United News of Bangladesh

The board of directors of Islami Bank Bangladesh PLC has decided to increase the bank's authorized capital fivefold, raising it from the existing Tk 2,000 crore to Tk 10,000 crore. The bank disclosed the decision on Thursday (November 5) through the Dhaka Stock Exchange (DSE). According to the disclosure, the decision to hike the authorized capital was taken at the board of directors' meeting held on Wednesday (November 4). To facilitate the capital enhancement, the board also resolved to amend the relevant clauses of the bank's Memorandum of Association and Articles of Association. However, the decision to raise the authorized capital will take effect subject to approvals from Bangladesh Bank and other regulatory authorities, as well as the consent of the bank's shareholders. The proposal will be placed before the shareholders for approval at an Extraordinary General Meeting (EGM). The process of enhancing the authorized capital will be finalized once all regulatory approvals and shareholder consents are secured.

The Bank of England is expected to raise interest rates on Thursday for the first time in more than three years as it seeks to contain rising inflation driven by the Iran war. Economists expect the bank’s nine-member Monetary Policy Committee to increase its key interest rate by 0.25 percentage points to 4% from 3.75%. The move would be the first rate hike since August 2023. Pressure on policymakers has mounted after inflation climbed to an 11-month high of 3.5% in September, well above the bank’s 2% target. Markets are also anticipating further increases in 2027 as inflation is expected to rise in the coming months. The main driver of the recent inflation surge has been higher fuel costs following the Iran war and disruptions to shipping through the Strait of Hormuz, which have tightened global oil and gas supplies. “We imagine that many committee members’ patience with the recent rise in inflation has worn thin,” said Ellie Henderson, an economist at Investec. She warned that prolonged high energy prices could turn a temporary price shock into a more lasting problem. The expected rate increase will be accompanied by the bank’s quarterly economic forecasts, including projections for inflation and economic growth. Higher borrowing costs are intended to curb spending and inflation, but they can also slow economic growth. However, the outlook remains highly uncertain, largely because of developments surrounding the Iran war. Energy prices have fallen sharply following the Republican Party’s heavy losses in the US midterm elections. If oil and gas prices remain lower in the coming weeks, the expected peak in inflation could be less severe, potentially reducing pressure for further rate hikes. The US Federal Reserve and the European Central Bank have also raised interest rates recently in response to inflationary pressures linked to the war, with their future policy decisions largely dependent on energy prices. UK interest rates had been falling from a 15-year high of 5.25% before the United States and Israel attacked Iran on February 28.

City Bank has reported a 20 percent increase in its consolidated profit in the first nine months of 2026, showcasing robust financial performance during an earnings disclosure webcast event held digitally on Wednesday. The event attracted existing and potential investors, researchers, analysts, and capital market participants from across the globe. According to the bank's financial disclosures, the consolidated Earnings Per Share (EPS) stood at Tk 4.96 for the January-September 2026 period, up from Tk 4.13 (diluted) recorded during the corresponding period of the previous year. Furthermore, the bank’s consolidated profit after tax surged to Tk 867.38 crore by September 2026, marking a significant rise from Tk 722.19 crore registered in the same period last year. The digital event commenced with a presentation on the Q3 2026 financial performance delivered by Md Mahbubur Rahman, additional managing director and CFO of the bank. This was followed by a strategic address from Mashrur Arefin, managing director & CEO, who outlined the bank's current trajectory and future outlook. Other senior management officials, including Mesbaul Asif Siddiqui, DMD & head of Wholesale Banking, and Mohammad Firoz Alam, chief risk officer, also participated in the event. An interactive Q&A session followed, during which the management addressed various queries from participants. Bank officials noted that City Bank has continued to draw strong interest from global investment communities owing to its steady growth and enhanced investor relations efforts.      

Bangladesh Bank (BB) has severed the online payment gateway DGePay from the National Payment Switch Bangladesh (NPSB) following an inspection that flagged security breaches, including server access from India. Central Bank Executive Director and Spokesperson Arief Hossain Khan told reporters that safeguarding citizen data confidentiality is a top priority, noting that operating critical financial infrastructure from outside the country poses a direct security threat. DGePay Managing Director and CEO Rashed Mahmud acknowledged that the disconnection took effect on October 29, though he learned of it on November 1. He explained that the central bank raised concerns over staffing—such as lacking a dedicated database administrator—and development work managed by an India-based team. Rashed defended the setup, stating that foreign developers were granted access solely for development purposes and that no security breaches have occurred. He added that discussions with the central bank were ongoing to resolve the compliance issues. Licensed as a Payment System Operator (PSO) in August 2023, DGePay functions as a white-label merchant acquirer under Dipon Group, serving 600 to 1,000 merchants.

