BB extends both policy coverage, tenure
Considering the Covid-19 pandemic, the central bank has allowed more time for the exporters to realise their export proceeds. The tenure has been extended up to seven months instead of existing six months, and the coverage of the relaxed policy widened to all export sectors. The extended period for realisation of the export proceeds will equally be applicable for all sectors, depending on the necessity, till March 31 next year, according to a notification issued by the Bangladesh Bank (BB) on Wednesday. Earlier on July 23 last, the central bank had extended such policy, but only for the readymade garment (RMG) and textile goods exporters. Under the relaxation, authorised dealer (AD) banks are empowered to allow all exporters to extend the tenure of realising the export proceeds up to 210 days instead of 180 days, according to officials. The banks normally allow exporters to bring home the export proceeds within 120 days or four months in line with the existing forex regulations. Earlier on March 19, the BB relaxed regulations to facilitate foreign trade covering both export and import to help businesses face the adverse impact of Covid-19.
NRBC: First bank in 12 years to go for IPO
NRB Commercial Bank is going public to raise Tk 120 crore from the stock market, a move that would make it the first bank in Bangladesh in 12 years to be listed on the bourse. The initial public offering was approved at a meeting of the Bangladesh Securities and Exchange Commission (BSEC) yesterday. The bank began its journey on April 2, 2013, as a scheduled bank. NRB Commercial Bank registered deposits of Tk 7,185 crore in 2019. Its total loans and advances amounted to Tk 6,201 crore. The bank’s weighted average earnings per share for the last five years was Tk 1.55. Per-share net asset value stood at Tk 13.86 as of June 30, 2020. NRB Commercial Bank’s return on the asset was 1.46 per cent. The stock market regulator also gave its consent to Lub-rref to publish its prospectus to raise Tk 150 crore by issuing 4.52 crore shares through the book-building process. When a company wants a higher price than face value while issuing new shares, the price is determined through bidding, which is called the book-building method. The BSEC asked eligible investors to submit bidding analysis and procedure for bids over Tk 50 for each share of the company.
GPH Ispat exports billet worth $10m to China
GPH Ispat Limited on Tuesday shipped 25,000 tonnes of MS billet worth US$ 10.17 million out to China. It would be the largest ever consignment of the item in terms of volume and value from Bangladesh to any export destination, according to the local steel manufacturer. Backed by the government support, the conglomerate can export steel products worth $70-$80 million within a year, said Mr Alam, who is also the Managing Director of GPH Ispat.
Target set for 42pc higher corn production
The government is looking to produce 42 per cent higher corn at 56.93 lakh tonnes in the current fiscal year to meet the growing demand for grains in the feed industry. The production of corn, also known as maize, rose 12.50 per cent year-on-year to 40.15 lakh tonnes in the fiscal year 2019-20. The agriculture ministry has set a target to produce one crore tonnes of the grain by 2025 through innovation and modern technical assistance. Maize accounts for about 50 to 60 per cent of the raw material required to make feed, which is mostly consumed by poultry farms. The United States Department of Agriculture (USDA) recently predicted that corn production in Bangladesh would reach 45 lakh tonnes by the end of 2020-21 marketing year, up 1 lakh tonnes from the official forecast of the agency. If this prediction is realised, the corn production would be a 9.7 per cent higher than USDA’s official 2019-20 estimate. The agency’s marketing year starts in May and ends in April. The agriculture ministry has targeted to produce 56.93 lakh tonnes maize in the current fiscal year. The retail price of corn has also increased compared to its value last month because of the recent floods and the Covid-19 pandemic. In October, the average corn retail price was Tk 22 per kilogram, 28 per cent higher than in last year. Maize was cultivated on 5.40 lakh hectares in the ongoing marketing year, up from 5.10 lakh hectares a year earlier. FAS Dhaka’s forecast for Bangladesh’s corn consumption for the 2020-21 marketing year is 50,000 tonnes above the official USDA forecast of 55 lakh tonnes. If realised, the consumption of corn would increase by 5.8 per cent compared to the previous year.
Daniel new Director of MTB
Daniel de Lange, as the representative of Norfund (The Norwegian Investment Fund for developing countries), has recently replaced Herbert Ludwig Jaeger and been appointed as a Director of Mutual Trust Bank Limited (MTB), said a statement. Norfund holds 9.53 per cent of the outstanding shares of MTB. Norfund is owned and funded by the Norwegian Government and is the Government´s most important tool for strengthening the private sector in developing countries, and for reducing poverty. Daniel de Lange has over 30 years’ experience in the finance industry and as such has gained significant insight into all aspects of banking and finance. He is based in Hong Kong and has lived and transacted in Asia for over 25 years. He was a Managing Director with JPMorgan Chase, and during his 17 years with the firm was based in New York, Jakarta, and Hong Kong. He led multidisciplinary teams originating, advising and executing cross-border transactions with multinational and domestic companies. As advisor to large multi-sponsor transactions, he was closely involved in financial, commercial and legal aspects of ventures.
Green Delta Insurance wins WEF’s New Champion Award
After earning AAA credit rating 7 years in a row, Green Delta Insurance won another global recognition on Monday at the “Pioneers of Change Summit 2020” by World Economic Forum (WEF) in the category of “excellence in sustainability”. The Pioneers of Change summit (16-20 November) aims to explore the innovation needed to bounce back from the pandemic.
Md. Abdul Mannan joins Sonali Bank as its DMD
Md. Abdul Mannan joined Sonali Bank Limited as Deputy Managing Director on November 01, says a statement. Prior to the appointment, he served as Deputy Managing Director of Karmasangsthan Bank. After completing his B.Com (Hon’s) and M.Com degree in Finance from the University of Dhaka, he started his career as a senior officer at Janata Bank Ltd in 1993.