Ashar 29, 1421 Ramadan 14, 1435 Regd. No. DA 6238 Vol 2, No 103
SUNDAY, JULY 13, 2014 | www.dhakatribune.com | SECOND EDITION
20 pages | Price: Tk12
7 | WHAT BRAZIL CHEERS FOR
12 | TALIBAN HIDEOUTS REVEALED
15 | MESSI ONE STEP FROM GLORY
B1 | DOUBLE COMPENSATION
Depositors’ money unsafe with BASIC Over last few years the state-run bank’s capital has been fully eaten away by unrealised loss Reza Chowdhury, n Kamran Asif Showkat Kallol and Tahmidur Rahman Scam-hit BASIC Bank’s “- 0.66%” capital adequacy ratio may sound too technical; but what it means for depositors is that the bank is not capable of returning their money at this moment. Capital adequacy ratio (CAR) measures the soundness of a bank and reflects the level of protection its depositors enjoy. It is a measure of the amount of a bank’s core capital expressed as a percentage of its risk-weighted asset. Two types of capital are measured: tier one capital, which can absorb losses without a bank being required to cease trading, and tier two capital, which can absorb losses in the event of a winding-up and so provides a lesser degree of protection to depositors. The central bank’s idea of an ideal CAR is 11% and the international standard is 10%. Clearly, the state-run BASIC Bank is nowhere near the level considered sound by the country’s banking watchdog. In recent years, the state-owned specialised bank has seen its capital completely eaten away by excess unrealised losses – mostly classified loans – leaving it insolvent. In layman’s terms, this insolvency means that if all the depositors are to ask the bank to return their money right
now, the bank will not be able to do it. In that case, the government will have to pump in a substantial amount of money into the bank’s veins, to bail it out of the crisis and secure the deposits, bankers said. As on December 2013, the total deposits at the bank stood at Tk13,449 crore, of which 12,797 or 95% are in fixed deposits. According to professionals, this percentage is unprecedented in the country’s banking sector. Among different kinds, fixed deposits carry the highest rate of return. A 95% fixed deposit ratio means that BASIC’s cost of capital is way above any other scheduled bank in the country. Generally, a bank’s income is the difference between the rate at which it accepts deposits and the higher rate at which it gives out loans. In December 2013, BASIC’s capital adequacy stood at “-1.66%.” In its latest annual report too, the bank said it had “negative capital.” Interestingly, it put up satisfactory capital adequacy in 2011 and 2012, registering figures of 10.13% and 10.05% respectively, according to the Bangladesh Bank. Banking regulators in most countries define and monitor CAR to protect depositors, thereby maintaining confidence in the banking system. PAGE 2 COLUMN 2
Children form a human chain in front of the National Press Club in the capital yesterday protesting the death of Palestinians in Israeli air attack on Gaza Strip
More Palestinians die in Israeli attack n Agencies Israel strengthened air assault against the Gaza Strip’s Hamas rulers on Saturday, hitting a mosque it said was hiding rockets and a disabled centre nearby, pushing death tolls in the five-day offensive to over 133. On Saturday, two nephews of Hamas ex-PM Ismail Haniyeh were among those killed in the multiple strikes, BBC
quoted Palestinian officials as saying. The AFP reported on Saturday that two people had been killed in an explosion at a charitable association for the disabled in Beit Lahiya, three deaths in the eastern Tufah area of Gaza City, and three others killed in western Gaza City. Three patients and a nurse were killed in the explosion on Saturday in Jabaliya, the sources told Al Jazeera. They were among a dozen people
killed in overnight raids. A mosque in al-Nusarirat, central Gaza, was also destroyed in the overnight raids, which Israel claimed had been storing weapons for Hamas. While there have been no fatalities in Israel, Gaza health ministry spokesman Ashraf al-Kidra said overnight attacks raised the death toll and wounded more than 930 people. PAGE 2 COLUMN 2
Defences set to dominate tight cagey final China wants Bangladesh to n import gas from Myanmar Reuters
It might not be the way Brazilians wanted the World Cup to end but Sunday’s final between Argentina and Germany will provide a nerve-jangling climax to the best tournament in history - even though the goals that have lit it up may not flow. While the the hosts are still coming to terms with their 7-1 semi-final humiliation by Germany and are preparing for the third-place playoff against the Netherlands, Argentina and Germany are gearing up to settle old scores. According to his agent, this will be Argentine coach Alejandro Sabella’s last match in charge – win or lose – and he will leave the job a national hero if his team triumph in the third final between the European and South American heavyweights. But whether this match is a high-scor-
n Sheikh Shahariar Zaman
German Charge d’vAffaires Ferdinand von Weyhe presents a Brazuka to Amzad Hossain in Magura yesterday for making the biggest German flag ever DHAKA TRIBUNE ing thriller like their 1986 showdown in Mexico City which Argentina won 3-2, or more resembles the dire spectacle of
INSIDE B1 | Business
Apparel export to non-traditional markets increased by over 21% during the financial year 2013-14. The new markets include Australia, Brazil, Chile, China, India, Japan, Korea, Mexico, Russia, South Africa and Turkey.
4 | News
Banned Islamist militant outfit Hizb-ut-Tahrir has recently been trying to rejuvenate itself by cashing in on the Ramadan religious fervour.
5 | News
Traffic congestion has become a serious problem in the capital as most residents face unabated hardship in commuting through the city roads due to widespread indiscipline in the city’s transportation and traffic management.
6 | Nation
In order to save the endangered golden tortoise
from extinction, the Centre for Advanced Research in Natural Resource and Management is conducting a research by installing Radio Transmitter in its body.
8 | World
A rights group has said Iraqi security forces and Shia militia have been involved in executing at least 255 prisoners including in six cities and villages.
11 | Op-Ed
The Hague-based United Nations Permanent Court of Arbitration (PCA) has recently declared the verdict on the delimitation of maritime boundary between Bangladesh and India.
12 | Entertainment
A new play titled “Bandh” adapted from Shawkat Osman’s acclaimed short story “Oi Bandhe” premiered on Friday at the National Theatre Hall of Bangladesh Shilpakala Academy
West Germany’s 1-0 1990 win in 1990 in Rome is difficult to predict. PAGE 2 COLUMN 2
China has supported a Bangladesh initiative to import gas from the Shwe gas field in Rakhine state of Myanmar to meet the growing demand in the country. “The issue has been discussed during the visit of the prime minister [Sheikh Hasina] to China and Beijing has extended its support,” a senior official of the Foreign Ministry told the Dhaka Tribune. A consortium of China, India, Myanmar and Daewoo of South Korea has developed the gas field and about 800km long pipeline was installed to supply gas from Rakhine state to Kunming in China in 2013. Dhaka is now preparing to negotiate
with other stakeholders like Myanmar, India and Daewoo for importing gas, the official said. Energy adviser to the prime minister Towfiq-e-Elahi Chowdhury and Foreign Secretary Md Shahidul Haque had a meeting on the issue at the PMO recently. At present, Bangladesh has the capacity to generate over 2,300 mmcf per day while its demand ranges between 2,700 mmcf to 2,800 mmcf per day, leaving a gas shortage of about 500 mmcfd. When contacted, Bangladesh Ambassador to Myanmar Anup Kumar Chakma said a foreign secretary level meeting between the two countries will be held in the last week of August and the issue might be discussed. PAGE 2 COLUMN 1
2nd Round
MAHMUD HOSSAIN OPU
Details on page-13
SEHRI & IFTAR TIME Day
Sehri
Iftar
Ramadan 14/July 13
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6.53pm
Ramadan 15/July 14 3.49am
6.53pm