Tuesday, March 19, 2024

Govt plans to overhaul GB

14-pt blueprint to raise govt stake in Grameen Bank
The government has planned to raise its stake in the Grameen Bank and establish control over its lucrative sister firms in a move that will transform the Nobel winning micro-lender into another state-owned bank.
The finance ministry has outlined the plan in a 14-point blueprint, which follows the controversial sacking of the Nobel Peace Prize winner Professor Muhammad Yunus from the micro-lender he founded in 1983.
The US-trained former economics professor was fired from the Grameen Bank on March 2 — a move he challenged futilely for the last two months in the country’s highest court.
The central bank removed Yunus, 70, citing he was illegally holding the position of the managing director, as he has crossed Grameen Bank’s mandatory retirement age of 60 years more than a decade ago.
Finance ministry officials said the blueprint has been prepared in line with the recent recommendations made by a government-appointed review committee on Grameen Bank and its sister companies.
The review body, whose findings were released last week, has said the GB under Yunus “flouted rules and laws consistently” since its inception, particularly in the creation of its sister organisations, known as social business enterprises.
“We have planned sweeping reforms for both the Grameen Bank and its sister organizations. They will be implemented in phases very soon,” a top official of the ministry of finance told the FE.
Two high-powered government committees will be formed to execute the blueprint, particularly for overhauling bank’s operational independence and establishing its ownership over the 34 sister firms, he said.
He said the creation of the sister organisations under the GB Ordinance have spawned “numerous legal loopholes and organisational weaknesses”, paving the way for massive irregularities.
The sister companies were established by the Grameen Bank created venture capital firms Grameen Kallyan and Grameen Fund. Both the firms were set up in 1996 by amending the GB Ordinance, 1983.
Yunus has said the Grameen Bank don’t own the sister organisations including the Grameenphone, whose 34 per cent stake is owned by Grameen Telecom, a social business enterprise created by GB-allied venture capital firm.
According to the review committee, that 34 per cent stake is now worth Tk80 billion or 1.25 billion dollars. Other GB sister firms like Grameen Knitwear, Grameen Shakti or Grameen Danone dairy are also rich companies.
Finance ministry officials said the government would change the existing Grameen Bank laws so as to establish Grameen Bank’s “full control” over the social business enterprises — some of which are joint ventures with top global companies.
“The 1983 Grameen Bank Ordinance has to be changed and corrected to resolve the legal, managerial, controlling and financial problems of the Grameen Bank and its sister organizations,” the first of the 14-points blueprint reads.
Under the plan — a copy of which was seen by the FE — the government would change the statutes that led to the creation of the micro-lender, which now lends some Tk10 billion a month to about eight million rural borrowers.
It said the government would establish a regulatory authority for the Grameen Bank and “actively consider” bringing the lender under the direct supervision of the Bangladesh Bank.
Under the blueprint, the government would raise its stake in GB from the current 25 per cent although Yunus has steadfastly maintained that the Bangladesh government’s stake has declined to less than 3.5 per cent.
According to Yunus, the government stake has declined gradually with the infusion of capital from growing number of borrowers. By virtue of the 1983 ordinance, a borrower becomes Grameen Bank owner automatically.
Officials said the board of directors of Grameen will be reconstituted with induction of experienced professionals with expertise in economics, banking and micro-credit operation.
The directors — both sponsor and nominated — must qualify a Bangladesh Bank formulated “fit and proper test”.
Presently, the GB board comprises 12 members including nine directors who are directly elected through votes by the Grameen Bank borrowers. The rest three including the chairman are appointed by the government.
“The similar clause of Bank Company Act, 1991, which is applicable to all commercial and state-owned banks for appointing bank directors, will be applied to GB,” a top finance ministry official said.
The paid-up and authorised capital of bank will be raised substantially from the existing Tk 3.50 billion and, Tk 547 million. “The aim is to help the bank face any liquidity or any other crisis,” said the official.
Officials said the GB Ordinance will be amended so that prior permission of BB becomes mandatory to give effect to any regulation of the micro-lender.
Presently, board of directors of Grameen, according to GB Ordinance, is empowered to formulate regulations for the bank, which does not need any prior or post approval from the central bank.
The government has also planned to impose tax at source on the income generated from the bank’s deposit, like other commercial banks. The National Board of Revenue will issue an order in this connection soon after the approval from the Prime Minister, said a source.
The Review Committee on GB submitted its report on April 25, this year. It put forward 27-point recommendation to revamp the Grameen Bank.
Yunus’s supporters at home and abroad have protested the Nobel laureate’s removal, saying the economist paid heavy price due to his brief entry into politics during the caretaker government in 2007.

