United News of Bangladesh

Islami Bank Bangladesh Plc has dismissed the top eight officials including 6 Deputy Managing Directors (DMDs) for aiding S Alam Group in looting money from the bank. The dismissed officials are Additional Managing Director JQM Habibullah, Deputy Managing Director (DMD) Md. Akij Uddin, Mohammad Sabbir, Miftah Uddin, Md. Rezaul Karim, Dr. Md. Abdullah Al Mamun, and Camelco Taher Ahmed Chowdhury. In addition, IBTRA Principal Nazrul Islam has been dismissed. Islami Bank issued letters regarding dismissal and sent the letter to the officials on Monday (August 19).    

Bangladesh Bank (BB) has imposed limits on the disbursement of loans for six banks owned by the controversial S Alam Group for restructuring these banks. From now on these banks cannot disburse loans of more than Tk5.0 crore without the permission of the central bank. Institutions that have overdue and overdue loans cannot be renewed without cash collection. Executive Director and Spokesperson of BB Md Mezbaul Haque confirmed this information to UNB. He said, that from today, these six banks’ loan disbursement and LC opening will be stopped for an indefinite period. On Monday the BB sent letters to six banks informing them of this decision. The six banks are Islami Bank, Social Islami Bank, First Security Islami Bank, Union Bank, Global Islami Bank, and Bangladesh Commerce Bank. Earlier, the same limit was fixed for the private sector National Bank. The central bank imposed this limit at a time when these 6 banks were almost liquidity empty due to S Alam Group’s abuse of its loan ability. Former BB Governor Abdur Rouf Talukder went into hiding after the fall of the Awami League government on August 5. At that time, the central bank gave liquidity support by printing currency around Tk35,000 crore to these 6 banks. The S Alam group also looted this money disguised as a loan. The interim government appointed economist Ahsan H Mansur as governor last Wednesday (August 14). After that, the new governor decided to save the 6 banks. In the letter, BB said that this measure has been taken to prevent deterioration of the overall financial condition of the banks and to protect the interests of the depositors. The central bank directives also stated that no credit facilities other than agricultural investment, working capital, and loan to CMSME sector, loans given under incentive package, loan facility against fixed deposits kept in own bank and loans against 100 percent cash margin and other indirect loan facilities can be given. If these loans and loan facilities are more than Tk 5.0 crore, the prior approval of BB should be taken. Expired/Limited outstanding loan status no customer's existing loan facility can be renewed/extended without cash collection. Existing investments of other banks or financial institutions cannot be acquired. Apart from this, every bank has to submit the debt collection data of the top 20 borrowers monthly, according to the BB instructions. An official of the Banking Regulations and Policy Department of BB said that these banks are being planned to be restructured. This decision has been taken as its initial step. Through this, anonymous loan distribution has been prevented.

Abdul Muyeed Chowdhury, a former adviser to the caretaker government, has been appointed as the new chairman of Biman Bangladesh Airlines. The Ministry of Civil Aviation and Tourism announced the appointment through a notification issued on Sunday. The appointment was confirmed in a press release signed by Boshra Islam, General Manager of Public Relations at Biman Bangladesh Airlines. Abdul Muyeed brings a wealth of experience to the role, having previously served as the Managing Director and CEO of Biman Bangladesh Airlines from 1991 to 1994. His return to the national carrier marks a significant leadership change aimed at steering Biman towards new heights.

