vol. 04 issue 08

Vol. 04, Issue 08August 2012

A

Monthly Update of Economic,Banking and Financial News

ARTICLE

A Newsletter of Research & Development Division, Prime Bank Limited

��Jobs, profits and patriotismBy Stephan Scholtissek

When big global companies seek to maximize profits by moving production to low-cost countries, do domestic workers always lose out?

In the United States and Western Europe, this can be a hot-button issue. According to popular thinking, often abetted by commentators in the media, if cheaper foreign labor means a product will cost less to produce abroad, that's where companies will make it-which inevitably throws people out of work at home. In other words, globalization leads to fewer domestic jobs in the developed economies of the West.

In fact, however, Accenture research in Germany, Europe's largest economy, demonstrates that outsourcing-driven profitability and job creation are not incompatible. Indeed, the picture revealed is quite the opposite.

According to recent Accenture research into Germany's 500 largest corporations, the best-performing 20% raised their domestic payrolls by 6.1% from 2000 to 2004-despite having substantially boosted their overseas payrolls as well through global expansion and outsourcing. This cohort comprises the country's top performers. Moreover, our research shows that only the top 20% have created jobs at home while also growing abroad; for the rest, overseas job creation has indeed come at the expense of the German workforce.

Accenture research further shows that big companies in general and top-performing businesses in particular are the powerhouses of the German economy. In 2004, the largest 500 firms accounted for some 30% of total revenues and achieved double the sales growth of German companies as a whole. They also accounted for an estimated 70% of total German R&D spending and an estimated 60% of IT spending during the same period. This strongly suggests that these 500 big companies are responsible for most of Germany's investments and-assuming that all IT spending is based on a business case-more than half of the nation's improvements in process efficiency.

A Balanced PartnershipThese are controversial findings in a country whose close to 3 million medium-sized enterprises-the famous Mittelstand-have long been seen as the main engine of job creation and the driving force behind Germany's traditional strength as an exporter.

Bigger companies, by contrast, are often seen as pursuers of profit at the expense of a greater social good, including job creation. This prejudice is deeply rooted in Germany's artisanal past. Reinforced by the class conflicts of the 19th and 20th centuries, this jaundiced view of big companies has been aggravated in recent years by workforce insecurities generated by globalization-insecurities echoed by politicians of all parties, who have tended to legislate in favor of the Mittelstand.

It would be wrong, however, to conclude that the findings undervalue the status of the Mittelstand. In fact, the Accenture study confirms the key role of these companies as domestic employers. What's more, as suppliers to the most profitable of the big conglomerates, they, too, are benefiting from globalization.

In fact, the strength of the German economy depends on a balanced partnership between large and midsize companies. Our study identified the big companies as important drivers of economic growth. But its most significant conclusion is this: Profitability at the corporate level is sustained by job creation overseas, which is therefore an indispensable precondition for long-term job creation in Germany itself.

The aim of Accenture's study was to determine which segments of the German economy are growing most vigorously and whether, contrary to

popular belief, growth at the largest corporations-which are building on a global delivery network-also creates jobs in Germany.

German academic researchers and politicians often neglect large companies because of their relatively limited historical role in domestic job creation. Our research results did not dispute this view. The largest 500 companies as a whole pay the wages and salaries of just 13% of the German workforce. Moreover, while these businesses boosted job creation abroad by 12.3% between 2000 and 2004, they also downsized their German workforces by 1.5% in the same period.

The performance of the companies that comprise the German Dax 30blue-chip index, was even worse. They collectively reduced their German payrolls by some 3% and managed only 1.9% job growth overseas.

But a very different picture emerges when the top 20% of the biggest firms are analyzed. These top performers have expanded their overseas payrolls even more-by 17.7%-than the rest of the sample while creating new jobs in Germany at the same time. The secret of their success: the ability to turn the cost and supply chain savings generated by outsourcing into domestic growth and job-creation opportunities.

Top performers in the auto industry provide outstanding examples of this winning formula. Porsche, for example, which transfers a major part of the production of its Boxster roadster to suppliers, still managed to increase its German workforce by 6% annually between 2000 and 2004. BMW, too, has continued to create jobs in Germany, although it develops less than half its components domestically. So has auto supplier The Bosch Group, which has set up design and engineering centers in both India and China. All told, from 1995 to 2005, German automakers and suppliers as a group created more than 100,000 jobs in Germany.

The top 20% of big companies in our study represent a wide range of industries, so it's a similar story, from electronics to retail. What all these companies have in common is a two-pronged growth strategy: global expansion while strengthening Standort Deutschland-Germany as a place to do business.

For these top-performing companies, German workers and facilities remain the source of innovation. Indeed, little of their R&D investment ever actually leaves the country. Yet by growing abroad, they build up the resources for capital investment at home, either organically or by acquisition. What's more, because they take care of their human capital at home, they foster a loyal domestic workforce, retaining the long-term capability for profitable future growth through innovation.

It is the profitability of these companies that underpins their success-and much of that profitability stems from using a global delivery network undertaken not just to cut costs but also to improve overall efficiency and to develop innovation capabilities. The carmakers, for example, often buy innovations like self-parking systems from their suppliers,

Inside this IssueShanila Mehjabin, AVPMd. Golam Moula, EO�ATM Shirajul Haque, SO�Eiman Fergeion, SO�Imam Hossain Mahmud, MTResearch & Development Division�Prime Bank LimitedAdamjee Court Annex Building No-2(12th Floor), 119-120, Motijheel C/ADhaka-1000Tel: 9565564, Fax : 02-7119669�PABX: 9567265, 9570747-8 (Ext: 344)E-mail: r&[email protected]: www.primebank.com.bd

Editorial BodyArticle 01Country Profile 02�Judgment 03Company Profile 05Client Profile 05Commodity News 05�Corporate News 06�Global Business & Economy 06Bangladesh Economy 08Finance & Banking 11Energy 13�Agriculture 13Readymade Garments 14�IT & Telecommunication 14Miscellaneous 14�Strategic Moves of FIs 14


Vol. 04, Issue08, August 2012 2

or they co-develop them, as BMW has done with auto supply company ZF Lenksysteme, a 50-50 joint venture between suppliers ZF Friedrichshafen and The Bosch Group.

Far from damaging domestic job prospects and the domestic economy, such strategies can actually enhance them-a lesson from Germany that companies and policymakers in other countries would do well to remember. (Source: Outlook, September 2007)

Russia

Russian is a federal republic in Eastern Europe and northern Asian comprising 83 federal subjects. With an area of over 17 million square kilometer, Russia is the largest country in the world; covering more than one-ninth of the worlds land area and nearly twice the area of the United States or China. From northwest to southeast, Russia share borders with Norway, Finland, Estonia, Latvia, Lithuania and Poland (both via Kaliningrad Oblast), Belarus, Ukraine, Georgia, Azerbaijan, Kazakhstan, China, Mongolia, and North Korea. Most of the country consists of vast stretches of plains that are predominantly steppe to the south and heavily forested to the north, with tundra along the northern cost. Russia is also the eighth most populous nation with nearly 138 million people. Moscow is the capital and the largest city.

Economy: Russia has undergone significant changes since the collapse of the Soviet Union, moving from a centrally-planned economy to a more market-based and globally-integrated economy. Economic reforms in the 1990s privatized most industry, with notable exceptions in the energy and defense-related sectors. Russian industry is primarily split between globally-competitive commodity producers. In 2011, Russia became the world's leading oil producer, surpassing Saudi Arabia; Russia is the second largest producer of natural gas; Russia holds the world's largest natural gas reserves, the second-largest coal reserves, and eighth-largest crude oil reserves. Russia is the third-largest exporte3r of both steel and primary aluminum. Russia's long-term challenges include a shrinking workforce high level of corruption, difficulty in accessing capital for smaller, non-energy companies, and poor infrastructure in need of large investments. Russia's gross domestic product (GDP) in 2011 was $1791 billion. Services account for about 58.56% of GDP, while industry, including manufacturing, mining, electricity generation and construction, accounts for 36.9%. The agricultural sector, including forestry and fishing, contributes 4.5%.

Manufacturing: Manufacturing has remained a significant sector of the Russian economy. The country's manufacturing capacity is located principally in western Russia and Ural Mountains region. Extractive industries, such as mining and oil and gas production, are more widely dispersed, with major facilities located in Siberia. Russia's manufacturing enterprises produce highly diversified products. The machine building sector makes products ranging from computers and precision tools to rail locomotives, automobiles, agricultural machinery, space vehicles, and military weapons. Similarly, the metallurgical industry produces a wide range of specialty steels and nonferrous metals, and the chemical sector produces an array of industrial chemicals and chemical fertilizers.

Mining: Mining is a major sector of the Russian economy and provides a significant share of the country's exports. Russia leads the world in the mining of nickel and ranks second in the production of aluminum. Nickel ores are extracted primarily in eastern Siberia, although sizable deposits are also located in the Kola Peninsula near Murmansk. Aluminum bauxite deposits are located mainly in the Urals and northwest European Russia near Saint Petersburg; other deposits are found in western and far eastern Siberia. Russia ranks among the world's top five producers of gold, silver and diamonds. Gold is mined in the Urals, western Siberia, and the Lena River valley of eastern Siberia. Most diamonds are extracted in northeastern Siberia, and nearly all the output is exported. Silver is mined in the far eastern region of Siberia, and also in the Urals and western Siberia. Russia is also among the top five producers of lead, copper, and uranium ores and an important producer of iron and zinc ores. Russsia also has vast reserves of petroleum, coal, and natural gas.

Energy: Coal accounted for most Soviet energy production until late 1950s, when a gradual shift to oil and gas began. Steam-driven power plants fueled by coal, oil, or natural gas supply 68% of Russia's electricity. Hydroelectric power plant supply 13%. Important hydroelectric power plants are located on the major rivers notably the Volga and the Don.

Transportation: Railways transport in Russia is mostly under the control of the state-run Russian Railways monopoly. The company accounts for over 3.6% of Russia's GDP and handles 39% of the total freight traffic (including pipelines) and more than 42% of passenger traffic. The total length of common-used railways tracks exceeds 85,500 km, second only to the U.S. Over 44,000 km of tracks is electrified, which is the largest number in the world. The most renowned railway in Russia is Trans- Siberian (Transsib), spanning a record 7times zones and serving the longest single continuous service in the world. As of 2006 Russia had 933,000 km of roads, of which 755,000 were paved. 102,000 km of inland waterways in Russia mostly go by natural rivers or lakes. Major sea ports of Russia include Rostov-on-Don on the Azov Sea, Novorossiysk on the Black Sea, Astrakhan and Makhachkala on the Caspian, Kaliningrad and St Petersburg on the Baltic, Arkhangelsk on the White Sea, Murmansk on the Barents Sea, Petropavlovsk-Kamchatsky and Vladivostok on the Pacific Ocean.

Agriculture: Despite Russia's huge size and extraordinary natural resources, it has a shortage of agricultural land. Only about 8% of its territory is cultivated. The country's major grain crops are wheat, barley, oats and rye. Other important crops are potatoes, sugar beets and sunflower seeds.

Foreign Trade: Russia's foreign trade patterns have changed drastically since the collapse of Communism. Trade shifted quickly toward the West. Trade with the other former Soviet republics also dropped sharply. However, some former Soviet republic, such as Ukraine and Belarus, remain major trading partners. Germany has become Russian's leading trading partner, followed by Netherlands, United States, China and Italy. Russia's total exports in 2011 amounted to $498.6 billion while imports were $310.1 billion.

