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

Click to Close

Rate last updated: 02/01/2014 11:15:04 AM

Important Business News Extracts April 04, 2018

Banks now to get cheaper BB funds

Bangladesh Bank has made funds cheaper for all banks by reducing its repo rate by 75 basis points to 6 percent. The decision was made yesterday, a couple of days after the BB slashed the cash reserve requirement or CRR by one percentage point to 5.5 percent. But both the decisions will take effect on April 15, according to two circulars issued by the central bank yesterday. The BB, however, kept the reverse repo rate unchanged at 4.75 percent. Repo is a short-term fund that the central bank gives to commercial banks in case of cash shortfall, while reverse repo is excess money that banks keep with the central bank. The BB has already faced severe criticism from different quarters over its decision to cut the CRR. The decision came on Sunday after Finance Minister AMA Muhith held a meeting with BB Governor Fazle Kabir and directors of private banks.


Bangladesh Bank sells $27m to 10 banks

The central bank of Bangladesh has sold US$27 million more to 10 commercial banks to meet the growing demand for the greenback in the market. “We’ve sold the foreign currency to the banks on Tuesday at market rate to settle import payment bills particularly for fuel oils, food grains and fertilizers,” a senior official of the Bangladesh Bank (BB) told the BBN in Dhaka. He also said the central bank may continue providing such foreign currency support to the banks in line with the market requirement.

Source: https://businessnews-bd.net/bangladesh-bank-sells-27m-10-banks/

10 banks flouting central bank directive to keep interest rate spread under 5%

The Bangladesh Bank issued the directive in order to make the savings schemes more attractive as well as keep the interest rates on loans business-friendly. Although the Bangladesh Bank has strictly directed commercial banks to maintain their interest rate spread under 5%, at least 10 private banks are not following the directive, according to central bank sources. Five foreign banks – Standard Chartered Bank, State Bank of India, Woori Bank, Citibank N.A., and HSBC Bank – and five local banks – Brac Bank Ltd, Dutch-Bangla Bank Ltd, Uttara Bank Ltd, Premier Bank Ltd, and NRB Commercial Bank Ltd – were found to have an interest spread – the difference between interest rates on credit and savings – greater than 5% in March this year. Of them, the Standard Chartered Bank topped the list with 8.23% interest rate spread, followed by Brac Bank’s 7.35%. Sources said Bangladesh Bank issued the directive to maintain an interest rate spread under 5% in order to make the savings schemes more attractive as well as keep the interest rates on loans business-friendly.

Source: http://www.dhakatribune.com/business/banks/2018/04/03/10-banks-flouting-directive/

BB fixes fees for loan, lease

Bangladesh Bank (BB) has fixed the same fees or charges or commissions against credit or lease for all Financial Institutions (FIs). “Loan application fees will be maximum Taka 200 and the document processing fees, CIB charge, stamp charge and legal and valuation fees will depend on the actual cost,” said a BB circular here today, BSS reports. The circular also said fees or penalty interest or profit for delaying loan installment will be maximum two percent with interest rate. In case of repayment of loan or lease before the expiry, the maximum amount of the payment fees or similar fees will be two percent of the outstanding loan or lease. In the case of adjustment before the schedule time of loans given in the cottage and micro sector, any fee will not be taken. No charge will be taken from the customer in case of giving balance confirmation certificate for half yearly basis credit or lease calculation. In case of giving more than twice the balance confirmation certificate as per demand of the customer, the maximum charge will be Taka 200 per time. BB asked the financial institutions to follow the circular.


Private sector credit growth continues to rise

Private sector credit grew 18.49 percent in February, up from 18.36 percent a month earlier and way past the central bank’s target of 16.3 percent, dispelling the notion of an ongoing liquidity crisis in the banking sector. For the best part of 2017 the private sector credit growth has been on the rise, prompting the Bangladesh Bank in January this year to lower the banks’ loan-deposit ratio ceiling to 83.5 percent from 85 percent. Bankers insisted that the move created a severe liquidity crisis but the latest data from the BB suggests otherwise. In the name of the liquidity crisis, private banks, by way of its directors, particularly those who are politically linked, managed to persuade the BB to lower the cash reserve ratio by one percentage point to 5.5 percent.

Source: http://www.thedailystar.net/business/private-sector-credit-growth-continues-rise-1557703

Inflation drops slightly in March

The point-to-point inflation rate in March dropped to 5.68 per cent compared to that of the previous month (February), official data showed. Bangladesh Bureau of Statistics (BBS) data, unveiled on Tuesday, showed that the point-to-point inflation decreased slightly by 0.04 percentage points in last month compared to 5.72 per cent in February. The national statistical body showed that the inflation in March of the current financial year (FY), 2017-18, however, increased by 0.34 percentage points compared to the same month in the previous FY. According to the BBS data, the point-to-point inflation rate in March of FY 17 was recorded at 5.39 per cent.