To stabilize the financial sector and tackle soaring inflation, Bangladesh’s interim government has decided on a series of critical reforms, including the formation of a banking commission. These decisions were made during a high-level meeting between Bangladesh Bank Governor Ahsan H. Mansur and Chief Adviser Professor Dr. Muhammad Yunus on Sunday, according to a press release from the Chief Adviser's office. One of the key outcomes of the meeting was the establishment of a banking commission dedicated to implementing sustainable reforms within the banking sector. Additionally, the government plans to release a comprehensive blueprint addressing the overall state of the financial sector within 100 days of its formation. The meeting also decided on adjustments to the foreign exchange market. The existing band for interbank foreign exchange transactions was expanded from 1.0 percent to 2.5 percent, a move aimed at increasing market liquidity. Under the crawling peg system, the exchange rate of the US dollar, currently set at Tk 117, may rise to Tk 118. Officials are hopeful that these measures will quickly restore liquidity and boost the volume of exchanges in the interbank market. Addressing the ongoing inflation crisis, the meeting emphasized the importance of managing demand and supply effectively. The government plans to maintain a contractionary monetary policy while simultaneously improving the supply situation. “Appropriate action has been taken to reduce inflation, so everyone should be patient for some more time to get relief from the pressure of inflation,” Bangladesh Bank Governor Ahsan H. Mansur told UNB. The urgency of these reforms is underscored by recent data from the Bangladesh Bureau of Statistics (BBS), which revealed that overall inflation surged to 11.66 percent in July, up from 9.72 percent in June. Food inflation, in particular, reached a 13-year high of over 14 percent, the highest since April 2011 when it peaked at 14.36 percent. The need for banking sector reforms was a focal point of the discussions between the Chief Adviser and the central bank Governor. The formation of the banking commission is seen as a crucial step towards addressing the sector’s current challenges and ensuring long-term stability.  

Businessmen and entrepreneurs urged the interim government chief Dr. Muhammad Yunus to take necessary steps for simplification of the product tariff process and increasing port capacity in importing raw materials and capital machinery for the iron and steel industry. This call was made in the standing committee meeting of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) on iron, carbon steel, stainless steel, and re-rolling industry, held at FBCCI's Motijheel office on Saturday (August 17). Chairman of the Standing Committee and Managing Director of Shahriar Steel Mills Limited SK Masudul Alam Masud presided over the meeting. FBCCI director Md. Amir Hossain Noorani was present as the director-in-charge of the committee. On this occasion, the business leaders stressed urgent action to ensure quality and uninterrupted supply of gas and electricity to all types of industries including the iron and steel industry. FBCCI President Mahbubul Alam, attending virtually as the chief guest said, “I pray for the forgiveness of the departed souls of all the martyrs who have given their lives, including young students and ordinary people, to build a non-discrimination state. I wish a speedy recovery to those injured and still undergoing treatment in various hospitals.” The iron and steel industry plays a very important role in the infrastructure development of the country. The FBCCI president urged the businessmen to unite to eliminate the existing crisis in this industry. He said, that not only in the steel industry but in all sectors, the tariff process of imported goods is a big challenge. “We have been hearing for a long time that the assessment value of imported goods at the port is much higher than the invoice value. We have to work in this field,” he pointed out. The FBCCI president also expressed optimism that the current NBR chairman will be sincere in facilitating business in the country.  

Eminent economist Dr. M. Masrur Reaz has opted not to assume the role of Chairman at the Bangladesh Securities and Exchange Commission (BSEC). Dr. Reaz informed UNB that he feels more comfortable continuing his work as an economist with the interim government to focus on national reforms, rather than taking on the top position at the stock market regulatory body at this time. Dr. Reaz formally communicated his decision to the Financial Institutions Division (FID) of the Ministry of Finance, which had issued an office order appointing him as BSEC Chairman on August 13. He currently serves as the Chairman and Chief Executive Officer of Policy Exchange Bangladesh, a prominent think tank. Following his appointment, concerns surfaced on social media, with some questioning Dr. Reaz's connections, particularly his friendship with Salman F Rahman, former Prime Minister Sheikh Hasina's private sector and investment adviser. These concerns were echoed by a group of BSEC stakeholders, leading Dr. Reaz to reconsider and ultimately decline the chairmanship.  

Two more readymade garment (RMG) factories of the country have achieved the recognition of the LEED certification this month, raising the number of the LEED certified factories to 226. As of July this year, the number of the LEED certification factories was 220, with 14 factories earning the certification in the past seven months. LEED (Leadership in Energy and Environmental Design) is a globally recognised green building rating system that emphasises environmental responsibility and energy efficiency. The recognition of the LEED certification refers to underscoring the country's commitment to green initiatives within the garment sector, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Director Mohiuddin Rubel told UNB. Of the 226 certified factories, 89 have achieved the highest, platinum rating, 123 have earned gold, 10 silver and 4 are certified, as reported by the BGMEA. The newly certified top two factories are Saadatia Sweaters Ltd. located in Diakhali, Molla Bazar under Ashulia police station of Dhaka and Executive Greentex Ltd. located in Mulayed area under Sreepur upazila of Gazipur, with achieving 91 and 69 scores in the platinum and gold categories respectively. Bangladesh’s achievement positions the country as a leader in the global sustainable fashion movement, with 60 out of the 100 LEED-certified green factories worldwide located here, according to BGMEA. This includes 18 out of the top 20 LEED-certified factories globally, based on BGMEA data. The geographic distribution of these certifications within Bangladesh illustrates the RMG industry's widespread commitment to sustainability. Despite the challenges posed by the global economic landscape, along with the current national and geopolitical developments, Bangladesh’s RMG industry continues to demonstrate resilience and an unwavering commitment to sustainable growth. This progress in achieving such a significant number of LEED certifications highlights the industry’s proactive approach to enhancing environmental sustainability and reinforcing its position as a reliable sourcing destination, said a BGMEA media release. “We have consistently prioritized sustainability in our operations, ensuring that our growth is aligned with global best practices and environmental stewardship,” it added.

