United News of Bangladesh

Khandakar Rashed Maksud, the new chairman of Bangladesh Securities and Exchange Commission (BSEC), said that he wants to take the capital market to a place of trust. He also said that he will work for the next four years to establish complete transparency and accountability in the market. The BSEC chairman wants the cooperation of the Capital Market Journalists Forum (CMGF) for this. BSC chairman Khandkar Rashed said this in a courtesy meeting with the Capital Market Journalists Forum (CMJF) on Sunday (August 25). CMJF president Golam Samdani and general secretary Abu Ali along with members of the organization's executive committee were present at that time. In addition to the BSEC chairman, Commissioner Mohsin Chowdhury and Dr. ATM Tarikuzzaman were present.  

In a move to protect depositors’ interests, Bangladesh Bank has dissolved the board of directors of Social Islami Bank Limited (SIBL) and appointed a new five-member board to oversee the bank’s operations. This action marks the third time that S Alam Group, which previously held control of SIBL, has seen its board replaced by the central bank. The newly appointed board includes both shareholder representatives and independent directors, reflecting a push for improved governance. The members of the new board are: Major (retd) Dr. Rezaul Haque, representing shareholders; independent directors Maksuda Begum, former Executive Director of Bangladesh Bank; Dr. M. Sadikul Islam, Professor at the Department of Finance at Dhaka University; Md. Murshed Alam Khondker, former Deputy Managing Director of Rupali Bank; and Anowar Hossain FCA, a Chartered Accountant. The Banking Regulation and Policy Department (BRPD) of the central bank issued a notification on Sunday that formally dissolved the S Alam-nominated board and appointed the new board members. The notice was sent to SIBL's Managing Director for immediate implementation. In its notification, Bangladesh Bank stated that the decision was made to safeguard the interests of depositors and to ensure good governance within the bank.

Islamic banks must be operated by the people who founded those banks based on Shariah to serve financial inclusion for the ordinary people of the country, according to a prominent economist. Professor Abu Ahmed said this while speaking as the chief guest at a 'customer rally' organized to protect Sharia-based Islamic banking, held in a hotel at Motijheel, Dhaka on Saturday. He said, “Islamic banks will be run well when they would be operated fully based on Shariah. On this aim these banks were established, but some people snatched it at gunpoint for looting money from these banks.” Economist Abu Ahmed said those who established Islami banks did not expect profit. Because of this, the assets of the bank were increased. And this increase in wealth has become the death knell for the bank due to some greedy people in the society. “S Alam Groups looted more than Tk75,000 crore from Islami Bank. Those of us who have done business honestly are now unable to open LCs. Not getting the US dollars as needed. The business has been greatly affected by this crisis. Businessmen have called for a 10-year rescheduling of the loans of loss-making traders,” he pointed out. Former Chairman of NBR Mohammad Abdul Mazid said, “The SME sector and economy has been severely damaged through the forcible occupation of Islami Bank and the loss of a large amount of money.” He said that customers are the greatest strength of the bank; according to their demand, S Alam Group, who embezzled the money of this bank, should be brought to justice. Islami Bank Bangladesh alone received around 40 percent remittance of the country, which was destroyed by the illegal occupation of the bank by S Alam Group, he opined. Abdul Haque, the former director of FBCCI, said that the investigation will reveal how the Islamic banks were mishandled by the wrong people. “I tried to understand the Bangladesh Bank governor and finance minister of that time. But then it was not possible to understand. Everyone knows what happened after that,” he said. “But soon the new governor dissolved the board of Islami Bank. At the same time, a new board has been formed. The Islami Banks management should hand over the people who operated before occupied by S Alam Groups,” said Abdul Haque. FBCCI former vice-president Abul Kashem Haider said that S Alam had illegally employed many people with the pay-scale benefits of Islami Bank. Their appointment should be canceled as soon as possible. “We cannot open LCs with Islami Bank due to a shortage of US dollars, the bank cannot sanction loans. But everything is going well for S Alam as they looted dollars from the bank,” he pointed out. 

Abdul Awal Mintoo has been elected chairman of the board of directors of National Bank, and Moazzam Hossain was elected the vice chairman on Thursday. The decision was taken at the 505th meeting of the Board of Directors of the bank on Thursday, according to a press release. This follows the dissolution of the previous Board of Directors by Bangladesh Bank on August 20, 2024, and the formation of a new board under the “Bank-Company Act, 1991 (Amended up to 2023),” it said. Abdul Awal Mintoo is an industrialist and business leader in Bangladesh. He is the former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI). Additionally, he serves as the Chairman of several companies, including Lal Teer Seed Limited, North South Seed Limited, and Pragati Life Insurance Limited. Mintoo also acts as the adviser to several organizations, such as Heidelberg Cement Bangladesh Limited, Bangladesh Petrochemical Company Limited, Multimode Textile Mills Limited, and Multisourcing Limited. Moazzam Hossain is one of the sponsor directors and former chairman of National Bank Limited. Hossain is the Chairman of Hosaf Group of Companies. He is also the former chairman of Pragati Insurance Company Limited, President of Bangladesh Energy Companies Association, Vice President of BGMEA and Chairman of Presidency University.

