Some private sector banks in Bangladesh are in deep crisis because of lack of adequate liquidity and are being forced to borrow money from state-owned Sonali Bank at a 9 percent interest rate to stay afloat. Islami Bank, Al-Arafah Islami Bank and National Bank are borrowing money from Sonali Bank at a 9 percent interest rate, which is the highest commercial lending rate at present. Economists and banking sector insiders say that it means the sector is passing through a hard time due to higher non-performing loans, lack of good governance and serious corruption in the management of the respective banks. They say at present the call money rate is between 6-7 percent while banks are borrowing at 9 percent rate, which proves the crisis has mounted in these banks. They also say the troubled banks have no other options, but to borrow money. Also read: 5 held for spreading rumors on social media about Islami Bank, S Alam group Both such borrowing and lending are very risky considering the ability of investment of these banks, they say. BRAC Bank Chairman Dr Ahsan H Mansur told UNB that some banks have lost their customers’ trust due to their mismanagement. “As a result, people have withdrawn money from those banks,” he said. Giving an example he said that the deposit of BRAC Bank increased by 33 percent in the last quarter while the deposit volumes of many banks decreased. Also read: Scam-hit Islami Bank earns operational profit in 2022, Basic Bank reports loss Usually, banks charge a higher interest rate to lend to other banks while considering it risky, he said. On 13 December 2022, the Sonali Bank’s Board of Directors approved the investment of Tk200 crore in fund placement in favour of Islami Bank Bangladesh Limited and Tk75 crore in favour of Al-Arafah Islami Bank Limited at a 9 percent lending rate for a period of 90 days. On the same day, the bank's Board also agreed to the proposal to extend the term of the Tk150 crore loans to National Bank for another six months at 9 percent interest subject to payment of the previous interest. It is a normal practice that when a bank faces a liquidity crisis it borrows from another bank via the interbank money market. Read More: 60% bank sub-branches must be outside city corporations, municipal areas: Bangladesh Bank But the liquidity situation in three private sector banks is so critical that they are forced to borrow from another bank at the highest commercial lending rate. According to the Bangladesh Bank's guidelines, banks can charge a maximum of 9 percent interest on all types of loans other than consumer loans such as auto loans and personal loans, in which case the highest lending rate ceiling is 12 percent. Professor Dr Abul Barakat told UNB that any short-term borrowing at such a rate is not harmful, but it could create trouble while getting such loans will be lingering. He said banks sometimes face a liquidity crisis, then it is required to borrow to meet the instant crisis. But a 9 percent lending rate for banks is high. Read More: Bangladesh Bank expects first instalment of $4.5 b IMF loan to arrive by next month: Spokesman “Then how much a bank would have to charge against any commercial loans,” he asked. Sector insiders say corruption and lack of good governance are the main reasons behind such a crisis. Some questioned the role and the ability of the central bank of Bangladesh to regulate commercial banks that fail to check corruption.
With the help of the Directorate of Secondary and Higher Education (DSHE), BRAC Bank has made it easy for MPO-listed teachers to purchase laptops through its Digital Personal Loan. BRAC Bank signed a memorandum of understanding (MoU) with DSHE at the latter’s office in Dhaka recenly. According to BRAC Bank, the teachers can apply for the loan digitally through Shadhin platform developed by Shadhin Fintech Solutions Limited. Their applications will be assessed, and the bank will disburse the loans digitally with this end-to-end solution. Teachers can avail of up to BDT 80,000 with an instalment facility of 6/9/12/15 months. They will not need to pay any down payment. Walton Digi-tech will provide the laptops at a special discounted price. An official of the BRAC Bank said the loan will be collateral free and single digit interest rate will be applicable in repayment of the loan. With this financing facility, the teachers could now create digital content for their students. The initiative is an example of financial inclusion and innovation in banking services which will also contribute to the government’s vision of Digital Bangladesh. Read: IFC, BRAC Bank to launch Bangladesh’s first ever housing bond In the first phase, teachers of MPO-listed educational institutions in Savar and Gazipur areas can avail the loan facility. Professor Nehal Ahmed, Director General, DSHE; and Selim R. F. Hussain, Managing Director & CEO, BRAC Bank, signed the agreement in favour of their respective organizations. All Directors of DSHE; Liaquat Ali, Deputy Managing Director, Walton Digi-Tech Industries Limited; Mohammed Shadman, Chairperson, Shadhin Fintech Solutions Limited; Md. Mahiul Islam, Head of Retail Banking; Md. Monirul Islam Rony, Head of Retail Lending; S M Ishtiaque, Head of Digital Loan Underwriting; Muntasir Rahman, Head of Application Development and Enterprise Systems, BRAC Bank, were also present. The unique aspect of this loan is that it will be processed and disbursed digitally, giving convenience to the teachers.
