BB to sign MoU with banks to cut default loans
Bangladesh Bank plans to sign a memorandum of understanding (MoU) with 10 commercial banks for taking various steps on a pilot basis, including periodically publishing their lists of defaulters, in a bid to reduce their default loans. The central bank recently shared this plan with a visiting mission of International Monetary Fund (IMF). Bangladesh Bank plans to sign memorandums of understanding on a pilot basis with 10 commercial banks to devise a credible plan to reduce NPLs. Non-performing loans totalled Tk 113,441 crore in March, seeing a 19.3 per cent year-on-year surge. An official of Bangladesh Bank said another technical mission from the IMF would come later to provide assistance to the central bank for reducing default loans. It observed that subsidies for energy, fertilisers and food as well as support for the vulnerable and farmers have increased. But a reprioritisation of current and capital expenditures is expected to contain the fiscal deficit for FY22 as budgeted at 5.1 per cent of the GDP. The IMF projected the fiscal deficit to reach 5.5 per cent of the GDP in FY23, partly driven by higher subsidies and weak revenue collections. The government has set aside an allocation of Tk 82,745 crore to run its subsidy programme for fiscal year 2022-23.
Internet banking booms on 81pc turnover growth
Internet banking, which found a blessing in disguise during the pandemic-enforced restricted movements of people, now makes a quantum leap on an 81.5-percent turnover growth, year on year. As per latest official figures up till last May, the e-banking grew in terms of the number of customers, transactions, and turnover. The number of customers increased over 44 per cent, year on year, to 5.138 million in May. The number of transactions in internet banking rose 66 per cent while the amount surged by 81.51 per cent to Tk. 206.63 billion. And mobile financial system or MFS accounts surged to 112.69 million in May, up 15 per cent than in May 2021. The number of MFS agents increased by more than 9.0 per cent to 1.19 million during the period under review. The number of transactions in e-commerce spiked by nearly 35 per cent but its value in transactions also remained volatile in the past one year. In May last, its value was Tk 8.67 billion.
Pharma sector has export potential to be next RMG
Speakers at a seminar on Saturday said the country’s pharmaceutical sector, which is meeting 98 per cent of its domestic demand, has the potential to become the next RMG in terms of export. They, however, said there are some challenges that need attention in regard to right policy formulation at the right time. They also underscored the need for keeping pace with global shifting of the sector and implementing the Active Pharmaceutical Ingredients (API) Park. DCCI President Rizwan Rahman in his opening remarks said that after graduation, Bangladesh would face a higher tariff regime, ranging from 8.0 per cent to 15 per cent, in the export market which might decline export earnings by 14.28 per cent – equivalent to US$5.73 billion.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|↓ 137.61||↓ 0.43 %|
|FTSE100||$ 7,276.37||↑ 5.86||↑ 0.08 %|
|Nikkei 225||$ 27,914.66||↑ 111.66||↑ 0.40 %|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 94.70||↓ 1.65||↓ 1.71 %|
|Crude Oil (Brent)||$ 103.20||↓ 0.66||↓ 0.64 %|
|Gold Spot||$ 1,727.64||↑ 8.83||↑ 0.51 %|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 93.9410|
|GBP 1||BDT 112.4863|
|EUR 1||BDT 95.6505|
*World Commodities & Local and Global Stock Indices data are taken from bloomberg.com<
* Exchange Rates are taken from BB website, as on latest update.<