Improved connectivity could facilitate trade, investment, boost regional tourism, and create jobs, contributing significantly to the economic growth of the region, according to the International Chamber of Commerce-Bangladesh (ICCB). The ICCB highlighted that Bangladesh's strategic location positions it as a potential key transit route for trade between northeast India and the rest of India. Additionally, it could provide enhanced port access for Bhutan and Nepal. The ICCB cited an estimate from CUTS International, suggesting that if regional integration occurs, the combined GDP of the region could exceed $8.3 trillion by 2035. The BBIN (Bangladesh, Bhutan, India, and Nepal) initiative, launched in 2015, aims to address the logistical and economic challenges that have historically impeded South Asia's development. A central goal of the initiative is to enhance economic collaboration by streamlining the cross-border flow of goods and services, which can lower transportation costs and reduce transit times. This is particularly crucial for landlocked nations like Bhutan and Nepal, which rely on neighboring countries for access to global markets. According to a 2021 World Bank report, regional trade could increase India's national income by up to 7.6% and Bangladesh's by more than 16%, contributing to widespread prosperity for nearly a fifth of the world's population. While Bangladesh, India, and Nepal have ratified the 2015 Agreement, Bhutan has yet to do so, primarily due to environmental concerns and infrastructure issues. However, Bhutan's recent participation as an observer at meetings suggests potential interest in rejoining the initiative. A key element of the BBIN initiative is the BBIN Motor Vehicles Agreement (MVA), signed in 2015, designed to facilitate smooth cross-border vehicle movement and eliminate major trade barriers, such as complex border checks and inconsistent customs procedures. By simplifying these processes, the BBIN agreement can expand market access, diversify trade, reduce costs, and enhance competitiveness. The TIR Convention (1975), the only global transit system, simplifies and secures international goods transport by guaranteeing customs duties and taxes. With 76 contracting parties, including China, India, and Pakistan, it provides a reliable method for cross-border trade while safeguarding countries' revenues. Bangladesh plays a pivotal role in initiatives like the BBIN MVA, BCIM Corridor, and BIMSTEC, aimed at expanding market access and promoting economic growth. The TIR system will further bolster regional integration and enhance Bangladesh’s access to global markets. Despite its geographical advantages, the BBIN sub-region remains one of the least integrated areas globally. Trade between Bangladesh and India, the region’s largest economies, is minimal, representing just 1% of Indian trade and 10% of Bangladeshi trade. In contrast, interregional trade in East Africa and sub-Saharan regions accounts for 50% and 22% of total trade, respectively, according to CUTS International. The BBIN sub-region faces high trade costs due to inadequate infrastructure and logistics. Analyzing GDP and trade from 2010 to 2019, CUTS found a positive correlation between the two. Interregional trade grew from $6 billion in 2010, with a GDP of $1.7 trillion, to $16 billion in 2019, with a GDP of nearly $3.2 trillion, making the BBIN one of the fastest-growing regions globally. As of August 2020, the Asian Development Bank (ADB) had invested over $15 billion through the SASEC program in transport, energy, trade, economic corridors, and ICT to enhance connectivity. Given the substantial investments in infrastructure, the ICCB urged all countries to take decisive action to implement the BBIN and MVA Agreements. It also recommended that Bangladesh, Bhutan, and Nepal join the TIR Convention to improve port access for landlocked Nepal and Bhutan and facilitate cross-border vehicle movement.

In response to the ongoing sudden flood crisis, Grameenphone, has taken immediate initiative to support the flood-affected people. Grameenphone, in collaboration with the Bangladesh Red Crescent Society (BDRCS), will distribute food relief packs to 10,000 families in the flood affected areas. Additionally, five water treatment plants and five mobile medical teams will be deployed based on the onground situation to ensure access to clean drinking water and essential healthcare services, according to a media statement. Farhana Islam, Head of ESG of Grameenphone, said, “At Grameenphone, we believe in standing by our communities during such challenging times. Considering the emergency, we promptly acted on this. Besides the initiatives taken by our company, we have also launched an employee donation initiative, where our employees can choose to donate voluntarily.” Professor Dr. M U Kabir Chowdhury, Chairman, Bangladesh Red Crescent Society (BDRCS), said, “The flooding has caused a severe crisis in some parts of the country. Our collaboration with Grameenphone is crucial in delivering timely relief and support to those most affected by this catastrophe, ensuring access to essential resources, medical facilities, and aid distribution.” Grameenphone also provided free 10 minutes and 500 MB of data with 3-days validity to help maintain emergency communication with everyone in flood-affected areas of Feni, Cumilla, Noakhali,Moulvibazar, Khagrachhari, Habiganj, Chandpur, Lakshmipur, Rangamati, Brahmanbaria and Chattogram. Customers can avail of the free minutes and internet by dialing *121*5050#, which will be valid for three days. In addition, people can also charge their mobile phones at the nearest active Grameenphone sites of the affected areas, read the release.

