TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK


TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

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Rate last updated: 02/01/2014 11:15:04 AM

Daily Business News Flash November 05, 2020

Robi IPO subscription begins on Nov 17

Robi Axiata is set to hit the market with the country’s biggest ever initial public offering this month and the leading telecom operator has urged eligible investors to participate in its subscription process. The IPO subscription will start on November 17 and will continue till November 23. To become an eligible investor for the IPO, one has to show that he or she has at least Tk 1 crore investment in market value as of November 9. During this period, general investors and non-resident Bangladeshis will also be allowed to subscribe to get the IPO. The country’s second largest mobile phone operator will raise Tk 523.79 crore by issuing 52.37 crore ordinary shares at face value.Of the amount, Tk 387.74 crore would be raised from stock investors and the rest Tk 136 crore from its officials. The IPO proceeds will be used to expand the network.The company’s paid-up capital was Tk 4,714 crore and turnover Tk 7,481 crore in 2019, according to the draft prospectus.The company’s per share net asset value was Tk 12.64 as of December 31, 2019, while its earnings per share was Tk 0.04 for the year. The carrier started its journey in 1997 under the brand name of Aktel. It changed its name to Axiata (Bangladesh) in 2009 and took the present name Robi Axiata in 2010.

Source: https://www.thedailystar.net/business/news/robi-ipo-subscription-begins-nov-17-1989669

Most listed banks see rise in profits

Most of the listed banks logged higher profits in the first nine months of 2020 despite a lower net interest income amid the business slowdown caused by the coronavirus pandemic. Lower provisioning was the main driver behind the higher profits. All the 30 banks listed with the Dhaka Stock Exchange declared their third quarterly earnings. The financial report of 27 lenders is available on their website. Eighteen out of the 27 posted a year-on-year rise in profits during the January to September period. They logged 3.49 per cent higher profits of Tk4,888 crore in the nine months. Their combined net interest income, the biggest source of revenue, dropped 25 per cent to Tk 10,301 crore thanks to two steps introduced by the central bank — 9 per cent interest cap in April and a payment holiday after the Covid-19 outbreak.Banks usually keep aside 0.5 per cent to 100 per cent in provisioning. They keep lower provisioning for regular loans but 20 to 100 per cent for default loans. As the central bank has granted the payment holiday, banks are not compelled to set aside funds to cover future losses although new lending has not come to a halt and there is also non-payment of instalments.Trust Bank has the highest annualised return on equity of 21.1 per cent, followed by Jamuna Bank’s 16.9 per cent and Dutch-Bangla Bank’s 16 per cent, data showed. Islami Bank Bangladesh posted the highest net profit of Tk 369 crore. Dutch-Bangla Bank took home Tk 345 crore and City Bank Tk 308 crore in the first nine months of the year. City Bank had the highest year-to-date loan growth of 20.1 per cent, followed by Exim Bank’s 12.4 per cent and First Security Islami Bank’s 10.8 per cent. State-run Rupali Bank registered the highest deposit growth of 17.5 per cent, followed by Dutch-Bangla Bank’s 15.7 per cent and Islami Bank’s 15.6 per cent.

Source: https://www.thedailystar.net/business/news/most-listed-banks-see-rise-profits-1989665

Brac to buy 2.5cr Brac Bank shares

The current low price of Brac Bank shares in the stock market has prompted Bangladesh Rural Advancement Committee (Brac), a leading non-governmental development organisation, to decide on purchasing 2.5 crore of those before November 30. According to the bank, its corporate sponsor already holds 58.70 crore shares, in other words, 44.27 per cent of its shares. Yesterday, the stock traded at Tk 42.90. Considering the price, the 2.5 crore shares would be valued at Tk 107 crore.In the commission meeting, the premium of the initial public offering (IPO) of Mir Akhter Hossain was approved for raising a fund of Tk 125 crore. The cut-off price of the share would be Tk 60 so general shareholders will pay Tk 54 for each share in the IPO. The company will issue 2.07 crore shares to raise its desired fund, the BSEC said in a press release. The commission also approved the digital booth (stock broker/TREC holder), 2020 rules.

Source: https://www.thedailystar.net/business/news/brac-buy-25cr-brac-bank-shares-1989657

Forex reserves to hit $50b in next 14 months

Bangladesh’s foreign exchange reserve will hit $50 billion within the next 14 months, Finance Minister AHM Mustafa Kamal said yesterday.Besides, the reserve which is now more than $40 billion is expected to increase further, according to the minister. Asked about the country’s economic recovery amid the Covid-19 fallout, Kamal said Bangladesh has handled the situation well. As a result, both the International Monetary Fund and the World Bank have praised the country’s indicators for recovery.Kamal said the $14 billion stimulus package announced by Prime Minister Sheik Hasina helped the economy bounce back at a pace which was previously unimaginable. During the meeting, chaired by Kamal, the purchase committee approved eight proposals involving Tk 5,664.68 crore. Of the sum, Tk 224.27 crore will come from the government coffer and the remaining Tk 5,440.40 crore will be funded by the Islamic Trade Finance Corporation and local banks.As per the proposals, 30,000 tonnes of bagged granular urea will be procured from Karnaphuli Fertilizer Company Limited (KAFCO) at a cost of Tk 63.74 crore and 25,000 tonnes of bagged granular urea fertilizer form Muntajat (Qatar Chemical and Petrochemical Marketing and Distribution Company) at cost of Tk 58.88 crore. It will buy another 25,000 tonnes of bulk prilled (optional) urea fertilizer at a cost of Tk 56.54 crore and 25,000 tonnes of bulk granular urea fertilizer at a cost of Tk 56.49 crore. Bangladesh Petroleum Corporation will purchase 13 lakh tonnes of crude oil for Eastern Refinery Ltd for Tk 5,204.74 crore from ADNOC of Abu Dhabi, and Saudi Aramco of Saudi Arabia. The purchase committee also approved a proposal to appoint Computer Network System (CNS) to supply the necessary machinery, hardware, installation, and maintenance, involving Tk 105.22 crore. The appointment proposal involving Tk 55.54 crore of Padma Association and Engineers was approved as well. Under the proposal, one residential building will be constructed at the Sylhet police line.

