20 banks warned of existential crisis over soaring defaulted loans
Bangladesh Bank has warned top bosses of 20 banks that the entities might face existential crisis unless effective measures are taken to recover their defaulted and written-off loans. BB deputy governor SK Sur Chowdhury came up with the caution while holding a meeting with the officials of the banks at the BB headquarters in the capital Dhaka on Monday. Representatives from Janata Bank, Rupali Bank, Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, AB Bank, Dutch-Bangla Bank, National Credit and Commerce Bank, Jamuna Bank, Premier Bank, EXIM Bank, The Farmers Bank, The City Bank, Al Arafah Islami Bank, Uttara Bank, Bank Asia, State Bank of India, Woori Bank, Bangladesh Commerce Bank, ICB Islamic Bank and Commercial Bank of Ceylon attended the meeting.
Poor recovery of classified loans irks central bank
The central bank has warned the commercial banks against poor recovery of classified and written-off loans and asked them to intensify the recovery drives if they like to avert stern actions. Bangladesh Bank (BB) issued the warning at a meeting with 20 banks on their loan recovery position at the central bank headquarters in the capital Monday, with deputy governor SK Sur Chowdhury in the chair. Chief executive officers (CEOs) and managing directors (MDs) of the banks, which were identified for their poor loan recovery performances, took part at the review meeting, officials said.
National Housing Finance And Investments Limited, a leading Financial Institution (Home Loan provider) and ABC Real Estates Ltd., renowned real estate developer company of the country have signed a Memorandum of Understanding (MoU) at the Corporate Head Office of National Housing. Under the purview of this memorandum, prospective clients of ABC Real Estates will have the privilege to avail home loan facility from National Housing with the soft terms & conditions. Managing Director of National Housing, Md. Khalilur Rahman and Director of ABC Real Estates Srabanti Datta signed the MoU on behalf of their respective organization.
Mr. Md. Giasuddin Ahmed has recently joined at Shahjalal Islami Bank Limited (SJIBL) as Deputy Managing Director. Prior to his joining at Shahjalal Islami Bank Ltd. he was the Executive Vice President & Branch Manager of Foreign Exchange Corporate Branch of Islami Bank Bangladesh Limited (IBBL). Mr. Md. Giasuddin Ahmed started his banking career in 1985 as an Apprentice Officer in IBBL. In his 31 years banking career he served in IBBL at various capacities.
Foreign investors have urged the government to reduce the corporate tax by 10.0% points for all businesses. The current corporate taxes for different taxes range from 25.0% to 45.0%. The highest 45.0% rate is on mobile phone operators. They want it be slashed to 35.0% and that of publicly traded companies to 15.0% from the current 25.0%. Foreign Investors’ Chamber of Commerce and Industry (FICCI) made the call in its budgetary proposals for the fiscal year 2017-18 at a pre-budget meeting with the National Board of Revenue in Dhaka on Monday. NBR Member for Income Tax Policy Parvez Iqbal chaired the meeting. FICCI President Rupali Chowdhury led the delegation.
Finance Minister AMA Muhith will not budge on his plans to introduce a 15.0% uniform VAT rate from July, but he might soften his stance on turnover tax, according to officials. Muhith yesterday sat with two other ministers and a number of top business leaders to discuss the new VAT and Supplementary Duty Act 2012 at the secretariat. Industries Minister Amir Hossain Amu, former presidents of the Bangladesh Chambers of Commerce and Industry AK Azad and Salman F Rahman and FBCCI First Vice-president Md Shafiul Islam Mohiuddin were present at the meeting. Business leaders reiterated that the existing multiple VAT rates should continue, said an official present at the meeting. They urged the government to increase the limit of turnover tax from BDT 8.0 million to BDT 50.0 million and re-fix the turnover tax at 0.5% instead of 3.0%. Under the new law, businesses will have to maintain proper records of their transactions, which the business leaders have opposed. The finance minister hinted that he might relax the provisions on turnover tax and the rates in the upcoming budget.
