Bangladesh

The government initiates a #coup at #Bangladesh’s biggest bank

On the 5th of January military intelligence operatives phoned the chairman, a vice-chairman and the managing director of Islami Bank Bangladesh and brought them to the agency’s headquarters in Dhaka. A few hours later the bank’s board selected their replacements. Islami Bank has been of interest to the government for its association with the Jamaat-e-Islami, Bangladesh’s biggest Islamist party. In recent months, companies with ties to S Alam Group have built stakes in the bank, although the group denies any role in this. The new chairman, Arastoo Khan, declined to comment on the changes at the bank. The shareholders from Saudi Arabia and Kuwait were kept in the dark about the boardroom coup and complained bitterly about it. The Islamic Development Bank (IDB) questioned the rationale behind the changes and pointed out that there was no proper recruitment process. The Bangladeshi government has assured foreign shareholders that it will not let politicians loot the bank.

New CEO for Social Islami Bank

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.

Islami Bank is not operating in Islamic way: Ibrahim Khaled

According to Bangladesh Bank's former deputy governor Khondkar Ibrahim Khaled, Islami Bank Bangladesh speaks about Islamic banking, but it does not act in that way. In his view, the private bank is not following Islamic banking rules of keeping customers as partners of profit or loss. He also alleges that remittances are dropping due to 'dishonest' mobile banking abroad. The statements were made at a seminar in Dhaka where several professors of Bangladesh Institute of Bank Management (BIBM) were present. Khaled said that remittances were dropping because money is being sent through illegal channels in the name of bKash. He advised the Bangladesh Bank to open a new wing to research mobile banking in order to stop transactions outside banking channels. In a research paper published at the seminar, it was said that a large section of the customers of Bangladesh's banks did not have clear ideas about the sector.

IBBL row: Muhith seeks explanation from BB about IDB allegations

Finance Minister Ama Muhith has sought explanation from Bangladesh Bank about allegations of foreign investors of Islami Bank Bangladesh Limited (IBBL). The Islamic Development Bank (IDB) alleged that the IBBL board made the recent high-level changes in the absence and without consent of foreign shareholders. Two foreign investors including IDB hold 52% shares of the IBBL. At the board meeting January 5, former bureaucrat Arastoo Khan was elected chairman of IBBL. Changes were also brought to the posts of managing director and heads of various committees of the bank and also to chief of the Islami Bank Foundation. At present, of the 16 board of directors, seven are independent directors, seven from little known companies and two are foreign sponsors’ representatives.

IDB dismayed by 'abrupt' changes at Islami Bank

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.

Massive reshuffle in Islami Bank top positions

Islami Bank Bangladesh has undergone abrupt, major changes in its three top positions - chairman, vice chairman and managing director. Arastoo Khan, the former chairman of Commerce Bank has now become chairman of Islami Bank, replacing incumbent Mustafa Anowar. As a representative of Ibn Sina run by Bangladesh Jamaat-e-Islami leaders, Mustafa Anowar was serving as the chairman of the bank. He also resigned from the post of director as well as from the post in the bank’s foundation. The board of directors also replaced the bank’s managing director (MD) Mohammad Abdul Mannan by Union Bank’s MD Abdul Hamid Mia. Islami Bank Bangladesh has 307 branches including 57 AD branches and three offshore banking units as well as 13,229 staff members, as of December 2015.

Shahjalal Bank to issue #bond worth Tk 4.0b

The board of directors of Shahjalal Islami Bank has approved for issuance of Mudaraba Subordinated Bond worth Tk 4.0 billion. The new issuance is part of a process of inclusion in Tier-II Capital for a period of 7 years through private placement. The bond issue is subject to approval of the regulatory authorities – Bangladesh Bank, Bangladesh Securities and Exchange Commission. The bank’s paid-up capital is Tk 7,346.88 million and authorised capital is Tk 10,000 million, while total number of securities is 734,688,133.

Islami Bank: #Bangladesh's Most-Watched Bankers

Islami Bank is the largest and most profitable bank in Bangladesh. It has 10.7 million depositors, 27% of Bangladeshi remittances and 23% of the small and medium enterprises market. While most of the 56 banks in the country are plagued by rising nonperforming loans, poor management and operational inefficiency, Islami Bank isn’t. The bank has a rigorous recruitment and training process and the churn at the company is low. Despite its success, the bank has been dogged in recent years by suspicion that it has been used by Islamic terrorists. CEO Mohammad Abdul Mannan is cognizant of the image problem. No wrongdoing has been proven, but Islami Bank seems to be attending to image cleanup.

