Exports slide 16% in May

Merchandise exports from Bangladesh declined 16.06 percent year-on-year to $4.07 billion in May due to the poor performance of major sectors such as garments, jute and jute goods, and leather and leather products, official figures showed yesterday. However, overall shipments grew 2.01 percent to $51.54 billion in July-May, according to data from the Export Promotion Bureau (EPB). The sales of garment items, which account for more than 84 percent of Bangladesh’s total annual exports, grew 2.86 percent to $43.85 billion in the first 11 months of the current financial year. Knitwear shipments grew 6.15 percent year-on-year to $24.70 billion in July-May, but the exports of woven garments fell 1.09 percent to $19.14 billion. Leather and leather goods’ exports slipped 14.17 percent to $961.49 million, home textile shipment declined 24.29 percent to $776.06 million, and frozen foods receipts were down 13.56 percent to $344.98 million.

Source: https://www.thedailystar.net/business/economy/news/exports-slide-16-may-3627671

Higher farm subsidy sought in FY ’25

Agriculture-sector stakeholders are waiting for a substantially increased subsidy allocation in the budget for fiscal year 2024-25, which is set to be placed before parliament today (Thursday), as the farmers are passing through an adverse farming condition. Under the circumstances, the government has already revised the subsidy allocation 47 per cent higher for the outgoing fiscal year (FY 2023-24) from the original allocation of Tk 170 billion to Tk 250 billion. Meanwhile, the Ministry of Agriculture (MoA) has submitted a demand for allocation of Tk 180 billion on account of agricultural subsidies for the upcoming FY’25, officials said, adding that the Ministry of Finance (MoF) would decide on it. Agriculture sector experts, however, thought that the sector deserves 10 per cent of the total budgetary expenditure considering the volatility in the global food market and the need for ensuring food security of the country. A senior official of MoA told the FE that this hike could largely be attributed to factors including the surge in fertiliser prices in the global market, currency devaluation against the dollar, rising shipping costs, and escalated fuel prices. According to the MoA, the national demand for urea fertiliser in the current financial year was set at 2.7 million tonnes, followed by 1.6 million tonnes of DAP, 0.9 million tonnes of MOP, and 0.75 million tonnes of TSP. The government imported 1.58 million tonnes of urea, 0.672 million tonnes of TSP, 1.3 million tonnes of DAP, and 1.03 million tonnes of MOP until March last. An analysis of the budgetary trends within the agricultural sector indicates a consistent pattern of escalating subsidies in the revised budgets, with the highest increase observed in the FY 2022-23. Despite an initial allocation of only Tk 160 billion, the expenditure finally reached Tk 260 billion in FY’23.

Source: https://today.thefinancialexpress.com.bd/last-page/higher-farm-subsidy-sought-in-fy-25-1717610908

Deposit interest highest in decade, while growth lowest in 10 months

Most banks offered up to 12% interest on deposits in April, the highest in a decade. Despite higher interest rates, deposit growth slowed to 8.63%, the lowest in the last ten months, according to central bank sources. Bankers said, when the interest rate of deposits in banks is increasing while the growth of deposits is decreasing, it is a matter of great concern. Many banks are not able to return the deposit money. Apart from this, depositors kept less money in banks due to fear of inflation and merger issues. According to Bangladesh Bank data, at the end of April this year, the amount of deposits in banks stood at Tk16.75 lakh crore, registering 8.63% year-on-year growth.

Source: https://www.tbsnews.net/economy/deposit-interest-highest-decade-while-growth-lowest-10-months-869126

Bank Asia to issue bonds worth Tk 8b

Private sector commercial bank, Bank Asia decided to issue floating rate subordinated bonds worth Tk 8 billion to raise regulatory capital. The board of directors of the company approved the issuance of Seven-year Floating Rate Non-Convertible Subordinated Bond, according to a stock market filing on Wednesday. Now, the bank will have to wait for the approval of the central bank and the capital market regulatory authority. Subordinated debt (debenture) is a loan or security that ranks below other loans or securities when it comes to settling claims on assets or earnings. The lender will sell the bonds through private placement, with a maturity period of seven years. The debt securities are intended to strengthen the bank’s Tier – II capital base. The term Tier-2 capital refers to one of the components of a bank’s required reserves. It is designated as the second or supplementary layer of a bank’s capital and is composed of items such as revaluation reserves, hybrid instruments, and subordinated term debt. It is considered less secure than Tier 1 capital.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/bank-asia-to-issue-bonds-worth-tk-8b-1717613449

Mr. Monzurur Rahman re-elected chairman of Pubali Bank

Eminent business person and social worker Monzurur Rahman has been re-elected as chairman of the board of directors of Pubali Bank for two years. He has been unanimously re-elected to the position. Mr. Rahman is the chairman of Rema Tea Company Ltd. He has 57 years’ experience in banking, insurance and tea business. He was an independent director of Lafarge Holcim Bangladesh Ltd. He was also an elected member of the Executive Committee of Bangladesh Association of Publicly Listed Companies (BAPLC). Mr. Rahman is a graduate from Calcutta University. He was born in a noble Muslim family in Kazibari at Cheora village of Cumilla.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/monzurur-rahman-re-elected-chairman-of-pubali-bank-1717613419