Bangladesh-Russia TradeTwo-way trade between the countries has shown a mixed trend in recent years. Total trade amounted to $249.99 million in 2010-11 compared to $198.47 million in 2009-10 and $ 346.73 million in 2008-09, showing a rise of 25.96% in 2010-11 but a fall of 42.76% in 2009-10.

Bangladesh's exports to Russia have shown a rising trend in recent years. Exports amounted to $96.95 million in 2010-11 compared to $53.40 million in 2009-10 and $43.56 million in 2008-09, showing a rise in 2010-11 and 22.59% in 2009-10.

COUNTRY PROFILE

Major items Exported to Russia (US$ million)

Source: Bangladesh Bank

Major import items 2008-09 2009-10 2010-11

Knitwear 11.29 13.72 42.33

Jute goods 4.08 9.74 14.62

Woven Garments 4.87 6.67 9.53

Agri-products 1.57 1.90 5.53

Raw Jute 2.52 1.27 3.91

Frozen Food 14.78 14.32 1.24

Chemical Products - 0.01 0.03

Others 4.45 5.77 19.76

Total 43.56 53.40 96.95


3Vol. 04, Issue08, August 2012

Bangladesh's imports from Russia have shown a mixed trend in recent years. Imports amounted to $153.04 million in 2010-11 compared to $145.07 million in 2009-10 and $303.17 million in 2008-09, showing a rise of 5.49% in 2010-11 but a fall of 52.15% in 2009-10.

HIGH COURT DIVISION(Criminal Miscellaneous Jurisdiction)

Md. Anwarul Hoque J Mohammad Ali…...…. …......Accused-Petitioner Md Mozibur Rahman Miah J vs State and another….......

Judgment January 10th, 2012 …….Opposite-Parties*

Code of Criminal Procedure (v of 1898)Section 561ANegotiable Instrument Act (XXXVI of 1881)Section 138(1)

The “account payee cheque” mentioned in the complaint-petition has not it's character as negotiable instrument, the same can be easily brought within the mischief of “any cheque” mentioned in section 138(1) of the Act because cheque includes “account payee cheque”……..(13)

KB Rumy, Advocate- For the Accused-Petitioner. Zahirul Hoque Zahir, deputy Attorney General- For the State. Kazi Md Nurul Amin, Advocate- For the Opposite Party No.1.

Judgment

Md. Anwarul Haque J : Criminal Miscellaneous Case No. 7936 of 2009, Criminal Miscellaneous Case No. 9523 of 2009, Criminal Miscellaneous Case No. 9522 of 2009, and Criminal Miscellaneous Case No. 24730 of 2009 are taken together for disposal in one judgment since the question of law and facts involved in those cases are identical in nature and the rules, so issued, are also found to be in the same language both in word and spirit where incidentally conducting learned Advocate in all these cases are same.

2. However, in all these cases, Rule were issued calling upon the Opposite-parties to show *Criminal Miscellaneous Case Nos. 7936, 9523, 9522 and 24730 of 2009. causes as to why the proceeding of Sessions Case No. 382 of 2009 arising out of CR Case No. 2599 of 2008 punishable under section 138 of the Negotiable Instruments Act, 1881 pending in the Court of Joint Metropolitan Sessions Judge, 4th Court, Dhaka, Metropolitan Sessions Case No. 401 of 2009 arising out of CR Case No. 2504 of 2009 punishable under section 138 of the

Negotiable Instrument s Act, 1881pending in the Court of 2nd Joint Metropolitan Sessions Judge, Dhaka, Metropolitan Sessions Case No. 3167 of 2008 2009 arising out of CR Case No. 2790 of 2008 punishable under section 138 of the Negotiable Instruments Act, 1881 pending in the Court of Joint Metropolitan Sessions Judge, 6th Court, Dhaka, Metropolitan Sessions Case No. 376 of 2009 arising out of CR Case No. 2281 of 2008 punishable under section 138 of the Negotiable Instrument Act, 1881pending in the Court of 5th Joint Metropolitan Sessions Judge, Dhaka shall not be quashed and/or such other or further order orders passed as to this Court may seem fit and proper.

3. In short, the case of the prosecution for the purpose of disposal of the Rules as follows:

One Khan Mohammad Raqib Hossain, Executive Officer of the Export

Import Bank of Bangladesh, Nawabpur Branch, Dhaka filed a complaint-petition in the respective CR cases, referred to above, stating that accuse3d-prtitioner took loan from the Bank under different sanction letter order mentioned in the compliant-petition with a commitment to repay by sixty consecutive installments and in order to repay the loan account payee cheques were issued but ultimately all those cheques, referred in the compliant-petition, are found to have been bounced for insufficient fund. As a result, the compliant-petitioner issued a notice under section 138(1)(b) of the Negotiable Instruments Act but the accused-petitioner did not respond for which having no other alternative the complainant-opposite-party filed all these CR cases in order to secure the trial of the accused-petitioner for committing the offence punishable under section 138 of the Negotiable Instruments Act, 1881.

4. On recording the initial statement of the complainant under section 200 of the Code of Criminal Procedure the learned Magistrate took cognizance of the offence punishable under section 138 of the Negotiable Instruments Act, 1881 and issued the process to secure the attendance of the accused-petitioner to face trial. Ultimately accused-petitioner made his appearance in all those cases, referred to above, and obtained bail, and filed all the Miscellaneous cases under section 561A of the Code of Criminal Procedure alleging that the case under section138 of the Negotiable Instruments Act, 1881 is not, at all, maintainable because “cross-cheque) or “account payee” cheque as has been mentioned in the compliant-petition does not come within the scope of section 138 of the Negotiable Instruments Act, 1881 because in no way cross-cueque preserves the power of negotiability. Moreover, section 138 of the Negotiable Instruments Act, 1881does not allow anyone to prosecute unless the cheque is received by the Bank, submitted by another person. On such counts Rule of these matters as has been so issued are to be made absolute.

5. Mr KB Rumy the learned Advocate for the accused-p[petitioner, at the very outset of the submission, has drawn our attention in the provision laid down in section 123A of the Negotiable Instruments Act which has been placed in Chapter 14 of the said Act in the name and style of the specdial provision relatinig to cheque where cheque crossed or account-payee cheque chall be ceased to be a Negotiable Instrument in the language employed in section 123A(2)(a) of the Negotiable Instruments Act, 1881; as such the same can not be brought within the mischief of section 138 of the Negotiable Instruments Act, 1881.

6. Moreover, Mr. Rumy has also pointed out that to bring the matter within the purview of section 138 of the Negotiable Instruments Act there must be an exixtance of a 3rd person to whom it is ti be bounced for insufficient fund or it exceeds the amount arranged to be paid frm that account by an agreement made with that Bank; but in the instant case there is no such person as drwaee who has been denied to encash the amount mentioned in the cheque. So no criminal proceeding under section 138 of the Negotiable Instruments Act can be allowed to continue causing unnecessary harassment of the accused-petitioner.

7. Mr Zahirul Hoque Zahir, the learned Deputy Attorney-General appearing on behalf of the opposite-party No. 2 has strongly opposed the Rule alleging, inter alia, that the subject matter of a criminal proceeding under section 138 of the Negotiable Instruments Act, 1881 is “any cheque” which has been defined in section 6 of the Negotiable Instruments Act. Moreover, since “account payee cheque” is also a cheque within the meaning of section 6 and does not change its character as negotiable instrument the same can not be kept out of the

JUDGMENT

Major items Imported from Russia (US$ million)

Source: Bangladesh Bank

Major import items 2008-09 2009-10 2010-11

Fertilizers 94.66 40.13 56.54

Cereals 169.67 88.56 30.77

Iron and Steel 9.36 1.75 27.30

Vehicles other than railway

parts and accessories thereof - 1.45 18.12

Raw hides and skins and leather - - 5.09

Oil seeds and oleaginous fruits 1.03 0.95 4.81

Aircrafts, spacecrafts, and parts thereof 1.20 2.03 4.32

Cotton 12.99 - 1.24

Arms and ammunition 0.10 0.03 1.84

Others 14.16 9.90 3.01

Total 303.17 145.07 153.04


4Vol. 04, Issue08, August 2012

ambit of section 138 of the Negotiable Instruments Act. In fact, section 123A (2)(b) of Negotiable Instruments Act put restriction in order to encash the amount mentioned in the cheque because such charge will simply make it not negotiable but does not make it ousted from the character of the Negotiable Instrument. In support of has contention the learned Deputy Attorney-general has brought to our notice in the provisions laid down in section 12, 123A(2)(b) and section 126 of the Negotiable Instruments Act. Moreover, the words “any cheque” as has been employed in section 138 of the Negotiable Instruments Act, 1881 clearly bring the cheque whether is a “bearer” or “account payee” within the mischiefof section 138. In no way, it can be regulated by section123A(2)(a) rather, such “account payee” cheque is to be regulated by both sub-section (2)(a) and (b) of section 123A of the Negotiable Instruments Act. Moreover, the words “any person” appearing in section 138 is nothing but a person who received the “cheque” from the borrower, the present accused-petitioner, and presented it for encashment to the Bank where the accused-petitioner is maintaining his account but such impugned cheques are found to have been bounced and returned to the “drawer” for insufficient fund. So, the Bank has got two status which is enough to refute the contention of the learned Advocate for the accused-petitioner.

8. Mr Kazi Nurul Amin the learned Advocate appearing on behalf of the Complainant-Opposite-Party No. 1 has adopted the argument placed by the learned Deputy Attorney-General for Opposite-party No. 2 Mr Amin further submits that the “account payee cheque” is no doubt a cheque as defined in section 6 read with section 126 and 123A of the Negotiable Instruments Act where the mode of collection of money mentioned in the cheque has been properly described. The provision laid down in section 123(2)(a) can not be read or taken into consideration in an isolated manner rather the provision laid down in clause (b) is to be taken into consideration for the purpose of collection of money mentioned in the cheque. Mr Amin further argues that section 123(2) in nothing but a procedural one given by the legislature placing in the specific provision in Chapter XIV affording a guideline how to encash the amount mentioned in the “account payee cheque” which has been ceased it's simple “negotiable character” but never allowed to be considered as a negotiable instrument, defined in section 13 of the Negotiable Instruments Act, 1881.

9. Let us quote the provision laid down in section 123A & 126 of the Negotiable Instrument Act since the impugned cheque is admittedly “account payee” onoe:

123A. Cheque crossed “account payee” where a cheque crossed generally bears across its face an addition of the words “account payee” between the two parallel transverse lines constituting the general crossing, the cheque, besides being crossed generally, is said to be crossed “account payee.”When a cheque is crossed “account payee”It shall cease to be negotiable; andIt shall be the duty of the Banker collecting payment of the cheque to credit the proceeds there of only to the account of the payee named in the cheque.This section is also to be read with section 126 placed in same Chapter XIV of the Negotiable Instruments Act, 1881.

“Section 126. Payment of cheque crossed generally- Where a cheque is crossed generally, the Banker on whom it is drawn shall not pay it otherwise than to a Banker.”

10. On meticulous examination of these two provisions laid down in section 123A & 126 read with the definition of the “cheque” given in section 6 it has become clear to us that cross-cheque/ Account Payee cheque is also as contemplated in section 138(1) of the Negotiable instruments Act but only changes its normal character by ceasing its negotiability but it does not lose its character as negotiable instrument as defined in section 13 of the Act. In fact, section 123A(1)(a) is to be read with clause (b) of the same section which have already quoted. The provisions laid down in clause (b) of section 123A(1) c;early gives the way now to encash amount mentioned in the “account payee” cheque. In addition to that provision we are also to follow the provision of section 126 of the said Act.

