Shahid Hossain joined Social Islami Bank (SIBL) as chief executive officer. The bank also promoted Tarik Morshed as its additional managing director. Prior to joining SIBL, Hossain had been serving Southeast Bank as managing director. He started his banking career as a probationary officer with National Bank in 1983. He completed his MSS in political science from Dhaka University in 1980. Prior to the promotion, Tarik Morshed had been serving SIBL as deputy managing director. He has been with SIBL since its inception in 1995 and holds a master's degree in management from Rajshahi University.
The Islamic Development Bank (IDB) expressed dismay at the recent changes that took place at Islami Bank Bangladesh (IBBL). In a letter to Finance Minister Ama Muhith, IDB said the foreign shareholders feel that the governance of the bank has been taken away from them, although they own more than 52% of the shares, while IDB has a 7.5%. The IDB also criticised the way a board meeting at IBBL is convened. Furthermore, the IDB voiced its concern about the recent changes, about appointing the new managing director in an abrupt manner, not following the rigorous recruitment process. As a response to IDB's letter, Islami Bank said in a statement that all banking rules have been followed properly.
Mohammad Abdul Mannan has been reappointed as the chief executive officer of Islami Bank Bangladesh for a third term. Mannan recently received 'The Asian Banker CEO Leadership Achievement Award-2016' and the bank was judged as 'The Best Managed Bank in Bangladesh' for the same year.
Bangladesh Bank did not allow Al-Arafah Islami Bank to sell 10% of its shares to the Islamic Development Bank (IDB). The deal was originally signed in March to invest about Tk 155 crore to acquire a 10% stake in Al-Arafah. Al-Arafah was supposed to issue around 11 crore fresh shares worth Tk 10 each with a premium of Tk 4, in a bid to raise its capital. The board of Al-Arafah is divided over the issue of selling a 10% stake, particularly on the issue of giving veto power to IDB. The aggrieved group had also taken the issue to court opposing the veto power.
In Bangladesh Abdus Samad has been elected as the chairman and Mohammed Abdus Salam as the vice chairman of Al-Arafah Islami Bank. Samad is one of the founder directors of the bank, and vice chairman of S Alam Group. Salam is a sponsor shareholder and ex-chairman of Al-Arafah Islami Bank, and the current managing director of Mir Group.
The Islamic Corporation for the Development of the Private Sector (ICD) has announced investment of about Tk 155 crore to acquire 10 percent stakes in Bangladesh's Al-Arafah Islami Bank. Al-Arafah Islami Bank will issue around 11 crore fresh shares of Tk 10 each with Tk 4 as premium to the ICD. Khaled Al Aboodi, chief executive officer of the ICD, and Badiur Rahman, chairman of Al-Arafah Islami Bank, inked the agreement on behalf of their respective organisations. The investment is, however, subject to shareholder consent and regulatory approvals from the central bank, the Bangladesh Securities and Exchange Commission and other relevant authorities.
Shahjalal Islami Bank has reappointed Farman R Chowdhury as its managing director and chief executive, the bank said yesterday. Chowdhury will serve the bank for the next three years, it said in a statement. He joined Shahjalal Bank in 2013 as its managing director and chief executive. Prior to this assignment, he served ONE Bank as its managing director for six years. Chowdhury started his banking career in 1986 as a management trainee at American Express Bank and served there for 12 years. Later, he joined ONE Bank in 1999 as its first branch manager and served there until 2013.
JP Morgan's clients have bought around 3 % shares of Islami Bank Bangladesh Ltd or IBBL over the past several years, officials said. The US-based banking firm bought the shares for its institutional and indi-vidual investors. The shareholding empowers JP Morgan to hold a post in IBBL's board of directors as the law allows a shareholder to become a director in a publicly-listed company in Bangladesh with a stake of 2 %.
“The market plunge that began in December 2010 in Bangladesh has attracted foreign investors to buy IBBL shares,” MA Mannan, managing director of IBBL, told The Daily Star.
“JP Morgan's investment in IBBL shares reflects our strength.”
The current market price of IBBL's total shares stands at Tk 4,508 crore -- at over Tk 28 a share as of yesterday. Presently, IBBL has nearly 161 crore shares, with a face value of Tk 10 per share. If the current market price of IBBL shares is taken into account, JP Morgan's holding of 3 percent shares is valued at over Tk 137 crore. JP Morgan is one of the largest asset and wealth managers in the world with assets under its management worth $1.7 trillion (as of December 31, 2014).
Huge outflow of foreign currency during Hajj and Eid-ul-Azha has created a crisis of cash US dollar in Bangladesh, according to market players and the regulator. The crisis has now forced the central bank to request the National Board of Revenue to withdraw tax on import of US dollar notes by local banks. Hajj and the increase in the quota for cash when travelling outside the country have drained out the cash dollar reserves this year, said Nazneen Sultana, deputy governor of Bangladesh Bank. Generally, the demand for cash dollar rises ahead of Hajj every year. Spending for Puja and rising medical tourism have created further strain on the cash dollar reserves.
The Anti-Corruption Commission (ACC) today approved a charge sheet against 14 people, including Bismillah Group’s Managing Director Khaza Solaiman Anwar Chowdhury, for embezzling Tk 110 crore from Shahjalal Islami Bank. Nine of them are employees of Bismillah Group, four of Shahjalal Islami Bank and one is Network Frame System Ltd’s Chairman Akhter Hossain. The accused include Soleman’s wife and group’s Chairman Nawrin Hasib, Solaiman’s mother Sarwar Jahan, former manager of Eskaton Branch of Shahjalal Islami Bank Aslamul Haq and former deputy manager ASM Hasanul Kabir. The controversial group swindled the money with the help of bank officials between June 2006 and October 2012.
