BB to ask banks, NBFIs to pace up
The central bank is set to ask the banks and non-banking financial institutions (NBFIs) for faster implementation of the stimulus packages particularly the one for the CMSMEs to speed up recovery of the pandemic-hit economy. The instruction will be given at an online meeting with the top executives of 16 banks and four NBFIs scheduled to be held today (Monday), with Bangladesh Bank (BB) Governor FazleKabir in the chair.The banks and NBFIs, which have loan disbursement targets of Tk 500 million and more, have been selected to participate the review meeting, according to the official. The BB’s latest move came against the backdrop of slower progress in loan disbursement under the financial package for the CMSMEs sector until July 30. The banks and NBFIs disbursed only Tk 15 billion of the stimulus package by then. The disbursed amount is just 7.50 per cent of the total Tk 200 billion financial support for the sector. The support is to help the CMSMEs sector to offset the adverse impact of the Covid-19 pandemic.The SBAC Bank has already disbursed Tk 80 million under the package against the sanction of loans amounting to Tk 220 million. The BB has already formed a Tk100 billion revolving refinancing scheme to help banks and NBFIs implement the package for the CMSMEs sector. In April, the central bank issued a guideline for providing working capital facilities amounting to Tk 200 billion in line with the government’s announcement for the CMSMEs sector affected by the pandemic. Prime Minister Sheikh Hasina has so far announced 19 stimulus packages worth Tk 1.03 trillion to offset the impacts of the pandemic on various sectors. The packages, which are 3.7 per cent of the country’s gross domestic product (GDP), are now being executed under the supervision of the central bank and the finance ministry.
DSEX crosses 4,800-mark after 10 months
Stocks kept their soaring trend on Sunday also with the Dhaka Stock Exchange (DSE) core index crossed the 4,800-mark after 10 months, thanks to the investors’ growing confidence in the new commission. DSEX, the DSE key index, went up by 156.16 points or 3.32 per cent to settle at 4,859 during the four and a half hours of trading session on the day. It was the highest level of DSEX since October 9, 2019.DSEX surged 900 points or 23 per cent in the past two months since 16 June. During the period, the market capitalisation also soared 17 per cent to reach at Tk 3,635 billion on Sunday. Daily trade turnover on the prime bourse also scaled Tk 13 billion-mark again, as the local and foreign investors remained active on the market amid growing confidence. Turnover, a crucial indicator of the market, stood at Tk 13.51 billion on the country’s premier bourse, climbing further by 12 per cent over the previous day’s mark of Tk 12.08 billion. It was the biggest single-day turnover in the past seven weeks since June 28, when turnover totalledTk 25.43 billion, riding on the huge block trade of GSK Bangladesh.The Chittagong Stock Exchange (CSE) also ended higher with the All Shares Price Index (CASPI) jumping 494 points to close at 13,855, and the Selective Categories Index – CSCX – soaring 288 points to finish at 8,361. Of the issues traded, 251 gained, 25 declined, and 20 remained unchanged on the CSE. The port-city bourse traded 26.92 million shares and mutual fund units with the turnover value of Tk 460 million.
Pragati Life Insurance to raise Tk 230.27m through rights
The stock market regulator has approved Pragati Life Insurance’s application to raise Tk 230.27 million through rights issue to cope with the business growth and strengthen the capital base of the company. The rights issue is an offer of new shares by a company to its existing shareholders in proportion to the shares they already own and usually at a discount to market price. The life insurer, which was listed on the Dhaka bourse in 2006, will issue more than 15.35 million rights shares of Tk 15 each, including Tk 5.0 as a premium to raise the said amount.The company reported net asset value per share of Tk 37.29 as on December 31, 2018, according to the rights issue documents. LankaBangla Investment Ltd is the issue manager of the rights issue. Each share of the life insurer closed at Tk 130.20 on Sunday at DSE, soaring 9.97 per cent over the previous session. Recently, the board of directors of the company declared 20 per cent cash dividend for the year ended on December 31, 2019. The company’s paid-up capital is Tk 153.52 million and authorised capital is Tk 250 million while total number of securities is 15.35 million. The sponsor-directors own 41.32 per cent stake in the company, while the institutional investors own 26.53 per cent and the general public 32.15 per cent as on February 29, 2020, the DSE data shows.
9th Annual Banking Confce to be held in the first week of Dec
Bangladesh Institute of Bank Management (BIBM) has announced Paper Submission, Review Process and Notification of Acceptance for the Ninth Annual Banking Conference-2020 to be held in the first week of December, 2020.BIBM has been organizing Annual Banking Conference, a two day-long gathering aiming at bringing together experts, academicians and researchers from all over the region to exchange and share knowledge, experience and research outputs on banking and related issues since 2012.The Ninth Annual Banking Conference-2020 will be held 2020 using web-based platform due to Covid-19. The Conference sessions will cover contemporary issues on banking, finance and the economy, both in the national and international context with special reference to Covid-19 situation.