RMG export earnings in July 1-18 total $1.57b
The country’s ready-made garment (RMG) export earnings in the first 18 days of July stood at US$1.57 billion despite the Covid-19 pandemic, which local manufacturers consider as a good sign of reviving new or cancelled work orders. Bangladesh fetched $1.78 billion during the same period of July 2019. The July 2020 earnings over that of last year declined by 11.74 per cent, according to Bangladesh Garment Manufacturers and Exporters Association (BGMEA) data. The country fetched $2.25 billion, $374.67 million, $1.23 billion and $2.24 billion in March, April, May and June of this year respectively. Subsequently, growth declined by 20.14 per cent, 85.25 per cent, 62.06 per cent and 6.63 per cent from March to June over the corresponding months of last year, according to data. Responding to a question, BGMEA president Dr Rubana Huq said RMG exports is around $210 million lower than the 18 days’ earnings of last July. The Swedish retailer annually sources more than $3.0 billion worth of RMG items from Bangladesh. It has recently announced a plan to close a total of 170 stores permanently in 2020.
BIAC, Accord Chambers to promote institutional ADR
Bangladesh International Arbitration Centre (BIAC), the country’s first and only, licensed and registered ADR institution and Accord Chambers, a law firm have recently entered into a cooperation agreement to promote institutional Alternative Dispute Resolution (ADR) in the country and abroad, said a statement. Pursuant to this, the parties will promote use of institutional ADR clause in all commercial contracts, organize joint outreach and advocacy programs, work with different stakeholders, encourage capacity building, etc. The cooperation agreement was signed in Dhaka by Muhammad A. (Rumee) Ali, CEO of BIAC and Suhan Khan, Managing Partner and Lead Counsel, of Accord Chambers.
EBL to get USD 40m from DEG and FMO
Eastern Bank Limited (EBL) recently signed a term loan agreement for USD 40 million with German Investment Corporation – DEG and Netherlands Development Finance Company – FMO, said a statement. Ali Reza Iftekhar, Managing Director and CEO of EBL signed the agreement with Petra Kotte, DEG Senior Director of FI and German Business and Huib-Jan de Ruijter, Member of FMO’s Executive Committee and Director FI.
Bangladeshi bankers at IICMR-India
Mr. Anis A Khan- former Managing Director and CEO of Mutual Trust Bank Ltd ( MTBL) and Mr. Md Mazadul Hoque – economic analyst and officer of Social Islami Bank Ltd ( SIBL) shared their views in a webinar, organized by Indian Institute of Contemporary Management & Research ( IICMR). The program titled “Online Case Based Teaching Pedagogy: Challenges and Opportunities” was held Sunday. The Chairman & CEO of Acasia Global Consulting LLP and Chairman & Managing Trustee of IICMR – Prof. Arup Choudhuri presented the keynote paper in the session.
Berger Paints launches disinfection services
Berger Paints Bangladesh yesterday launched disinfection services to help people and business houses steer clear of any infections amid the ongoing Covid-19 pandemic. The Berger Expert Sanitisation Service is a convenient and effective way to give businesses and homeowners the confidence that their places will be safe for all the members and customers, said Md Mohsin Habib Chowdhury, senior general manager for sales and marketing at Berger Paints Bangladesh, a listed company. The service cost is Tk 3.50 per square feet if the premise is less than 5,000 square feet. It is Tk 3 for premises between 5,000 and 10,000 square feet. The service charge is Tk 2.5 when the premise is larger than 10,000 square feet.
Eastern Bank’s profits rise on higher loan recovery, low NPL
Eastern Bank’s profits grew at a handsome rate in 2019 thanks to a higher recovery from written-off and classified loans, new client acquisition and deeper penetration both in retail and SME segments despite it being a challenging year for almost every financial institution. The profit after tax of the lender, which started operations in 1992, rose 30.1 per cent year-on-year to Tk 400 crore last year. The lender recovered Tk 63.6 crore from its written-off loans last year which was Tk 42.3 crore and Tk 50.1 crore in 2018 and 2017 respectively. Meanwhile its recovery from classified loans were Tk 94.7 crore, Tk 70 crore and Tk 85.8 crore respectively. Its non-performing loan (NPL) ratio was 3.35 per cent last year whereas the industry average was 9.32 per cent, according to its annual report. Though the NPL ratio was low compared to others in the industry last year, it was higher than 2.35 per cent in 2018 which was preceded by 2.50 per cent, 2.69 per cent and 3.27 per cent in the past successive years. A big contributor to the profit of 2019 was net interest income, which rose by 8.69 per cent to Tk 827.7 crore riding on a 10.87 per cent portfolio expansion in the retail and SME sectors, according the financial report of 2019. Its credit card portfolio hit almost Tk 600 crore in 2019, which is a 9 per cent growth from that the previous year. Returns on asset and equity of the lender stood at 1.30 per cent and 16.52 per cent respectively. However, it declared 25 per cent cash dividend for shareholders whereas it was 20 per cent cash and 10 per cent stock dividends in 2018.
Mercantile Bank gets new vice chairman
M Amanullah has recently been elected vice chairman of Mercantile Bank. The election took place at the bank’s 367th board meeting on Thursday, says a press release. Amanullah is a sponsor director of the bank and its former chairman. He is the founder and chairman of all of the companies under the conglomerate Aman Group of Companies.