11. We are to remember that the principal object of interpretation is not only to find out a particular meaning of a word or words in a statute, but to find out the intention of the legislature which has been expressed through the medium of words. To interpret is not to restrict

or to expand the meaning of the statute which, in truth, it intends to convey. So every effort is necessary to make a statute workable and not to render it ineffective by giving a meaningless interpretation. It is an elementary rule of construction that the intention of the legislature must be sought from the statute taken as a whole. In arriving at the true meaning of any particular phrase or words employed in the statute it must not be viewed isolated from the context, it must be viewed in its whole context, the title, the preamble, and all other related parts of the statute.

12. Keeping the above view in mind we are to say that the clause (a) of section 123A(2) is absolutely dependent on clause (b) when the cheque is the “account payee” one since in clause (a) only word “negotiable” has been used not the words “Negotiable Instruments” as defined in section 13 of the Act, 1881.

13. In the light of the above observation we are of the opinion that since the “account payee cheque” mentioned in the complaint-petition has not lost it's character as negotiable instrument, the same can be easily brought within the mischief of “any cheque” mentioned in section 138(1) of Negotiable Instruments Act because cheque includes “account payee cheque” also. SO we find no substance in the contention of the learned Advocate for the petitioner.

14. Now let us see whether the Bank being Complainant can have any right to file a case under section 138 of the Negotiable Instruments Act in absence of “any person” appearing in section 138(1) of the Negotiable Instruments Act.

15. Let us quote the provision laid down in section 138(1) of the Negotiable Instruments Act-

138 Dishonour of cheque for insufficiency, etc. of funds in the account- “(1) Where any cheque drawn by a person on an account maintained by him with tha Banker for payment of any amount of money to another person from out of that account is returned by the Bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that Bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provisions of tis Act, be punished with imprisonment for a term which may extend to one year, or with fine which may extend to the amount of the cheque, or with both.

16. We have already discussed that the complainant Bank is the “drawee” of the cheque whereas accused-petitioner is the “drawer”. Admittedly complainant petitioner as a “drawee” submitted the impugned “account payee cheque” in the Bank where the accused-petitioner has been maintaining his account but the same has been bounced for want of insufficient fund. In such circumstances we find nothing which will not go to fulfill the requirements of law as contemplated in section 138(1) of the Negotiable Instruments Act, 1881.

17. In fact, when the cheque is returned to drawer by the bank for insufficient fund certainly it comes within the mischief of section 138(1) of the Negotiable Instruments Act since other mandatory provisions are found to have been compiled with. To have the above views we may also safely rely upon the decision of an unreported case of Arifuzzaman vs State and another, passed in a criminal petition for lease to Appeal No. 514 of 2010 of the Appellate Division of Supreme Court of Bangladesh.

18. In the light of the above findings we are of the opinion that there is no merit in these Rules and accordingly all these rules are to be discharged.

19. In the result, the Rules are discharged.

20. The order of stay passed at the time of issuance of the Rule is hereby vacated.

Let a copy of the judgment and Order be annexed with all the Criminal Miscellaneous Case mentioned above and sent to the Court below at once

for information and necessary action.

Ed.

(Source: The Dhaka Reports, May 2012)



Incepta Pharmaceuticals Ltd

Incepta Pharmaceuticals Ltd. is a leading pharmaceutical company in Bangladesh established in the year 1999. At present Incepta has one fully operational plant at Zirabo, Savar, Dhaka (Zirabo plant) and another at Dhamrai, Dhaka. The second site is currently under development and several projects of finished formulation unit are being set up. The company produces various types of dosage forms which include tablets, capsules, oral liquids, ampoules, dry powder vials, powder for suspension, nasal sprays, eye drops, creams, ointments, lotions, gels, prefilled syringes, liquid filled hard gelatin capsules, lyophilized injections, human vaccine etc. Since its inception, Incepta has been launching new and innovative products in order to fulfill unmet demand of the medical community.

It has its own large distribution network having 18 depots all over the country. Currently Incepta exports to 40 different countries around the world. With hundreds of brands registered in different countries, and many more in the pipeline, Incepta is gradually expanding its global footprint across all the continents.

Incepta Vaccines Limited, a sister concern of Incepta Pharmaceuticals, has already established a State-of-the-Art Human Vaccine production facility. Incepta Vaccines is planning to launched human vaccines in the Bangladesh market in September 2011. Incepta emerges as the first Bangladeshi company to acquire the technology to produce Human Vaccine. The larger production capacity will allow the company to supply its vaccines globally.

On 15th January 2011, Incepta implemented globally acclaimed ERP software system - SAP. Incepta is the first Bangladeshi company to implement SAP to manage resources throughout the company operation. This world class resource management system will allow the company to become more efficient and effective in its day to day operation.

Beginning in 2000, Incepta has been launching new and innovative products at a faster pace than its competitors. Up to May 2012, it has already launched 334 generics with a total of 639 presentations. During the last 12 years of operation Incepta launched as many as 124 new generics for the first time ever in Bangladesh. * Intercontinental Marketing Services (IMS)

ABDUL MONEM LTD.

Abdul Monem Limited, a conglomerate with diversified business venture is committed to achieve the highest quality of product and service for the betterment of the society. This include a dedication to enhance the existing operation, exploration and creation of new and profitable avenues with full respect for the wisdom and ethics of true and transparent business practice as well as development of personal, institutional and professional leadership. Abdul Monem Ltd aims at providing the society with significant assistance in achieving the maximum potentiality.

Established in 1956 as a Private Limited Company, it was registered under registrar of Joint Stock Companies in 1970-71.

The business lines of the enterprise are given below:1. Construction of Large Civil Engineering Projects with Electro-

Mechanical Works.

2. Roads & Highways, Bridges, High-rise Buildings, Airports, Hydraulic Structures.

3. Oil & Gas Pipelines, Tunnels, Power Plants, Sub-stations, Transmission Lines.

4. Jetty Construction, River Bank Projection Works.5. Consultancy.6. Bottler of Coca-Cola, Fanta, Sprite and Sunfill.7. Producer of Igloo Ice Cream, Milk & Ghee.8. Producer of Road Bitumin Emulsion.9. Producer of Refined Sugar.10. Producer of Energy & Power.11. Marketing of Mango Pulp, Igloo Butter & Yogurt.12. Producer of Pharmaceutical Products.13. Producer of Asphalt, Ready Mix Concrete & Auto Bricks.14. Producer of Rice Bran Oil.

And it comprises following Units:1. Abdul Monem Limited (Engineers & Builders)2. AM Beverage Unit (Coca-Cola Bottler)3. Igloo Ice Cream & Milk Unit Limited4. AM Sugar Refinery Limited5. Novus Pharmaceuticals Limited6. AM Energy Limited7. AM Auto Bricks Limited8. AM Asphalt & Ready Mix Concrete Limited9. AM Rice Bran Oil Limited10. AM Mango Pulp Unit11. Danish Bangla Emulsion Limited

State-run jute-mills' profit plunges again in FY12Profit of most of the state-run jute-mills nosedived again in the just concluded fiscal year (FY) 2011-12. Out of the 18 jute-mills, run by the Bangladesh Jute Mills Corporation (BJMC), only six could earn profit in the FY12, against nine mills in the previous fiscal. The mills which could earn profit in 2011-12 were: Latif Bawani Jute Mills, Jatiya Jute Mills, Rajshahi Jute Mills, Gul Ahmed Jute Mills, Bangladesh Jute Mills, and Khalishpur Jute Mills. According to the BJMC officials, rest of the jute-mills incurred significant loss in the just concluded fiscal, but declined to disclose the amount of loss. (Source: The Financial Express, August 4, 2012)

US corn, soy prices hit records as drought lingersUS corn and soybean prices closed at new record highs as a new survey showed worse-than-expected crop damage from a brutal drought across the country's central breadbasket. The price of corn jumped 1.7% to $8.3875 a bushel, while soybeans finished at $17.3025 a bushel, up 2.8% from Tuesday. That left the corn price up 68% from June and soybeans 39% higher. (Source: The Financial Express, August 23, 2012)

India not to halt rice, sugar, wheat exports for nowIndia has no immediate plans to curb exports of rice, wheat and sugar as a recent revival in monsoon rains will help some summer-sown crops. India, the world's second-biggest producer of rice, wheat and sugar, has been hit by a drought for the first time in three years. The dry spell had raised concerns about farm output and consequent export curbs. India's monsoon rains were slightly below average in the past week, but heavy

COMPANY PROFILE

CLIENT PROFILE

COMMODITY NEWS

Year No. of Products First Ever Product IMS Rank*

2012 639 0 2nd

2011 632 9 2nd

2010 594 10 2nd

2009 585 4 2nd

2008 532 10 2nd

2007 451 17 3rd

2006 368 9 3rd

2005 288 12 3rd

2004 198 6 5th

2003 154 18 8th

2002 119 14 10th

2001 78 11 12th

2000 35 4 31st



downpours arrived in the parched western state of Rajasthan, easing fears of a repeat of the widespread drought that gripped the country three years ago. (Source: www.exporter.com, August 22, 2012)

Gold prices to go up from todayGold prices will rise in the domestic market from 26th of august after three months of a static price range following sharp hike in its value in the international market. The price of 22-carat gold will go up by Tk1,517 per bhori, that of 21-carat gold also by Tk1,517, 18-carat by Tk1,283 and the traditional gold by Tk1,049. (The Financial Express, August 26, 2012)

Rice prices to remain stableThe prices of rice are likely to remain stable in the local market taking into consideration the present stock situation and the ongoing robust procurement drive by the government. In addition to that Myanmar's decision to continue exporting rice will also help stabilize the market price, according to insiders. The coarse rice was selling at Tk28-30 per kg while nazirshail at Tk35-42 a kg and minicate at Tk35-40 a kg at the retail level in the city. (The Financial Express, August 26, 2012)

Platinum prices could rise in 2013 on limited supplyPrices of platinum could rise in 2013 as markets digest limited supply from major producer South Africa. South Africa accounts for 80% of platinum supply and its producers have seen output fall sharply over the last year because of industrial action and a flurry of government-imposed safety stoppages, sending prices to their highest level in more than three months. Major producers may start shutting down mines because of high labor and energy costs. (The Financial Express, August 26, 2012)

Toyota sales fall 5.0pc from year agoAccording to a company spokesman, sales in China by Japan's Toyota Motor Corp. and its two local joint-venture partners fell 5% in July from a year earlier to about 78,400 vehicles. The decline was the first for Toyota

since January this year when its sales tumbled 26.2% because of China's lunar new year holiday. The earthquake and a tsunami it caused paralyzed production of key components in Japan and impacted Toyota's vehicle production around the world, including China, depriving dealers of cars to sell. (Source: The Financial Express, August 2, 2012)

Corporate watchToyota Motor Corp posted its largest quarterly operating profit in four years and raised its 2012 global sales target on the strength of demand for cars like the Camry and Prius in key markets such as the United States and Japan. The world's top automaker reported an operating profit of 353 billion yen ($4.51 billion), from a loss a year ago, a better-than-expected result that underscored its rebound from the natural disasters that blighted 2011. (Source: Reuters, August 4, 2012)

Ford expects single-operating system to cut costsBy building vehicles the same way in every plant around the world, Ford expects to reduce its manufacturing investment costs by 8.0% a year while boosting by 25% the number and types of vehicles that can be produced per facility by mid-decade. In keeping with the global “One Ford” plan, a single manufacturing operating system will support the Dearborn-based company's largest expansion in 50 years including nine plants in Asia Pacific, many of them in China. (Source: The Financial Express, August 7, 2012)

