Boishakh 10, 1421 Jamadius Sani 22, 1435 Regd. No. DA 6238 Vol 2, No 24
WEDNESDAY, APRIL 23, 2014 | www.dhakatribune.com | SECOND EDITION
Treehouse | MYTHICAL CREATURE: BASILISK 7 | WHO WILL FORM NEXT INDIAN GOVT?
Tk6,000 crore more sought for recapitalising state banks
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9 | MODI CONDEMNS ANTI-MUSLIM REMARKS
14 | MAN UNITED SACK DAVID MOYES
HOPES CARRY ON...
Fund sought for specialised banks too n Asif Showkat Kallol The bank division of the Finance Ministry has sought Tk6,000 crore allocation in the upcoming budget for recapitalisation of the four state-owned banks. The division has sought Tk700 crore for the same purpose for the stateowned specialised banks. M Aslam Alam, secretary of the Bank and Financial Institutions Division, told the Dhaka Tribune that the four government banks needed more capital in the next fiscal year in line with Basel II. Basel II, published in 2004, is an accord that intends to create an international standard for banking regulators to control how much capital banks need to put aside to guard against risks.
An official of the Banking Division said these banks might turn out to be Tk7,000 crore short of capital in the next audit The four state-owned commercial banks in Bangladesh – Sonali, Janata, Agrani and Rupali – are said to have been robbed off their safe footing by major scams such as those staged by the Hall-Mark and Bismillah groups. “The balance sheets of the state banks should be streamlined in order to ensure their survival...The development partners think that the state banks may collapse because of capital shortfall. So, they want to see recapitalisation in steps,” the secretary said. He also said a negotiation had been going on with the Finance Division regarding the amount to be allocated in the coming budget for the purpose. In September last year, the Finance
Division once disbursed Tk4,100 crore to the state-owned banks so that they could address capital inadequacies. At the time, the aggregate capital shortfall of the four banks was over Tk8,000 core. A senior official said the Finance Division needed to first know how well the banks had used that allocation before it could approve further funds. According to sources in the Bangladesh Bank, in December last year, capital shortfall of Sonali Bank stood at Tk249 crore, Rupali Tk107 crore, Janata Tk404 crore and Agrani Tk92 crore. The central bank has not audited the four banks since then, but an official said these banks might turn out to be Tk7,000 crore short of capital in the next audit. In the audit, the banks need to show, among other things, impressive performance in reducing non-performing and default loans in order to get further recapitalisation allocations. A recent study of the Business Monitor International, a London-based research firm, said Bangladesh’s banking sector was “seriously vulnerable to economic shocks” mainly because of the poor performance of the stateowned banks. “The state banks had racked up a large amount of non-performing loans on their books, creating a flaw in the banking system,” said the study titled Bangladesh Commercial Banking Report 2014. As of September 2013, the gross non-performing loan (NPL) ratio of state banks stood at 28.8%, up from 11.3% in 2011 and 23.9%in 2012. On December 31 last year, the amount of default loans at the state banks was Tk16,606 crore or 19.76%of their outstanding loans, according to the Bangladesh Bank. NPLs are sums of borrowed money for which debtors have not made PAGE 2 COLUMN 6
Arati wears a silver anklet on her prosthetic leg just like before. Her right foot had to be amputated from the ankle as it was badly damaged in the collapse of the Rana Plaza in Savar last year. She used to work at a garment factory on the seventh floor of the building and was trapped in the debris for four days after the collapse. Arati lost her mother in the tragic incident. She got her prosthetic limb with the help of an NGO and can now walk with some comfort. The photo was taken at her home at Savar yesterday. Tomorrow is the first anniversary of the Rana Plaza collapse, the country’s biggest industrial disaster which killed 1,136 people SYED ZAKIR HOSSAIN
Election Commission probe finds ‘no irregularity’ in upazila polls n Mohammad Zakaria The field-level officials of the Election Commission have not found any proof of violence and irregularities during the upazila parishad polls and claimed that the media reports were incorrect. Returning officers and district election officers from 40 districts sent investigation reports to the commission after looking into the allegations, EC sources said. All the reports mentioned that there was no proof of violence and irregularities. The reports say the polls were held peacefully and there were no incidents of stuffing fake votes, snatching ballot papers or capturing of polling stations. There had been incidents of violence, capturing polling centres, vote
EC assistant secretary: We have received some investigation reports on violence and irregularities during the upazila polls The commission took the media reports into cognisance and asked the returning officers and the district election officers on April 7 to investigate those allegations.