Thousands of low and middle-income urban and rural families in Bangladesh are expected to be able to take out affordable housing loans through IFC’s investment in the country’s first housing bond to be issued by BRAC Bank. In a first for the country, IFC will make a subscription of up to $50 million-equivalent Bangladeshi taka (BDT) denominated, five-year senior bond by BRAC Bank to fund and expand its affordable housing finance program. Through this initiative, IFC and BRAC Bank jointly aim to demonstrate a commercially viable lending product that caters to the housing finance needs of households belonging to low and middle-income household, promote inclusive development and create thousands of new jobs. Read: Meta partners with BRAC to empower Bangladeshi women, youth online The move is expected to create thousands of new jobs in construction and related industries, according to International Finance Corporation (IFC). It is estimated about 80 percent of people in Bangladesh’s cities live in rented properties all their lives, mostly due to lack of mortgage finance. Home mortgages only account for three percent of the loan market in Bangladesh, below the average of 4.9 percent in South Asia and 8.9 percent in emerging markets. Read: UNDP to work with BRAC for accelerating pace of poverty reduction Most financial institutions focus on providing housing finance to the higher-income people, while access to formal housing loans for low and middle-income segments is very limited. This causes a surplus in premium housing and a shortage of both housing finance and housing units for low and middle-income people. “This marks a whole new strategic priority for BRAC Bank, since our establishment in 2001, with our goal then to improve access to finance for underserved small and medium enterprises. We, along with IFC, recognize that far too many low and middle-income earners simply cannot access the funds they need to buy a home. Now people of semi urban areas can also fulfill their dream of owning a house with our affordable home mortgage facilities,” said Selim R. F. Hussain, BRAC Bank Managing Director and CEO. Read IFC blames flood disaster on unplanned development Bangladesh and India’s Meghalaya, Assam As an investor in the first ever privately placed housing bond issuance in Bangladesh, IFC will help deepen the country’s long term bond market which remains underdeveloped. The project was supported by the Joint Capital Markets Program (J-CAP), a World Bank Group initiative to develop debt capital markets. IFC’s work upstream with J-CAP efforts involved supporting BRAC Bank in structuring and laying the groundwork for the first ever housing finance bond in Bangladesh. Read Take initiative for basin-wide management of all rivers including Teesta: IFC The investment is also supported by the local currency facility of the International Development Association’s Private Sector Window through a US dollar/BDT cross-currency swap to facilitate local currency lending. “This innovative deal marks an important milestone in the development of the domestic long-term bond market and offers multiple benefits for Bangladesh, with first and foremost helping to tackle the acute need of low and middle-income people to obtain affordable housing finance. It is also the first time that a foreign investor plans to invest in an onshore local currency bond to be issued by a local private institution to finance housing. It then demonstrates opportunities for new foreign and local investors to invest in such thematic bonds in the domestic corporate bond market,” said Allen Forlemu, IFC Regional Industry Director, Financial Institutions Group, Asia and Pacific. Read IFC to increase investments in Bangladesh in next 5 yrs
BRAC Bank and Bangladesh Freelancer Development Society (BFDS) have partnered to ensure easy and smooth banking services for the freelancers of the country. BRAC Bank and BFDS, the forum that facilitates works and ventures of the freelancer community, signed a memorandum of understanding (MoU), a collaboration that reflects strong commitment of the two organizations to the promising freelancing industry, according to a press release. Read:Brac Bank scraps transaction pacts with 10 virtual shops The partnership followed BRAC Bank’s launch of the country’s first ever Freelancer Account a week earlier aiming at widening the opportunities for the professionals of the promising gig economy. Dr. Tanjiba Rahman, Chairman; Jashim Uddin Joy, Senior Vice Chairman; Mahfuzur Rahman, General Secretary of BFDS; and Md. Mahiul Islam, Head of Retail Banking, BRAC Bank, signed the MoU at the bank’s Head Office in Dhaka on Tuesday. Selim R. F. Hussain, Managing Director and CEO of BRAC Bank, Sarah Anam, Head of Deposits & NFB, BRAC Bank, and senior officials of the two organizations were also present, along with officials from Visa, the global leader in digital payments. At the signing ceremony, Selim R. F. Hussain, Managing Director and CEO, BRAC Bank, handed over the first batch of Freelancer Matrix Visa Debit Cards to freelancers who are members of BFDS. Read: Brac to empower women at the grassroots “We believe in the talent and potential the freelancers possess and the promise the freelancing industry holds. That’s why we have partnered with BFDS so that the freelancers can avail banking services easily without any hassle and turn their passion into successful venture,” Selim R. F. Hussain said. He said that this was an important partnership for them as they want to play an active role in making Bangladesh a global hub for freelancing and contribute significantly to boost foreign exchange earnings. “We will continue to explore new ways to cater to the evolving needs of the freelancers,” he continued. Earlier on November 30, BRAC Bank launched ERQ account solution styled ‘BRAC Bank Freelancer Matrix Account’. It provides big convenience for receiving foreign currency income and smooth day-to-day transaction as well. The proposition came as much delight to more than 650,000 freelancing professionals who would enjoy hassle-free banking experience. They now get an international Visa debit card that is widely accepted, for BRAC Bank Freelancer Matrix account which allow them to seamlessly receive their remittance earnings in US Dollar and easily convert it into local currency (BDT) with a linked transactional account. They will be able to conduct cross border eCommerce, POS & ATM transactions for business purposes such as cloud based solutions, domain hosting etc. This account comes bundled with exclusive benefits of the Visa International Debit Card.