Shahjalal Islami Bank's AGM and EGM held

The 15th Annual General Meeting (AGM) and 12th Extraordinary General Meeting (EGM) of Shahjalal Islami Bank was held on the 26th of June 2016 in Dhaka. The meeting approved 13% cash dividend for the shareholders for the year 2015. The chairman of the bank, A. K. Azad said the entire index of the bank, including deposit, investment and profit are in a stable position even prevailing severe competition in the banking sector. The program was conducted by Md. Abul Bashar, VP and company secretary of the bank.

Islami Bank reappoints CEO for third term

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.

BB asks Al-Arafah not to sell stake to foreign investors

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.

Al-Arafah #Islami Bank elects chairman, vice chairman

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.

How govt is taking control of Islami Bank

Islami Bank Bangladesh Limited had five independent directors, of whom four have been dismissed in the last few months. These men are: NRM Borhan Uddin, AKM Sadrul Islam, Md Belayet Hossain and Md Abdus Salam. The bank’s board of directors refrained from renewing the tenures of these four because of government directives. Banking industry analysts believe the government’s directive is part of its plan to appoint four directors of its own choice. They believe the government is taking control of Islami Bank through several major changes including the board of directors. Last week freedom fighter engineer Mostafa Anwar replaced Abu Nasser Muhammad Abduz Zaher as the chairman.

Al-Arafah bank sells 10pc stakes

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.

FBI to Help Track Bangladesh Bank Hackers

The FBI has agreed to help Bangladesh investigate an audacious $81 million theft from the nation's foreign reserves, authorities said Sunday, days after the finance minister accused central bank officials of complicity in the heist. A FBI official in Dhaka met with representatives from Bangladesh's Criminal Investigation Department and offered to assist with the investigation into the spectacular cross-country theft. Hackers stole the money from the Bangladesh Bank's account with the Federal Reserve Bank of New York on February 5 and managed to transfer it electronically to accounts in the Philippines. Investigators say local hackers were likely involved in the theft.

ACC quizzes Islami Bank director

The Anti Corruption Commission (ACC) on Wednesday interrogated director of Islami Bank Bangladesh Limited and its audit committee chairman ANM Burhan Uddin in connection with a graft allegation. ACC deputy director Shamsul Alam questioned him for two hours from 11 am at the ACC head office in the capital, ACC Public Relations officer Pranab Kumar Bhattacharya said. According to the allegation received by the national graft watchdog, Burhan Uddin influenced the bank management in hiring a deputy general director by concealing information, and also misused his power in resolving audit objections of the bank for his personal interest, according to UNB.

6 more banks sign deal with BB to back WB-funded project

Bangladesh Bank (BB) signed separate agreements with six more private banks on Wednesday to facilitate long-term financing under the World Bank funded Financial Sector Support Project (FSSP). Under the agreements, the six banks - Dutch Bangla Bank Limited, IFIC Bank Limited, South East Bank Limited, Standard Bank Limited, Trust Bank Limited, and Standard Chartered Bank - would provide long-term financing for projects in manufacturing sectors. The central bank earlier signed similar agreement with ten other banks. BB Deputy Governor Nazneen Sultana said that the BB under the auspices of International Development Association (IDA) of the World Bank would provide $300 million through FSSP to meet the growing demand for long-term financing for productive sectors in the country.

Shahjalal Islami Bank re-appoints MD

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.

UPDATE 1-MOVES-Standard Chartered appoints CEO for Islamic banking business

Standard Chartered has appointed Rehan Shaikh as chief executive of its global Islamic banking business, it said in a statement on Wednesday.
Shaikh moves to Standard Chartered Saadiq from Dubai Islamic Bank, where he was senior vice president and business head, private sector and transaction banking. He previously worked for StanChart in Pakistan from 1998 to 2007, the statement said.
He takes over from Sohail Akbar, who was interim chief executive of the Islamic banking operation after the departure of Afaq Khan earlier this year.
StanChart remains committed to the business despite a period of hiatus across other parts of the bank as global chief executive Bill Winters moves to restore profitability. It announced plans this month to reduce costs by $2.9 billion by 2018 and cut 15,000 jobs.
"Islamic finance is an integral part of the business at Standard Chartered and we continue to see growing demand from clients in many of our markets," said Sunil Kaushal, the bank's regional chief executive for Africa and the Middle East.

JP Morgan clients buy into Islami Bank

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).

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