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TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

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TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

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Important Business News Extracts -August 07, 2017

Changes in bank law on cards

The finance ministry has moved to make changes to the Banking Companies Act 1991 that would strengthen the grip of families on private banks.The amendment proposed to increase the tenure of the board of directors of a private bank from six years to nine years and accommodate four members of a family instead of two in the board.Finance Minister AMA Muhith, who signed off the proposal on Wednesday, believes the amendment would bring in dynamism to the sector and help new banks to operate properly.The proposed amendment though is contrary to the previous one made by the Awami League-led government in 2013.The sub-section 10 of section 15 of the Banking Companies Act 1991, which was amended in 2013, bars more than two members of a family in a bank’s board.The tenure of a director is set at three years and no director is allowed to run for more than two terms, meaning maximum 6 years. Muhith also gave a new definition of family to pave the way for more members of a household in a bank’s board.Under the present law, the director’s spouse, parents, children and any dependent are considered family.But the finance minister said a member of a family cannot be termed a dependent if he/she does separate business and becomes a taxpayer.

Source: http://www.thedailystar.net/business/changes-bank-law-cards-1444675

Bank Asia to disburse Western Union remittance

Bank Asia and Western Union have jointly launched a remittance service which will use the bank’s countrywide agent banking channel to distribute funds among the beneficiaries.Arfan Ali, president and managing director of Bank Asia, and Sohini Rajola, Western Union’s managing director for South Asia, inaugurated the service at a programme at the Westin hotel in Dhaka yesterday.“Remittance coming through Western Union will be disbursed by the agent banking channels of Bank Asia,” said Ali.He said the partnership would stop illegal transfer of remittance and make the service convenient for remittance beneficiaries. The use of agent banking channels will develop savings habit among people and the partnership with the international money transfer company will build trust on the agents, said a top executive of the bank.Bank Asia currently has over 1,250 agents in 55 districts.Remittance amounting to Tk 572 crore was disbursed through agents between January and March this year. Of the amount, the highest 47 percent or Tk 269 crore was channeled through Bank Asia, according to central bank data.

Source: http://www.thedailystar.net/business/bank-asia-disburse-western-union-remittance-1444663

Grameen Bank profit falls 7pc in first half

Grameen Bank logged in Tk 102 crore as profit in the first half of 2017, down 7.2 percent year-on-year, thanks to full-fledged implementation of the new pay scale, said the microlender.An additional Tk 61 crore had to be spent in the first half of the year to implement the new pay scale in full, said a senior official of the bank.If the additional expenses were not included, the profit margin would have been much higher, he said.The bank lent Tk 11,353 crore during the six-month period, up 21.85 percent year-on-year. The microlender distributed Tk 3,458 crore alone among small and medium enterprises.As of June, its outstanding loans were Tk 13,458 crore.Some of the zones in which the bank operates in have been hit by floods. As a result, the bank has stopped collecting instalments from those areas.The bank added more than 5 lakh new customers so far this year, taking the number of its members to 88 lakh. Since 2008, Grameen Bank has been paying 30 percent dividend to its shareholders, which includes the government.Last year the government, which owns 25 percent stakes in the bank, received Tk 6 crore in dividend.

Source: http://www.thedailystar.net/business/grameen-bank-profit-falls-7pc-first-half-1444672

Bankers facing corruption charges not to be selected for promotion

Finance minister AMA Muhith has directed the Financial Institutions Division not to select any bankers facing corruption cases for promotion.He gave the directive after the FID placed a list of 11 deputy managing directors, aspirant for the posts of managing director at three state-owned specialised banks.Of them, Agrani Bank DMD Mizanur Rahman Khan and Janata Bank DMD Abdus Salam Azad are facing departmental cases for their alleged involvement in loan scams.Mizanur was sacked by Bangladesh Bank on June 30, 2016 because of the Moon Group loan scam involving Tk 108 crore. Later, on August 7 he was suspended by the FID.Azad was suspected of being involved in the Bismillah Group loan scam.FID secretary Eunusur Rahman said the suspected officials would be selected again for promotion once they are cleared out of departmental actions.

Source: http://www.newagebd.net/article/21400/bankers-facing-corruption-charges-not-to-be-selected-for-promotion

Nine DMDs on govt list to replace their MDs

The government formed Sunday a nine-member panel of deputy managing directors to be appointed managing directors of different state-owned banks and financial institutions, sources said.A meeting chaired by finance minister AMA Muhith at his secretariat office handpicked the DMDs into the panel dropping two names from a draft list.”We have dropped two names from the draft list after scrutinising their performance and previous records,” a top official of the ministry of finance told the FE, wishing not to be quoted by name.He said the two deputy managing directors were allegedly involved in loan scams, and one of them was in jail in a case filed by the Anti-Corruption Commission. So, their names were dropped.

