Savings tools interests cut to divert investment to industries

The government on Tuesday cut interest rates on all types of savings tools – after around six years – with an aim to divert large investments to industries and the capital market. Under the new rates, for savings instruments amounting to over Tk15 lakh with a five-year tenure, investors will get as much as 10.75% in profit – down by 1 percentage point. An investment over Tk30 lakh will yield the highest, 9.75% – 2 percentage points lower than the existing rate. In 2015, the highest interest rate on savings certificates was slashed by 2 percentage points to 11.76% from 13%.An objective of savings certificates is to help elderly people, women, and the physically challenged and differently-abled with interest returns against their small savings. But a large number of well-off people are buying such certificates, depriving the target people of the benefits.The interest rate for three-year savings certificates has been reduced to 10% for investments of more than Tk15 lakh, while those who will invest more than Tk30 lakh will get a 9% interest at the end of the tenure. Retirees who will invest more than Tk15 lakh in the five-year term pensioner savings certificate will get a 10.75% profit at the end of the term and if the investment is more than Tk30 lakh, this rate will be 9.75%, according to the new rates. The interest rate on the investment of more than Tk15 lakh in five-year family savings certificates has been slashed to 10.50%, while the rate is 9.50% for investments amounting to above Tk30 lakh.Currently, the rate of interest on three-year savings certificates is 11.04%, 11.28% on five-year savings certificates, 11.76% on five-year pensioner savings certificates and 11.52% on five-year family savings certificates at the end of term.For the current fiscal year, the government set a target to borrow Tk32,000 crore through sales of savings certificates in contrast to Tk20,000 crore.

Source: https://www.tbsnews.net/economy/savings-tools-interests-cut-divert-investment-industries-305758

 Sonali Bank Limited ranks first in APA

Sonali Bank Limited, the largest state-owned commercial bank, has secured the first position among all government banks in implementing the Annual Performance Agreement (APA) 2020-21, says a statement. The Financial Institutions Division of Finance Ministry congratulated the Sonali Bank authority for their achievement in implementing the indicators mentioned in the agreement. The Financial Institutions Division had signed the Annual Performance Agreement (APA) 2020-21 with 17 banks, insurance companies and others financial organisations to ensure improved services to the people. Sonali Bank Limited scored 93.6, out of 100, to become the No. 1 in the state-owned bank category.When the whole world suffered an economic setback due to Covid-19, economy was revived by implementing the Covid-19 stimulus packages. The bank had become more successful in providing required digital banking services, which helped keep the banking services smooth during the pandemic.

Source: https://today.thefinancialexpress.com.bd/trade-market/sonali-bank-limited-ranks-first-in-apa-1632242950

First Security Islami Bank opened eight sub-branches

First Security Islami Bank Limited opened eight sub-branches on Tuesday with a view to providing Shariah-based banking services. The sub-branches are located at Tarabo Bazar, Rupganj, Narayanganj; Ichapur, Hathazari, Chattogram; Kagotia Bazar, Raozan, Chattogram; SadarUpazilla Bazar, Cox’s Bazar; Munshi Bazar, Rajnagar, Moulvibazar; Robir Bazar, Kulaura, Moulvibazar; Surjanagar Bazar, Shibchar, Madaripur; and Boro Bazar, Khulna Sadar, Khulna. Syed WasequeMd Ali, managing director of the bank, along with other officials inaugurated the sub-branches through video conferencing.

Source: https://today.thefinancialexpress.com.bd/trade-market/first-security-islami-bank-opened-eight-sub-branches-1632242915

Moderate rise in benchmark index

Dhaka bourse closed the Tuesday’s session with a moderate rise in broad index as majority number of listed securities saw price appreciation riding on investors’ increased participation. On the day, most of the major sectors played market supportive role to help the index extending gaining streak for second consecutive session. Dhaka Stock Exchange (DSE) opened the day’s session positively and DSE broad index DSEX displayed almost a flat movement for an hour. Later, the DSEX showed an upward trend for around two hours following investors’ buying spree. At the end of the session, the DSEX settled at 7258.57 with a rise of 0.73 per cent or 52.74 points.Of major sectors which saw price appreciation, engineering advanced 1.9 per cent, financial institutions 0.3 per cent, general insurance 0.8 per cent, pharmaceuticals & chemicals 1.0 per cent, telecommunication 0.9 per cent, and textile 1.8 per cent. Of the sectors which witnessed price correction, IT declined 0.2 per cent, paper & printing 1.0 per cent and tannery 0.2 per cent.Of the large cap companies which witnessed price appreciation, the share price of Grameenphone advanced 0.87 per cent, British American Tobacco Bangladesh Company 0.82 per cent, Walton Hi-Tech Industries 2.85 per cent, Robi Axiata 0.71 per cent, Square Pharmaceuticals 0.79 per cent and Beximco 0.37 per cent.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/moderate-rise-in-benchmark-index-1632237088