Disburse more credit to rural areas: Aziz
FE Report | Sunday, 3 August 2008
Finance and planning adviser Mirza Azizul Islam Saturday urged the commercial banks to disburse more credit to rural areas in an effort to reduce the growing resource gap between the rural and urban areas.
"The banks usually mobilise their assets from the rural areas through deposits but provides more credit to the urban areas. This disparity should be eliminated," he said at a seminar in the city.
On the occasion of its half yearly conference, Janata Bank Ltd, a state-owned commercial bank (SCB), organised the seminar on "Steps towards making Janata an effective bank in Bangladesh" in the city with its chairman Suhel Ahmed Choudhury in the chair.
Director of the Bangladesh Institute of Bank Management Dr. Toufiq Ahmed Chowdhury presented the keynote paper.
Finance secretary Dr. Mohammad Tareq, chairman of the national board of revenue (NBR) Muhammad Abdul Mazid, chairman of the Bangladesh Krishi Bank Khondokar Ibrahim Khaled, chairman of the finance department of Dhaka University Dr. Mahmud Osman Imam also spoke in the seminar.
"Since Bangladesh has been experiencing regional disparity over the years you (banks) have to go for geographical distribution of the resources to reduce the inequality between developed and underdeveloped areas," Mirza Azizul Islam said.
"The bank could and should give more attention to the agriculture and small and medium enterprise sectors and ensure the geographical distribution of the credits," he said.
The adviser called the SCBs for becoming profitable banks through enhancing their services to the customers.
Replying to a proposal of some speakers on the issue of enlisting the SCBs with the stock markets, he said: "The banks are in a pre-mature stage at this moment. The bottom line of the banks is not strong. It could be possible after two to three years."
Finance secretary Dr. Tareq urging the Janata Bank to turn into a profitable bank said: "Maximise your revenue (income) and minimise your expenditure."
"You will have to launch new products (loan) and strengthen your customer care service in order to enhance the revenue," he said.
He suggested the SCBs to recruit some young, dynamic and skilled personnel to make the bank competitive and profitable.
Abdul Mazid was critical of the decreasing trend of profit of the JBL in the overseas branches, and said, "You have to extend your service more to the remittance senders which will help you and your economy to achieve more growth."
He urged the banks to examine the tax-prayers' identification number (TIN) properly when they will go to open a bank account.
Ibrahim Khaled said the SCBs should prepare a financial "work plan" which will have a proper "confirmation of implementation".
He suggested the SCBs to appoint one chief executive officer (CEO) and another 7-10 deputy regional CEOs to implement the work plan properly which could turn the bank around.
"The banks usually mobilise their assets from the rural areas through deposits but provides more credit to the urban areas. This disparity should be eliminated," he said at a seminar in the city.
On the occasion of its half yearly conference, Janata Bank Ltd, a state-owned commercial bank (SCB), organised the seminar on "Steps towards making Janata an effective bank in Bangladesh" in the city with its chairman Suhel Ahmed Choudhury in the chair.
Director of the Bangladesh Institute of Bank Management Dr. Toufiq Ahmed Chowdhury presented the keynote paper.
Finance secretary Dr. Mohammad Tareq, chairman of the national board of revenue (NBR) Muhammad Abdul Mazid, chairman of the Bangladesh Krishi Bank Khondokar Ibrahim Khaled, chairman of the finance department of Dhaka University Dr. Mahmud Osman Imam also spoke in the seminar.
"Since Bangladesh has been experiencing regional disparity over the years you (banks) have to go for geographical distribution of the resources to reduce the inequality between developed and underdeveloped areas," Mirza Azizul Islam said.
"The bank could and should give more attention to the agriculture and small and medium enterprise sectors and ensure the geographical distribution of the credits," he said.
The adviser called the SCBs for becoming profitable banks through enhancing their services to the customers.
Replying to a proposal of some speakers on the issue of enlisting the SCBs with the stock markets, he said: "The banks are in a pre-mature stage at this moment. The bottom line of the banks is not strong. It could be possible after two to three years."
Finance secretary Dr. Tareq urging the Janata Bank to turn into a profitable bank said: "Maximise your revenue (income) and minimise your expenditure."
"You will have to launch new products (loan) and strengthen your customer care service in order to enhance the revenue," he said.
He suggested the SCBs to recruit some young, dynamic and skilled personnel to make the bank competitive and profitable.
Abdul Mazid was critical of the decreasing trend of profit of the JBL in the overseas branches, and said, "You have to extend your service more to the remittance senders which will help you and your economy to achieve more growth."
He urged the banks to examine the tax-prayers' identification number (TIN) properly when they will go to open a bank account.
Ibrahim Khaled said the SCBs should prepare a financial "work plan" which will have a proper "confirmation of implementation".
He suggested the SCBs to appoint one chief executive officer (CEO) and another 7-10 deputy regional CEOs to implement the work plan properly which could turn the bank around.