BB Chief urges Banks to shun aggressive lending
The Bangladesh Bank (BB) Governor Fazle Kabir has advised the country’s banks to avoid aggressive lending to prevent accumulation of bad loans in the financial sector. As per the Governor, the banks should avoid aggressive lending, and should concentrate more on loan recovery. The BB governor also emphasised improving corporate governance in the banking sector. According to the governor, corporate governance is not something that can be imposed by the central bank. It is a culture that has to be developed in house by the banks themselves. Finance Minister A H M Mustafa Kamal was present in the event as the chief guest. Noting that Bangladesh will graduate from the least developed country (LDC) status by 2024, the central bank chief also stressed on enhancing the private sector credit growth. As per him, currently our private sector credit growth is around 23 percent. But it has to be increased to 27 percent by 2024 to cope with the upcoming transition.
Paid-up capital for new Bank will be 10b: Finance Minister
Finance Minister AHM Mustafa Kamal said on Tuesday the paid-up capital for any new commercial bank should be Tk 10 billion (1000 crore). As per the Minister, the government will work to increase the paid-up capital of any commercial bank so that the consumers are not affected even after any possible shocks to their deposits. Mr Kamal added the government would overhaul the capital market for a vibrant economy. According to the Minister, the capital market is the mirror of economy and we have failed to take it to a better level. If the market becomes strong, so will be the economy. The minister said this at a ‘Meet the Press’ at his Economic Relations Division office in the capital.
Two Bangladeshis make ‘Forbes 30 Under 30 Asia’
Two Bangladeshis — Pathao cofounder Hussain Elius and cartoonist Morshed Abdulla Al — have been listed in Forbes 30 Under 30 list. Picked from over 2,000 entries, heavily researched by a team of reporters and vetted by an A-list of judges, Forbes presented this year’s edition of Forbes 30 Under 30 Asia list. Hussain Elius and Shifat Adnan (over 30) cofounded Pathao, the leading ride-sharing, on-demand logistics, and food delivery platform in Bangladesh. Today, its motorbike and car hailing vertical alone serves five million riders across five cities in Bangladesh and Kathmandu in Nepal. According to Forbes website, Elius envisions Pathao as the country’s “super app” and is inspired by one of his key investors, Indonesia’s Go-Jek. Pathao has raised over $12.8 million from four rounds of funding and is valued at over $100 million. Cartoonist Morshed Abdulla Al, at the beginning of 2018, under the pen name Morshed Mishu began transforming tragic and shocking images from wars into joyful art, hoping to show how beautiful the world would be without violence or war. After his work went viral, Mishu was awarded the ‘Global Happiness Challenge’ project and he was hired as a cartoonist for newspapers across Bangladesh. Currently, he is the assistant editor at Unmad, a Dhaka-based satire magazine and the founder of Morshed Mishu’s Illustration.
BSEC okays IDLC’s Tk 255cr bond
Bangladesh Securities and Exchange Commission on Tuesday allowed IDLC Finance Limited to float non-convertible zero coupon bond worth Tk 255 crore. The capital market regulator gave the approval at a commission meeting, presided over by its chairman M Khairul Hossain. As per the BSEC approval, the face value of each unit of the unsecured non-convertible zero coupon bond will be Tk 10 lakh and it will be fully redeemable in five years. Only corporate bodies, financial institutions and other eligible investors will be allowed to subscribe the bonds through private placement. The IDLC will address its financial needs and will strengthen its liquidity base through issuing the bond. Green Delta Insurance Company Limited acts as the trustee for the bond while Standard chartered Bank is the mandated lead arranger for the bond.
UCB, Incentive Remit launch real-time Remittance Service
United Commercial Bank Limited (UCB) in collaboration with Incentive Remit (M) and FELDA Mobile, Malaysia launched the Real-time International Remittance Service though its digital payment system Upay. FELDA Mobile Sdn Bhd is a Joint Venture Company of Malaysia Government entity FELDA (Federal Land Development Authority). The service will enable Bangladeshi Migrant Workers of Malaysia to send money to their family members directly through Upay wallet.
Stocks keep gaining for second session
Stocks finished higher for the second day in a row on Tuesday as optimistic investors continued their buying appetite on sector-wise shares. As per the market analysts, investors showed their buying spree on large-cap issues amid lucrative price level while some rebalanced their portfolio ahead of quarterly earnings. According to EBL Securities, the Prime Minister’s statement about reducing the banks’ interest rate to single digit encouraged investors to take position. Expressing firm stance to bring down the interest rate of banks’ interest to a single digit, the Prime Minister Sunday said the government will take measures to reduce the interest rate for the sake of the country’s industrialisation. The PM made the comment while inaugurating the weeklong first National Industrial Fair in capital Dhaka.