Apple-Samsung smart phone clash heads to juryThe mammoth Apple-Samsung patent trial went to the jury, setting the stage for a verdict that could have huge implications for the hot market in smart phones and tablet computers. Apple, which accuses the South Korean electronics giant of copying the iPhone and iPad too closely, is seeking damages of up to $2.75 billion and an injunction that could knock some Samsung products off the US market. Even a delay in sales could endanger Samsung's position in the US market, where it is currently the top seller of smart phones. Samsung has countered by arguing that its patents on wireless communication were infringed by Apple, and is demanding up to $422 million from the Silicon Valley manufacturer. (Source: News Today, August 22, 2012)

Microsoft unveils a new logoAhead of one of the most significant waves of product launches in Microsoft's history, the company unveiled a new logo for the company. It has been 25 years since Microsoft updated its logo and the IT giant thinks this is the perfect time for a change. The year ahead looks like an incredibly exciting one for Microsoft as they prepare to release new versions of nearly all of their products. (Source: Business Standard, August 25, 2012)

Japan recovering, faces debt, euro risks: IMFAccording to the IMF, Japan is recovering from the 2011 earthquake and tsunami disaster but the euro crisis, its huge public debt and a Chinese slump dampens hope over 2.5% growth this year. In a report on annual consultations with Tokyo, the International Monetary Fund urged the government to do more to shrink its massive debt of over 125% of GDP under a package of structural reforms. Japan is grappling with a debt standing at more than double gross domestic product, the highest ratio in the industrialized world, which is poised to grow as a rapidly ageing population turns to public pensions. (Source: AFP, August 3, 2012)

Euro firms ahead of ECB meetingThe euro firmed in Asian trade today as dealers await a European Central Bank (ECB) meeting amid hopes for stimulus measures to tackle the continent's debt crisis. The common currency bought $1.2251 and 96.13 yen in Tokyo afternoon trade, against $1.2223 and 95.91 yen in New York late. The dollar bought 78.46 yen against 78.44 yen, after the US Federal Reserve kept monetary policy unchanged but left the door open for additional stimulus. ECB chief Mario Draghi pledged unconditional support for Europe's single currency, sending stock markets soaring and sharply reducing pressure on Spanish borrowing costs from their record highs. The ECB is ready to do whatever it takes to preserve the euro. (Source: AFP, August 3, 2012)

US Congress approves new Iran sanctions on oil, shipping sectorsThe US Congress overwhelmingly passed a new package of sanctions against Iran that aims to punish banks, insurance companies and shippers that help Tehran sell its oil. According to Republican Representative Ileana Ros-Lehtinen, chair of the House Foreign Affairs Committee,

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CORPORATE NEWS

GLOBAL BUSINESS & ECONOMY

Value of Letter of Credit Opened for Import

SL Name of the commodity Value of L/C Opened Value of L/C Settled

1 Rice 2.92 0.62 Wheat 17.67 52.823 Sugar 28.04 20.874 Edible Oil(Refined) 53.75 8.745 Soyabean 6.53 0.416 Others 6.86 0.067 Edible Oil (Crude) 105.14 44.188 CDSO 0 09 Palm Oil 93.48 13.8510 Pulses 11 Masur dal 17.06 1112 Chola dal 1.73 4.4413 Drugs & Medicine 2.93 4.5914 Poultry Feeds 22.66 7.8615 Coal 0.41 7.7216 Cement 0.05 0.0717 Scrap Vessels 95.76 5518 Paper 19 Newsprint 2.84 2.0220 Raw Cotton 97.51 1 40.8821 Synthetic/Mixed Yarn 14.59 16.3222 Cotton Yarn 13.93 20.8923 Textile Fabrics 5.26 4.624 Textile Accessories 4.98 325 Chemical Products 26 Fertilizer 26.9 67.1227 Capital Machinery 96.89 85.5828 Motor Vehicles 25.74 67.4329 Computer & Acces. 27.57 26.1430 Others 1,027.31 1,135.55 Total 1,798.51 1,801.74



the legislation, agreed to by senior lawmakers of both parties, seeks to tighten the chokehold on the regime beyond anything that has been done before. The bill now heads to the White House for President Barack Obama's signature. It builds on oil trade sanctions signed into law by Obama that have prompted Japan, South Korea, India and others to slash their purchases of Iranian oil. (Source: Reuters, August 3, 2012)

Indonesia Q2 growth up 6.4% beats forecastsIndonesia grew a faster-than-expected 6.4% in the second quarter from a year ago, buoyed by robust domestic demand and investment. Private consumption increased five% year-on-year, government spending rose seven%, while investment climbed 12.3%. The data should help alleviate concerns about Southeast Asia's largest economy which posted a 6.3% on-year expansion in the first quarter from 6.5% in the previous quarter. (Source: AFP, August 7, 2012)

EU to present banking union plan Sept 11The European Commission will present its plans for a banking union, part of efforts to tame the euro zone debt crisis. The new entity, agreed on at a 'breakthrough' June 28-29 EU summit, is meant to supervise the banking industry in the bloc, having a key role in winding up failed lenders so that they do not undermine the financial system. The banking union will work with the new permanent euro zone rescue fund, the European Stability Mechanism, which will be allowed to aid needy banks directly so as to avert problems and avoid adding to state debt. (Source: AFP, August 8, 2012)

India's retail inflation declines marginally in JulyRetail inflation declined marginally in July in line with the drop in wholesale inflation, but most experts dismissed it as a one-off event, cautioning that the rate of price rise could accelerate in the coming months. The new All India Consumer Price Index rose 9.86% in July from a year ago, marginally below the downward revised 9.93% for June. (Source: Economic Times, August 23, 2012)

Record eurozone trade surplus, analysts divided on outlookNew EU data out showed the euro zone logging record trade surplus and bumper cash earnings in what some analysts said was evidence that austerity and structural economic reforms pay off. The Eurostat agency said the 17-nation eurozone's surplus in the trade of goods surged to 14.9 billion euros in June ($18.4 billion), the highest since the European Union began collating numbers in 1999.The preliminary headline figure was up from just 200 million euros for the same month in 2011. Seasonally-adjusted exports rose by 2.4% compared to May, while imports remained stable. (Source: The Financial Express, August 23, 2012)

Euro declines but ECB optimism keeps it near 7-week highThe euro slipped against the, retreating from the seven-week high in the prior session as investors bet the move was too far, too fast even as they remained cautiously optimistic euro zone policymakers are readying action to stem the debt crisis. Expectations have built in recent weeks that the European Central Bank will announce at its next policy meeting on Sept. 6 plans to help lower Spanish and Italian bond yields, which some analysts believe will enable the euro to gain further. (Source: Reuters, August 22, 2012)

RBI monetary policy blocking 'fresh investments'The Reserve Bank's monetary policy in India is impeding the country's growth and blocking fresh investments. The RBI policy of monetary tightening is inhibiting fresh investments and hurting growth. The government and RBI need to take steps to bring down the interest rates. The Indian economy has potential to grow at double-digit currently its annual growth of 6-6.5%. (Source: Silobreaker, August 23, 2012)

Global oil prices rally on stimulus hopesOil prices rallied as hopes of a Chinese stimulus soared after manufacturing activity in the world's largest energy consumer fell to a nine-month low in August. New York's main contract, light sweet crude for August rallied to $98.29 per barrel in morning deals, reaching a summit last seen on May 4. It later stood at $98.03, up 77 cents. (Source: The Financial Express, August 24, 2012)

Spain to ease liquidation of troubled banksSpain will empower its banking authorities to swoop in on lenders that appear to be heading to trouble and if necessary liquidate them. The new legislation, reportedly to be passed by government ministers on August 31, was leaked to the leading daily El Pais and the business paper

Expansion. Spain's euro zone partners agreed in June to lend up to 100 billion euros ($124 billion) to salvage the nation's banks, buckling under record bad loans built up since a 2008 property crash. (Source: Business Times, August 23, 2012)

British economy shrinks by 0.5pc in second quarterBritain's economic output fell by 0.5% in the second quarter, which was better than previously thought but still left the country mired in recession. According to the Office for National Statistics (ONS), UK gross domestic product (GDP) in volume terms decreased by 0.5% in the second quarter of 2012, revised from the previously estimated 0.7% decline. Smaller-than-expected falls in the production and construction sectors were behind the revision. (Source: AFP, August 25, 2012)

Australian central bank says mining boom not overAccording to Australia's central bank governor, they see no immediate sign of an end to the country's mining boom, a day after the resources minister declared it was over. Glenn Stevens weighed in on the debate after Resources Minister Martin Ferguson said: "You've got to understand, the resources boom is over. The commodity price boom is over and anyone with half a brain knows that." The Reserve Bank of Australia predicted in its quarterly outlook on monetary policy this month that the boom would end "somewhat earlier than previously thought", putting it at "sometime in 2013-14". (Source: AFP, August 25, 2012)

Standard & Poor's takes Egypt off CreditWatchAccording to Standard & Poor's, it was keeping foreign and local currency sovereign credit ratings of Egypt at 'B/B' because the "outlook is negative" but it removed the ratings from CreditWatch. The agency attributed this small improvement to the emergence of a "working relationship" between the powerful military establishment and the Muslim Brotherhood which gave rise to President Mohamed Morsi. "In our view, this could pave the way for an improvement in medium-term policymaking," S&P said in a statement. (Source: AFP, August 25, 2012)

Greek PM in crisis talks with MerkelGreece's prime minister was expected to press for more time to make key reforms and spending cuts to keep his debt-wracked country in the eurozone at crisis talks with Chancellor Angela Merkel. Antonis Samaras kicks off a two-day trip to Berlin and then Paris with Greece's future in the 17-nation bloc again in the balance as its cash reserves dry up and a new injection of European funds hangs by a thread. The prime minister's trip comes a day after Merkel and French President Francois Hollande stressed they wanted to keep Greece in the euro but insisted it must redouble its reform efforts to unlock a new funding lifeline. (Source: AFP, August 25, 2012)

Details of ECB bond purchase plan crucial to restore market confidenceAs working groups of the European Central Bank (ECB) work on the details of their plan to purchase eurozone government bonds, speculation runs high. Local media quoted anonymous ECB sources as saying that the plan will not be finalized until the constitutional court of Germany rules on the legality of the European Stability Mechanism (ESM), the euro zone's permanent rescue fund. (Source: News Today, August 26, 2012)

WB identifies major impediments to proper ADP implementationExcessive donors' requirement and ineffective gateway function in project selection are two major impediments to satisfactory implementation of country's Annual Development Programme (ADP) and ensuring their quality expenditure, a study of the World Bank (WB) reveals. The recent study of the multi-lateral lending agency on the country's Public Investment Management (PIM) also identified a number of adversities in the present system of public investment governance that hamper growth prospect and quality public spending. (Source: The Financial Express, August 29, 2012)

Eurozone loans to private sector pick up in July: ECBEurozone bank loans to the private sector, which had practically dried up in recent months, rose in July, and growth in eurozone money supply also accelerated. The European Central Bank, in its regular monthly money supply data, calculated that growth in eurozone bank loans to the private sector grew fractionally by 0.1% in July after contracting by 0.2% in June.At the same time, the eurozone money supply is growing more strongly than expected, the data showed, with the broad M3 indicator rising 3.8% last month, following a gain of 3.2% in June. (Source: Business Times, August 29, 2012)



BANGLADESH ECONOMY

Credit to the Government Sector decreased around December for the period 2010-2011 and increased for the period 2011-2012. The overall credit to the government sector for the FY11-12 was higher than that of FY10-11

Although Credit to the Private Sector seems to have an increasing trend for both 2010-2011 and 2011-2012, the increasing trend fell from 24.3% in FY10-11 to 19.7% in FY11-12 due to the tightening of Monetary Policy by Central Bank.

