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

Important Business News Extracts April 02, 2018

BB takes new measures to beef up liquidity supply: CRR cut by 1.0pc, ADR deadline extended further

Bangladesh Bank (BB) will slash Cash Reserve Requirement (CRR) of the banks by 1.0 percentage point to 5.50 per cent to help mitigate the present liquidity crunch in the banking system. The decision was taken at a tripartite meeting of Ministry of Finance, BB and Bangladesh Association of Banks (BAB) in the capital on Sunday. “After a thorough discussion at the meeting, the decision has been taken to cut CRR by 1.0 per cent until December 31 of this calendar year, subject to reviewing in June,” Finance Minister A M A Muhith told reporters after the meeting. The finance minister ruled out the possibility of any increase in inflationary pressure on the economy following the implementation of the revised CRR. “Inflation is now under control. It will not increase this year,” he made the prediction. The minister also expects that the move will help bring down the interest rate on lending to single-digit shortly from the existing level. However, former BB governor Salehuddin Ahmed expressed the concern over slashing of the CRR, saying that it would push inflationary pressure further up. “Aggressive lending will start again with additional funds and non-performing loans (NPLs) will increase further,” Dr. Ahmed said while explaining the impact of revised CRR. The former governor found the process of slashing CRR was not right one. The meeting also decided to extend the deadline by three more months to meet the revised limit of advance-deposit ratio (ADR) by the banks.


Mobile banking under surveillance during HSC exams

Bangladesh Bank on Sunday asked all the mobile financial service providers to strengthen oversight over the transactions which would be made through their system with a view to prevent trade surrounding question paper leakage. The central bank came up with the instruction amid the beginning of higher secondary certificate examinations from today. The government has been facing widespread criticism amid question paper leak in almost every public examination. MFSs were also asked to report to police if any sort of suspicious fund transaction was noticed. Besides, the BB circular issued to the managing directors and chief executive officers of all banks and their subsidiaries’, which operate mobile financial service, to aware their distributors, super agents, agents and clients regarding the issue.


Will CRR cuts bring down lending rate?

The decision to reduce the Cash Reserve Ratio (CRR) by one percentage point constitutes quantitative easing of monetary policy. A key question is: will it achieve the stated objective of bringing down the bank lending rates back to single digits. There are good reasons to have some doubts. First, there is slow pass-through of policy changes to bank interest rates. The extent of pass-through to the deposit rate is larger than that to the lending rate. Second, there is evidence of asymmetric adjustment to monetary policy: deposit rates do not adjust upwards in response to monetary tightening, but do adjust downwards to loosening; and, as experienced most recently when the Advance Deposit Ratio (ADR) was raised, the lending rate adjusts more quickly to monetary tightening than to loosening. On these assumptions, we can expect the deposit rate to fall quicker and to a larger extent than the lending rates in response to the reduction in CRR.

Source: http://www.thedailystar.net/business/banking/will-crr-cuts-bring-down-lending-rate-1556728

BB criticised for caving in under govt, businesses’ pressure

Two former top officials of the Bangladesh Bank and an economist on Sunday blasted the current central bank leadership who ‘virtually throwing away the autonomy caved in under the pressure of the government and banks owners’ to reduce cash reserve ratio. They termed ‘unprecedented’ the decision taken in a Sunday meeting, attended by the finance minister, bank owners, bankers and central bank officials, to cut CRR by 1 percentage point. Former finance advisor to a caretaker government Mirza Azizul Islam, former BB governor Salehuddin Ahmed and former central bank deputy governor Ibrahim Khaled told New Age that the decision was inappropriate and was taken in an improper way in presence of the finance minister and the bankers. The decision should have been taken exclusively by the central bank and there was no scope for intervention by the finance ministry or following demands of bank owners, they said. Finance minister AMA Muhith held the meeting with Bangladesh Bank governor Fazle Kabir, Awami League president’s privatisation affairs adviser Salman F Rahman and representatives of Bangladesh Association of Banks, including its chairman Md Nazrul Islam Mazumder, and Bankers association at Sonargaon hotel in Dhaka. After the meeting, Muhith announced that the BB would cut banks’ cash reserve ratio to 5.5 per cent from 6.5 per cent to increase money supply to the financial market. Governor Fazle Kabir did not make any comment.

