External Affairs Minister Pranab Mukherjee on Tuesday called for close cooperation between India and Bangladesh for building mutual trust to combat the threat of terrorism.

''An area of concern for both countries is to combat the growing menace of extremism and terrorism in the region. Closer cooperation on security issues for building trust is the need of the hour,'' Mukherjee said while giving an inaugural address at the conference of the South Asian Free Media Association.

Mukherjee said both India and Bangladesh would benefit in the long run if they moved with these issues ''without rancour''.

Pointing out that development can never take place in an atmosphere of insecurity, Mukherjee said the South Asian Association for Regional Cooperation was working on an agreement to enable security agencies of the member countries to counter terrorism and bring the criminals to book.

Mukherjee, however said relations between India and Bangladesh had seen much dynamism and closer interaction in all spheres and hoped that understanding would be built on the determination to address the issues of concern to both countries.