are determined by demand and supply. ‘If a bank charges high interest rate, no client will come to the bank. They will go the bank next door which is charging less interest,’ he said. Like any other institution, banks also have a profit motive and must protect the interest of the shareholders, he added. If the deposit rate and demand are high, the lending rate will automatically increase, Seraj said. There is no bank syndication, and to retain customers in a competitive world the banks walk on a tightrope between high deposit rate to lure customers and lower lending rate to earn revenue, he said. The AB Bank is expanding its network of branches to attract low-cost deposits so that it can reduce the lending rate, he added. In the last couple of months, there has been volatility in the money market caused by liquidity crisis, said the vice-chairman. The banks have given too many import loans as the prices of the most of the commodities have shot up in the international market, he said. The growth of deposits was lower than that of lending, and this has pushed the call money market to a high level, he explained.
FDI in Sylhet can open up new horizon in ‘seven sisters’: seminar Bangladesh Sangbad Sangstha . Sylhet
Speakers at a seminar on Saturday said the foreign direct investment in Sylhet could open up a new horizon for Bangladeshi products in the seven northeastern Indian states. Referring to Sylhet as a potential region, the speakers observed it could serve as a launching pad for expanding trade in the seven sisters - Assam, Tripura, Meghalaya, Mizoram, Monipur, Arunachhal and Nagaland. They also opined that there is a huge possibility of investment by non-resident Bangladeshis in the Sylhet region. If industries are set up in Sylhet, they will not only fulfil local requirements, but also become cost effective for Bangladeshi products in the seven sisters, the speakers said while addressing a seminar on ‘Foreign Direct Investment, Private Sector Development and Sylhet Economy’ held at a city hotel. The Bangladesh Institute of Labour Studies and the Bangladesh Enterprise Institute organised the two-day seminar, chaired by former secretary Syed Suja Uddin Ahmed. Additional divisional commissioner Ganedra Nath Biswas attended the inaugural function of the workshop as chief guest. Deputy commissioner Haroon-or-Rashid Khan, former president of Sylhet Press Club Iqbal Siddiqi and vice-president of Sylhet chamber Ziaul Haque spoke as special guests. Terming Sylhet as a resourceful region, the additional divisional commissioner said there is a huge possibility of investment in different sectors, including oil, gas, power, tea, limestone, fisheries, forests, agriculture and tourism. He expressed the hope that a number of issues related to the investment in the Sylhet region would be placed before the next cabinet meeting of the advisers scheduled to be held here on July 21. At the cabinet meeting, he said the setting up economic zone, formation of Sylhet Development Authority and Haor Development Board, announcement of Sylhet International Airport and construction of Fertilizer Factory are expected to be discussed. Assistant professor at Shahjalal Science and Technology University Md Rafiqul Islam placed the keynote paper at the seminar. Leaders of different trade bodies and workers unions, and owners of different mills and factories attended the seminar.
Zoellick says food prices high until 2012 Reuters/Bdnews24.com . Amsterdam
World Bank president Robert Zoellick said on Saturday he expected food prices to remain above 2004 levels until at least 2012 and energy prices would also remain high and volatile. He repeated that with food and fuel prices in a ‘danger zone’ there was a need for $10 billion to provide food and cash handouts for the world’s poorest. Soaring oil and food prices have fuelled inflation across the globe at the same time as economies slow, posing a sharp dilemma for policymakers. Earlier this week, leaders of the Group of Eight rich nations in Japan agreed on the need to address global inflation, particularly elevated oil and food prices. ‘I think the statement on food security was a good statement, but the test will be on the delivery of the action,’ Zoellick said. ‘During the meeting I tried to emphasise that I feel we are in a danger zone of high food prices and fuel prices and there is a great need for additional resources.’ He added that several countries had made substantial contributions towards the $10 billion sum, but funds would be needed continuously over the next years.