Investors demand probe into CDBL's 'technical glitches'Experts and investors stressed on proper and impartial investigation into the 'technical glitches' that occurred in the server of the CDBL (Central Depository Bangladesh Ltd) Monday, to revive all stakeholders' confidence on the electronic share transaction system. Their comments came following the failure of the CDBL's server that compelled both the bourses to suspend the day's trading for the first time due to technical reason Earlier, technical glitches occurred several times in the server, and the authority restored the system before the trading started on the following day. But for the first time, the trading of a whole session was suspended due to technical reasons. (Source: The Financial Express, August 1, 2012)

Export of raw fishes bannedAccording to a commerce ministry release, the government banned export of all kinds of raw fishes except shrimp during Ramadan to ensure adequate supply to the market and keep the price at a tolerable level. The decision is applicable for the sweet water fishes only with immediate effect. But normal export of sea fish will continue. (Source: The Independent, August 1, 2012)

IRD to clarify stand on private investments in airport shops The cabinet division instructed the Internal Resources Division (IRD) and the civil aviation ministry to clarify their stand on allowing private investments in duty-free shops at international airports and land ports. The instruction came, as the report of a probe body detected violations of the cabinet decision on establishment of such duty-free shops. (Source: The Financial Express, August 1, 2012)

Govt examining exports of maize after dropoff in domestic demand According to the officials, the government is examining a proposal to export maize to help farmers get fair price as domestic consumption of the grain saw a massive fall. According to Department of Agriculture Extension (DAE), the production of maize has stood at 16.54 million tonnes so far this year, which is up from 12 million tonnes a year ago. The local consumption of maize is around 12 million tones, of which one-

fourth is being used as poultry feed, said the maize traders. According to poultry producers, maize constitutes nearly 60% of the ingredient in per kg poultry feed. But the farms are not purchasing maize as they have lost their business. According to Mizanul Haque, secretary of Maize Association of Bangladesh (MAB), even maize growers cannot recover their production cost due to fall in demand, said He said the selling price of per kg maize is Tk11 but the production cost is Tk13. So if the product is not exported, the traders and farmers will incur huge losses. The probable countries for exporting the Bangladeshi maize are Malaysia, Indonesia, Saudi Arabia and the United Arab Emirates (UAE), said MAB leaders. (Source: www.topix.com, August 2, 2012)

Bangladesh economy to bounce back : Real reasons to cheerBangladesh could be entering a period of calm after the storm. Inflation has fallen from 12% last year to 9.0% and the currency has stabilized. In addition the country has secured a $987m loan from the International Monetary Fund (IMF) to help it overcome macroeconomic pressures and build a reserve buffer. A substantial and entrepreneurial middle class is emerging. Employment is high, and there is unusually strong participation of women in the economy. Despite the volatility in the stock market, GDP growth in Bangladesh has been running at around 6.0%, and the International Monetary Fund (IMF) predicts a growth rate of 5.9% for 2012. Certainly, foreign investors, such as mutual funds, are starting to look more closely at Bangladesh, though as yet it is more of a trickle than a flood. Last year, funds globally allocated $4.8m to Bangladesh, according to EPFR Global, and they have allocated just $0.51m so far this year. (Source: Sylhet Times, August 1, 2012)

NBR freezes accounts of BPL ticket-seller The National Board of Revenue (NBR) has instructed banks and financial institutions (FIs) to freeze all bank accounts of Shihab Trading House, ticket-seller of the first-ever BPL (Bangladesh Premier League) T-20 cricket tournament, to realise Tk22.5 million that the seller owes to the government in arrear taxes. The board sent letters to all banks and FIs to suspend operations of the accounts, and freeze the same until issuance of further directive. (Source: Sylhet Times, August 1, 2012, 2012)

Dhaka stocks continue to fallDhaka stocks ended lower for the third consecutive session with declining turnover value. According to the market analysts, investors' prevailing lack of confidence, risk-aversion and encashment attitude, and reluctance to make fresh exposure ahead of the Eid festival accelerated the market fall. The market started with a negative note and lost 20 points within 10 minutes, however, the market gained 25 points within the next 20 minutes. After that, the DGEN continued to decline amid fluctuation and finally ended 40 points lower. (Source: The Financial Express, August 2, 2012)

The monthly general indexes for both the years had a converging tendency during April, and tended to diverge again from April onwards.

Failure to finalise priority list affects dev projects' executionThe government is yet to finalise a list of priority projects from among the fresh unapproved ones including the Annual Development Programme (ADP) for the current fiscal year (FY). According to the Planning Commission (PC) officials, the government formed in mid-June a high-powered committee, led by Planning Minister A K Khandker, to select the important projects and prune the less important ones from the ADP. The government has included a record number of fresh unapproved projects -- totaling 1,047 -- in the Tk550 billion ADP for the current FY, 2012-13, without any fund allocation. The number is even more than that of the approved projects which total 1,037. Due to limited funds and resources, the government has taken the move to drop the less important projects



from the ADP. According to the officials, seven project proposals from a ministry are pending with them. But they cannot process those for the ECNEC approval due to absence of the finalised list of the priority projects. (Source: The Financial Express, August 3, 2012)

Audit detects embezzlement of Sadharan Bima's Tk20m A government audit unearthed a case of alleged swindling of about Taka 20 million by some 'corrupt' officials of the state-owned insurer, Sadharan Bima Corporation (SBC), through false documentation. The case was unearthed in a report of the government's audit committee which was recently submitted to the SBC managing director for taking necessary actions. The report found six officials of the SBCs being involved in the irregularities. According to the report, the SBC stands to incur a loss of about Tk20 million as some sections of its unscrupulous officials joined hands together to siphon off the funds. (Source: The Financial Express, August 3, 2012)

Japanese ambassador reiterates investment in Rangunia EPZJapanese ambassador has reiterated that the entrepreneurs of his country are interested to set up industries in the proposed private export processing zone at Rangunia of north Chittagong. Ambassador Shiro Sadoshima along with a team of the major investors of Japan will visit the Rangunia EPZ area sometime in this September to see the location and other facilities in the area. (Source: Hawker, August 3, 2012)

Flow of fresh foreign equity ebbsAccording to the Board of Investment (BOI), fresh equity investment declined by 16.94% to US$ US$431.85 million last year, although Bangladesh received a record foreign direct investment in 2011. In 2010, the figure of equity injection amounted to US$ 519.98 million. In the first three months of the current year (January-March, 2012), the country brought in a total of $171.08 million in FDI in both joint venture and 100% foreign direct investment. During April-June, 2012 total FDI was $125.66 million, which went down by 36%. Fresh equity also recorded a negative growth. (Source: www.exporter.com, August 3, 2012)

Soaring price of MS rod hits construction sector hardThe prices of mild steel (MS) rods have gone up significantly within the two months of announcement of national budget which imposed duty hike on basic raw materials and other 'policy barriers'. On an average the price of this vital component of building construction has increased by around Tk6,000 per tonne during the period. Both government and private sector's construction and other rod-based small units are facing serious problems due to the soaring prices of the item in the recent times. According to market sources of the city's English Road, per tonne 60-grade MS rod is selling at Tk67,000 and that of 40-grade at Tk65,000 as of August 3, 2012 in Dhaka's retail market. The prices were Tk62,000 and Tk59,000 respectively before announcement of national budget. (Source: The Financial Express, August 4, 2012)

Law enforcers sound alarm bell over fake currency transactionsLaw enforcers have raised an alarm bell over money transaction in crowded places like shopping malls and kitchen markets, which have been specially chosen by currency counterfeiters to circulate fake currency on the occasion of holy Eid-ul-Fitr. The plainclothes policemen nabbed a total of 16 persons allegedly involved in the wrongdoings over the last nine days from different areas of the capital. According to the additional deputy commissioner of DB police, the criminals make fake denominations of Tk50, Tk100, Tk500 and Tk1000 within several minutes using computer technology. (Source: Silobreaker, August 5, 2012)

New export policy awaits cabinet approval The government is set to formulate the country's third export policy to boost up the country's shipment earnings worth US$50 billion, by 2020, according to Ministry of Commerce (MoC). The new policy opposed to provide special preference in providing gas and electricity connections to the export oriented industries requested by the BGMEA and the BKMEA. Leather and leather products, frozen fish and fish processed items, handicrafts, electric and electronic items, fresh flower and follies, loom fabrics, medicinal plant and medicine and medical items, plastic goods, furniture, printing and packaging, paper and rubber are the new items that have been included in the new policy as thrust sector, according to the draft policy. (Source: www.exporter.com, August 5, 2012)

FMC builds 4 fishing trawlers to deliver in JanThe country will enter the era of manufacturing fishing trawlers as a local ship builder expects to deliver four trawlers to a local buyer by next January. FMC Group will be the first ever company to deliver the fishing trawlers now being constructed at its shipyard at Boalkhali on the east

bank of the river Karnafuli. The trawlers imported from China and Thailand costs over Tk250 million each while the FMC will deliver each trawler at Tk200 million. (Source: The Financial Express, August 7, 2012)

China moves to change trade preference for Bangladesh productsChina has moved to replace the preferential treatment that it offers to exports from Bangladesh under the Asia-Pacific Trade Agreement (APTA) by zero tariff treatment under the World Trade Organization (WTO) system. The Chinese government would increase the zero tariff treatment on Bangladesh's exports to China from the existing 60% to 95% in 2013 to promote and further strengthen the economic and trade relations between the two countries. The move aims to promote Bangladesh's exports to China to help reduce the huge trade imbalance (US$ 5.6 billion) between the two countries. China has announced the zero-tariff facility to 95% products of the least developed countries (LDCs) in July 2010 which will come into effect by 2013. It is also committed to raise the facility to 97% as per the Hong Kong declaration under the Doha round of the World Trade Organization (WTO). (Source: The Financial Express, August 8, 2012)

Fish export ban goes awry The government's ban on export of fish excluding shrimps and pawns has little impact on the local wholesale markets as the prices remain high. Fish prices continue to be as high as they were before the beginning of Ramadan at Fishery Ghat, the biggest wholesale market in Chittagong, despite the embargo. Traders said fish catching, especially with trawlers in the deep sea, is exposed to threats of robbery, which has resulted in less haul than expected. The prices of sweet water fishes like Rui and Katla have somewhat decreased but the hilsha and lotiya fish are still selling at the pre-Ramadan price level as it was found while visiting the Fishery Ghat wholesale market. (Source: The Financial Express, August 8, 2012)

Non-food items' price spiral may push up Aug inflationThe rate of inflation is likely to go up this month mainly due to the rise in prices of non-food items, especially clothing and footwear, according to economists and officials at Bangladesh Bureau of Statistics (BBS). They, however, forecast that the rise in the August inflation rate would not be 'very high' as prices of the staple food-rice-remained still low in the kitchen markets. In urban areas, the food inflation was recorded at 2.62% in July last and non-food inflation 9.59%. (Source: The Financial Express, August 23, 2012)

The point to point inflation curves converged in between February and March and then tended to diverge March onwards.

The average inflation figures tended to diverge during February for both the years and tended to converge after that.



