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 September 12, 2021

NBR against back-to-back LCs for firms without bonded warehouse.

The National Board of Revenue has requested the Bangladesh Bank to order banks to refrain from opening back-to-back letters of credit for factories that do not have bonded warehouse licences.The move has stoked concerns of increased working capital cost among 500 export-oriented factories. Still, NBR officials say the agency is open to granting the licence to factories so that they enjoy the benefit while buying raw materials for exports from both domestic and international markets.

As per rule, an export-oriented factory with the bonded warehouse licence is entitled to open back-to-back LCs — a financing facility that is extended by a bank to enable an exporter to purchase raw materials against an export LC and enjoy the zero-duty benefit.On the other hand, a firm without a bonded warehouse licence does not have permission to get the back-to-back LC facility.

A BB official said the central bank was working on the issue following the letter from the NBR.
Firms without the back-to-back LC facility have to pay an LC margin while opening it, which will raise the cost of working capital for businesses.

Source: The daily star, details: https://www.thedailystar.net/business/economy/news/nbr-against-back-back-lcs-firms-without-bonded-warehouse-2173911

 Bangladesh exports $1.94 billion more in RMG products than Vietnam.

Bangladesh exported knit and woven products worth $18.80 billion in total in the first seven months of the current year. Bangladesh earned $1.94 billion more in apparel exports than Vietnam in the first seven months of the current year. Bangladesh exported knit and woven products worth $18.80 billion during the period against the textiles and garments worth $16.86 billion exported by Vietnam, according to the official data released by the two countries.  Both countries, however, witnessed a negative growth during this seven-month period with 7.66% and 7.30% negative growth respectively recorded in Bangladesh and Vietnam. 

Expert said that by the end of 2021 we can confidently say that Bangladesh will be the second largest garment exporting country. they also pointed out that the Vietnamese government aggregated their textile export with garment while publishing the data.In recent times, Vietnam has given Bangladesh tough competition in the RMG market.According to the World Trade Statistical Review 2021, Vietnam knocked Bangladesh out of its second position earlier this year.

Source: The Business standard. Detail: https://www.tbsnews.net/economy/rmg/bangladesh-exports-194-billion-more-rmg-products-vietnam-301015

Rate cap keeps private credit growth down: Bankers.

The credit growth started to dip after the lending rate had been capped at 9% from 1 April last year:


  • Achieving credit growth ceiling will be challenging in the current fiscal year: Ali Reza Iftekhar, chairman of ABB
  • Credit growth slowed down because of the same pricing for all kinds of loans: MashrurArefin, managing director of City Bank
  • Credit guarantee scheme for SMEs is inoperative: BRAC Bank Managing Director and CEO Selim RF Hussain
  • Relief from provisioning of the guaranteed part can make credit guarantee scheme operational: Standard Chartered Bangladesh’s CEO NaserEzazBijoy
  • Action should be taken against willful defaulters:  MdJashim Uddin, president of FBCCI

Even at a time when banks are sitting on a pile of surplus liquidity with low interest loans, private sector credit growth has remained sluggish owing to the lending rate cap, raising concern over achieving expected economic growth, said bankers at an event on Thursday. High default loans are killing the banking industry as well as businesses, they said while exchanging views with leaders of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at a city hotel.

Private sector credit growth remained low at 7% to 8% because of the lending rate cap, said Iftekhar.
It will be challenging for banks to achieve the monetary target of 14.8% set for the current fiscal year. The economy cannot grow much with this low level of credit growth, he added.Private sector credit grew 8.38% in July, a slight increase from 8.35% in the previous month.The credit growth was 8.40% in the last fiscal year against the monetary target of 14.8% when the lending rate was 6% to 7%, the lowest in recent history.The credit growth started to dip after the lending rate had been capped at 9% from 1 April last year.

Emphasizing taking actions against willful defaulters, President of FBCCI called upon bankers to support businesses that defaulted on loans for genuine reasons.”We cannot let many businesses suffer for some willful defaulters,” the FBCCI president said.He urged bankers to speed up loan disbursements for the SME sector as it accounts for a major share of revenue for banks.

Source: The Business standard, details: https://www.tbsnews.net/economy/banking/rate-cap-keeps-private-credit-growth-down-bankers-300421

Local and Global Stock Indices *

Index NameClose ValueValue ChangePercentage Change
DJIA$ 34,607.72
↓ 271.66↓0.78%
FTSE100$ 7,029.20↑ 4.99↑ 0.07%
Nikkei 225$ 30,381.84↑373.65↑1.25%

World Commodities *

CommodityClose ValueValue ChangePercentage Change
Crude Oil (WTI)$ 69.72↑1.58↑2.32%
Crude Oil (Brent)$ 72.92↑ 1.47↑ 2.06%
Gold Spot$ 1,787.58↓7.00↓0.39%

Major Currencies Exchange Rates Movement in Last Seven Days *

Exchange Rates
USD 1BDT 85.2000
GBP 1BDT 117.3630
EUR 1BDT 100.6808





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