 

Courtesy of The Financial Express

Related News

Shwapno opens new outlet in Pabna

Business Desk : dhakamirror.com Popular retail chain shop “Shwapno” has opened a new outlet in Pabna’s Sujanagar at Molla Super Market. The inauguration took place at 5:30pm on 30 December, reads a press release. Present at the event were Ahmed Firoz Kabir, Member of Parliament for Pabna-2 (Sujanagar, Aminpur), Chairman Shahinujjaman Shahin of Sujanagar Upazila, ... Read more

Shwapno launches new outlet at Bashundhara

Business Desk : dhakamirror.com Shwapno, the largest retail chain in Bangladesh, launched an outlet in the Bashundhara area on Thursday offering a month-long discount with a home delivery facility. On behalf of Bashundhara Group, media advisor Mohammad Abu Tayeb inaugurated the outlet as guest of honour at the Rupayan shopping centre in the residential area, ... Read more

With ‘Face ID’ and ‘Fingerprint’ login bKash app is now more secure, user-friendly

Business Desk : dhakamirror.com bKash app introduces biometric ‘Face ID’ and ‘Fingerprint’ login features to make users’ daily transactions easier and safer. Alongside, exciting new features – ‘Group Send Money’, ‘Request Money’, ‘Savings Marketplace’ and selecting ‘Default Card’ to use the ‘Add money’ service from VISA card to bKash – are also included in the ... Read more

Grameenphone wins ‘Bangladesh Sustainability Excellence Awards 2023’ in Financial Inclusion

Business Desk : dhakamirror.com It was an evening to rejoice and remember for Grameenphone at the Bangladesh Sustainability Excellence Awards 2023, as the organization’s sincere efforts with flagship initiatives GP Accelerator and GP Academy received due recognition. Renowned media house The Daily Star, along with CSR Window, honored the winners at the Bangladesh Sustainability Excellence ... Read more

Banglalink wins the best sustainability award

Business Desk : dhakamirror.com Banglalink has won the ‘Best Sustainability Excellence Initiative’ award in the ‘Disaster Response’ category at the ‘Bangladesh Sustainability Excellence Awards 2023,’ jointly presented by The Daily Star and CSR Window Bangladesh. The award is in recognition of Banglalink’s contribution to societal welfare through the innovative integration of an Early Warning System ... Read more

StanChart wins Mastercard Excellence Awards

Business Desk : dhakamirror.com Standard Chartered Bangladesh has clinched awards in three categories at the “Mastercard Excellence Awards 2023”. The categories are “Excellence in Mastercard Contactless (Issuing)”, “Excellence in Mastercard Credit Business (International)”, and “Excellence in Mastercard Business (Innovation)”. Naser Ezaz Bijoy, chief executive officer of the multinational bank, received an award from Atiur Rahman, ... Read more

Nagad wins Mastercard Excellence Award 2023

Business Desk : dhakamirror.com Nagad, a popular mobile financial service provider in Bangladesh, has clinched “Mastercard Excellence Award” 2023 for its contribution to credit card bill payments. The mobile money carrier has been honoured with this prestigious award as the “Master Evolution”, reads a press release. On behalf of his company, Nagad’s Executive Director Maruful ... Read more

Prime Bank clinches Mastercard Excellence Awards 2023

Business Desk : dhakamirror.com Prime Bank PLC, a leading private commercial bank of the country, has won Mastercard Excellence Awards 2023 for Debit Business (Domestic) category. Nazeem A Choudhury, deputy managing director of the bank, and Masudul Haque Bhuiyan, head of Cards & Alternative Delivery Channel, received the award from Dr Atiur Rahman, former governor ... Read more

Zakia Rouf Chowdhury elected as vice chairman of Bank Asia

Business Desk : dhakamirror.com Zakia Rouf Chowdhury has been elected as Vice Chairman of Bank Asia Limited recently at the 508th meeting of the Board of Directors of the bank. She has an illustrious business career of more than 35 years in the private sector of Bangladesh. Since inception, she has been holding leadership positions ... Read more

