BB issues guideline for credit guarantee scheme
Bangladesh Bank yesterday rolled out a guideline for the credit guarantee scheme (CGS) to give the much-needed boost to the cottage, small and micro enterprises (CSME) that are struggling to stay afloat amid the Covid-19 fallout. Lenders will be allowed to avail 30 per cent of their total distributed loans from the CGS if the amount disbursed becomes defaulted, according to the central bank guideline.The CGS will be applicable for loans given to firms in the CSME sector and both banks and non-banking financial institutions will be allowed to enjoy the CGS fund. The board of Bangladesh Bank approved the scheme, worth Tk 2,000 crore, for entrepreneurs in the CSME sector to help them tackle the ongoing crisis brought on by the coronavirus pandemic.The scheme will give coverage to the fund, which is being disbursed from the Tk 20,000 stimulus package for the cottage, micro, small and medium enterprise (CMSME) sector. Lenders will get 80 per cent of their disbursed fund to a single enterprise if the amount turns classified. However, a lender will not be allowed to get back more than 30 per cent of its disbursed fund from the CGS.On April 13, Bangladesh Bank announced the stimulus package in order to help the CMSME sector tackle the economic slowdown brought on by the ongoing coronavirus pandemic. Lenders have so far disbursed nearly 29 per cent of the package to beleaguered borrowers in the CMSME sector.
Tax receipts from DSE slump 21pc in October
The government’s revenue earnings from the Dhaka Stock Exchange (DSE) fell 21 per cent month-on-month in October as trading volume was on the decline. Market analysts said declining trading activities coupled with lower share sales by sponsor-directors affected the government’s earnings from the main bourse in October this year. The government bagged revenue worth Tk 216 million in October this year which was Tk 275 million a month ago in September, according to data from the DSE.The DSE, on behalf of the government, collects tax as TREC holders’ commission and share sales by sponsor-directors and placement holders at the rate of 0.05 per cent and 5.0 per cent respectively and deposits the amount to the government exchequer. Of the total earnings in the month, more than Tk 170 million came from the TREC holders’ commission, popularly known as brokerage commission, while nearly Tk 46 million came from the share sales by sponsor-directors and placement holders, the DSE data shows.DSEX, the prime index of the prime bourse, also eroded 149 points or 2.98 per cent to stand at 4,846 points on October 30, 2020. The government’s revenue earnings from the DSE hit more than 10 years low to Tk 1.04 billion in the last FY 2019-20 due to bearish market trend and suspension of trading activities for more than two months due to Covid-19 outbreak.The DSE paid tax worth Tk 2.72 billion in FY 2011-12, Tk 1.27 billion in FY 2012-13, Tk 1.54 billion in FY 2013-14, Tk 1.74 billion in FY 2014-15, Tk 1.58 billion in FY 2015-16, Tk 2.46 billion in FY 2016-17, Tk 2.33 billion in FY 2017-18 and Tk 2.51 billion in FY 2018-2019 on TREC holders’ commission and share sales by sponsor-directors and placement holders.
Stocks keep gaining for fourth straight day
Stocks extended the gaining streak for the fourth straight sessions on Tuesday as bargain hunters continued their buying binge on sector-wise issues based on corporate declarations. DSEX, the key index of the Dhaka Stock Exchange, went up by 9.63 points or 0.19 per cent to settle at 4,928. The key market barometer added nearly 90 points in the past four consecutive sessions. Two other indices also edged higher. The DS30 index, comprising blue chips, gained 3.38 points to finish at 1,702 and the DSE Shariah Index advanced 3.33 points to close at 1,115.According to EBL Securities, some investors remained watchful on their investment decision fearing another shock in the coming months as the Covid-19 infection has already hit the second wave in major export destinations of the country. Turnover, a crucial indicator of the market, stood at Tk 7.95 billion, which was nearly 11 per cent lower than the previous day’s turnover of Tk 8.92 billion. Losers, however, took a modest lead over the gainer, as out of 356 issues traded, 170 ended lower, 110 closed higher while 76 issues remained unchanged on the prime bourse. A total number of 163,572 trades were executed in the day’s trading session with a trading volume of 334.22 million shares and mutual fund units. The market capitalisation of DSE fell to Tk 3,950 billion on Tuesday, from Tk 3,956 billion in the previous day.The Chittagong Stock Exchange also edged higher with its All Shares Price Index (CASPI)-gaining 58 points to close at 14,126 while the Selective Categories Index – CSCX advancing 35 points to close at 8,495. Of the issues traded, 123 declined, 97 advanced and 45 issues remained unchanged on the CSE. The port city bourse traded 11.81 million shares and mutual fund units with turnover value of Tk 285 million.