Export earnings decline by 1.38pc in March

The country’s export earnings in March dropped by 1.38 per cent to $3.05 billion, compared to the corresponding month of last calendar year, according to officials data released on Tuesday. In March 2017, the export earnings were $3.09 billion. The earnings in March this year also fell short of target by 3.19 per cent, it showed. The overall export earnings in the first nine months of the current fiscal year 2017-18, however, stood at $27.45 billion, marking a 6.33 per cent growth. The country fetched $25.81billion in the corresponding period of last fiscal. Earnings from readymade garments (RMG) export during the nine-month period stood at $22.83 billion, marking a 9.11 per cent growth over the corresponding period of the FY 2016-17. Export earnings from woven items grew by 6.75 per cent to $11.51 billion from $10.78 billion in the same period of the last fiscal. The knitwear export stood at $11.32 billion during the period, marking an 11.61 per cent growth, as against $10.14 billion in the same period of the FY17. Woven and knitwear items’ export earnings exceeded the target by 4.03 per cent and 2.03 per cent respectively.


Economy encountering money market, BoP imbalances

The ongoing chaos in the country’s financial market is the manifestation of inefficiency in managing the macro-economy, economists said. They warned that measures taken lately to shore up liquidity in banks could stoke inflationary pressure. Their observations came following the government’s decision to deposit 50 per cent of state enterprises’ funds with private commercial banks (PCBs) from the previous level of 25 per cent and cut in Cash Reserve Requirement (CRR) by 1.0 percentage point. The central bank on Tuesday decided to slash the CRR by one percentage point to 5.5 per cent until December 31 this year. The decision to this effect was taken earlier in a meeting with the directors of the banks, where the finance minister was present. The holding of the meeting has drawn widespread criticism. The central bank also extended the deadline for meeting the revised limit of Advance-Deposit Ratio (ADR) by banks for three months through March 31, 2019, instead of December 31, 2018.

Source: http://today.thefinancialexpress.com.bd/first-page/economy-encountering-money-market-bop-imbalances-1522777853

Pvt banks to give Tk 160cr to PM’s fund

The Bangladesh Association of Banks (BAB), a forum of private banks’ directors, has taken up an initiative to raise Tk 160 crore for the Prime Minister’s Relief and Welfare Fund. The BAB circulated a letter to all private banks last week saying the 30 old banks will donate Tk 5 crore each while the remaining 10 new banks Tk 1 crore each. The amount will be given from the banks’ corporate social responsibility (CSR) funds, chief executives of a number of banks said. Prime Minister Sheikh Hasina yesterday invited over the banks’ directors and chief executive officers along with their spouses for tea at her Gono Bhaban residence in the capital.

Source: http://www.thedailystar.net/business/banking/pvt-banks-give-tk-160cr-pms-fund-1557679

Prime Bank gets new AMD

Prime Bank’s deputy managing director Habibur Rahman has been promoted to the post of additional managing director. Rahman started his banking career with AB Bank in 1985 and joined Bangladesh Bank as an assistant director the following year, Prime Bank said in a statement yesterday.

Source: http://www.thedailystar.net/business/banking/prime-bank-gets-new-amd-1557667

Midland Bank gets new AMD

Mohammad Masoom joined Midland Bank Limited (MDB) as Additional Managing Director (AMD). Prior to taking over the new assignment, he served in Bangladesh Finance and Investment Company Limited (BD Finance) as its Managing Director and CEO. Mr. Masoom, a seasoned banker, has three decades of hands on extensive and versatile banking experience.

Source: http://today.thefinancialexpress.com.bd/stock-corporate/news-briefs-04-04-2018-1522776044

EBL gets new DMD

Chowdhury MAQ Sarwar has recently joined Eastern Bank Ltd (EBL) as deputy managing director (DMD). Prior to joining EBL, he was the Consultant of Islami Bank Bangladesh Ltd. A distinguished banker with 34 years of experience in banking, Mr Sarwar played a significant role in thought leadership in developing Internal Control and Compliance functions for the banking industry. He started his career with IFIC Bank as probationary officer.