Yamaha celebrates 7 years with ACI Motors

Business Desk : dhakamirror.com ACI Marts is the sole distributor and technical collaboration partner of Yamaha motorcycles in Bangladesh. ACI Motors started its journey in 2007 as a subsidiary of renowned company ACI Limited. In 2016, Yamaha started a new journey in Bangladesh with ACI Motors. At present, more than 116 Yamaha 3S (Sales, Service ... Read more

Walton boosts TV exports to Denmark, Ireland

Business Desk : dhakamirror.com Bangladeshi global electronics brand Walton has boosted up its exports of television to Denmark, Ireland and other European countries as the demand of Walton television goes high in those countries in recent times, according to a press release. Walton Global Business Unit’s Vice-President Syed Al Imran said that Walton has been ... Read more

Mutual Trust Bank launches privilege centres in Dhaka

Business Desk : dhakamirror.com Mutual Trust Bank Ltd recently launched its two revamped privilege centres in Dhanmondi and Uttara celebrating “MTB Retail Fest 2023”. Syed Mahbubur Rahman, managing director and CEO of the bank, inaugurated the centres as the chief guest, said a press release. Privilege Banking customers enjoy a wide range of exclusive benefits, ... Read more

Prime Bank Investment launches PrimeInvest

Business Desk : dhakamirror.com Prime Bank Investment Ltd (PBIL), a subsidiary of Prime Bank, launched PrimeInvest, a comprehensive discretionary product suite that aims to foster access to investment for individuals and institutional investors. CQK Mustaq Ahmed, chairman of PBIL, inaugurated the product at its head office in Banani in the capital, said a press release. ... Read more

Midland Bank strikes deal with Bangladesh Bank

Business Desk : dhakamirror.com Midland Bank Ltd recently signed a participation agreement with the Financial Sector Support and Strategic Planning Department (FSSSPD) of the Bangladesh Bank for availing refinance facility in US dollars. Liza Fahmida, director of the BB department, and Md Ahsan-uz Zaman, managing director of Midland Bank, inked the deal at the BB ... Read more

National Bank signs deal with Bangladesh Bank

Business Desk : dhakamirror.com National Bank Ltd has signed an agreement on “Financial Inclusion Credit Guarantee Scheme” with Bangladesh Bank, aiming to boost financing to cottage, micro, small and medium enterprises (CMSME). Manoj Kumar Howlader, director of the credit guarantee department of the central bank, and Md Mehmood Husain, managing director and CEO of National ... Read more

foodpanda and Toffee: Doubling Up on Benefits for Customers

Business Desk : dhakamirror.com foodpanda Bangladesh partnered with Toffee of Banglalink Digital Communications Ltd, a digital streaming entertainment app, to enhance the experience of Toffee subscribers by offering them exclusive foodpanda discount vouchers. An agreement has been signed between Toffee and foodpanda on this partnership on Thursday, reads a press release. Through this partnership, any ... Read more

US-Bangla gets recognition of IATA

Business Desk : dhakamirror.com US-Bangla Airlines, one of the largest airlines in Bangladesh, has become the first domestic private airline to be recognised as an International Air Transport Association (IATA) airline. By 2023, 18 airlines in the world have achieved accreditation as IATA Airlines, among which US-Bangla is one, reads a press release. Although several ... Read more

Emirates crowned as 2024 APEX World Class Airline

Business Desk : dhakamirror.com Having mastered the guest experience and providing exceptional customer service, Emirates was recently named a 2024 APEX World Class Airline winner at the 2024 APEX/IFSA Awards, held in Long Beach, California. Emirates is one of just eight airlines globally to achieve this accolade, reads a press release. Emirates also received a ... Read more

LAYS launches campaign with Shakib Al Hasan, Soumya Sarkar and Taskin Ahmed Tazim

Business Desk : dhakamirror.com Lay’s, one of the world’s most loved potato chip brands under the PepsiCo umbrella, has launched an engaging campaign featuring Bangladesh cricket stars Shakib Al Hasan, Taskin Ahmed and Soumya Sarkar as its brand ambassadors. Together, this dynamic trio will play essential roles in the upcoming Lay’s campaigns, endorsing the brand ... Read more

1,000 can win bKash World Cup Quiz everyday

Business Desk : dhakamirror.com A thousand winners can get Tk50 each everyday by participating in the bKash World Cup quiz. By answering 3 simple cricket related questions in the shortest possible time and making a transaction through bKash app one can win the prize. The quiz competition will continue till October 25, reads a press ... Read more