Stimulus packages fuelling private credit growth
Private sector credit growth extended its gains for the second straight month in August driven by loans given under the stimulus packages aimed at reviving the economy. The year-on-year credit growth stood at 9.36 per cent in August, up 9.20 per cent from a month earlier.Credit growth had decreased in the two years to April before increasing in May and declining once again in June. It started an upward trend in July, a sign of the steady recovery process of the country’s economy. The outstanding loans in the private sector stood at Tk 11,01,676crore as of August in contrast to Tk 10,95,202 crore in the previous month.Banks have so far disbursed 80 per cent of the Tk 33,000 crore that has been allocated for the large industries and service sector under the central bank’s stimulus package. But the implementation of the stimulus packages for small and medium enterprises (SMEs) and the farm sector has yet to reach a satisfactory level. Banks are now trying to expedite the loan disbursement in the two sectors as the central bank is emphasising on the issue. Lenders have been sitting on excess liquidity for the last couple of months as the central bank has injected funds into the market in different forms to revive the economy, said EmranulHuq, managing director of Dhaka Bank.Businesses are now reluctant to set up new industries because of the ongoing slowdown in the economic recovery and the pandemic.
Tax collection rebounds in August
Revenue collection rebounded in August after remaining downbeat for four months since April, thanks to recovery in business and economic activities that buoyed overall receipts. Provisional data from the National Board of Revenue (NBR) showed that collection grew in all areas, with imports driving the rebound followed by value added tax (VAT) and income tax. In August, taxmen collected Tk 15,406 crore, a rise by 7.85 per cent from the same month a year ago. Despite August’s recovery, overall collection was nearly the same when comparing the July-August period year-on-year. It has edged up marginally to Tk 30,163 crore from Tk 30,113 crore, data from the NBR showed.In July, tax collection declined 6.7 per cent from that in the same period a year ago. The NBR data showed that collection of taxes from import and export activities soared 16.87 per cent year-on-year to Tk 4,992 crore in August from the same period a year ago. The VAT collection from domestic economic activities grew 5 per cent year-on-year to Tk 5,731 crore in August from that in the same month the previous year.For the current fiscal year, the government assigned the NBR to collect Tk 330,000 crore to finance the budget. And the latest collection fell short of the target for the first two months of the fiscal year 2020-21.
Sonali Bank completes year end closing process in eight hours
Sonali Intellect Limited, a financial technology solution provider in Bangladesh incorporated as a joint venture company by Intellect Design Arena Limited and Sonali Bank Limited, announced a major milestone achieved by Sonali Bank Limited. Sonali Bank achieved the closing year end process in eight hours, a major milestone for a bank serving over 20 million customers.It has also achieved the bank closing year end process in 8 hours, a record for a bank serving over 20 million customers. Sonali Intellect is handling a total of 20,891,593 customers with 19,273,607 accounts, completed the last year end in 08.17 hr. against 11.28 hours in 2018.The CBS migration in Sonali Bank started in 2014 with 120 branches and successfully completed all 1209 branches in 2017, there after SBL opened 16 branches with CBS. Sonali Bank which has 1225 branches across Bangladesh runs on Intellect CBS in full swing providing centralized online, real time banking platform that could provide enhanced functionality and superior customer experience.
Dr Mosharraf new chairman of IDRA
Dr M Mosharraf Hossain has been made chairman for country’s insurance regulator Insurance Development and Regulatory Authority (IDRA) for the next three years. Dr Hossain has been working as an acting chairman for the IDRA over the past one month. Before joining the post, he was a member of the regulatory body. Dr Hossain, a chartered accountant by profession, is the third regular chairman of the IDRA that regulates some 79 insurance firms. The government had formed the IDRA by abolishing the then Department of Insurance to make the sector sound and vibrant.And he will hold the position for the next three years as per section 6(1) of the Insurance Act of 2010. Currently there are a total of 79 firms, including two government corporations, in the insurance sector regulated by the IDRA. Bangladesh has now 77 privately owned life and non-life insurance companies with a combined annual turnover of around Tk 135 billion.