Source: http://www.newagebd.net/article/38089/bb-criticised-for-caving-in-under-govt-businesses-pressure

Experts: Punitive actions necessary to straighten up banking sector

The crisis that currently grips the country’s private banking sector could have been avoided, had the central bank and other banking regulators stepped up and adopted timely, preventive measures, banking and finance experts said. Speaking to the Dhaka Tribune, they also criticized the government’s decision to bail out the failing private banks using public money, saying that the regulators should focus on recovering the money that is missing from the banking sector and take appropriate action against the people responsible for the situation. The private banks in Bangladesh are currently facing a grave liquidity crisis, caused mostly by an alarming rise in bad loans accumulated by these banks, which is the result of the growing tendency among borrowers to default on paying off their debts to these banks.

Source: http://www.dhakatribune.com/business/banks/2018/04/02/punitive-actions-straighten-up-banking-sector/

UCB gets new DMD

Nabil Mustafizur Rahman joined UCB as deputy managing director, the bank said in press statement yesterday. Prior to joining in UCB, he was the chief executive officer of Transbangla Group. He also worked with BRAC Bank as deputy managing director and chief risk officer, the statement added.

Source: http://www.theindependentbd.com/post/144113

Foreign investment at DSE rebounds in March

The foreign investment at the Dhaka Stock Exchange rebounded in March after dipping into negative mark in the previous month as overseas investors went for bargain hunting on the bearish market. Net overseas investment in March leapt to Tk 124.68 crore from a negative net investment of Tk 94.72 crore in February, showed the data released by the bourse on Sunday.


DSE EGM on April 30 to approve strategic partner

Dhaka Stock Exchange (DSE) will hold extra-ordinary general meeting (EGM) on April 30 to take general shareholders’ approval for the share purchase agreement to be signed with its strategic partner. The EGM will be held as part of submitting a revised proposal by the Chinese consortium for becoming the strategic partner of the DSE through purchasing 25 per cent stake in the premier bourse.


Bangladesh Securities & Exchange Commission (BSEC) takes fresh move to ensure full compliance

The securities regulator has moved to ensure proper compliance on holding minimum amount of shares of listed companies by the sponsor-directors individually and jointly. The regulatory move came following the exchanges’ list on non-compliance of some companies whose sponsor-directors have failed to hold stipulated amount of shares. As per the directive issued on November 22, 2011, each director, other than independent ones, of any listed company shall hold minimum 2% shares of the paid-up capital, while the sponsor-directors jointly will hold 30% shares. The Bangladesh Securities and Exchange Commission (BSEC) has already asked the bourses and Central Depository Bangladesh Limited (CDBL) to ensure proper compliance in respect of holding 30% shares of listed companies jointly by the respective sponsor-directors. If respective sponsor-directors holds less than 30% shares in a company, the sponsor-directors will not be allowed to sell or transfer any shares until acquisition of the aforesaid amount of shares. The enforcement department of the securities regulator has been asked to take action against the non-compliance on holding minimum 2% shares by sponsor-directors individually.

Source: http://today.thefinancialexpress.com.bd/last-page/bsec-takes-fresh-move-to-ensure-full-compliance-1522604780

Better GDP growth this year: Muhith

Finance Minister AMA Muhith yesterday said the economy is on track to log in a better GDP growth figure than last year. In fiscal 2016-17, Bangladesh posted GDP growth of 7.28 percent. “Many say that economy does not remain well in the election year, but this year there is no problem,” he said at the annual conference of Janata Bank held at the capital’s Pan Pacific Sonargaon hotel. He, however, said a problem has been created centring on the election, due to be held later this year.

Source: http://www.thedailystar.net/business/economy/better-gdp-growth-year-muhith-1556713

NBR to give local auto manufacturers, assemblers special facilities

The National Board of Revenue (NBR) has announced to give local automobile manufacturers and assemblers special facilities in the upcoming budget for fiscal year 2018-19 (FY19), reports BSS. “NBR will give the local automobile manufacturers and assemblers special facilities as our main target is to discourage imports of automobiles to create jobs in the country,” said NBR Chairman Mosharraf Hossain Bhuiyan while speaking at a pre-budget meeting with Bangladesh Reconditioned Vehicles Importers and Dealers Association (BARVIDA) in the capital yesterday. He said motor cycle assemblers are now enjoying tax waiver for a five-year period. The motor vehicle assembles or manufacturers will be given special facilities, he added. During the meeting BARVIDA president Habib Ullah raised some demands, including duty reduction on the import of reconditioned vehicles, and sought NBR chairman’s measures to change Cylinder Capacity (CC) provision for imported hybrid vehicles. About the duty waiver, the NBR chairman urged the businesspeople to come out from the tendency of seeking duty deduction, saying that sources of revenue earnings are limited.

