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


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

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Rate last updated: 02/01/2014 11:15:04 AM

Daily Business News Flash April 22, 2021

Banking stocks lose grace for high defaulted loans

Once known to many for their attractive stocks, banks are a long way from raising adequate interest among stock market investors as confidence has been sunk by high amounts of non-performing loans and low asset value.Among the listed 31 banks, 21 are witnessing their stocks of a face value of Tk 10 being traded at less than Tk 20.Stocks of AB Bank, First Security Islami Bank, ICB Islamic Bank, National Bank and Standard Bank even traded below the face value. Expert says that Investors are not buying banking shares for mainly two reasons. One is for the vulnerability of the sector. Someone also said that the non-performing loans are the main reasons for the vulnerability. Default loans stood at Tk 88,734 crore last year, which was 7.66 per cent of the outstanding loans at that time, showed data from Bangladesh Bank.

Moreover, considering the low price-to-earnings (P/E) ratio, investors can invest in some banks, the analyst added. The P/E ratio refers to a company’s share price compared to its earnings per share.The P/E ratio of banks is much lower than that of other listed companies. Of the 31 listed banks, 22 have had their P/E ratio in the past 12 months ranging from 4 to 8, according to the DSE data.The P/E ratio of most companies range from 15 to 25, shows the data. If the P/E ratio is lower than 15, the stocks are considered to be much lucrative.The DSE data shows that the average P/E ratio for the banking sector is 8.13, the lowest among all the sectors. Ratios closest to it are of the fuel and power and textile sectors, 11.93 per cent and 17.93 per cent respectively.

Mir Ariful Islam, head of research of Prime Finance Asset Management Company, said investors have very little confidence on the banking sector due to their high amounts of non-performing loans and low asset quality.So they are not buying bank shares although those come to provide handsome dividends, he said.Almost all the listed banks are paying over 10 per cent dividend every year.For 2020, 15 banks have declared dividends. Of them, two declared less than 10 per cent, four 10 per cent to 14 per cent, four from 15 per cent to 19 per cent and three from 20 per cent to 29 per cent. Two are going to provide over 29 per cent.Ali Reza Iftekhar, chairman of the Association of Bankers, Bangladesh (ABB), acknowledged that the share prices of many banks were low because of high non-performing loans or high deferral of provision or low cash reserve ratio in the banks.High deferral of provision comes about for banks which, facing a shortage of provision, secure permission from the central bank to declare a dividend on condition of keeping that provision for the next few years, he said.But there are also some banks with good performance records which are paying high amounts of dividends and with no deferral of provision, for which their stock prices also remain high, said Iftekhar, also managing director of Eastern Bank.

Source: https://www.thedailystar.net/business/news/banking-stocks-lose-grace-high-defaulted-loans-2081673

Brac Bank registers Tk 454cr net profit

Brac Bank registered a net profit of Tk 454 crore last year, sidestepping the business slowdown caused by the coronavirus pandemic.The net profit, however, stood at Tk 403 crore on a consolidated basis given the performance of all its subsidiary companies, according to a press release issued by the bank.The net profit has been reached upon deduction of tax paid to the government.The private lender disclosed its annual performance for last year through a virtual earning disclosure programme on April 19.

Earnings per share (EPS) of the bank stood at Tk 3.42 on a standalone basis and Tk 3.33 on a consolidated basis.The lender said it was able to successfully reorganise its operations very early on to embrace new health and safety measures, roll out a virtual operations platform and significantly expand its digital customer solutions.Customer deposits grew by 9 per cent year-on-year while the current account and savings account (CASA) improved from 43 per cent to 55 per cent, which the bank sees as a reflection of a successful deposit mobilisation and interest rate management strategy.The bank said to have adopted a cautious stance in growing its customer loan portfolio in 2020 with a 3 per cent annual net growth.

Source: https://www.thedailystar.net/business/news/brac-bank-registers-tk-454cr-net-profit-2081661

Premier Bank reappoints CEO

Premier Bank recently witnessed the reappointment of its managing director and CEO, M Reazul Karim, for the next three years.Karim has been in office since April 23, 2018, says a press release.He started his banking career with National Bank in 1984. Before joining Premier Bank as an additional managing director, he served Prime Bank for 17 years.Karim obtained his honours and master’s degrees in accounting from the University of Dhaka.He is a fellow of the Institute of Cost and Management Accountants of Bangladesh.

