Relaxed loan rescheduling for rawhide traders
Bangladesh Bank has relaxed loan rescheduling rules for rawhide traders to ensure availability of sufficient funds during Eid-ul-Azha, which is celebrated through animal sacrifice. The Eid, which is due to be observed on July 10, accounts for around half of the rawhide the country generates annually. A good number of rawhide traders have become loan defaulters because of the economic fallout of the coronavirus pandemic, the Russia-Ukraine war, and the recent floods in the north-eastern region of Bangladesh. A BB notice on Thursday said the rescheduling can be availed through a 2 per cent down payment on outstanding loans and the facility can be availed until August 31. According to the Ministry of Fisheries and Livestock, 1.21 crore animals could be sacrificed in the country this year.
Operating profits of 14 private banks up in H1
A total of 14 private commercial banks (PCBs) in Bangladesh showed increased operating profits during six months to this past June, mainly banking on the country’s booming foreign-trade activities. Of the 42 PCBs in the country, the FE obtained provisional data of 15 for the first half of this calendar year, from January to June 2022. The operating profit of one out of the 15 declined during the half yearly period. The position of the rest of the PCBs on this account were not immediately available. In the final count, the amounts of profit would be a little higher or lower, said officials of different commercial banks about their half-yearly financials. The settlement of letters of credit (LCs), generally known as actual imports, in terms of value, rose by 48.25 per cent to $67.87 billion during the July-April period of the outgoing fiscal year (FY), 2021-22, from $44.78 billion in the same period of the previous fiscal, according to latest BB statistics. On the other hand, the opening of LCs, generally known as import orders, grew over 44.53 per cent to $78.65 billion during the period under review from $53.04 billion in the same period of FY ’21. The amount of classified loans in Bangladesh’s banking system increased by 9.85 per cent to Tk 1,134.41 billion during the January-March period of 2022, from Tk 1,032.74 billion in the preceding quarter (Q4 of 2021), as the central bank revoked policy relaxation on loan repayment.
City Bank avails USD 45m syndicated loan from Bank Muscat
The City Bank has successfully closed a USD 45 million syndicated loan, which was arranged by Bank Muscat, the leading financial services provider in the Sultanate of Oman. The transaction, which was initially launched for USD 25 million with a Greenshoe option, received strong participation from reputed international banks across different geographical locations including Europe, Middle East and Africa. It was subsequently scaled up by 80 per cent, finally closing at USD 45 million. With assets worth over US$ 33 billion, Bank Muscat is the leading bank in the Sultanate of Oman with the largest banking network and a 35 per cent market share.