Mobile internet users cross 10cr mark
The number of people using internet on their mobile phones in Bangladesh crossed the 10-crore mark in September as customers’ shift towards the digital sphere to carry out tasks made further gains owing to the coronavirus pandemic. The number of internet users rose 13 per cent year-on-year to 11.11 crore in September, data from the Bangladesh Telecommunication Regulatory Commission showed yesterday. It was 9.84 crore in the same month last year. Now, 10.25 crore subscribers use internet on their handheld devices and the rest rely on the services provided by internet service providers and public-switched telephone network operators. In another milestone, mobile phone subscribers grew 2.26 per cent year-on-year to 16.71 crore in September to reach an all-time high. The number of active mobile phone users stood at 16.34 crore in the same month last year.Robi Axiata, which went past the 5-crore landmark in September, took its tally to 5.01 crore at the end of the month, up from 4.82 crore in the same month last year. Third-placed Banglalink had 3.48 crore subscribers in September, down from 3.5 crore a year ago. The number of users of state-run Teletalk was 46.12 lakh in September compared to 45.27 lakh in the same month in 2019.
IBBL opens Senpara sub-branch at Mirpur
Islami Bank Bangladesh Limited inaugurated Senpara Sub-branch under its Mirpur Branch in Dhaka on Monday. Mohammed MonirulMoula, Additional Managing Director of the bank, inaugurated the sub-branch as the chief guest. Presided over by Md. Altaf Hossain, Head of Dhaka Central Zone.
Meghna Group setting up Tk 400cr ceramics factory
Meghna Group of Industries (MGI) is investing Tk 400 crore to set up a ceramics factory at the Meghna Economic Zone in Narayanganj as the conglomerate looks to establish its footprint in the country’s burgeoning sector.The factory was supposed to begin operations in July but there were delays in developing physical infrastructure and installing equipment as the project’s technical experts from Europe, Taiwan and China returned homes following the coronavirus outbreak.The new factory will generate at least 1,500 jobs, the entrepreneur said. The unit will have the capacity to produce 40,000 square metres of ceramic tiles per day.The domestic demand for tiles, which is currently about 200 million square metres per year, has increased by 10 to 12 per cent annually in the last 10 years, according to the Bangladesh Ceramic Manufacturers and Exporters Association (BCMEA). The market value for ceramic products was around Tk 35,000 crore in 2019, BCMEA data showed.Ceramics is a capital-intensive product and setting up of a factory takes about Tk 150 crore to Tk 200 crore.The industry’s total production capacity has tripled in the last 11 years and Bangladesh currently holds 0.14 per cent of the global market for ceramic products. Local suppliers cater to around 80 per cent of the domestic demand.MGI invested about Tk 4,000 crore to set up the new manufacturing facilities, which directly employ about 8,400 workers. The group, which grew out of a trading company set up in 1976, has 48 operational industrial units. Currently, it has 35,000 employees. MGI’s annual turnover stood at $2.5 billion, according to the group’s website. It exports products to 25 countries.
IPDC, BSCMS launch ‘Bangladesh Supply Chain Excellence Awards 2020’
IPDC Finance Limited in collaboration with Bangladesh Supply Chain Management Society (BSCMS), International Supply Chain Education Alliance (ISCEA) Bangladesh as knowledge partner, launched Bangladesh Supply Chain Excellence Awards (BSCEA) 2020on Tuesday live from the official IPDC Facebook page. In its continuation, BSCEA 2020will be recognizing outstanding individuals and organizations for their exceptional contributions in advancing supply chain knowledge and practices across the industries that operate in Bangladesh, and encourage Supply Chain Management (SCM) professionals, who play a significant role in the supply chain ecosystem.BSCEA 2020 will be divided into seven different categories, which are: Collaborative Supply Chain, Supply Chain Talent Development, Manufacturing Excellence, Supply Chain Finance Management, Excellence in Logistics, Distribution, Transportation, Warehouse Management, Planning, Sustainability, Technology, Young Supply Chain Talent of the Year and Supply Chain Professional of the Year.
10pc discount on Nagad payment for online shopping
Postal Department’s Digital Financial Services Nagad has announced an ‘Online Shopping Festival’ for November and December months of this year, where customers will get five to 10 per cent discount if they make merchant payment through Nagad for purchases from certain online shops, said manager of the Public Relations Department of Nagad Md. LutforzamanSarker. In the announced campaign, five per cent discount has been announced for all home appliances, accessories and small appliances including television and AV for Fair Distribution (https://estore.fdl.com.bd/offer), which assembles Samsung branded products in the country. Five per cent discounts also declared for purchasing any air ticket through Flight Expert (flightexpert.com), a popular tourism entity of the country.A customer can get a maximum discount of Tk 2,000 from a Nagad account at a specified time under this campaign.This discount offer does not apply to direct payments from Nagad app or using the USSD payment method. In addition, a customer can participate in this campaign more than once to enjoy a discount. To find out more about the campaign, customers can check out Nagad’s official Facebook page and website, and they can find out the details by calling Nagad customer service on 16167.