Source: https://www.thedailystar.net/business/news/premier-bank-reappoints-ceo-2081609

Construction work of first private hi-tech park begins

The construction of the Korean EPZ Hi-Tech Park in Anwaraupazila of Chattogram began yesterday as its owner looks to set up Bangladesh’s first private enclave for information technology firms and startups. The ground-breaking ceremony was virtually attended by Zunaid Ahmed Palak, state minister for ICT, and LEE Jang-keun, ambassador of the Republic of Korea to Bangladesh, with the physical presence of Kihak Sung, chairman & CEO of Youngone Corp and the KEPZ, according to a press release.

Source: https://www.thedailystar.net/business/news/construction-work-first-private-hi-tech-park-begins-2081657

Local and Global Stock Indices *

Index NameClose ValueValue ChangePercentage Change
DJIA$ 34,137.31
FTSE100$ 6,895.29↑35.42↑0.52%
Nikkei 225$ 29,099.93↑591.38↑2.07%

World Commodities *

CommodityClose ValueValue ChangePercentage Change
Crude Oil (WTI)$ 61.02 ↓ 0.34↓0.55%
Crude Oil (Brent)$ 65.01 ↓0.31↓0.47%
Gold Spot$ 1,793.60↓0.19↓0.01%

Major Currencies Exchange Rates Movement in Last Seven Days *

Exchange Rates
USD 1BDT 84.8003
GBP 1BDT 118.2041
EUR 1BDT 102.0750





Dear Valued Patrons,

At the very onset, let me express my heartiest gratitude for allowing us to serve you and I also wanted to reach out to you directly with an assurance that Dhaka Bank is fully equipped to support you during this difficult time.

Last couple of weeks ago we all were living in a peaceful condition, performing our daily tasks freely and perfectly. Entire economy and business environment was also in a good shape, until COVID-19 put a forceful stoppage to the overall life style and economy of the world. We all know that social distancing and cleanliness are the keys to prevent this pandemic. Hence, we urge your conscious effort to limiting public interaction and suspending wherever possible.

In this current situation, Dhaka Bank and its employees are beside you where we are fully online, either working from home or at our offices under a robust Business Continuity Plan (BCP) to serve you with limited branch banking and a full-fledged alternate delivery channel services.

Our state of the art Mobile App, Dhaka Bank GO (Click https://bit.ly/2WVfieu) and Internet Banking - Dhaka Bank Direct gives you the freedom of banking online anytime from anywhere. You can check the balance and transfer money to any designated Banks including any Dhaka Bank or bKash Account, make utility bill payments and mobile top-up through our Mobile App and Internet Banking Services. Our ATMs are also running efficiently with availability of sufficient cash for your convenience where you can make cash withdrawals whenever the need arises. Mentionable, the withdrawal of cash from any ATMs within Bangladesh with Dhaka Bank Debit Cards are absolutely free of charges up till April 30, 2020 (Dhaka Bank will bear the cost). Our corporate customers can also use our completely safe and secured online platform Dhaka Bank C-Solution for Payments, Inter Bank Fund Transfers, etc.

Moreover, to fulfill your urgent requirement, we have a limited no. of branches up and running by ensuring all kinds of precautionary and safety measures for you.

In case of extreme emergency and facing difficulties in conducting banking transactions, please let us know through our 24/7 Contact Center number 16474 (or, dial +8809678016474 for ISD/Overseas Calls). We are always with you to combat your difficulties.

As you know we are going through a critical phase and the situation is novel to all of us. We are getting lot of new information from various sources everyday about COVID-19 which will be shared at www.dhakabankltd.com.

Thank you for your trust and continued support to us. I firmly believe that jointly we will be able to combat this situation and win against all the odds.

Please stay home, stay safe and take care of yourself and family.

Best regards,

Emranul Huq
Managing Director & CEO
Dhaka Bank Limited