Bangladesh Bank has eased regulations governing the issuance of preference shares, their conversion into ordinary shares, redemption, and dividend repatriation for non-resident investors in Bangladeshi companies. The Foreign Exchange Investment Department (FEID) of the central bank issued a circular on Tuesday, clarifying the procedural requirements for issuing companies, non-resident investors, and authorised dealer (AD) banks. Under the new directives, Bangladeshi companies can now issue preference shares to non-resident investors at a dividend rate of up to 5 percent without prior approval from Bangladesh Bank. Following the issuance, the respective companies are required to submit a report to the FEID. However, if a company intends to issue preference shares carrying a dividend rate exceeding 5 percent, it may seek prior approval from the central bank by providing proper justification for the proposed rate. The circular also specified that no prior permission from Bangladesh Bank will be required to repatriate dividends earned on preference shares or to process the redemption of such shares by non-resident investors. Additionally, the circular outlines clear guidelines for converting preference shares into ordinary shares and details the standardised process for reporting and transaction management.    

Yahia Mirza, Head of PR and Media at City Bank PLC, has been elected President of the Public Relations Association of Banks (PRAB), an organization representing public relations officers of banks. Nazrul Islam, Head of Public Affairs and Brand Communication at Dutch-Bangla Bank, has been elected General Secretary of the association. The new leadership of PRAB was announced on Friday at a ceremony in a hotel in Gulshan in the capital. Moniruzzaman Tipu, the founding general secretary of the organization, officially announced the names of the new leaders. PRAB founding president Ataur Rahman, outgoing president Shamsuddoha Shimu, outgoing general secretary Jalal Ahmed Swapan, and other senior members of the association were present on the stage during the announcement. Over 200 public relations and brand communication professionals representing all scheduled banks and financial institutions across the country attended the fellowship conference. PRAB was launched in 2011 to bring together officials working in the brand and communication departments of banks in Bangladesh. The organization is typically managed by a 33-member executive committee formed every two years, comprising PR and branding heads of leading commercial banks as well as high-ranking public relations officials of Bangladesh Bank. Speaking on the formation of the full committee, Moniruzzaman Tipu stated that the complete 33-member executive committee will be constituted next November through the Annual General Meeting (AGM).

One of the country's most renowned economists, Wahiduddin Mahmud,  who was also an adviser to the interim government,  has said that Bangladesh's banking sector was initially crippled by a culture of default loans, which later evolved into a destructive "bank looting culture" following 2010, ultimately plunging the financial sector into its current crisis. He made the remarks on Wednesday while speaking as the chief guest at the inaugural session of the two-day annual banking conference organized by the Bangladesh Institute of Bank Management (BIBM) at its Mirpur campus in the capital. Reflecting on his past experiences with banking sector reforms, Mahmud noted that restoring discipline previously required stringent regulations and hard work, which successfully elevated several private banks to international standards. However, the subsequent era of "bank looting" bypassed all rules and regulations, allowing individuals to siphon money straight out of banks unchecked. Urging stakeholders to learn from past mistakes, Mahmud pointed out that inadequate regulatory frameworks during the initial authorization of private banks in the past allowed entrepreneur-directors to siphon off nearly one-third (equivalent to 35 percent) of total deposits as loans. He further emphasized the need for "antitrust" or anti-monopoly legislation to regulate whether a single group or family should be permitted to control multiple banks, noting that Bangladesh still lacks such a legal framework. Criticizing political patronage, Mahmud observed that politically influential figures have consistently used state-owned banks to distribute undue favors. He stated that if political administrations wish to dispense political favors, they should choose sectors that do not inflict major damage on the national economy, stressing that utilizing the financial sector for political patronage is entirely inappropriate and a reality political leaders must recognize, as central bankers alone cannot stop it. Attributing the collapse of several banks to the indiscriminate approval of new banks without proper scrutiny after 2010, Mahmud highlighted the plight of vulnerable depositors. He noted that bankrupt banks had accepted deposits from government entities—including teachers' salaries, welfare, and pension funds—resulting in millions of takas belonging to impoverished MPO-registered teachers remaining trapped. Describing the extreme relaxation of banking regulations over the past 15 years as a primary driver of the current distress, Mahmud cautioned that while regulations may temporarily need to be eased to rescue weak banks, there is currently no guarantee against repeating past mistakes. Outlining a path forward, Mahmud stressed that banks must be given the opportunity to stand on their own feet while maintaining adequate safeguards. He called for thorough vetting to ensure that funds reach honest, genuine entrepreneurs and business operators, warning that failure to secure this mechanism will cause the sector to regress into past pitfalls. The event was also addressed by Bangladesh Bank Deputy Governor Md. Kabir Ahmed, Bangladesh Association of Banks (BAB) Chairman and Dhaka Bank Chairman Abdul Hai Sarker, World Bank Country Director for Bangladesh and Bhutan Abdoulaye Seck, and Association of Bankers, Bangladesh (ABB) Chairman and City Bank Managing Director and CEO Mashrur Arefin. The keynote paper was presented by Policy Research Institute (PRI) Chairman Dr. Zaidi Sattar.