The Bangladesh Financial Intelligence Unit (BFIU) on Thursday asked banks to freeze the accounts of former finance minister AHM Mustafa Kamal, commonly known as “Lotus Kamal”, former commerce minister Tipu Munshi and their family members. The BFIU also sought details of their bank transactions along with keeping their accounts frozen for the next 30 days. Apart from that, the intelligence unit instructed the banks to suspend their locker facilities for the same period.

Bangladesh Bank-appointed administrator Muhammad Badiuzzaman Didar took charge of the mobile financial service (MFS), Nagad, on Thursday. The central bank appointed the administrator to oversee Nagad amid allegations of the MFS not adhering to various regulatory procedures. Abu Taleb, director of the Directorate of Posts, was present when the administrator took charge on Thursday. At the time, Bangladesh Bank’s Additional Director Md. Habibur Rahman, Joint Directors Anwar Ullah, Palash Mandal, Abu Sadat Mohammad Yasin, Deputy Director Chayan Biswas, and Ayub Khan assumed responsibility as assistant officers. The Nagad officers informed them about the activities of the company.

To address the ongoing crisis at Islami Bank Bangladesh, the nation’s largest Shariah-compliant bank, Bangladesh Bank has appointed a new board of independent directors. The overhaul follows widespread allegations of massive financial irregularities linked to the S Alam Group. The Banking Regulations and Policy Department of the central bank issued an official letter to Islami Bank’s managing director, instructing immediate implementation of the changes. Md Obayed Ullah Al Masud, former managing director of Rupali Bank, has been appointed as the new chairman of Islami Bank’s board. Joining him as independent directors are Mohammad Khurshid Wahab, a former executive officer of Bangladesh Bank; Mohammad Abdul Jalil, a former deputy general manager at Al Arafah Islami Bank; M Masud Rahman, a former professor of finance at the University of Dhaka; and Md Abdus Salam, a chartered accountant. This shake-up effectively ends the seven-year control of Islami Bank by S Alam Group, which has been accused of misappropriating nearly Tk 75,000 crore under the guise of loans. The group's influence in the bank was solidified in 2017, when they took over ownership, leading to rampant financial exploitation. Mohammed Saiful Alam, chairman of S Alam Group, had placed his eldest son, Ahsanul Alam, as the chairman of the recently dissolved board. Following the formation of the interim government, Bangladesh Bank dissolved the board of directors of Islami Bank Bangladesh and National Bank. Both banks had been under scrutiny for catering to special interests at the expense of financial stability. S Alam Group’s control of Islami Bank had raised significant concerns, particularly because the group accumulated 81.92% of the bank’s shares—well beyond the legal limit. Under the Bank Companies Act, no single person, family, or group is permitted to own more than 10% of a bank’s shares. To bypass this regulation, S Alam Group had acquired 131 crore 89 lakh 12 thousand 165 shares through 24 different institutions. Adding to the measures against S Alam Group, the Bangladesh Securities and Exchange Commission (BSEC) has banned the transfer of their shares in Islami Bank, further tightening the oversight on the group’s activities.  

Bangladesh Bank has appointed an administrator to manage the operations of the mobile financial service (MFS) Nagad. In addition to the administrator, the central bank has appointed six officers as 'assistant officers' to help oversee the management of Nagad. The Bangladesh Bank officials will visit Nagad's office on Thursday (tomorrow) to familiarize themselves with its operations and will take over the management of the MFS, according to Mezbaul Haque, Spokesperson and Executive Director of the central bank. Bangladesh Bank officials indicated that the current board of directors and management will be dissolved once the administrator assumes control. Following the takeover, a comprehensive audit of Nagad's activities will be conducted. Although this process will take time, normal services of the MFS will continue uninterrupted. The future of the institution will be determined based on the audit's findings. The central bank issued an internal order on Wednesday, appointing Muhammad Badiuzzaman Didar, Director of Bangladesh Bank’s Chattogram office, as the administrator of Nagad for a one-year term. The order also named six central bank officials as assistant officers: Additional Director Md. Habibur Rahman, Joint Directors Anwar Ullah, Palash Mandal, and Abu Sadat Mohammad Yasin, Deputy Director Chayan Biswas, and Ayub Khan. Nagad, which has rapidly grown to become the second-largest MFS in Bangladesh, has faced allegations of not adhering to various regulatory procedures since its inception.