Friday, 29 March, 2024, 12:15 PM
Advance Search
Home

Mercantile Bank Chairman Talks To Daily Observer

Stimulus packages -- a life support to Covid-hit business

Published : Thursday, 3 June, 2021 at 12:00 AM  Count : 932

MBL Chairman Morshed Alam

MBL Chairman Morshed Alam

This is a time Covid-19 is causing serious setback to businesses impacting every sector of the economy. Productivity suffered big setback, export has slowed down and business remained stalled.
But the economy is trying to recover under the dynamic leadership of Prime Minister Sheikh Hasina who has offered much needed stimulus package to every sector of the economy to revive and beat back losses. Despite the pandemic we are going ahead and our export, remittance and domestic production is going on unabated.
The Mercantile Bank Limited (MBL) Chairman Morshed Alam, who is also a Member of Parliament made the observation while talking with The Daily Observer on the day when the bank is celebrating its 22nd anniversary.
He formally launched the bank's new customer service named 'MBL Rainbow' a mobile app based banking service on this occasion.
Mr Alam said the banking sector is particular suffering from poor business when credit to private sector remained stalled in one hand and banks are sitting on huge liquidity on the other. He said this is a highly unusual situation when both deposit and lending rates have been lowered at government's designated  ceiling at six and nine percent.  
He said banks are not getting good customers as none is ready to borrow and start new business or going for expansion of existing business. Lower business is thus pushing the bank towards lower profit.    
"As a businessman I am also not going for any fresh business and that is why I am not taking loans. The same is happening with many others. Banks are thus spilling up with excess liquidity in absence of  credible borrowers," he said.
The MBL Chairman said the Prime Minister's stimulus package has helped business people a lot that they are getting loans at cheaper interest. It was a life saving support to continue production and export.
Especially, when importing countries of Bangladesh's readymade garments were cutting both prices or orders and even stockpile shipments at foreign ports without releasing the shipment, the stimulus package is helping such business houses to overcome the crisis.
Mr Alam said: "I also thank to our PM that she has directed central bank for devising policies of not making the entrepreneurs loan defaulters for a certain period for not paying overdue loan installments."
"Despite the pandemic hit situation my bank is currently holding the second position among all banks in the country in different areas, we have given 15 per cent dividend this year to our shareholders of which 10 per cent in cash and 5 per cent is bonus shares," he said.
"MBL investment is now Tk250 billion and deposit Tk280 billion. The bank's capital has crossed the Basel 3 requirement for capital of having Tk4 billion as against Tk7 billion capital in hands. The Bank is following operation as per Bangladesh Bank's guide lines," he said.
Mr Alam also Chairman of the Bengal Group said due to excess liquidity banks are now capable to provide loans at less than the government fixed 9 per cent. Depositors are also willing to keep their money in banks at less than six per cent with reasonable spread.
He said currently the advance rate in many cases is 7.5 to 9 per cent and deposit rates are between 4.5-5 per cent.  "In the pandemic situation many banks have terminated employee and many has stopped increments. But we did nothing and continuing all as it were before the pandemic," he pointed out.








Latest News
Most Read News
Editor : Iqbal Sobhan Chowdhury
Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000.
Phone: PABX- 41053001-06; Online: 41053014; Advertisement: 41053012.
E-mail: info©dailyobserverbd.com, news©dailyobserverbd.com, advertisement©dailyobserverbd.com, For Online Edition: mailobserverbd©gmail.com
  [ABOUT US]     [CONTACT US]   [AD RATE]   Developed & Maintenance by i2soft