RMG export escapes first round of recession shock : NCC Bank chief
Sunday, 17 May 2009
FE Report
Managing Director of a leading private bank on Saturday said export earnings from country's Readymade Garments (RMG) sector has escaped the first round shock wave of ongoing global financial downturn as the apparel companies' mostly worked against advance export booking.
The export situation of this sector is not as gloomy as was apprehended, quoted Mr. Mohammed Nurul Amin, MD of NCC Bank Ltd while speaking at a press conference in the capital.
"Around 90 per cent clients in our apparel sector have full booking of export orders until May 2009," he explained.
"As a consequence of the global recession, export orders might decline marginally as major buyers were cutting short their inventory period, but that does not mean they are buying less quantity," he added.
RMG shares 15 percent of the total business of this particular second generation bank.
Mr Amin said the bank had undertaken a close monitoring and nursing programme for the textile and garments sector clients in the wake of global recession as a pre-emptive measure. He gave an optimistic outlook that the orders would increase in the coming months.
"Things will get clearer after July," he added.
The banker also forecast a slight fall in the bank's profitability as an impact of global recession and the reduction of interest rates by the central bank. But the growth of banking sector is expected to continue, he said.
"We will mitigate the adverse effects through increased operational efficiency," said Mr Amin.
Managing Director of a leading private bank on Saturday said export earnings from country's Readymade Garments (RMG) sector has escaped the first round shock wave of ongoing global financial downturn as the apparel companies' mostly worked against advance export booking.
The export situation of this sector is not as gloomy as was apprehended, quoted Mr. Mohammed Nurul Amin, MD of NCC Bank Ltd while speaking at a press conference in the capital.
"Around 90 per cent clients in our apparel sector have full booking of export orders until May 2009," he explained.
"As a consequence of the global recession, export orders might decline marginally as major buyers were cutting short their inventory period, but that does not mean they are buying less quantity," he added.
RMG shares 15 percent of the total business of this particular second generation bank.
Mr Amin said the bank had undertaken a close monitoring and nursing programme for the textile and garments sector clients in the wake of global recession as a pre-emptive measure. He gave an optimistic outlook that the orders would increase in the coming months.
"Things will get clearer after July," he added.
The banker also forecast a slight fall in the bank's profitability as an impact of global recession and the reduction of interest rates by the central bank. But the growth of banking sector is expected to continue, he said.
"We will mitigate the adverse effects through increased operational efficiency," said Mr Amin.