Source: https://www.thedailystar.net/business/news/forex-reserves-hit-50b-next-14-months-1989661

Inflation rises to 5yr high

Inflation rose to 6.44 per cent in October, the highest in at least five years, driven by a sharp increase in the price of food items, official figures showed yesterday. The average Consumer Price Index climbed 47 basis points from September’s 5.97 per cent, data from the state-run Bangladesh Bureau of Statistics (BBS) showed.The price of medium quality rice edged up to Tk 49.25 each kilogram in October from Tk 48.19 in the same month a year ago. The price of coarse grain remained almost unchanged at Tk 43.58 per kg last month from Tk 44 the previous month, according to data from the Food and Agriculture Organisation. Non-food inflation declined 12 points to 5 per cent last month. Rural inflation jumped by 71 points to 6.67 per cent from 5.96 per cent a month ago. Food inflation surged 1.12 percentage points to 7.73 per cent from 6.61 per cent in September. Inflation in the urban areas edged up five basis points to 6.03 per cent. Food inflation rose 22 basis points to 6.48 per cent but non-food inflation dropped 14 basis points to 5.51 per cent.

Source: https://www.thedailystar.net/business/news/inflation-rises-5yr-high-1989653

Local and Global Stock Indices *

Index NameClose ValueValue ChangePercentage Change
DJIA$ 27,847.66
FTSE100$ 5,883.26↑96.49↑1.67%
Nikkei 225$ 23,929.61 ↑234.38↑ 0.99%

World Commodities *

CommodityClose ValueValue ChangePercentage Change
Crude Oil (WTI)$ 38.72↓0.43↓1.10%
Crude Oil (Brent)$ 40.79↓0.44↓1.07%
Gold Spot$ 1,908.59↑5.67↑0.30%

Major Currencies Exchange Rates Movement in Last Seven Days *

Exchange Rates
USD 1BDT 84.8016
GBP 1BDT 110.7723
EUR 1BDT 99.3745
INR 1BDT 1.1524





Dear Valued Patrons,

At the very onset, let me express my heartiest gratitude for allowing us to serve you and I also wanted to reach out to you directly with an assurance that Dhaka Bank is fully equipped to support you during this difficult time.

Last couple of weeks ago we all were living in a peaceful condition, performing our daily tasks freely and perfectly. Entire economy and business environment was also in a good shape, until COVID-19 put a forceful stoppage to the overall life style and economy of the world. We all know that social distancing and cleanliness are the keys to prevent this pandemic. Hence, we urge your conscious effort to limiting public interaction and suspending wherever possible.

In this current situation, Dhaka Bank and its employees are beside you where we are fully online, either working from home or at our offices under a robust Business Continuity Plan (BCP) to serve you with limited branch banking and a full-fledged alternate delivery channel services.

Our state of the art Mobile App, Dhaka Bank GO (Click https://bit.ly/2WVfieu) and Internet Banking - Dhaka Bank Direct gives you the freedom of banking online anytime from anywhere. You can check the balance and transfer money to any designated Banks including any Dhaka Bank or bKash Account, make utility bill payments and mobile top-up through our Mobile App and Internet Banking Services. Our ATMs are also running efficiently with availability of sufficient cash for your convenience where you can make cash withdrawals whenever the need arises. Mentionable, the withdrawal of cash from any ATMs within Bangladesh with Dhaka Bank Debit Cards are absolutely free of charges up till April 30, 2020 (Dhaka Bank will bear the cost). Our corporate customers can also use our completely safe and secured online platform Dhaka Bank C-Solution for Payments, Inter Bank Fund Transfers, etc.

Moreover, to fulfill your urgent requirement, we have a limited no. of branches up and running by ensuring all kinds of precautionary and safety measures for you.

In case of extreme emergency and facing difficulties in conducting banking transactions, please let us know through our 24/7 Contact Center number 16474 (or, dial +8809678016474 for ISD/Overseas Calls). We are always with you to combat your difficulties.

As you know we are going through a critical phase and the situation is novel to all of us. We are getting lot of new information from various sources everyday about COVID-19 which will be shared at www.dhakabankltd.com.

Thank you for your trust and continued support to us. I firmly believe that jointly we will be able to combat this situation and win against all the odds.

Please stay home, stay safe and take care of yourself and family.

Best regards,

Emranul Huq
Managing Director & CEO
Dhaka Bank Limited