Non-performing Loans (NPLs) jump 19.0% in six months to June

The volume of non-performing loans (NPLs) jumped by over 19.0% or BDT 119.8 billion at the end of June this year from December closing last year, despite close monitoring by the central bank. The amount rose to BDT 741.5 billion as on June 30, 2017 from BDT 621.7 billion as on December 31, 2016. The amount of NPLs was BDT 633.7 billion a year before. Bankers attributed the substantial rise in NPLs to lax loan recovery drive in the January-March period of this calendar year (Q1) and less rescheduling in the six months period to June this year.

Source:
http://print.thefinancialexpress-bd.com/2017/08/18/180913
http://www.thedailystar.net/business/default-loans-fall-state-banks-beef-efforts-1450261
http://www.newagebd.net/article/22192/banks-defaulted-loans-rise-by-tk-738cr-in-q2

Falling interest rates leave no bearing on apartment sales

The reduced rates of interest on housing loans have hardly made any impact on sales of flats as around 10,000 apartments still remain unsold, according to realtors. Many members of the apex body Real Estate and Housing Association of Bangladesh (REHAB) have not renewed their memberships this year. Not a single realtor has joined the REHAB as a new member despite the commerce ministry’s directive for its mandatory membership for running housing business. But realtors and experts are optimistic. They think declining interest rates will certainly have a positive impact in business but it will take time.

Source: http://print.thefinancialexpress-bd.com/2017/08/19/181042

Agent banking on a roll as accounts top 0.7 million

Agent banking in the country’s banking sector continues to gain popularity among the rural people as the clients are now allowed to keep deposit and withdraw the cash through the outlets operated by the agents without entering in the branches of banks. The amount of deposit kept by the clients in the agent banking system increased to BDT 4.8 billion as of March 31, 2017 from BDT 3.8 billion as of December 31, 2016, according to the latest Bangladesh Bank data. The number of outlets operated by the agents increased to 3,023 as of March 31, 2017 from 2,601 as of December 31, 2016. The number of accounts in the agent banking system also increased by 31% to 7,12,499 as of March, 2017 from 5,44,536 as of December, 2017. Agent banking offers limited banking and financial services to the underserved population by engaging representatives under a valid agency agreement. It is the owner of an outlet who conducts banking transactions on behalf of a bank. Agents provide services such as cash deposits, withdrawals, remittance disbursement, small value loan disbursement and recovery of loans, and cash payments under the government’s social safety net programmes.

Source: http://www.newagebd.net/article/22270/agent-banking-on-a-roll-as-accounts-top-7-lakh

Saudi hiring sends overseas jobs jumping 41.0% in Jan-July

Led by Saudi Arabia, overseas employment jumped by more than 41% in the seven months to July compared with the same period last year, according to official statistics. Some 596,705 workers went abroad with jobs in the January-July period of 2017, up by 175,489 workers from 421,216 in the corresponding period of 2016, the state-run Bureau of Manpower Employment and Training (BMET) data showed. Sector insiders and officials said that the trend in outflow of Bangladeshi workers is expected to continue throughout the year. If the trend in recruitment continues, more than 1.0 million workers will get job this year, they predicted. In the last seven months, Saudi Arabia hired the highest 341,294 workers, followed by Oman 57,633, Qatar 57,707and Kuwait 31,225.

Source: http://print.thefinancialexpress-bd.com/2017/08/19/181004

Government changes incentive structure for exports

The government has brought some major changes to the incentive structure for exports in order to achieve a higher overseas sales target set for the current fiscal year. Bangladesh Bank on Thursday released an incentive structure for 2017-18, granting stimulus to five sectors for the first time and increasing existing rates for four. With the new additions, 27 sectors will receive 2 to 20% incentive on the price of the goods. The number of sectors entitled for the benefit was 22 in the last fiscal year. The five new sectors which were awarded higher incentives are IT-enabled services and hardware (10%), shoes made of synthetic and fabrics (15%), active pharmaceuticals ingredients (20%), accumulator battery (15%), and goods produced from coconut fiber (20%).

Source: http://www.thedailystar.net/business/govt-changes-incentive-structure-exports-1451287

Fresh move on to bring MNCs to share market

The government has taken a fresh move to bring multinational companies running their businesses profitably in Bangladesh to the capital market as it thinks that the market has now got a much more solid ground compared to any other time, reports UNB. The Finance Ministry has sent a letter to various ministries, regulatory bodies, National Board of Revenue (NBR), Bangladesh Bank, Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) in this regard. While speaking at a pre-budget discussion with the Economic Reporters’ Forum on May 13, Finance Minister AMA Muhith said time has come to bring the multinational companies to the capital market. “There were no rules and regulations and laws for the share market, but the stock market has bounced back and it is no more a kerb market,” he said.

Source: http://print.thefinancialexpress-bd.com/2017/08/19/181000