Market Report, "Bangladesh Commercial Banking Report Q2 2011", published

PRLog (Press Release) - May 1, 2011 - Microfinance Problems Spreading To Bangladesh  India's microfinance industry is under attack from state-level interference. While we do not expect a  broader impact on India's commercial banking space, a retrenchment in microlending could pose a not  insignificant downside risk to the country's long-term growth prospects. The backlash against the  industry looks likely to spread to Bangladesh, where the Microcredit Regulatory Authority (MRA) is  planning to put new restrictions on interest rates charged, which could potentially have an even more  harmful effect on the economy.  The Indian microfinance industry, one of the country's fastest growing sub-sectors, is facing serious  headwinds due to the increasing politicisation of the industry. In October 2010, the government of Andrha  Pradesh, India's fifth most populous state and the most heavily dependent on microfinance activity,  passed an ordinance forcing key players to lower their lending rates, ordered the arrest of microfinance  institution (MFI) employees suspected of 'coercion' and restricted the regularity of collections. These  actions triggered a wave of delayed disbursements and abandoned repayment schedules, catapulting  default rates into the double digits (from an estimated 2% previously) and raising serious questions over  future growth in the industry. The share price of SKS Financial, India's largest and only listed MFI,  tumbled by 45% after the regulations in Andrha Pradesh came into force.  Microfinance Institutions 101: A Brief History  India's fledgling microfinance industry has proliferated in recent years on the back of a concerted publicprivate  push to provide more financial services (primarily small-scale loans) to India's rural communities,  and this has played a major role in the grassroots economic dynamism that has been experienced in recent  years. The industry's eight biggest players have enjoyed spectacular growth and profitability, with asset  expansion averaging 117.3% per annum over the past five years (albeit from a very low base) and return  on equity in 2009 coming in at an impressive 34.9%. However, such an aggressive expansion of profitseeking  firms operating in low-income and underpenetrated areas of the country has been an uneasy  development for many of India's state-level governments. The Andrha Pradesh government claimed that  its intervention was the consequence of a spate of suicides in the region due to exorbitant repayment rates  and bullying tactics employed by MFIs. It also said that aggressive MFI expansion has led to individuals  taking on much more debt that they can ever afford to pay back.

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Report Table of Contents:

Executive Summary
- Table: Levels (BDTbn)
- Table: Levels (US$bn)
- Table: Levels At November 2010
- Table: Annual Growth Rate Projections 2011-2015 (%)
- Table: Ranking Out Of 59 Countries Reviewed In 2011
- Table: Projected Levels (BDTbn)
- Table: Projected Levels (US$bn)
SWOT Analysis
- Bangladesh Commercial Banking SWOT
- Bangladesh Political SWOT
- Bangladesh Economic SWOT
- Bangladesh Business Environment SWOT
Business Environment Outlook
- Commercial Banking Business Environment Ratings
- Table: Bangladesh's Commercial Banking Business Environment Rating
- Commercial Banking Business Environment Rating Methodology
- Table: Asia Commercial Banking Business Environment Ratings
Global Commercial Banking Outlook
- Regional Outlooks
- Mergers And Acquisitions Outlook For Banks
Asia Banking Sector Outlook
- Table: Banks' Bond Portfolios
- Tables: Asia Commercial Banking Business Environment Ratings
- Tables: Comparison Of Loan/Deposit, Loan/Asset And Loan/GDP Ratios
- Table: Anticipated Developments In 2011
- Table: Comparison Of Total Assets, Client Loans And Client Deposits, 2009-2010 (US$bn)
- Table: Comparison Of Per Capita Deposits, 2010 (US$)
- Table: Interbank Rates And Bond Yields, 2010-2011
Bangladesh Banking Sector Outlook
Economic Outlook
- Table: Bangladesh Economic Activity, 2008-2015
Competitive Landscape
- Market Structure
- Protagonists
- Table: Protagonists In Bangladesh's Commercial Banking Sector
- Definition Of The Commercial Banking Universe
- List Of Banks
- Table: Bangladesh Association of Banks Members
Company Profiles
- Sonali Bank
- Table: Key Statistics For Sonali Bank, 2004-2008 (BDTmn)
- Janata Bank
- Table: Key Statistics For Janata Bank, 2007-2008 (BDTmn)
- Agrani Bank
- Rupali Bank
- Table: Key Statistics For Rupali Bank, 2008-2009 (BDTmn)
- Islami Bank Bangladesh
- Table: Key Statistics For Islami Bank Bangladesh, 2005-2008 (BDTmn)
- Prime Bank
- Table: Key Statistics For Prime Bank, 2003-2008 (BDTmn)
- Pubali Bank
- Table: Key Statistics For Pubali Bank, 2007-2009 (BDTmn)
BMI Banking Sector Methodology
- Commercial Bank Business Environment Rating
- Table: Commercial Banking Business Environment Indicators And Rationale
- Table: Weighting Of Indicators

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Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.