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

Click to Close

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

Daily Business News Flash December 21, 2020

Banks’ lending growth slows down

Lending growth failed to keep pace with the deposit growth in banks in September, putting lenders in an uncomfortable situation as they cannot make the most of cheap funds because of depressed demand from borrowers.Loans and advances stood at Tk 1,065,570 crore as of September, up 9.56 per cent from a year ago, central bank data showed.Year-on-year lending growth was 8.95 per cent in June this year and 10.95 per cent in December last year.

Fund disbursement from the stimulus packages unveiled by the government in response to the pandemic-induced economic slowdown helped the credit growth pick up slightly despite a lower demand from the private sector. But the demand for loans will go up once the economic impact of the coronavirus pandemic disappears.

Deposits at banks rose 12.39 per cent year-on-year to Tk 1,345,436 crore in September although the weighted average interest rate on deposits fell to 4.73 per cent, the lowest in a decade.The deposit growth stood at 10.49 per cent in June and 12.32 per cent in December last year. This means banks will incur a loss in the coming days if the deposit growth continues to run higher than the lending growth.

The difference between deposit and credit growths was also exposed by the latest data on advance (loan) and deposit ratio (ADR) calculated by banks.The ADR was 74 per cent in September, down 76.22 per cent three months earlier and 77.34 per cent in December.As per a central bank instruction, conventional banks have to maintain 87 per cent in ADR, meaning that they are allowed to lend Tk 87 against every Tk 100 mobilised.Shariah-based banks are allowed to keep their ADR level within 92 per cent.The decline in the ADR indicates that banks are grappling with excess liquidity.

Six out of nine foreign commercial banks registered a negative credit growth in September. As much as 27 local banks had less than 10 per cent credit growth.Money injection into the banking industry has been on the rise because of the stimulus packages and the robust growth of remittances in the recent periods, said MdArfan Ali, managing director of Bank Asia.

EmranulHuq, managing director of Dhaka Bank, said a majority of businesses adopted a go-slow policy when it comes to expansion.”Many businesses that had earlier planned to set up new industrial units or expand the existing ones have changed their plan. They will at least observe the overall situation until the end of February.”The slowdown in credit growth indicates a struggling economy.The economy will pick up once the vaccine for the coronavirus is available in the country, Huq said.

Source: https://www.thedailystar.net/business/news/banks-lending-growth-slows-down-2014769

Future of export hinges on continuity of EU duty benefit PRI study says.

The future of Bangladesh’s exports heavily depends on the continuation of duty-free privileges to the European Union, the country’s largest export bloc, following the 2024 status graduation, according to findings of a study released yesterday.If the EU extends the duty privileges, then other developed countries will follow suit, said MA Razzaque, research director of Policy Research Institute (PRI).As a least developed country (LDC), Bangladesh currently enjoys duty-free access to the EU under the latter’s Everything But Arms (EBA) initiative, with around 61 per cent of its yearly exports destined for the region.Of these exports, garments account for about 64 per cent, or $24 billion.

So far, only the EU has assured that it would continue providing the zero-duty benefit until 2027 to allow Bangladesh a period for preparations following its status graduation from an LDC to a developing one.If the privilege is not extended, then local exports will face 9.5 per cent to 10 per cent duty on shipments to the EU, which may pose a challenge in staying competitive in the EU markets, Razzaque said.Therefore, Bangladesh needs such an extension to go beyond 2027 even though its economy has been severely affected in the Covid-19 fallouts, he added.The EU is set to review the existing Generalised System of Preferences (GSP) facility in 2023.So Bangladesh needs to engage in dialogues with the EU to secure duty-free privileges for the new era past the graduation, said the PRI research director.

Source: https://www.thedailystar.net/business/news/future-export-hinges-continuity-eu-duty-benefit-pri-study-says-2014765

Stocks fall as investors rake in profits

The stock market witnessed a fall yesterday as investors exhibited a tendency towards profit booking amidst the fear of a second wave of the coronavirus pandemic.The DSEX, the benchmark index of Dhaka Stock Exchange, dropped 33.40 points, or 0.65 per cent, to 5,074.Stocks of some companies witnessed an increase of 8 to 12 per cent in the past two weeks, for which many investors took to availing themselves of the profits, said a stockbroker, adding, “This is normal.”

When investors take profits, their confidence grows simultaneously, increasing the depth of the market, he said.The inclination was predominantly to sell most of the multinational and blue chip stocks because those recently rose by a higher extent, the stockbroker added.Stocks of Reckitt Benckiser Bangladesh fell 4.63 per cent while Unilever Consumer Care 5 per cent yesterday, according to the DSE data.Banks and non-bank financial institutions (NBFIs) also faced the same fate over apprehensions of a decline in their profits.

Source: https://www.thedailystar.net/business/news/stocks-fall-investors-rake-profits-2014721

Mutual Trust Bank Limited (MTB) recently opened 5 new sub branches.

Mutual Trust Bank Limited (MTB) recently opened its Solmaid Sub-branch, Meradia Sub-branch, Dhaka Uddyan Sub-branch, RabindraSharani Sub-branch and Dakshinkhan Sub-branch across Dhaka. Syed Mahbubur Rahman, Managing Director & CEO, Mutual Trust Bank Limited (MTB), inaugurated the sub-branches as the chief guest through a virtual inaugural ceremony.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/mutual-trust-bank-limited-mtb-recently-opened-its-solmaid-sub-branch-meradia-sub-branch-dhaka-uddyan-sub-branch-160847666

Kazim Uddin new CEO of National Life Insurance.

Insurance expert Md. Kazim Uddin has joined as Chief Executive Officer of National Life Insurance Company Ltd recently. Before joining as Chief Executive Officer he had been serving as Acting Chief Executive Officer in the company. Mr. Kazim is a highly experienced insurance personality and a good organiser. He started insurance career in this company from entry level and served 33 years in different positions along with Deputy Managing Director since 2014. He obtained various higher training both home and abroad. In the meantime he visited Japan, Korea, Singapore, UAE and India.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/kazim-uddin-new-ceo-of-national-life-insurance-1608477296

Local and Global Stock Indices *

Index NameClose ValueValue ChangePercentage Change
DJIA$ 30,179.05
FTSE100$ 6,529.18↓21.88 ↓0.33%
Nikkei 225$ 26,603.60↓159.79 ↓ 0.60%

World Commodities *

CommodityClose ValueValue ChangePercentage Change
Crude Oil (WTI)$ 47.50↓1.60↓3.26%
Crude Oil (Brent)$ 50.49↓1.77↓3.39%
Gold Spot$ 1881.35↑4.07 ↑0.22%

Major Currencies Exchange Rates Movement in Last Seven Days *

Exchange Rates
USD 1BDT 84.8000
GBP 1BDT 114.6835
EUR 1BDT 103.9563
INR 1BDT 1.1524





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