Islami Bank Bangladesh, the financier of Swan Garments over the last 30 years, plans to donate Tk 1.39 crore to clear the workers' one-month salary, the bank's Managing Director Mohammad Abdul Mannan said. Mannan hopes the bank's Board of Directors will agree to give away the fund as a lifeline to the company. The bank cannot invest further in Swan Garments, which has 1,300 workers in two units, as the company does not have any legal owner now, he said. Islami Bank will need the central bank's permission to further bankroll the factory, the loans of which have already been classified, Mannan said. Disputes over Swan's ownership need to be settled first to resume its operations, he said.
The Department of Inspection for Factories and Establishments (DIFE) yesterday requested Islami Bank Bangladesh, the financier of Swan Garments, to further lend Tk 1.39 crore to the apparel maker so that it can clear one month's salaries of its workers. Both the DIFE and the bank had been in trouble finding a successor of the company after the death of its Chinese owner, Ming Yuen Hon (Toby), in April. Disputes over the ownership have to be settled to resume operations of Swan Garments, and if Islami Bank wants to continue financing, it will need permission from the central bank as the company's loans have already been classified.
The central bank's decision not to allow conventional banks to convert into Islamic banks has frustrated half a dozen lenders. Even conventional banks, which were earlier permitted to open branches or windows for Islamic banking, are not allowed to do it anymore. Bangladesh Bank will not entertain their demand, SK Sur Chowdhury, deputy governor of Bangladesh Bank, said yesterday. The banks that are now awaiting the licence to become Islamic Shariah-based banks should have taken their original permits as Islamic banks instead of conventional ones, he said. Some of the applications have been pending for more than two years now.
Islami Bank Bangladesh has moved 16 notches up to rank 954th in 2015 among the top 1,000 banks of the world by The Banker magazine of the UK. The bank ranked 970th in 2014 and 1,000th in 2012, the bank said in a statement. Besides, the bank has been ranked 70th, 250th, 791st and 785th considering return on capital, return on assets, capital assets ratio and amount of assets of the bank respectively, according to the statement. The Banker conducts a rating of the top 1,000 global banks since 1790. The magazine publishes the list in July every year on the basis of data and evaluation of more than 5,000 leading banks from 163 countries.
Md Mustafa Khair has recently been promoted as the deputy managing director of First Security Islami Bank. Prior to the promotion, Khair has been serving the bank as senior executive vice president, the bank said in a statement. He started his banking career at Bangladesh Shilpa Rin Sangstha, which is now known as Bangladesh Development Bank. He also worked with IFIC Bank and Dutch-Bangla Bank before joining First Security Islami Bank in 2006, according to the statement.
Shahjalal Islami Bank has recently reelected AK Azad as its chairman and Mohammad Younus and Md Abdul Barek as vice chairmen. Azad is the managing director of Ha-Meem Group and president of Bangladesh Chamber of Industries. He is also the former president of the Federation of Bangladesh Chambers of Commerce and Industry. Azad is also the managing director of Channel 24 and Daily Samakal. Younus has business concerns in paper, fabric, and cold storages industries. He is also a director of NTV, the bank said. Barek is a sponsor shareholder of Shahjalal Islami Bank and Shahjalal Islami Bank Securities. He also owns Arju Electronics, Jony Electronics and Rony Electronics.
MasterCard partnered with Al-Arafah Islami Bank to launch the MasterCard Islamic debit, credit and prepaid cards in Bangladesh. five new MasterCard cards will be added to the bank's repertoire. The cards will offer the lowest monthly compliance fees, 50 days without any additional charges, along with discounts at over 600 merchants and vendors. Jamilur Reza Choudhury, vice-chancellor of Asia Pacific University, attended the launching ceremony as the chief guest along with Badiur Rahman, chairman of Al-Arafah Islami Bank, and Syed Mohammad Kamal, country manager of MasterCard Bangladesh.
Mustafa Anwar has been elected chairman of Islami Bank Bangladesh, while Yousif Abdullah Al-Rajhi and NRM Borhan Uddin have been elected vice-chairmen. Anwar, who is the chairman and managing director of Birds Group, started his career as an engineer of Bangladesh Water Development Board after completing his graduation in civil engineering from Bangladesh University of Engineering and Technology in 1964. Rajhi is the general manager-cum chief executive officer of Al-Rajhi Company for Industry and Trade, KSA. Borhan Uddin, who is currently chairman of audit committee of the bank, is the vice-chancellor of City University, Dhaka.
Finance Minister of Bangladesh AMA Muhith has urged governors of the Islamic Development Bank (IDB) to push for a community-based partnership and come out of traditional financing models for a prosperous Islamic world. Muhith suggested leaders of the Islamic countries should work together to pull up the OIC (Organisation of Islamic Cooperation) region towards achieving healthy human development and securing strong, sustainable economic growth. He was speaking to OIC leaders at the 40th annual meeting of the Islamic Development Bank Group at Maputo, Mozambique. Currently, IDB's support for low-income members is stymied by not just a lack of adequate development funds but by its relatively higher cost as well, Muhith said.
National Bank, City Bank and Premier Bank have failed to comply with the central bank's directive to bring down the number of directors from the same family to a maximum of two. The central bank last week asked four private banks to cut the number down in seven days. Only First Security Islami Bank complied with the directive within the deadline, according to Bangladesh Bank. The three other banks sought one to three more months to comply with the directive, but the regulator extended the deadline till October 30, a BB official said. National Bank has five directors from a family. City Bank has nine directors from two families. Four directors of Premier Bank come from one family.