Nearly 50pc of potential tax revenue remains unrealizedA Ministry of Finance report on revenue scenario has estimated that nearly half of the potential tax revenue could not be collected for various reasons including corruption, lack of administrative capacity and transparency in financial transactions.I t said the presence of enormous opportunity to evade tax offers the scope to flow a large amount of black money into the market. The report said the current rate of revenue collection is equivalent to only 11.8% of the GDP (gross domestic product) which should not be less than 24% given the size of the country's economy. It said although the tax-GDP ratio is increasing, the rate of growth is lower than the expected level. (Source: The Financial Express, August 24, 2012)

Malaysian team on Padma Bridge due again MondayYet another delegation from Malaysia will arrive in Dhaka for about three weeks to submit, their final proposal for the proposed Padma Bridge construction. The delegation under the leadership of the Malaysian Special Envoy will hand over the proposal to Communications Minister Obaidul Quader. The Malaysian side has so far handed over three proposals to the communications minister, showing their interest but none of those was found to be adequate, concrete and substantive in nature for signing of an agreement. (Source: The Financial Express, August 24, 2012)

UAE reduces visas for BD workers, stops renewalBangladesh Association of International Recruiting Agencies (BAIRA) said that the United Arab Emirates (UAE) has stopped renewing visa for Bangladeshi workers and also reduced issuing new ones. According to the Welfare and Overseas Employment Secretary Dr Zafar Ahmed Khan at present, some 1.5 million Bangladeshi workers are employed in Abu Dhabi, a very high number from a single country. This could be the reason for stopping issuing new visas for Bangladeshi workers. Similar is the case with Dubai and some other emirates of the UAE. (Source: The Financial Express, August 24, 2012)

B'desh wants duty-, quota-free facilities from KSA Bangladesh is expected to seek duty- and quota-free facilities for its exports to the Kingdom of Saudi Arabian (KSA) market following a decision taken in this regard more than four and a half years ago. The decision was taken at the ninth session of the Joint Economic Commission of Bangladesh and KSA held in Dhaka in April 2008.Data shows that Bangladesh exported goods worth only US$116.18 million to KSA in fiscal year 2010-11 while it imported goods worth $691.40 million from that country. In fiscal year 2011-12, Bangladesh's export has slightly increased to $136.72 million while imports during July-March period of the same fiscal reached $642.80 million. (Source: The Financial Express, August 24, 2012)

Undelivered import containers impede cargo handling in Chittagong PortStockpiling of import containers in the major seaport of Chittagong causes disruption in cargo handling activities as the container yards are fully occupied by prolonged short delivery of cargo. The yards of import containers have no vacant space for storing of containerized cargo in the port, according to officials in the Chittagong Port Authority. There are currently about 30,000 TEUs containers of imported cargo waiting for delivery since beginning of the Eid-ul-Fitr vacation as the pace of delivery of containers is very slow. (Source: The Financial Express, August 24, 2012)

Dhaka set to become Egmont Gr member early next yearBangladesh is set to join next year the global group for combating money laundering, terror financing and other financial crimes, as the country's membership of the Egmont Group, an international network of financial intelligence units (FIUs), is now almost certain. According to the general manager of the Bangladesh Financial Intelligence Unit (BFIU) under the Bangladesh Bank (BB), Bangladesh expects to get membership of the prestigious group in its 21st annual meeting to be held early next year in Brussels. Established in 1995 at the Egmont Arenberg Palace in Brussels, the group currently comprising 130 members meets regularly to find out ways for cooperation to help combat money laundering, terror financing and other financial crimes by exchanging information, organising trainings and sharing expertise. (Source: The Financial Express, August 25, 2012)

Japanese freight firm's entry threatens to edge out localsYusen Logistics, a Tokyo-based international freight forwarder, will begin its operation in Bangladesh from October 15 next in a bid to grab a large chunk of market shares in the country's external trade, sources familiar with the issue told the FE. Yusen Logistics Co. has already established

Yusen Logistics (Bangladesh) Ltd., to expand its business in the country. The Tokyo-based company is the logistics arm of Nippon Yusen Kabushiki Kaisha (NYK Line), Japan's largest shipping firm by sales. (Source: The Financial Express, August 25, 2012)

Govt to request ADB to extend time on loanThe government is set to request the Asian Development Bank (ADB) to extend further the deadline for its committed loan for the Padma Bridge project so the former gets more time to take action over the allegation of corruption concerning the infrastructure project. The existing deadline for the ADB loan effectiveness expires on August 31. If another month is given to the government it would be the fourth time. (The Financial Express, August 29, 2012)

Ctg port earns Tk22.52b in 3 yearsNet earnings of the country's main sea port during the fiscal year (FY) (2011-12) was Tk8.44 billion after spending Tk6.64 billion from the annual revenue collection worth Tk15.08 billion. The port's net earnings after expenditure from financial year 2009-10 to 2011-12 stands at Tk22.52 billion, while that of the previous six years till 2008-09 was Tk23.64 billion. The net earnings the country's port has increased at its income and expenditure has gone up in the last three financial years. (The Financial Express, August 29, 2012)

1 Frozen Fish 133.82 5.05 -5.25

2 Shrimps 545.23 42.39 -19.04

3 Tea 3.95 0.25 66.67

4 Vegetables 79.23 10.04 28.06

5 Tobacco 81.63 8.95 58.41

6 Cut Flower & Foliage 52.59 5.16 0.39

7 Fruits 71.76 6.21 19.88

8 Spices 15.76 2.19 135.48

9 Dry Food 38.46 3.85 39.49

10 Cement, Salt, Stone Etc 16.37 0.56 60

11 Petroleum bi Products 334.02 5.97 -85.39

12 Chemical Products 133.77 6.06 -56.56

13 Pharmaceuticals 60 4.85 1.46

14 Chemical Fertilizer 22.55 - 100

15 Cosmetics 0.79 0.13 333.33

16 PVC Bags 34.37 2.62 33.67

17 Plastic Waste 69.22 2.99 -6.85

18 Rubber 18.01 1.3 68.83

19 Leather 400 28. 7 -2.05

20 Leather Product 135.45 13.16 207.48

21 Wood & Wood Products 1.25 0.06 50

22 Handicrafts 5.12 0.57 83.87

23 Pulp 0.01

24 Paper & Paper Products 30.15 2.72 29.52

25 Wool & Woolen Products 0.44 0.04

26 Cotton & Cotton Product

(Yarn, Waste, Fabrics etc) 130 10.38 -9.97

27 Raw Jute 301.98 12.66 -35.96

28 Jute Yarn & Twine 517.45 47.79 31

29 Jute Sacks & Bags 208.56 13.09 -23.14

30 Man Made Filaments

& Staple Fibres 86.04 7.91 22.83

31 Carpet (Jute & Others ) 6.83 0.79 36.21

32 Terry Towel 102.73 8.38 -0.83

33 Special Woven Fabric 11.8 0.75 -14.77

34 Knitted Fabrics 29.72 1.83 12.96

35 Knitwear 10610.89 1001.07 -0.68

36 Woven Garments 10927.37 993.84 11.92

37 Home Textile 1150 81.87 27.27

38 Footwear 410.05 42.04 9.17

39 Headgear/Cap 56.54 5.06 52.41

Export Promotion Bureau, BangladeshExport performance for the Month of July 2012

SL Products

Mn. US$ Export Target

for 2012-13

Mn. US$ ExportPerformance

July 2012

% Change of export performance

July-2012 Over July 2011



ADB, JICA extend loan effectiveness deadlineAccording to officials, The Asian Development Bank (ADB) and the Japan International Cooperation Agency (JICA) have extended their loan effectiveness deadline for the Padma Bridge project by one more month According to the official of the Economic Relations Division (ERD) about the loan deadline extension for the much-talked-about US$2.9 billion Padma Bridge project for the forth time. Following the extension of the loan effectiveness deadline, the government now gets an operational leeway to sort out issues with the World Bank (WB) for reviving the latter's cancelled US$1.20 billion loan and keep the committed credit from the ADB and the JICA alive, the official sources said. The ADB earlier made commitment of providing $615 million credit, whereas the JICA committed $400 million for building the proposed 6.15-kilometre-long bridge. (Source: The Financial Express, August 1, 2012)

Big banks act tough with hedge fund clientsMajor banks face growing pressure to extract more money from, or even sever ties with, unprofitable hedge fund clients as they cut costs in the face of tough trading conditions and try to refocus on the biggest managers. According to the industry insiders, prime brokers - which provide services such as stock lending and financing for hedge funds - are sifting through their client lists, in some cases demanding higher fees

on trading or a greater share of a fund's business, and sometimes telling funds to look elsewhere. The moves come as banks, faced with a tough economic environment, higher regulatory costs and looming Basel III capital standards that are set to reduce returns on equity, look to cut costs across the board and focus on more profitable activities. (Source: The Financial Express, August 1, 2012)

New BB rules feared to raise loan defaulters Textile millers have urged the central bank not to implement new loan classification, provisioning and rescheduling rules, fearing it would increase the number of loan defaulters. The central bank in a circular on July 14, 2012 has tightened its loan classification, provisioning and rescheduling policies aiming to ensure efficient and effective credit management in the banking sector. The industry leaders in a recent letter to the Bangladesh Bank (BB) governor wrote: "The number of loan defaulters will increase after implementation of the circular as after the sudden ups and down of cotton price in the international market in 2010, most of the millers failed to repay bank's installments but are trying to refund through different types of adjustments." In the letter they also expressed their fear that after implementation of the new rules, many mills would become bankrupt and face closure. (Source: The Financial Express, August 1, 2012)

Banks see turnaround in liquidity situationThe banking sector is witnessing a turnaround in their liquidity situation -- from that of strains to that of excess. The government's injection of fresh funds into the banking system as part of speeding up the implementation of the budget at the end of the previous fiscal has helped to boost the liquidity -- availability of loanable funds -- of banks. According to the latest available data from the central bank, excess liquidity of banks, representing funds available over the level of disbursement, increased by 25% in June, 2012. The overall excess liquidity with the commercial banks rose to Tk456.76 billion in June this calendar year from Tk363.73 billion May last. (Source: The Financial Express, August 2, 2012)

PD banks want more pro-active supports, non-PD banks fear pressure on liquidityThe 'opposition' by the apex trade promotion organization (TPO) to the latest directive of the central bank about devolvement of government securities -- treasury bills and bonds -- on both primary dealer (PD) and non-PD banks on the basis of 60:40 ratio, has caused surprise among the forward-looking observers and analysts of the country's financial sector. The non-PD banks, numbering 25 which have for long had a 'hands-off' role in the auction of government securities in accordance with the announced calendar, have wholeheartedly endorsed the 'stance' of the Federation of the Bangladesh Chambers of Commerce & Industry (FBCCI) on the matter. Bangladesh Bank took the decision about devolvement on its own account, up to 50% of the auction amount of government securities, to provide some relief to the PD banks and help ease their liquidity situation. However, the PD banks do not consider the latest directive of the BB about the development of government securities through auction as being sufficient enough to provide them a level playing field to operate under conditions of lingering constraints and also at relative ease. The PD banks would look forward to a relaxed policy regarding the penal charge on the deficit in fund as CRR (cash reserve ratio) that the banks require to maintain with the BB. The current CRR is 6.0% of the total deposits of a commercial bank. But the PD banks do at time, fail to meet the requirement because of their holding of excess securities for the sake of government's borrowings. (Source: The Financial Express, August 2, 2012)

BB moves to raise remittance inflow, sales of three bondsThe central bank has taken a special move to increase the inflow of remittance along with boosting sales of three bonds in a bid to build up foreign exchange reserve. According to the officials, under the latest move, a high-powered delegation of the central bank will visit the United Kingdom in the second week of September this year to create awareness among non-resident Bangladeshis (NRBs) about profitability of the bonds through arranging road shows. The bonds are: US Dollar Premium Bond, US Dollar Investment Bond and Wage Earner Development Bond. (Source: The Financial Express, August 3, 2012)