Source: http://today.thefinancialexpress.com.bd/stock-corporate/news-briefs-04-04-2018-1522776044

Economic growth set to hit 7.65pc this fiscal: BBS

Bangladesh’s economic growth rate is expected to hit 7.65 per cent in the current financial year, supported by the industrial and agriculture sectors, the government said Tuesday. But economists were critical of the provisional growth rate, saying that the real economic activities are not compatible with the BBS’s figures. The gross income per head of the country is also expected to pick up by 8.82 per cent to US$1,752 in the financial year (FY) 2017-18 from $1,610 in the last fiscal year of 2017, the state-run Bangladesh Bureau of Statistics (BBS) said while unveiling its provisional data. Officials said that the gross domestic product (GDP) growth of the country at constant price has broken all the previous record in Bangladesh’s history. The country joined the rank of the “7.0 per cent growth club” two years ago in financial year 2015-16.


Another extension planned

The power and energy ministry has decided to seek further extension of the Speedy Supply of Power and Energy (Special Provisions) Act 2010 indemnifying officials concerned against prosecution for awarding contracts without tender for three more years until 2021. The ministry made the decision at a meeting with state minister for power, energy and mineral resources Nasrul Hamid in chair on March 29, said ministry officials. Enacted in October 2010 for two years, the law was first extended by two years until October 11, 2014 and by four years until October 11, 2018, they said. Ministry’s power cell director general Mohammad Hossain on Tuesday told New Age that the ministry would seek the three-year extension to facilitate emergency procurement of goods and services for power and energy sector. It is a legal support for facilitating purchases in situations as worse as power cuts, he said. Officials said that the proposal would require Prime Minister Sheikh Hasina’s approval, as she holds the portfolio of power and energy ministry, to be placed before the cabinet before being tabled in parliament.

Source: http://www.newagebd.net/article/38263/another-extension-planned

No plan to raise tax-free income limit: NBR

The revenue authority plans to cut the tax rate for individuals in the lower tax brackets instead of raising the tax-free income limit. “It may not be possible to raise the tax-free income ceiling,” Md Mosharraf Hossain Bhuiyan, chairman of the National Board of Revenue, said at a pre-budget discussion at his office in the capital yesterday. He spoke in a meeting with the leaders of Dhaka Chamber of Commerce and Industry, which proposed raising tax-free income ceiling to Tk 3 lakh from 2018-19. Yesterday, the Bangladesh Chamber of Industries (BCI) and the Dhaka Stock Exchange demanded the limit be set at Tk 3.5 lakh for the next fiscal year due to rising cost of living. Bhuiyan said anyone living outside Dhaka and Chittagong city corporations with annual incomes of more than Tk 2.50 lakh has the ability to pay a minimum tax of Tk 3,000.


BD, India launch container train services

India and Bangladesh have started a container train service. A trial run of the container train was flagged off Tuesday from Majerhat station of Kolkata, said a press release issued by Indian High Commission in Dhaka. The train is scheduled to terminate at Bangabandhusetu West Station today (Wednesday), where it will be received by senior officials of the Bangladesh Railway, it said. “This (trial run) is pursuant to the signing of an MoU between the Container Corporation of India Limited (CONCOR) and Container Company of Bangladesh Limited (CCBL) for starting container services between the two countries during the visit of the Prime Minister of Bangladesh to India in April 2017,” said the press release. Transportation of goods through container trains is expected to be a faster and cheaper option for both India and Bangladesh, it added.

Source: http://today.thefinancialexpress.com.bd/last-page/bd-india-launch-container-train-services-1522778826

Beximco Pharma completes acquisition of Nuvista Pharma

Beximco Pharmaceuticals has completed acquisition of 85.22 per cent stake in Nuvista Pharma worth over Tk 100 million to strengthen its position in hormones and steroids segments. “The board of directors of Beximco Pharma has considered and approved the acquisition of 10,013,474 ordinary shares of Tk 10 each being 85.22 per cent shareholdings of total capital in Nuvista Pharma,” according to a disclosure posted on the Dhaka Stock Exchange (DSE) website Tuesday. Earlier, the shareholders of the company approved the acquisition proposal in its annual general meeting. Currently, the government of Bangladesh holds 12.92 per cent stake in Nuvista Pharma Limited, according to the disclosure.


Local and Global Stock Indices *

Index NameClose ValueValue ChangePercentage Change
DSEX5,790.29↓ 37.23↓ 0.64%
DJIA24,033.36↓ 389.17↓ 1.65%
FTSE1007,030.46↓ 26.15↓ 0.37%
Nikkei 22521,330.22↓40.16↓ 0.19%

World Commodities *

CommodityClose ValueValue ChangePercentage Change
Crude Oil (WTI)$ 63.37↓ 0.14↓ 0.22%
Crude Oil (Brent)$ 67.94↓ 0.18↓ 0.26%
Gold Spot$ 1335.37↑ 2.63↑ 0.20%

Major Currencies Exchange Rates Movement in Last Seven Days *

Exchange Rates
USD 1BDT 83.36
GBP 1BDT 117.41
EUR 1BDT 102.35
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