The Bangladesh Institute of Bank Management (BIBM) organized a workshop titled “Systemic Risk and Restoring Depositors’ Trust for Stabilization of the Banking Sector of Bangladesh” at its Mirpur campus in the capital on Tuesday. The workshop brought together policymakers, senior bankers, academics, and researchers as part of the ongoing BIBM conference program to exchange views on strengthening the resilience of Bangladesh’s financial system. The formal session opened at 9:30 AM with a recitation from the Holy Quran, followed by the national anthem. Dr. Prashanta Kumar Banerjee, Professor at BIBM and Chair of the Conference Organizing Committee, delivered the address of welcome. Inaugurating the workshop as Chief Guest, Dr. Md. Habibur Rahman, Chairman of the BIBM Executive Committee and Deputy Governor of Bangladesh Bank, delivered the opening speech. The technical session was led by former Comptroller and Auditor General of Bangladesh and former Secretary of the Ministry of Finance, Mohammad Muslim Chowdhury, who also served as Chairman of Sonali Bank PLC. As Distinguished Session Leader, he presented an analysis of the key vulnerabilities facing the country’s banking sector and outlined essential measures to restore depositors’ confidence. His presentation was followed by an interactive question-and-answer session with participants. Dr. Md. Ezazul Islam, Director General of BIBM, chaired the session and delivered closing remarks, while BIBM Professor Dr. Ashraf Al Mamun offered the vote of thanks.

Bangladesh Bank restored access to its official website on Sunday after keeping it offline for three days as a precaution against potential cyberattacks amid global security concerns. The central bank took the website offline on Thursday to assess possible cybersecurity risks following warnings about global cyber threats. However, websites of several private commercial banks remain offline and will be restored after the completion of risk assessments, banking sector sources said. Bangladesh Bank Spokesperson and Executive Director Arief Hossain Khan said technical teams examined the website for potential vulnerabilities and software bugs. He said the website was taken offline as a preventive measure in response to global warnings about cyberattacks and was restored after the risks were assessed. Despite the temporary shutdown of the central bank's website, banking services including internet banking and mobile financial services (MFS) remained fully operational throughout the period, with no disruption to customer transactions. In recent years, government services, banks, e-commerce platforms and news media have increasingly relied on websites and software applications to deliver services. Many of these online platforms use the PHP programming language. Global cybersecurity concerns intensified after two critical security vulnerabilities were identified in PHP. Fears that hackers could exploit the flaws to target servers and websites prompted government agencies and commercial organisations in several countries to take precautionary measures. International media reports said governments and businesses worldwide moved to strengthen their cybersecurity measures after the vulnerabilities were disclosed. From Wednesday night, numerous government and commercial organisations temporarily shut down their websites as a precaution. Despite these measures, millions of hacking attempts were reported worldwide, prompting organisations to audit their technology infrastructure and strengthen their cybersecurity defences.

Bangladesh Bank’s 'Udyog' program, designed to foster young entrepreneurs and generate employment, applications for the upcoming second phase will open on November 1, allowing young entrepreneurs from the remaining 56 districts to apply. The first received 18,444 applications across 64 upazilas in eight districts during the first phase of its 'Udyog' program, designed to foster young entrepreneurs and generate employment. According to preliminary data released by the central bank, Netrokona district recorded the highest number of submissions in the first phase with 5,351 applications, followed by Rangpur with 2,745. Submissions from other districts include 2,456 in Naogaon, 2,191 in Jhenaidah, 1,552 in Habiganj, 1,545 in Bhola, 1,343 in Manikganj, and 1,261 in Feni. The central bank launched the initial phase to identify promising young entrepreneurs at the grassroots level and establish financing opportunities for their business ventures. Applications were collected between September 16 and October 15 through scheduled bank branches across all upazilas of the designated eight districts. In the upcoming phase, young entrepreneurs from the country's remaining 56 districts can submit applications from November 1 to November 30. Submissions can be made at any scheduled bank branch within the respective upazilas. Applicants must complete a prescribed form, which is available on the official websites of Bangladesh Bank, its SME portal, and participating scheduled banks. Bangladesh Bank earlier issued the policy guidelines for the 'Udyog' program on September 13. The initiative aims to contribute to national economic development by cultivating youth entrepreneurship, creating new job opportunities, and encouraging innovative ventures. The central bank has sought the cooperation of all relevant stakeholders to ensure the successful implementation of the program.