Directors rely on fellow PCBs for large loansA substantial amount of loans have been taken by a good number of directors of private commercial banks (PCB) from other PCBs but such loans are not being serviced in time. According to the officials, this has led to a marked upward trend in default loans. The outstanding amount of loans taken by the directors of PCBs stood at Tk8.23 billion in March last

40 Umbrella Waking Sticks 0.03

41 Wigs & Human Hair 7.36 0.61 205

42 Building Materials 0.34

43 Ceramic Products 40 2.94 -4.85

44 Glass & Glass ware 0.32 0.02 0

45 Iron Steel 65.93 5.86 55.85

46 Copper Wire 62.68 4.42 -48

47 Stainless Steel ware 4.68 0.16 77.78

48 Engineering Equipment 74.36 2.3 -41.77

49 Electric Products 144.6 3.33 46.05

50 Bicycle 122.05 7.23 -9.51

51 Ships, boats &

floating structures 260 0.01 -85.71

52 Other mfd Products 120 8.91 50

53 Optical, Photographic,

Medical Instruments etc 49.73 4.15 68.7

54 Furniture 41.67 2.79 61.27

55 Golf Shaft 12.6 0.96 28

56 Other 159.74 14.11 -1458.37

All products 28000 2439.08 4.26

Selected Macroeconomic Indicators

ItemAmount/Rate

(Reference Date)Amount/Rate

(Reference Date)

Foreign Exchange Reserve(In million US$)

BDT-Dollar Exchange Rate (Average)

Wage Earner's Remittance(In million US$)

Export(In million US$)

Import(In million US$)

Current Account Balance(In million US$)

10931.88(28 August, 2011)

11459.77(28 August, 2012)

73.9579(28 August, 2011)

81.7182(28 August, 2012)

1015.58(July, 2011)

1193.77(July,12 p*)

2339.52(July 2011)

2439.08(July,12 p*)

5535.30June, 2011)

4739.80(June, 2012)

1704.0(FY 2011-12P)

885.0(FY 2010-2011 p*)

Broad Money (M2)(In core Tk.)

440520.00(June, 2011)

517109.50(June, 2012P)

Rate of Inflation(Point to Point Basis)

8.56(June, 2012)

8.03(July, 2012)

P* -Provisional R*-Revised (Source: Bangladesh Bank)

FINANCE & BANKING



compared to Taka 1.18 billion in December last, registering almost a six-fold rise during the period under report. The loans of PCB directors from other banks have been increasing, much to the concern of the central bank. Besides the rise in default loans of bank directors, the accumulated burden of loans in default has also been growing, in general, in the country's banking sector. (Source: The Financial Express, August 4, 2012)

BB now says merchant banks are not NBFIsThe central bank has withdrawn its letter, sent to the securities regulator one and a half months back, confirming that the merchant banks (MBs) are not non-banking financial institutions (NBFIs). The previous BB letter defined the MBs as NBFIs.The NBFIs are a particular type of financial institutions that are regulated under the Financial Institution Act 1993 and controlled by BB while the MBs only provide funds to stock investors and they are regulated by the SEC. (Source: The Financial Express, August 05, 2012)

Fresh BB move to ease liquidity strain on SCBsBangladesh Bank (BB) has taken a fresh move to ease liquidity pressure on three state-owned commercial banks (SCBs), operating as primary dealers (PD), through devolving a certain portion of fund from each auction to the central bank's account. Under the move, the Bangladesh Bank (BB) may take a certain amount of unsubscribed securities from the auctions of both treasury bills (T-bills) and bonds to its own account. As per the decision of the auction committee, a total of Tk540 million was transferred by the central bank to its account from three SCBs -Sonali, Janata and Agrani - for 91-day and 182-day T-bills. (Source: The Financial Express, August 6, 2012)

BB raises CTR ceiling to Tk1m Bangladesh Bank (BB) has raised the ceiling of amount of the commercial banks' cash transaction report (CTR), the monthly submission of which to the central bank is mandatory. Now the ceiling of amount will be Tk1.0 million, instead of Tk0.7 million, with effect this August. The central bank circular asked the chief executives of all scheduled banks to take necessary measures in the light of the BB's directive. The ceiling has been increased on a demand raised by the businessmen and bankers as well.(Source: The Financial Express, August 7, 2012)

Tk20 new note Bangladesh Bank (BB) will release a new note of Tk20 denomination with the portrait of Father of the Nation Bangabandhu Sheikh Mujibur Rahman.

US regulator's move on Iranian dealings comes as a 'savage' blow to Standard Chartered Standard Chartered Plc's shares fell as much as 20% after New York's top bank regulator threatened to remove its state banking license, saying the British lender hid $250 billion (160.13 billion pounds) in transactions tied to Iran. The New York State Department of Financial Services (DFS) said that Standard Chartered "schemed" with the Iranian government and hid from law enforcement officials some 60,000 secret transactions to generate hundreds of millions of dollars in fees over nearly 10 years. London-based Standard Chartered was surprised by the statement, even though it has been in talks with US regulators over the matter for years. (Source: Reuters, August 8, 2012)

Panel to pick GB MD to be formed in a weekFinance Minister told reporters that a search committee would be constituted within the next seven days to appoint a MD for the Grameen Bank. The cabinet approved a proposal early this month to amend the Grameen Bank Ordinance 1983 to curtail the power of the bank's board and give more authority to its chairman for picking managing director for the micro-credit lender, sparking some strong criticism at home and abroad.(Source: The Financial Express, August 23, 2012)

Indian banking strike clouds financial reform hopesBank transactions and some market operations were hit in India after about one million bank employees began a two-day strike to protest against reforms that will give investors more clout in the tightly controlled sector. The strike involving mainly staff of state-run banks, which make up around 70% of employees in the sector, underscored the opposition to investor-friendly financial reforms that have been pending for years. Foreign ownership of Indian public sector banks is capped at 20%, and some global banks have been pitching for a hike in their holding limit to expand their presence in Asia's third-largest economy by acquiring smaller regional banks. In what is being seen by analysts as a positive

step towards reform, parliament is likely in coming days to approve amendments to banking laws that include raising the limit on shareholders' voting rights in public and private banks. (Source: The Financial Express, August 23, 2012)

BB moves to help curb irregularities in banksThe central bank has asked all its nine branch offices across the country to intensify their inspection and monitoring efforts to help curb irregularities in the banking system. The BB's instruction came against the backdrop of rising trend of NPLs in the banking system in recent months. According to BB, the banks recorded NPLs at Tk290 billion or 7.17% of their total outstanding loans of Tk4042.90 billion as of June 30 last. The figure was up from Tk252.89 billion as of March 30 this year. (Source: The Financial Express, August 24, 2012)

New GB ordinance comes into forceThe notification of the Grameen Bank Ordinance (Amendment) 2012 has been published to bring about some changes in the previous ordinance for appointing a new managing director (MD) of the bank. Previously, it empowers the Grameen Bank (GB) chairman to form a selection committee as per the advice of its board. The amended, allows the GB chairman to constitute a selection committee to pick a person for appointment as its MD. Under the amended ordinance, the persons having knowledge and experience in rural economy and finance or in the field of microfinance will be given preference to be the GB MD. (Source: The Financial Express, August 24, 2012)

BB plans agent banking to spur financial inclusionBangladesh Bank (BB) plans allowing agent banking to gear up farther its drive for financial inclusion, aiming at helping government achieve sustainable economic growth. The central bank had already created the necessary foundation for the agent banking by introducing mobile banking that already got a good response especially from rural people. Currently, eight banks are providing mobile banking services involving the country's major mobile phone operators. The agent banking had already been proved a success in many countries including India, Australia, New Zealand, France and Brazil. (Source: The Financial Express, August 24, 2012)

BB introduces new software New computer software is going to be introduced for settlement of all types of banking transactions in both the government and commercial banks. The BB has decided to introduce the software as the banking activities and government transactions have sharply increased over the past few years in the country. Its entire nine branch offices were officially notified to activate the new software, named 'TCS Bancs'. This is an huge improvement from currently used manual process. (Source: The Financial Express, August 24, 2012)

Merchant banks agree to give info on clientsMerchant banks have agreed to provide information on their clients for opening separate BO (beneficiary owner) accounts facilitating transfer of the clients' shares from the omnibus accounts. Earlier the merchant bankers in a proposal said it would not be possible for them to provide the identification information on their clients for opening separate BO accounts. The merchant bankers now have changed their stance at the insistence of the Securities and Exchange Commission (SEC) based on the nrecommendations made by the probe committee, headed by Bangladesh Krishi Bank Chairman Khandkr Ibrahim Khaled. (The Financial Express, August 26, 2012)

HSBC probed for money laundering: ReportUS prosecutors are looking into whether British bank HSBC was involved in laundering money for Mexican drug cartels and moving cash for Saudi Arabian banks with ties to terrorists. HSBC announced that its Mexico unit had paid a fine totaling 379 million Mexican pesos ($27.5 million) to Mexico's banking regulators for breaching anti-money laundering controls. Earlier, HSBC apologized and a senior executive resigned after US lawmakers accused Europe's biggest bank of giving Iran, terrorists and drug dealers' access to America's financial system. (The Financial Express, August 26, 2012)

BB finds Sonali's top brass involved in Hallmark scamThe central bank has found involvement of the top management and directors of the Sonali Bank Ltd in the financial irregularities, in which companies, including Hallmark Group, swindled Tk35.47 billion out of the bank's Ruposhi Bangla Hotel branch in the city. Bangladesh Bank (BB) Governor sent a letter to Finance Minister containing findings of its probe report on the scam for immediate action. (Source: The Financial Express, August 28, 2012)



Muhith questions BB's jurisdictionAccording to Finance Minister, Bangladesh Bank has no jurisdiction to send recommendations for reconstitution of the board of directors in the case of a state-owned commercial bank. Bangladesh Bank (BB) governor had sent a report to Finance Minister pointing out irregularities in loan disbursement by the Sonali Bank, particularly in the case of Hallmark. The governor had also requested the finance minister to take 'necessary' decision on the reconstitution of the board of directors of the Sonali Bank. (The Financial Express, August 29, 2012)

BB Profits up by 105 pcNet profits of BB increased by 105% to Tk3, 858crore in fiscal 2011-12. According to BB, operating profits have decreased by 20.48% due to significant loss in foreign currency revaluation. Income from domestic sources increased by 122% due to higher government borrowings.BB earned Tk1, 206 crore by lending to the government, up by nearly 148% from previous year's Tk299. (Source: The Daily Star, August 30, 2012)

Natural gas found in new layer at Srikail fieldAccor to the Managing Director of Bangladesh's lone oil and gas exploration company - BAPEX, They have found natural gas in a new layer in the already discovered gas field at Srikail of Comilla, some 100 kilometers off the capital. The new gas layer is located at around 2,900 metres depth from the surface at Srikail. According to Faruque expressed the hope that around 30 million cubic feet (mmcf) of gas could be produced daily from the well from December next on completion of the laying of necessary pipeline and establishment of a process plant. (Source: The Financial Express, August 1, 2012)

Cabinet body okays import of 1.61m tonnes petroleumThe Cabinet Committee on Purchase at a meeting approved import of 1.61 million tonnes of petroleum for the remaining period of this year (2012). The oil will be imported from Kuwait, Malaysia, China, the Philippines, Egypt and the United Arab Emirates. Of the total petroleum oil, 0.57 million tonnes will be imported from Kuwait, 0.38 million tonnes from Malaysia, 90,000 tonnes from China, 0.18 million tonnes from the Philippines, 0.30 million tonnes from Egypt and the remaining 90,000 tonnes from the UAE. (Source: The Financial Express, August 2, 2012)