BRAC Bank Limited has published a job circular for the recruitment of manpower. BRAC Bank is a private commercial bank in Bangladesh. BRAC Bank Limited has announced a Job circular requirements such as BRAC Bank Limited, a pioneer in SME Banking, delivers a full array of banking services to individuals as well as business entities. The company will have the position of Associate Manager and Creative Visualizer. Interested candidates can apply online. Position Name: Associate Manager, Brand & Digital Media Position: No mention Job type: Full time Work place: Dhaka Qualifications: Bachelor's degree in any subject. 3-4 years working experience in Brand & Marketing. Salary: Not mentioned Position Name: Creative Visualizer Position: No mention Job type: Full time Work place: Dhaka Qualifications: Bachelor's degree in any subject. 5 years working experience in Visualizer Design Department. Salary: Not mentioned The way the application Interested candidates can apply through this link. https://bracbank.taleo.net/careersection/external/jobsearch.ftl?lang=en Application deadline: November 27, 2021 Read:INGO Jobs: Multiple job opportunities at Save the Children
Mastercard and Brac Bank announced the launch of the Mastercard Millennial Titanium Credit Card Sunday to cater exclusively to the lifestyle and aspiration of millennials and young working professionals in Bangladesh. Through this card, Mastercard and Brac Bank will offer unique, personalised solutions that meet the needs of millennials. The card's welcome pack offers unparalleled rewards and benefits, including cashback, vouchers, and discounts on e-commerce portals, clothing shops, beauty salons and online bookstores. Read Mastercard, Dutch-Bangla, bKash partner to make cross-border remittance transfer easier Other benefits include bonus reward points on grocery and online transactions, BOGO (Buy-One-Get-One) hotel stays, dining and lifestyle offer at more than 5,500 partner outlets in Bangladesh, two complimentary visits to airport lounges per year, and 500 bonus points on the endorsement of a minimum $5,000 on travel. Also, the card will allow millennials to make a retail purchase at zero per cent interest. The Mastercard Millennial Titanium Credit Card also comes with year-round offers, including the chance to earn 1,000 reward points monthly on a minimum cumulative spend of Tk5,000 at Gloria Jeans, North End Coffee, Crimson Cup, Coopers, Domino's Pizza, and double bonus reward points on a monthly spend on selective weekend grocery transactions and up to 15 per cent cashback on selective online food delivery apps. Read Nagad, Southeast Bank, Mastercard Launch ‘Add Money’ Service "It is high time to engage the youths, the prime promoters of the digital lifestyle, with the economy and empower them so that they can realise their full potential," Selim RF Hussain, managing director and CEO of Brac Bank, said. "With ever-evolving technologies within reach, Brac Bank hopes this endeavour will not only compliment their unique lifestyle needs but also help them advance in their personal and professional fields." "Today millennials account for one-third of Bangladesh's population. With continuously evolving aspirations, this generation of mobile-first digital natives provides a tremendous opportunity to drive a less-cash economy," said Syed Mohammad Kamal, country manager for Mastercard. Read Consumer habits emerging from pandemic set to become permanent: Mastercard "As a technology company in the payment industry, Mastercard combines safety and security with seamless user experiences that are highly valued by millennials. We are delighted to partner with Brac Bank to launch this first of its kind card in Bangladesh."