Source: http://print.thefinancialexpress-bd.com/2017/08/07/179892

The 57th branch of South Bangla Agriculture & Commerce (SBAC) Bank Limited

The 57th branch of South Bangla Agriculture & Commerce (SBAC) Bank Limited at Bandha Bazar Main Road in Khulna was opened on Sunday. Talukder Abdul Khaleque, MP was present as chief guest. S.M Amzad Hossain, Chairman, Board of Directors of SBAC Bank Ltd inaugurated the branch as special guest. Among others, Md Rafiqul Islam, Managing Director & CEO of SBAC Bank Ltd seen.

Source: http://print.thefinancialexpress-bd.com/2017/08/07/179886

Mosleh Uddin NCC Bank MD

Mosleh Uddin Ahmed has recently been promoted as the managing director and CEO of NCC Bank.He had been serving in the positions as current charge. He joined the bank as an additional managing director in 2015.Before that, Ahmed was the additional managing director and head of business at Jamuna Bank. He also served City Bank as a senior executive vice president and area head of corporate division.He graduated in electrical and electronic engineering from the Rajshahi University of Engineering and Technology.He also obtained a Diploma in Information and Communication Technology from the Bangladesh University of Engineering and Technology and an MBA from Institute of Business Administration of Dhaka University.

Source: http://www.thedailystar.net/business/mosleh-uddin-ncc-bank-md-1444669

Half-Yearly Branch Manager’s Conference 2017 of Midland Bank Limited

Half-Yearly Branch Manager’s Conference 2017 of Midland Bank Limited was held in Dhaka Sunday at its Head Office. Mr. Ahsan-uz Zaman, Managing Director & CEO of the Bank was present at the meeting as Chief Guest. Mr. Masihul Huq Chowdhury, Additional Managing Director of the Bank was also present as Special Guest on the occasion.

Source: http://print.thefinancialexpress-bd.com/2017/08/07/179884

IT export to be $5bn by 2021: Tofail

Commerce minister Tofail Ahmed today said Bangladesh will earn US$ 5 billion from IT sector by 2021.
The minister said this while talking to media after inaugurating the newly constructed Bagmara Bridge in Sadar Upazila here jointly with LGRD minister Khandker Mosharraf Hossain.Referring to the export target of US$ 41 billion, he said: “We will be successful as our export is being increased continuously and IT sector has huge potential along with other sectors.” Tofail also said global recession did not hamper export growth of Bangladesh. Habibe Millat, MP, Prime Minister’s son-in-law Mashrur Hossain Mitu, Deputy Commissioner Selim Uddin, Zila Parishad Chairman Abdul Mamin Tulu, Police Super M Mokter Hossain, Upazila Parishad Chairman M Mosharef Hossain and Vice Chairman Alhaj M Yunus, among others, were present.

Source: http://www.observerbd.com/details.php?id=88302

Import of powdered milk almost doubles

Bangladesh has almost doubled its import of powdered milk, driven by increased industrial use and home consumption, said industry operators.In the three years to 2015-16, average annual import rose to 104,000 tonnes, up 86 percent from 56,330 tonnes in the same time-span till 2009-10, according to the Bangladesh Bureau of Statistics (BBS).“Industrial demand to make sweets, bakery and ice cream has played a key role in driving consumption,” said Asif Iqbal, executive director for marketing at Meghna Group of Industries.He said powdered milk prices fell below that of substitutes and the import growth in the last two years has been spurred by promotional activities and low global market prices.

Source: http://www.thedailystar.net/business/import-powdered-milk-almost-doubles-1444687

Apparel exports to US drop

Garment shipment to the US, the country’s single largest export destination, declined 7.47 percent year-on-year to $5.2 billion in 2016-17 largely because of higher duty, longer lead-time, and lower prices.Apparel exporters also blamed the appreciation of the local currency against the American greenback, less imports by US retailers and inefficient port operations in Bangladesh, for the fall in garment exports.Exporters say Bangladesh’s garments are less attractive to US customers as competing countries can offer similar items at lower prices since they enjoy preferential duty privilege.Bangladeshi apparel exports face 15.62 percent duty to the US markets, whereas Vietnam, Turkey, China and India are subjected to 8.38 percent, 3.57 percent, 3 percent and 2.29 percent duty respectively. Longer lead-time is another major problem confronting Bangladesh whereas competitors can send to the US within a shorter time.Bangladesh takes nearly three months to export to the US whereas competitors can supply the same products to the US within 60 days or less. International retailers have also cut the lead-time for Bangladeshi exporters.

Source: http://www.thedailystar.net/business/apparel-exports-us-drop-1444681

World Commodities

Commodity Close Value Value Change Percentage Change
Crude Oil (WTI)* $49.39 ↑0.19 ↑0.38%
Crude Oil (Brent)* $ 52.20 ↑0.22 ↑0.42%
Gold Spot* $ 1,258.31 ↓0.57 ↓0.05%

Major Currencies Exchange Rates Movement in Last Seven Days

Exchange Rates
USD 1 BDT 80.80*
GBP 1 BDT 105.51*
EUR 1 BDT 95.31*
INR 1 BDT 1.27*

*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.