Bourses, NBFIs want tax waiver on Bond trading
Stock exchanges and non-bank financial institutions on Tuesday proposed that National Revenue Board waive taxes applicable to bond transaction at bourses as the waiver would help make the bond market vibrant. They also urged to waive income taxes applicable to banks, NBFIs and insurance companies against their income generated from the investments in bonds. NBR chairman Md Mosharraf Hossain presided over the pre-budget meeting with representatives from stock exchanges, non-bank financial institutions, merchant banks and insurance companies held at the NBR board room in Dhaka. As per DSE managing director, Dhaka Stock Exchange has refrained from allowing investors trading bonds at the bourse without tax due to lack of clarity in the taxation rules. Besides the economic benefit of bond market in providing long-term financing, it is also a risk-free investment instrument for the stock exchanges. DSE MD also urged NBR to give full tax waiver for the bourses for three years as it would enhance DSE’s capacity to invest on product diversification, to set up disaster recovery centre and to upgrade IT infrastructure.
Ten most-traded Companies grab 37pc turnover
Top ten-traded firms captured nearly 37 per cent transaction on the Dhaka Stock Exchange (DSE) Tuesday while United Power dominated the chart for the fourth straight session. As per market insiders, investors continued to show their appetite for United Power shares expecting higher quarterly earnings as the January-March quarter ended. The United Power Generation & Distribution Company posted a modest earnings growth in the period of July-December 2018. Its earnings per share (EPS) (separate) rose 15.18 per cent to Tk 5.31 for July-December 2018. The EPS (separate) was Tk 4.61 for the same period in 2017. According to statistics from the DSE, about 916,556 shares of United Power were traded, generating a turnover of Tk 381 million, which was 9.24 per cent of the DSE’s total turnover. The total turnover on the DSE stood at Tk 4.12 billion on Tuesday as against Tk 4.24 billion in the previous session. The power generation company’s share closed at Tk 415 on Tuesday, gaining 0.07 per cent over the previous day. Its share price traded between Tk 154.10 and Tk 422.50 in the last one year. The United Power, which was listed on the DSE in 2015, disbursed 90 per cent cash and 20 per cent stock dividend for the year ended on June 30, 2018.
Norway offers technical support to frame Shipbuilding Policy
Norway will provide technical support to formulate a shipbuilding policy for Bangladesh with a view to developing an eco-friendly shipbuilding industry. The Scandinavian country is also willing to extend necessary cooperation in framing another policy to ensure a sustainable private sector development. Norwegian Ambassador Sidsel Bleken in Dhaka said this during a meeting with Industries Minister Nurul Majid Mahmud Humayun at his office in the city on Tuesday. Additional secretary of the ministry Begum Porag, among others, was present at the meeting. They also discussed different issues of bilateral cooperation in the industrial sector. Various issues such as skilled manpower, utilisation of water supply, ease of doing business, investment-friendly law and policy framework came up during the discussion.
DCCI seeks cut in Corporate tax
Business leaders made on Tuesday a set of fiscal proposals including reduction in corporate tax, raising tax-free income ceiling and keeping revenue mobilisation growth within 20 per cent. In pre-budget discussion meetings with the National Board of Revenue (NBR), office-bearers of Dhaka Chamber of Commerce and Industry (DCCI) and Bangladesh Chamber of Industries (BCI) also recommended the revenue board allow tax-free investments in research and development (R&D).
BD may allow Bhutan to use Ctg and Mongla ports
As per the Officials, Bangladesh is likely to provide transshipment facility to Bhutan under which the land-locked country will be able to use Chittagong and Mongla ports for its international trade. A deal in this regard is likely to be signed during the visit of the Bhutanese Prime Minister to Dhaka on April 12, according to officials of the foreign and shipping ministries.
SINGER launches ‘Boishakhi Mela’
Singer has launched a month-long special campaign titled “Singer Boishakhi Mela” on the occasion of ‘Bangla New Year’. Under this campaign, customers can enjoy up to BDT 10,000 cash discount on Refrigerators, up to BDT 4,000 on Air Conditioners and up to BDT 1,300 on Microwave Ovens. Besides there is discount up to BDT 12,000 in LED TV exchange offer. Customers can also avail up to BDT 7,000 cash discount upon purchase of LED TVs. Moreover, 14 days free trial offer is there for Washing Machines.
MIDAS Financing gets new Chairman, MD
Mohammed Nasir Uddin Chowdhury has recently been elected chairman of MIDAS Financing for a two-year period. The election took place at the company’s 303rd board meeting. The company also appointed Md Atiar Rahman Ansary, the general manager, as managing director (current charge).
3 arrested with 8.45 lakh yaba pills
The Rapid Action Battalion-1 yesterday claimed to have arrested three members of a yaba smuggling syndicate which brought the crazy drugs to Dhaka from Myanmar using a new sea route via Patuakhali for the last one year.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 62.80||↑0.22||↑0.35%|
|Crude Oil (Brent)|| $ 69.74||↑0.37||↑0.53%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.3853|
|GBP 1||BDT 109.0080|
|EUR 1||BDT 93.3915|
|INR 1||BDT 1.2043|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<