Bangladesh Bank Officers Welfare Council (BBOWC) has urged the interim government to amend ‘Bangladesh Bank Order 1972’ to ensure full autonomy  of the central bank. The organization submitted a memorandum in this regard to the Finance Adviser of the interim government Dr. Salehuddin Ahmed on Thursday. The BBOWC sought necessary amendments to ‘Bangladesh Bank Order 1972’ to ensure the complete autonomy of Bangladesh Bank (BB) including it administrative, operational, and financial expenditure independence. Leaders of the organization  in a press conference at the central bank headquarters today explained their demands to the reporters. BBOWC's Acting President Tanveer Ahmed General Secretary AKM Masum Billah and other executives were present in the press conference. Apart from this, the BBOWC has demanded reforms in various areas of the country's financial sector and the central bank. They demanded abolition of the Financial Institutions Division (FID), a wing of the Ministry of Finance, to prevent conflict of interest and dualism in the banking sector. They demanded amendments related to reforms to bring back the good governance of the banking and financial sector. Other demands included structural reform of the central bank’s Board of Directors, inclusion of the post of BB governor as a constitutional post, full ministerial status and appointment of renowned economists or central bank officials as governors; converting the post of Deputy Governor and Head of BFIU to the regular posts and giving the post status as Senior Secretary. Besides, it demanded that important functions of the BB, such as interest rate, exchange rate, and licensing of banks or financial institutions, should be kept free from political interference and influence.

The National Board of Revenue (NBR) has asked banks to provide account details of Mohammed Saiful Alam, popularly known as S Alam and his family members. The tax zone 15 of the NBR has issued a letter to 91 banks and financial institutions in this regard on August 14. In the letter, the NBR has asked the banks and financial institutions to provide information on bank accounts and credit cards as soon as possible under the Income Tax Law-2023 of 200 sections. Details of the bank accounts of S Alam, his wife Farzana Parvin, mother Chemon Ara Begum and brother Abdullah Hasan were sought in the letter. Besides, the bank account information of S Alam's son, daughter or sister in the joint name or in the name of business entities has also been sought.

India’s Adani Group has said that the recent amendment to India's Power Export Guidelines will not affect the existing Power Purchase Agreement (PPA) between Adani Power and Bangladesh Power Development Board (BPDB). “The amendment to India's Power Export Guidelines is just an industry enabling universal provision for the exporting power stations in India to establish connection with the Indian grid. This does not affect the existing Power Purchase Agreement (PPA) between Adani Power and the BPDB”, it said in a statement on Wednesday. Calls grow to review deal with Adani Power amid cash crunch “We have been providing uninterrupted power to Bangladesh from our Godda plant. Adani Power is committed to fulfil contractual obligations as per BPDB’s demand schedule and provisions of PPA and would look forward to continuing reciprocal fulfilment by BPDB”, it added. The statement from the Indian business group came against the backdrop of a media report that the Indian government amended the existing rules to allow the Adani Power to sell to the local market alongside its export to Bangladesh. Earlier, Adani Power was bound to export its electricity to Bangladesh under Indian export law. It is believed that such an amendment to the Indian export law was made in order to help the company hedge against political risks in Bangladesh. Adani Group seeks new investment opportunity in Bangladesh Currently only one plant in India—Adani Power's 1,600 megawatt (MW) Godda plant in eastern Jharkhand state—is under contract to export 100% of its power to a neighbouring Bangladesh.