Social media banking faces a setback
The Bangladesh Bank plans to bar banks from providing financial services through social media platforms as it poses data security risk, a move that may nip the initiative aimed at popularizing digital banking in the bud.The central bank has already rejected applications from two banks that had looked to roll out social media banking.If banks offer services through Facebook Messenger, WhatsApp and Viber, it will be impossible for the central bank to collect required data from the companies as they are based outside of Bangladesh, said the BB in letters to banks recently.As per the ICT Policy of Bangladesh, any manufactured, collected and processed data have to be stored inside the country in line with data localization rules.But the social media or messaging platforms don’t have any data localization system in the country needed to store the data inside the national boundary, so clients’ data can be compromised, the BB said.”There is a potential threat to clients’ interest and the financial data security.”The central bank issued a letter to banks on January 12 asking them to provide information related to the banking services provided through social media sites.
In Bangladesh, some banks are already providing financial services through messaging platforms, a trend that has been turbocharged by the coronavirus pandemic.Among the services, clients can make balance inquiry, receive account statements, transfer funds from one bank to other, recharge mobile phones, and pay utility bills, largely through WhatsApp. In order to cash in on the customers’ growing preference for online banking, some banks have already invested hugely for the creation of the platforms as part of their efforts to expand digital banking.
Textile mills’ profit skyrockets in Q2
Surge in yarn prices was the key reason, industry insiders say
The country’s spinning and textile millers witnessed a jump in profit in the second quarter (October-December) of fiscal year 2021-22, despite a gas crisis and subsequent production losses in the period. They posted up to 2,357% year-on-year growth in the quarter, according to an analysis on the financial statements of the 58 listed textile companies. Mozaffar Hossain Spinning, Envoy Textile, Maksons Spinning and Metro Spinning were some of the top gainers. Industry insiders said they could bag more profit with higher production if there was no shortage in gas supply.
The financial situation of the textile millers can also be interpreted by the trend of apparel shipments as the millers are the main backward linkage industry of readymade garments. According to the Export Promotion Bureau, the RMG exports increased by 46.21% to $10.84 billion in the second quarter of FY2021-22, while it was $7.42 billion in the corresponding period of the last fiscal (FY2020-21). To keep pace with apparel export growth, yarn makers planned to invest about $2.5 billion to boost production capacity by the next year. Industry insider said that increased freight rates and feeder vessel shortage put them in different challenges, they added.
Renata profits Tk275cr in H1
Renata Limited – a manufacturer of pharmaceuticals and animal health products – has reported a Tk275.23 crore profit, or a 13% year-on-year growth, in the first half of the current fiscal year.The revenue of the company, which is making a substantial growth in recent times owing to a surge in demand for its products, also rose 6% to Tk1,542.87 crore. In the 2020-21 fiscal year, it had touched the Tk500 crore-mark in profit for the first time since its inception and paid 145% cash, and 10% stock dividends to its shareholders. In the October-December quarter of fiscal 2021-2022, the drug manufacturer posted a 7% growth in revenue and 16% in profit. During the period, its profit rose to Tk135.57 crore, which was Tk117.08 crore a year ago.