GDP growth tops 6% in third quarter

Bangladesh’s economy bounced back by posting significantly higher growth in the third quarter of fiscal year 2023-24 compared to the same quarter in the previous year, underlining good progress in the production of industrial goods and agricultural commodities. The country registered 6.12 percent growth in the gross domestic product (GDP) in the January-March period in FY24, a considerable increase from 2.3 percent in the same period of FY23, according to provisional data released by the Bangladesh Bureau of Statistics (BBS). In the October-December quarter of FY24, GDP growth stood at 3.78 percent. The BBS also projected that Bangladesh’s economy would grow by 5.82 percent in FY24. This is a reflection of the political stability after the general elections in January this year. In the second quarter of FY24, the political situation was in a vulnerable spot. So, businesses shied away from investment while public investment was also stagnant. The industrial sector, which accounts for around 33 percent of the GDP, grew by about 7.03 percent in the January-March quarter of FY24 compared to 4.98 percent in the same period a year prior. Besides, the services sector, which encompasses trade, transport, hotel, IT, and financial activities, drove the overall growth of the GDP. The growth in the services sector, which accounts for 53 percent of GDP, increased from 1.47 percent to 4.97 percent in the same period. Similarly, growth in the agriculture sector increased from 1.88 percent to 5.46 percent.

Source: https://www.thedailystar.net/business/news/gdp-growth-tops-6-third-quarter-3653131

Bangladesh Bank issues external auditor rules for banks

The Bangladesh Bank has issued the “Bank Company External Auditor Rules 2024” to determine the terms and conditions for the selection of external auditors and outline the areas of financial audits of scheduled banks for the first time. As per the rules, the external auditor will audit at least 80 percent of the total risk-based assets of a concerned bank, prioritising the highest risk-based branches along with the headquarters of the scheduled banks. Risk-based assets are a risk management measure, indicating to banks the number of assets they need to hold in relation to their risk. As per the circular, the new rules will be effective from the audit year 2025–26 for banks whose financial year starts in July. The rules were formulated in light of Section 120 of the Bank Company Act, 1991. The primary purpose of the rules is to determine the terms and conditions for the selection of professional and efficient external auditors for financial audits in banks.

Source: https://www.thedailystar.net/business/economy/news/bb-issues-external-auditor-rules-banks-3652891

DSE turnover crosses Tk 1,000cr after two months

Turnover at the Dhaka Stock Exchange (DSE) crossed the Tk 1,000-crore mark yesterday after two months as the shares extended a rally for the sixth consecutive day riding on gains of blue-chip stocks. The broad index of the country’s prime bourse, the DSEX, rose 30.01 points, or 0.54 percent, to close the day at 5,594.64. Similarly, the DSES, the index that represents the shariah-compliant companies, edged up 8.18 points, or 0.67 percent, to 1,223.32 while the DS30, the index that composed of the best blue-chip firms, went up 4.63 points, or 0.24 percent, to 1,964.53. Out of the 393 issues that changed hands on the DSE, 237 closed higher, 111 declined and 45 did not see any price movement. Market movement was driven by positive changes in the market cap of travel and leisure, tannery industries, and fuel and power scrips amid negative changes in the market cap of paper and printing, life insurance, and food and allied scrips.

Source: https://www.thedailystar.net/business/news/dse-turnover-crosses-tk-1000cr-after-two-months-3652796

Beximco Pharma secures €24.9m for business expansion

Beximco Pharmaceuticals Limited has secured a €24.9 million loan, which is equivalent to over Tk300 crore, from the German bank ODDO BHF SE to expand its production capacity, aiming to increase its footprint in both local and export markets. The pharmaceutical giant made the disclosure through its website. According to the company’s information, Beximco Pharma and the German bank signed an agreement in February to secure a loan for purchasing machinery and equipment by 31 December. The loan will primarily be used for replacing and maintaining machinery, with a portion allocated for expanding the company’s manufacturing facility. The company, in its disclosure, further stated that the loan, which will be paid directly to the machinery and equipment suppliers, has an interest rate of 6-month Euribor (Euro Interbank Offered Rate) plus a 1.3% margin. Repayments will be made in half-yearly instalments over five years, starting June 2025. Earlier, Beximco Pharma had obtained a loan of €19.05 million from the same bank for business expansion. The loan was fully paid off in January this year. Beximco Pharma has consistently ranked third among the top ten pharma companies over the last 10 years, holding 9.6% market share as of March 2024. The company’s consolidated net revenue increased by over 13%, reaching Tk3,305 crore in the July-March period of FY24 compared to the same period the previous year. It also logged a 23% growth in consolidated profit, reaching Tk437 crore during the same time frame in comparison to the previous year.

Source: https://www.tbsnews.net/economy/stocks/beximco-pharma-secures-eu249m-business-expansion-895866