Source: http://www.theindependentbd.com/post/144115

Samsung to set up smartphone plant in Bangladesh

Samsung is going to establish a handset manufacturing facility in Bangladesh as part of its plans to broaden its presence in the Indian sub-continent and take advantage of growing demand for affordable low-end smartphones. The Korean tech giant will officially announce the opening of its Samrtphone manufacturing unit in its Narshingdi factory tomorrow (Tuesday) at a press briefing. Samsung last year had inaugurated a plant in Shibpur upazila of Narsingdi district in a joint venture with Fair Electronics, a local Bangladesh company to manufacture televisions, refrigerators, microwave oven and air conditioners for the local market. Smartphones will be the fifth product the company will produce here in Bangladesh. At present, Samsung grabs the largest chunk of Bangladesh’s increasing smartphone market with around 46 per cent market share. Chinese brand Symphony is its close competitor with 37 per cent stake at the market. While Samsung and Symphony is on head to head competition, Huawei is steadily marching to the third spot. This brand has hastily opened franchise shops around the country, making it available to customers. Talking with The Independent, Ruhul Alam Al Mahbub, Chairman of Fair Group said, even though Samsung has been enjoying the leading position in the smartphone market, it has been facing some stiff competition from the emerging Chinese high-end brands.

Source: http://www.theindependentbd.com/post/144105

Teletalk to offer 4G service in Aug

State-owned mobile network operator (MNO) Teletalk will start offering 4G service in August this year although three private MNOs launched this service in February. The 23rd meeting of the Parliamentary Standing Committee on the Ministry of Posts, Telecommunications and Information Technology was informed on Sunday that Teletalk has adopted a plan to introduce 4G service for its customers in divisional cities with own financing of Tk 2,000 million (Tk 200 crore), reports BSS. Teletalk is also working to expand backbone transmission network aimed at installing 4G eNode B (network tower) in 1,100 sites to offer the service, the meeting was told. Committee Chairman Imran Ahmed, MP, presided over the meeting where State Minister for ICT Zunaid Ahmed Palak, Moazzem Hossain Ratan, MP, Shawkat Hachanur Rahman (Rimon), MP, and Kazi Firoz Rashid, MP, were present. Posts, Telecommunications and Information Technology Minister Mustafa Jabbar took part in the meeting on special invitation.


No decision on rod, cement prices cut at tripartite meet

A tri-partite meeting at the commerce ministry on finding ways to cut down the exorbitant prices of mild steel rod and cement concluded without any meaningful outcome on Sunday. Manufacturers claimed that the prices of the products rose on the local market because of the price hike on the international market while construction sector businesses countered the claim saying that the rise in price on the local market was not in proportion with the international market. Concluding the meeting, commerce minister Tofail Ahmed said that it was too complicated and referred the issue to the finance minister AMA Muhith for a future meeting. Tofail, however, said that the development works in the election year were being hampered due to the increase in prices of MS rod and cement. ‘Development works in my constituency have remained halted due to the price hike of MS rod and cement and there is a perception that the price hike of the construction items is abnormal,’ he said in the meeting at Bangladesh Secretariat.

Source: http://www.newagebd.net/article/38093/no-decision-on-rod-cement-prices-cut-at-tripartite-meet

Sadharan Bima pays US-Bangla Tk 5.74cr in insurance claims

Sadharan Bima Corporation has paid $0.7 million or Tk 5.74 crore to US-Bangla Airlines in the first instalment as compensation against the carrier’s insurance claim for the aircraft that crashed in Kathmandu last month. As the reinsurer, the state-run corporation handed the money to the primary insurer Sena Kalyan Insurance Company at an event, at the former’s headquarters in Dhaka yesterday. Shibli Rubayat Ul Islam, chairman of Sadharan Bima, gave away the cheque to Shafique Shamim, managing director of Sena Kalyan Insurance. With this, US-Bangla Airlines has so far got $4.872 million against its claim of $7 million from its local and global insurers.

Source: http://www.thedailystar.net/business/economy/sadharan-bima-pays-us-bangla-tk-574cr-insurance-claims-1556707

Local and Global Stock Indices *

Index NameClose ValueValue ChangePercentage Change
DSEX5,747.14↑ 149.70↑ 2.67%
DJIA24,103.11↑ 254.69↑ 1.07%
Nikkei 22521,562.01↑ 107.71↑ 0.50%

World Commodities *

CommodityClose ValueValue ChangePercentage Change
Crude Oil (WTI)$ 65.18↑ 0.24↑ 0.37%
Crude Oil (Brent)$ 69.72↑ 0.38↑ 0.55%
Gold Spot$ 1,329.91↑ 4.43↑ 0.33%

Major Currencies Exchange Rates Movement in Last Seven Days *

Exchange Rates
USD 1BDT 83.22
GBP 1BDT 116.90
EUR 1BDT 102.55
INR 1BDT 1.28





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