The cabinet has approved a proposal of the Internal Resources Division (IRD) for formulating an integrated income tax law incorporating all previous rules, amendments and orders. The approval was given in the weekly meeting of the cabinet held at the Bangladesh Secretariat in Dhaka on Monday with Prime Minister Sheikh Hasina in the chair, reports BSS. Briefing the reporters after the meeting, Cabinet Secretary Mohammad Shafiul Alam said the draft of the new law titled “The Income Tax Act, 2017” had been formulated in an integrated manner through compiling all amendments to the Income Tax Ordinance, 1984. The new act would make the income tax laws and rules easier and more effective, he said.
Government, RMG makers move to address ILO conditions
Both the government and the apparel makers have moved forward to address certain conditions of the International Labor Organization (ILO), related to workers’ rights, in the wake of the recent warning on withdrawal of the European Union’s (EU) GSP facility for Bangladesh. The European Commission (EC) recently issued the warning on temporary withdrawal of the Generalized System of Preferences (GSP) benefit for the country, if it fails to address the labor rights issues and come up with a proper plan of action in this regard within a certain timeframe.
American public-and private-sector firms’ interest in Bangladesh’s burgeoning energy and power sector is said to be ‘growing day by day’, reports UNB. US Ambassador to Bangladesh Marcia S. Bernicat said this when she called on State Minister for Power and Energy Nasrul Hamid at his office in the Bangladesh Secretariat on Monday, according to a release from the ministry. She said some giant companies like Exelerate, SunEdison, and GE are interested to work in Bangladesh, noting that American firms intend to work in Bangladesh’s renewable energy sector as well.
That the country’s pharmaceutical market achieved a growth almost double the size worth $ 2.25 billion by December last from $1.3 billion in 2011 is least surprising. The industry’s potential for fast growth was recognised by financial analysts quite some time ago. In fact, it could register even more spectacular growth if only appropriate measures were adopted. On the positive side, some pharmaceutical companies here have proved they can produce drugs of international standard. Even the Food and Drug Administration (FDA) of the United States of America has approved medicines produced by at least one pharmaceutical company from Bangladesh for import to that country. Export of quality drugs is the first step towards attaining a special status and consequently expanding market and sale. If the leading pharmaceutical companies of the country together can play the same groundbreaking role, the future of the industry will be particularly brighter.
Mobile operators oppose proposal to hike spectrum prices
Mobile operators have opposed the telecom regulator’s proposal to hike the spectrum prices and revenue sharing percentage for 4G services on grounds that the move would make the technology commercially unviable. In the proposed guideline for 4G services, the Bangladesh Telecommunication Regulatory Commission called for 15.0% revenue sharing with operators. At present, the operators share 5.5% of their gross revenue from 2G and 3G services with the BTRC. They also forward 1.0% of their proceeds as contribution towards the social obligation fund.
Robi (telco) fined BDT 0.41 million for three false offers
A government agency yesterday fined Robi BDT 0.41 million for duping three customers through different offers — the second time that the mobile operator was penalized. The Directorate of National Consumer Rights Protection (DNCRP) slapped the penalty on the operator after the hearing on customers’ complaints, said Shaheen Ara Momtaz, the deputy director of the agency. On February 11, a customer named Shohag recharged Tk 98 to take an offer of the operator that promised him 1.5 GB of data. However, he received only 1 GB. After getting the evidence the DNCRP fined Robi BDT 0.25 million, Momtaz said. Another customer Md Saiful on February 13 was charged BDT 28 for an offer to watch movies all day through a specific link. When he clicked on the link, he found no content. For this, the DNCRP fined Robi BDT 0.15 million. Against another complaint the directorate fined Robi BDT 10,000.
IFC to finance Bangladesh’s first LNG import terminal
International Finance Corporation(IFC) will finance to build Bangladesh’s first LNG import terminal. Excelerate Energy Ltd will build the LNG import terminal. The total cost of the project is estimated to be at $179.4 million. IFC will give loan up to $34.1 million for its own account through an A loan and will mobilize up to an additional $91.4 million in Parallel loans or IFC B Loans.
Major Currencies Exchange Rates Movement in Last Seven Days
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.
ABOUT DHAKA BANK
Dhaka Bank has truly cherished and brought into focus the heritage and history of Dhaka and Bangladesh from Mughal outpost to modern metropolis. Most of its presentation, publications, brand initiatives, delivery channels, calendars and financial manifestations bear Bank’s commitment to this attachment.