Sept NPLs drop 2.0pc

The default loans dropped slightly in September last as the central bank suspended the routine exercise of classification to help businesses overcome the adverse impact of Covid-19 pandemic. The volume of non-performing loans (NPLs) fell by nearly 2.0 per cent or Tk 16.76 billion to Tk 944.40 billion as on September 30 from Tk 961.17 billion as on June 30 this year, according to the Bangladesh Bank (BB)’s latest statistics.The BB has already asked all the scheduled banks not to be harsh while classifying loans until December 31, 2020. The original deadline for the facility expired on September 30. This was the second extension. The concession that came into effect for the first time on March 19 was made effective until June 30, but was extended by another three months until September 30.The amount of classified loans was Tk 943.31 billion as on December 31, 2019. It was Tk 1,162.88 billion as on September 30, 2019. The extent of classified loans also came down to 8.88 per cent of the total outstanding loans during the period under review from 9.16 per cent three months ago. It was 9.32 per cent as on December 31, 2019. The default loans include substandard, doubtful and bad/loss of total outstanding credits, which stood at Tk 10,636.26 billion as on September 30, 2020, from Tk 10,497.24 billion as on June 30 this calendar year. It was Tk 10,118.29 billion as on December 31, 2019.

Source: https://today.thefinancialexpress.com.bd/first-page/sept-npls-drop-20pc-1606758734

NBR clinches Tk 3.81b from money whitening

Some 3,220 people whitened their undisclosed income by investing in movable and immovable properties between July 01 and November 29 period of the current fiscal year (FY). They have legalised their undisclosed money making use of a provision incorporated in the national budget for FY 2020-21. The National Board of Revenue (NBR) has received Tk3.81 billion taxes against the funds disclosed by individuals. The money was shown as investment in land, building, cash, bank deposits and other financial instruments. According to the NBR data, some 138 people also invested their undisclosed money in the share market, paying Tk 188.4 million taxes until November 29, 2020.For investment of undisclosed money in the capital market, the income tax wing specified six conditions. They include: (a) investment should be made from July 1, 2020 to June 30, 2021 (both days included); (b) taxes have to be paid within 30 days of investment and (c) a declaration paper in IT2020 form will have to be submitted to the deputy commissioner of taxes on investment.In case of disclosure of cash, undisclosed money holders will be able to declare ‘cash in hand, cash in bank or working capital in businesses.’ There is another opportunity on voluntary disclosure of income which also drew a poor response. In the FY 2018-19, some 85 people availed the facility. They legalised a sum worth Tk 1.26 billion by paying Tk 130 million in income tax. In the FY 2017-18, some 90 people availed the facility while the number was 48 in the FY 2016-17.

Source: https://today.thefinancialexpress.com.bd/first-page/nbr-clinches-tk-381b-from-money-whitening-1606758504

Govt eyes $1.2b WB hard-term loan

Bangladesh is likely to seek a hard-term World Bank (WB) loan worth US$ 1.2 billion to finance three of its development projects, officials said on Monday. They said the country may have to choose the alternative window as the Washington-based global lender has already pledged for providing around US$ 4.0 billion of concessional loan from its IDA for next three fiscal years (FY2020-23).When the government approached the WB for the IDA loan for financing the projects, the WB suggested taking $ 500 million, $ 400 million and $ 300 million respectively for the projects from its Scale Up Window (SUW) of lending.ERD officials said the rate of interest on SUW loan is LIBOR or EURIBOR plus 1.5-2.0 per cent with a shorter repayment period (around 15 years) as compared to only 2.0 per cent for the IDA credit that offers 30-year maturity with a grace period of five years for repayment.Earlier, Bangladesh had sought funds worth US$ 5.0 billion from the IDA-19 package for the next three years to bankroll its socio-economic development activities. In addition, the government had also requested the WB to confirm some $ 500 million budgetary support for the current fiscal year to offset the impact of Covid-19 pandemic on the economy. Also, the government has approached the multilateral lender to provide $ 500 million more in assistance to procure Covid-19 vaccine.

Source: https://today.thefinancialexpress.com.bd/first-page/govt-eyes-12b-wb-hard-term-loan-1606758880

Olympic to invest Tk 42cr to expand biscuit production

Olympic Industries, a listed manufacturer and retailer of consumer goods, is set to enhance its biscuit production capacity by more than 10 per cent. The maker of popular brands such as Energy Plus, Tip and Nutty will invest around Tk 42 crore to expand its annual production capacity by 12,442 tonnes, the company said in a disclosure on the Dhaka Stock Exchange (DSE) website. The stock of the company closed 1.21 per cent higher at Tk 175.60 yesterday. At present, the company can produce 117,214 tonnes of baked goods per annum.Olympic’s overall sales between April and September stood at Tk 859.3 crore, up 19.7 per cent year-on-year. The company had announced 52 per cent cash dividends for the year that ended on June 30. With a market share of around 23 per cent, the leading biscuit maker logged profits of Tk 202.5 crore in the 2019-20 financial year, up 8.2 per cent from that in the year before.Last month, Olympic had decided to invest around Tk 4.92 crore to improve the packaging of its biscuits and other confectionary items.Olympic also informed that it had accepted Tanveer Ali as the nominated director for its foreign shareholder, Kingsway Fund—Frontier Consumer Franchises, which owns approximately 11.38 per cent share of the company.

Source: https://www.thedailystar.net/business/news/olympic-invest-tk-42cr-expand-biscuit-production-2003873

Midland Bank gets new DMD

Md. Zahid Hossain has been promoted to the rank of Deputy Managing Director (DMD) of Midland Bank Limited (MDB) effective from today (Tuesday), assuming the role of Chief Risk Officer (CRO) and Chief Anti Money Laundering & Compliance Officer (CAMLCO) of the bank. Mr. Hossain, a seasoned banker with 24 years of hands-on and versatile banking experience, has in-depth banking expertise with specific concentration in Credit Risk Management (CRM) covering areas of Corporate Finance, Small & Medium Business, Syndication & Structured Finance and Facility Restructuring.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/midland-bank-gets-new-dmd-1606753544