Govt to import 5.9m tonnes of fuel oil this fiscalAccording to a government official, the government will be required to import around 5.90 million tonnes of crude and refined oil products during the current fiscal 2012-13, up by 11.32% from the previous year's 5.30 million tonnes, to meet the mounting domestic demand. State-owned Bangladesh Petroleum Corporation (BPC) will import the fuel oil at an estimated cost of US$5.5 billion, up by 14.58% from the previous FY's cost of around $4.8 billion. (Source: The Financial Express, August 23, 2012)

Indian coal imports rising as global prices fallIndian coal imports are expected to rise in the financial year through March 2013 as more end-users turn overseas, prompted by a narrowing gap between the domestic and international prices of thermal coal. Excess supply has hammered international thermal coal prices in recent months, with top exporter Indonesia cutting its output forecast to around 360 million tonnes from 390 million to 400 million for 2012. Based on the current global supply and demand picture, end-users expect thermal coal prices to remain well below $100 a tone for the next 10 to 12 months. (Source: The Financial Express, August 23, 2012)

Gas supply to Dhaka, Ctg to improve next year Gas supply to the capital and the port city Chittagong will improve significantly by the middle of the next year as the installation of compressors and construction of some major transmission pipelines are expected to be completed soon. In October last year, Gas Transmission Company Limited (GTCL), a company of Petrobangla, signed eight contracts with two foreign and six local companies. The eight projects are being implemented at a cost of Tk14.1461 billion. The World Bank (WB) and Asian Development Bank (ADB) are providing financial support. (The Financial Express, August 26, 2012)

MoU signed with S Sudan on cooperation in agri sectorBangladesh has signed a Memorandum of Understanding (MoU) with South Sudan on cooperation in agriculture sector as a high level delegation is now on a weeklong visit to the newly emerged nation with vast arable land in Africa. Bangladesh labour and overseas employment minister Engineer Khandker Mosharraf Hossain and the South Sudanese Minister for Agriculture Dr Betty Achan Ogwaro witnessed the signing of the MoU, the first document of its kind. According to the statement, the document outlines cooperation by utilising vast and suitable agricultural land for production of seed and food crops on Government to Government basis. (Source: The Financial Express, August 3, 2012)

Meagre rainfall affects jute rotting in MaguraJute growers of Magura are facing difficulties in rotting jute as rainfall in the district in this year is abnormally poor. According to Department of Agriculture Extension (DAE) of Magura, a total of 33675 hectares of land was brought under jute cultivation in the district in the current season. DAE reported that total rainfall in the district this year from March 1 to August 5 was 343 mm which was 651 mm last year. Due to inadequate rainfall water bodies of the district like rivers, canals and ponds could not preserve sufficient water. In this situation farmers are using irrigation to

PublishDate

Published By Title

13/08/12 Foreign Exchange

Policy Department

FEPD Circular Letter No. 22 : All kinds of fish export

prohibited except Shirmp & Eel fish

13/08/12DOS Circular Letter No. 11: Payment of salary &

allowonces and pension for the month of August-2012 to

all Non-Gazetted employees working in Government,

Non-Government, Autonomous Bodies and also to Non-

Commissioned Officers & employees of Armed Forces as

well as Retired Government service holders on 13th

August/2012 for Eid-ul-Fitr.

Department of

Off-Site Supervision

12/8/2012DOS Circular Letter No. 10 : Opening of the Scheduled

bank's branches for the garments industries on the eve of

forthcoming Eid-ul-Fitr

Department of


8/8/2012BRPD Circular Letter No. 10 : Opening of Bank Account

for Collection of Donation for implementation of the

Padma Bridge Project and transfer of the collected fund

to the Government Treasury

Banking Regulation

and Policy Department

7/8/2012FEPD Circular No. 08: Repatriation of export proceeds

through Online Payment Gateway Service Providers

Foreign Exchange

Policy Department

5/8/2012DOS Circular Letter No. 09 : Opening of

Branches/Specific branches of all the Sheduled banks on

Saturday (the weekly holiday) before Eid-ul-Fitr

Department of


2/8/2012BFIU Circular No. 03: Submission of cash transaction

report (CTR)

Bangladesh Financial

Intelligence Unit

2/8/2012BRPD Circular No. 12, Mapping of External Credit

Assessment Institutions (ECAIs)

Banking Regulation and

Policy Department

Bangladesh Bank Circular

P* -Provisional; R* - Revised (Source: Bangladesh Bank)

Name Amount/Rate(Reference Date)

Amount/Rate(Reference Date)

Selected Financial Indicators

6131.49(28 August, 2011)

4291.87(28 August, 2012)

Share Price Index�(DSE)

17443.95(28 August, 2011)

12967.35(28 August, 2012)

Share Price Index�(CSE)

19.88(28 August, 2011)

10.46(28 August, 2012)

Call Money Rate(Weighted Average Rate)

6.12(December, 2011)

6.57(March, 2012)

Gross NPL (%)

0.70(December, 2011)

1.07(March, 2012)

Net NPL (%)

38582.35(FY 2010-11)

37035.82(FY 2011-12)

LC Opening(In million US$)

31953.15(FY 2010-11)

34814.55(FY 2011-12)

LC Settlement(In million US$)

ENERGY

AGRICULTURE



rot jute. But the use of irrigation has been increased the production cost of jute. Paying of extra money for rotting jute has raised tension among the growers. (Source: The Financial Express, August 7, 2012)

Taiwan develops soft rice for elderly peopleTaiwanese researchers have developed a strain of rice that cooks particularly soft for elderly people to meet the needs of a rapidly greying society. The new strain was developed by the Miaoli District Agricultural Research and Extension Station in central Taiwan after a decade-long process and was expected to hit the market next year. (Source: The Financial Express, August 24, 2012)

BB pledges cash support for knitwear makers before Eid The Bangladesh Bank (BB) has assured knitwear makers of releasing cash support and stimulus package for the sector before Eid-ul-Fitr to make sure the sector faces no drought of money. The assurance came following a meeting between Deputy Governor of Bangladesh Bank S K Sur and a delegation of the Bangladesh Knitwear Manufactures & Exporters Association (BKMEA), the industry lobbyist. (Source: The Financial Express, August 2, 2012)

Low carbon Comilla plant brings laurel for BrandixBangladesh unit of apparel maker Brandix Group has snagged an environmental award from British retailer Marks & Spencer for its effort to significantly ramp down energy use and carbon footprint. According to the officials, the Sri Lanka-based group's Comilla factory, which can churn out 350,000 pieces of garments a month, has managed to cutback on energy consumption by 27%, water use by 45% while carbon emission by an estimated 60%-part of its agenda to follow global ethical sourcing practices. According to AJ Johnpillai, the group director, commitment to eco-friendly manufacture is in the DNA of the Brandix Group and it is encouraging to see this manifesting itself in our overseas operations as well. Brandix recycles or re-uses 95% of its solid waste and complies with Global Sourcing Principles ethical standards. (Source: The Financial Express, August 3, 2012)

BD sportswear export to UK up ahead of ongoing OlympicBangladesh has achieved a significant growth in export of readymade garments (RMG) to the United Kingdom (UK) mainly because of increasing demand of sportswear ahead of Olympic Game 2012. Over twenty% of the total RMG exports to UK were sportswear during the last month. Most of importers have imported T-shirts, Jerseys, overcoats, car-coats, caps, cloaks, ski-jackets, wind-cheaters, wind-jackets and similar articles like jackets, blazers and trousers for men, women, boys and girls, for the Olympic Game. Export Promotion Bureau (EPB) data shows that the total garment exports to the United Kingdom has increased by 20% in last fiscal year (2011-12). (Source: The Financial Express, August 8, 2012)

India's cotton export forecast hiked by 10pc for current yrAccording to a a senior government official, India's cotton exports are likely to be 12.7 million bales in the season that began on October 1, 2011, up about 10% from an earlier estimate. But the country's Cotton Advisory Board (CAB) failed to issue a forecast for production and exports in the year starting October 1, 2012 because a drought has made assessing acreage planted difficult. (Source: PTI, August 25, 2012)

Indian buyers beef up drive to import B'desh garmentsIndian buyers have been showing interest in garment items from Bangladesh following the duty free access of 48 textile products to India. Despite devaluation of Indian Rupee against US Dollar, the prices of Bangladeshi products are still much less than their products. India would be the largest export destination of Bangladesh after EU and US if all barriers to shipment could be eliminated. Meanwhile, trade gap of Bangladesh with India which was $1.99 billion in FY'7 reached nearly $5 billion in FY'12, EPB said. (The Financial Express, August 29, 2012)

Airtel introduces mobile banking in association with DBBLAirtel Bangladesh Limited, one of the operations of Bharti Airtel announced its partnership with Dutch-Bangla Bank mobile banking. With complete adherence to the Bangladesh Bank Guideline on Mobile Financial Services, the Dutch- Bangla Bank mobile banking will now be commercially available for all airtel subscribers. This is going to offer

multiple services like cash in, cash out, send money, mobile top up, remittance and salary disbursement etc. (The Financial Express, August 26, 2012)

ICB AMCL discloses NAV of two unit fundsICB Asset Management Company Limited (ICB AMCL), a subsidiary of Investment Corporation of Bangladesh, disclosed net asset value (NAV) of two unit funds at the close of business operation. The funds are ICB AMCL Pension Holders Unit Fund and ICB AMCL Unit Fund. The total net asset value (NAV) of ICB AMCL Pension Holders' Unit Fund stood at Tk611,962,159.81 on the basis of cost price and Tk469,610,869.32 on the basis of market price. The total net asset value (NAV) of ICB AMCL Unit Fund stood at Tk4,202,972,573.82 on the basis of cost price and Tk3,522,853,339.05 on the basis of market price. (Source: The Financial Express, August 23, 2012)

Standard Chartered launches Saadiq Platinum CardStandard Chartered Bank recently launched Saadiq Platinum Card which combines a whole new world of convenience and privileges. This product has been launched to meet the unique needs and concerns and to provide Shariah-compliant solutions to customers. The 0% Instabuys facility for all Saadiq Credit Card customers was also launched. Standard Chartered Saadiq has rolled out over 250 products and solutions across both consumer and wholesale banking. During the process, Standard Chartered Saadiq has received over 85 awards, including being voted the "Best Sukuk House" by Euromoney Awards 2012, and the "Best Islamic Project Finance House" & "Islamic Loan House of the Year" by The Asset Triple A Awards 2012. (Source: The Financial Express, August 24, 2012)

Citi named Best Corporate/Institutional internet bank in Bangladesh Citi Asia Pacific was a big winner in this year's Global Finance magazine's annual World's Best Internet Banks competition, hauling a total of 26 awards across the corporate/ institutional and consumer banks categories.For the 5th consecutive year, Citibank, has been adjudged as the "Best Corporate/Institutional Internet Bank in Bangladesh" in this prestigious competition. Citi has won this award on the merit of superior electronic banking solutions, along with the highest success rate in increasing usage of its facilities. The consistent performance indicates Citi's contribution to the IT sector of Bangladesh, especially in promoting Electronic Fund Transfers. (Source: The Financial Express, August 24, 2012)

Formation of EXIM bank likely to be announced in PakistanThe establishment of Export Import Bank (EXIM) is one of the main features of the upcoming three-year Strategic Trade Policy Framework (STPF 2012-2015) that is likely to be announced. The Ministry of Commerce has proposed establishing EXIM bank to facilitate the exporters in boosting their exports and makes them competitive with regional competitors like India and Bangladesh in new STPF-2012-2015. All the regional countries, including India, Bangladesh and China etc have EXIM banks but Pakistan is the only country lacking this facility. (The Financial Express, August 29, 2012)

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