Assistant Secretary of the EC Asfakur Rahman yesterday told the Dhaka Tribune: “We have received some probe reports on violence and irregularities during the upazila polls. I am gathering the reports which will be presented at the next commission meeting.” The polls took place in 459 upazilas in five phases across the country. Elections in 14 upazilas will be held on May 19. According to the report from Jessore, there were no vote-rigging incidents in Keshabpur upazila. The report signed by District Election Officer Tareque Ahmed also stated that the media reports on enforcement of hartal protesting vote rigging were incorrect as the voters exercised their franchise “peacefully.”
n UNB
n Mohammad Al-Masum Molla The BNP’s much-hyped “long march towards Teesta” that began yesterday was the party’s first major demonstration since the January 5 national election. But, in stark contrast with what the party had been claiming, BNP leaders and activists – especially those at the district levels – accorded the programme with little enthusiasm and participation.
Mirza Fakhrul claims that India starts releasing more water because BNP has made a move
A motorcade of the BNP starts the party’s long march towards the Teesta Barrage. The photo was taken at Azampur in the capital yesterday DHAKA TRIBUNE
However, BNP acting secretary general Mirza Fakhrul Islam Alamgir, leader of the contingent, claimed in a rally at Govindaganj of Gaibandha that the programme’s primary success was proved when India decided to release more water on the day BNP began its long march. Yesterday afternoon, the flow of water in Teesta was measured to be around five times higher than the flow in the previous weeks. Water resources specialists say the stronger flow is normal in the last week of April because it is around this time
Bangladesh has sought more military equipment from the United States and Washington says it is considering the matter positively. “Bangladesh did express its interest in receiving more equipment from the US. There are various ways for Bangladesh to obtain military equipment from the United States,” Principal Deputy Assistant Secretary Tom Kelly yesterday said at a joint press briefing in Dhaka. Secretary (bilateral) of the Foreign Ministry Mustafa Kamal and Kelly held the press conference after a day-long dialogue on security for the third time.
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INSIDE
BNP’s long march short on interest
Teesta water flow marks a rise India yesterday augmented the water flow of the Teesta into Bangladesh. The water flow of the Teesta into the Bangladesh territory reached 3,000 cusec as of yesterday afternoon, said Executive Engineer of Bangladesh Water Development Board Mahbubur Rahman. He said if the water flow remained the same, there would be no water problem for irrigation during the current season in Lalmonirhat, Rangpur and Kurigram districts. The water flow of the Teesta dropped a record low of 300 cusec in the current season as India constructed dams on tributaries of the river in Sikkim and diverted water by the Gazaldoba barrage through a link to the Upper Mahnanda River. Water resources specialists say the stronger flow is normal in the last week of April because it is around this time of the year that ice starts melting in the Himalayas. The change in the usual water flow is being marked since last week. WDB sources said water flow had increased through the Gojoldoba gate of India since April 13. Though the water flow increased, it had not played any effective role in the cultivation yet, they added. Meanwhile, the BNP yesterday morning launched a long march towards Teesta Barrage to realise the due share of all the common rivers, including Teesta. l
rigging and snatching of ballot boxes reported in different electronic and print media. The EC also suspended polls in two upazilas and 140 polling centres due to violence.
US considering Bangladesh’s request for more military equipment n Sheikh Shahariar Zaman
Business
of the year that ice starts melting in the Himalayas. The Dhaka Tribune reporter, who travelled along with the long march from Dhaka to Rangpur, saw very few archways, banners and festoons in the roadsides – things that usually characterise similar programmes of the party. The BNP contingent was scheduled to hold a rally at the Mati Dhali intersection in Bogra town at 3:30pm. Around 2:45pm, a local decorator company could be seen trying to put up an archway and a minimalistic stage for the gathering. Aslam, an employee of the decorator, said they had been told about the meeting in the morning and the work began around noon. The local ranks of the party would usually start publicising such programmes with loudspeakers a few days before schedule. Yesterday, however, the publicity began around 12pm, hours before the meeting schedule, said Azizul Hakim, a local businessman who rents out loudspeakers. When the meeting eventually began, it too was devoid of any substantial support. Munshi, a local truck driver, said the scorching summer heat could be a reason why people did not come outdoors to take part in the long march. Nazrul Islam Khan was the only standing committee member of the PAGE 2 COLUMN 6
B1 The government’s borrowing from Bangladesh Bank has come down to zero at the end of March this year, reflecting strong and sound financial stability in the country.
News
5 After a long wait, a brand-new fleet of taxicabs began its journey on the capital’s streets yesterday compounded by an unusual high fare rate.
Nation
6 A radio mechanic in Madarganj upazila of Jamalpur has devised a method for extracting gas from beneath the ground and using it to run irrigation pump.
Op-Ed
11 Most would say this was inevitable. Two parties with more of a glorious past and a comparatively dismal present were bound to engage in a battle sooner or later to establish their eligibility based on historical references by explicitly discrediting each other.