Banks push for their higher holdings in Govt securities
Bangladesh’s commercial banks, particularly the primary dealers (PDs), Wednesday urged the central bank to enhance their holdings in government securities to make up for the revaluation losses they count on public-debt instruments. They sought enhancement of maximum limit of statutory liquidity ratio (SLR) under ‘held-to-maturity (HTM)’ category. A six-member PDBL delegation, headed by its chairman Md. Ataur Rahman Prodhan, attended the meeting. At the meeting, the PDBL proposed that the central bank increase the maximum limit of holding the securities of SLR under HTM at 175 per cent instead of the existing level of 135 per cent for minimizing their revaluation losses on the public- debt instruments. Currently, all the PD banks are allowed to meet their SLR with 135 per cent of such securities which are treated as HTM instead of the previous 125 per cent. Under the proposed system, the valuation of treasury bonds, issued from September 01, 2020 to September 30, 2021 and categorised as ‘held for trading (HFT)’ by the PDs, may be re-measured at an ‘amortised cost’, instead of ‘marking-to-market system of valuation.
Institutional investors jack DSE turnover up
Stocks finished almost flat on Wednesday, with turnover crossing Tk 15 billion-mark on the Dhaka bourse, as investors were active on both sides of the trading fence. Following the previous day’s steep rise, the market opened on a positive note and the key index rose 37 points within the first 15 minutes of trading. But, profit booking on banking stocks eroded most of the initial gains. Finally, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up 4.19 points or 0.05 per cent to settle at 7,060. The core index added more than 130 points in the past three consecutive sessions. However, two other indices edged lower. The DSE 30 Index, comprising blue chips, dropped 7.96 points to finish at 2,683. The DSE Shariah Index (DSES) also saw a fractional loss of 0.67 point to close at 1,484. Turnover, a crucial indicator of the market, crossed Tk 15 billion-mark again and amounted to Tk 15.07 billion, which was 1.08 per cent higher than the previous day’s tally of Tk 14.91 billion. Top ten most-traded stocks grabbed over 41 per cent of the day’s turnover. The investors mostly focused on the banking sector, capturing 24 per cent of the day’s total turnover, followed by pharma 13 per cent and textile 10 per cent. The Chittagong Stock Exchange (CSE) also edged higher with the CSE All Share Price Index – CASPI -gaining 3.75 points to settle at 20,642 and the Selective Categories Index – CSCX– rising 2.97 points to close at 12,410. Of the issues traded, 128 advanced, 127 declined and 34 remained unchanged on the CSE.
Islamic investment bond’s net balance hits all-time high of Tk157bn
The balance swelled by 145.31% year-on-year from Tk64 billion in FY20, according to data from the Bangladesh Bank. Similarly, sales of Islamic investment bonds increased to over Tk170 billion in FY21, which was Tk132 billion in FY20. On behalf of the government, the Bangladesh Bank issued its maiden sovereign investment Sukuk on 28 December in 2020 to raise Tk80.00 billion for the implementation of a safe water supply project across the nation. Total deposits of Islamic banking amounted to Tk3765.78 billion in July-September in FY22 with an increase of Tk84.15 billion or 2.29% as compared with the last quarter of FY21. And, the deposits registered 17.82% growth year-on-year. The share of total deposits of Islamic banks accounted for 25.75% of total deposits and the investment accounted for 28.37% of the whole banking sector.
Processed food market worth $5.8b by 2030: FICCI
With the huge potential of Foreign Direct Investment (FDI) and the repeated private sector interventions in the country’s agribusiness, the local processed food market will be worth $5.8 billion by 2030, said a report by the Foreign Investors Chamber of Commerce and Industry (FICCI). According to the report, 68% of the country’s population will live in the cities by 2050 and this will increase the demand for processed food. In addition, 34 million people are going to be in the middle and affluent class by 2025, which will also accelerate the expansion of the processed food market. The changing pattern of lifestyle is increasing the trend day by day. Urbanisation affects food consumption patterns— higher urban income is reflected in increased demand for processed food and meat by 2050. Agricultural production will need to increase by 70% due to increase in population. The country’s 8th Five Year Plan aims to accelerate economic development and align it with its ambitions through stronger trade and investment. In accordance with the plan the target increases by 2025 in FDI is by six times, export by 66% and private investment to GDP by 15%.
Community Bank wins 3 Infosys-Finacle Innovation awards
Community Bank Bangladesh Limited has won the Infosys-Finacle Innovation Awards 2021 under the channel innovation for financial inclusion leveraging technology, Covid response innovation for innovative banking during the pandemic and ecosystem-led innovation for customer service anytime anywhere categories. The bank has won the awards due to the roll out of its ‘digital-first’ strategy to serve its customers through alternate delivery channels. Infosys received 270 nominations in 10 categories from reputed banks all over the world, of which, from Bangladesh Community Bank received three awards in different categories.