BRAC Bank Limited is the pioneer of SME (Small and Medium Enterprise) Banking in Bangladesh.BRAC Bank Limited is recruiting manpower. BRAC Bank Limited Job Circular 2021 has been published in daily job portal badjobs.com. According to the published notification, the company will recruit manpower for the post of Senior Relationship / Relationship Officer, Retail Sales. Those interested can apply by September 22, 2021. To support its continuous business growth, BRAC Bank is currently looking for ambitious, smart, result oriented individuals with strong social skills and integrity in the following position under Retail Banking Division Company: BRAC Bank Limited Position: Senior Relationship / Relationship Officer, Retail Sales Vacancy: Not specific Job Responsibilities Expertise in acquiring mortgage and auto loan business. Achieve new business in asset, liability and cards. Ensure retention of the business target. Manage the PAR and NPL of own asset portfolio within the given target. Analyze the creditworthiness of the potential borrower. Ensure quality services to the customers within the guideline. Cross-selling of different products of BRAC Bank. Assist other official tasks as guided by Management. Employment Status: Full-time Educational Requirements Graduate from a reputed institution Experience Requirements: At least 1 year(s) Additional Requirements Minimum 1 year of experience in sales position preferably in a bank or financial institution. Excellent command over MS Office Team player, strong communication and interpersonal skills Proficient in customer centricity, self-propelled and capability to exceed assigned target Job Location: Dhaka If you are interested to pursue this opportunity, please `Apply with this link` Apply Link: https://bracbank.taleo.net/careersection/external/jobsearch.ftl?lang=en Application Deadline: 22 Sep 2021 Job Source: Bdjobs.com Online Job Posting. Read: Government Jobs Circular: Recruitment in Dhaka District Family Planning Office Also read Jobs Circular in Bangladesh Bank: 34 people in 2 positions
Brac Bank has terminated its transaction contracts with as many as 10 virtual outlets. The online stores are Evaly, Alesha Mart, Dhamaka, E-orange, Sirajganj Shop, Aladiner Prodip, Qcoom, Boom Boom, Adyen Mart and Needs. Read:‘Evaly’s brings 'SME Deal' to deliver products to small entrepreneurs In a public notice, the bank has said that its credit, debit, and pre-paid card transactions for these listed merchants stand cancelled with immediate effect. When contacted, Ekram Kabir, Head of Communications at Brac Bank, described the scrapping of transaction pacts with the 10 outlets as "a strategic decision". Read: BB to probe Evaly financial transactions, e-commerce activities “Our board of directors takes the final call when it comes to partnering with other organisations. The board has decided to suspend transactions with these 10 online stores for the time being," he told UNB. However, industry insiders said that the decision was taken by Brac Bank board as part of measures against online shopping platforms embroiled in allegations of fraud raised by customers. Read Online shopping boomed but many falling prey to fraudsters
Industries hit hard due to the onslaught of the pandemic are all set to benefit from a $30 million World Bank loan to Bangladesh's BRAC Bank. The loan from the International Finance Corporation, a member of the World Bank Group, will help both the small and medium-sized enterprises (SMEs) as well as large corporations in Bangladesh stay afloat amid the Covid-induced economic slowdown. The investment will help to keep businesses open and preserve jobs, which is critical to sustaining the Bangladeshi economy, according to a release. Also read: IFC supporting SMEs during pandemic The package is, in fact, part of IFC's $8 billion global Covid-19 fast-track financing facility to support companies during the ongoing public health crisis. This new investment comes under the Working Capital Solutions (WCS) programme of the Covid-19 response envelope, which is providing $2 billion globally to emerging-market banks, enabling them to support struggling firms. This project will also be supported by the International Development Association’s Private Sector Window Blended Finance Facility, which is also supporting IFC’s WCS programme with a first-loss guarantee of up to $215 million in eligible countries. With the financing, BRAC Bank is expected to extend loans to its SME and corporate customers, supporting businesses that are now coping with a new wave of Covid-19 in Bangladesh. “BRAC Bank promotes businesses of all sizes but as the pioneer of SME banking, we are particularly conscious of the needs of SMEs and micro-enterprises that play a vital role in driving economic growth and employment-generation,” said Selim RF Hussain, Managing Director and CEO of BRAC Bank. “The Covid scenario is challenging and at the same time difficult for both banks and their SME and corporate customers. We hope that the partnership with IFC would help us to continue supporting the Covid-impacted businesses and help them recover.” Also read: MSMEs, farmers to benefit from IFC Covid-19 support SMEs make up over 90 percent of businesses in Bangladesh and employ over 20 percent of the adult population. Their cash flows have been heavily disrupted by the ongoing pandemic. An IFC survey last October showed nearly a third of workers in Bangladesh’s micro, small and medium sized enterprises were jobless at the time, due to the Covid-induced financial downturn. “Clearly, the impacts of Covid-19 are continuing to exact a heavy toll on businesses trying to keep operating and keep staff employed,” said Wendy Werner, IFC Country Manager for Bangladesh, Bhutan and Nepal. “This finance line to our long-standing partner, BRAC Bank, is the most recent part of IFC’s effort to help Bangladesh build back better from the Covid-19 pandemic.” In Bangladesh, IFC has provided a total of $260 million in working capital solutions to banks and liquidity support to companies since the beginning of the Covid-19 crisis, including this new funding to BRAC Bank.
Shehzad Munim, Managing Director of British American Tobacco Bangladesh (BATB), has been elected the new president of St Joseph Old Boys' Foundation.