BB plans forming CMC for Banks’ liquidity demand
The Bangladesh Bank (BB) is planning to set up a Cash Management Cell (CMC) under its Debt Management Department (DMD) to meet instant liquidity requirement of banks. The issue was discussed at a review meeting with the primary dealer (PD) banks, held at the central bank headquarters in Dhaka on Wednesday, with Md. Khurshid Alam, General Manager of the BB, in the chair. At the meeting, the senior officials of the PD banks proposed the central bank to take such a measure, as the BB is the last resort to facilitate proper liquidity management in the country’s banking system. According to the proposal, at the closure of businesses, the central bank may arrange Repo and Reserve Repo auctions to help the bank concerned comply with the BB’s cash reserve requirement (CRR) rules. Normally, the banks do not lend their excess funds to others without having counterparty limits that are set by an entity in order to manage and control risks. As per the private bankers, excess funds with both the commercial banks as well as the government may be used through the cell. As per a BB senior official, the central bank is considering the proposal positively.
Govt to project GDP growth at 8.2pc in new budget
The government is likely to project growth in gross domestic product at 8.2 per cent and the rate of inflation at 5.5 per cent for financial year 2019-2020. The projection on GDP and inflation, two vital economic indicators, was proposed at a coordination meeting of country’s macro-economy and budget monitoring at the finance ministry. Finance minister AHM Mustafa Kamal who presided over the meeting endorsed the projections, but expressed disappointment to slow progress in implementation of his previous directives on scanners and electronic cash register. The finance minister would announce the growth projection in his first budget, scheduled to be placed on June 13. As per the officials, the GDP projection for the next FY was slightly higher from the provisional estimate of 8.13 per cent in the outgoing fiscal. World Bank, International Monetary Fund and Centre for Policy Dialogue have already raised questions about the provisional growth estimate for the outgoing fiscal. On Tuesday at a briefing in Dhaka, CPD pointed out that the estimate of the GDP deflator growth at 4.23 per cent was significantly lower than the inflation rate of 5.48 per cent in 2018-19.
Injury Insurance for workers on cards
The International Labour Organisation and the government are set to launch an employment injury insurance (EII) scheme on a pilot basis with the aim of protecting the rights of workers. As per the country director of the ILO, the pilot can be launched very promptly and it might be less than one year. The EMK Centre in partnership with the Dhaka Tribune organised the discussion on the occasion of the sixth anniversary of the Rana Plaza building collapse, the nation’s deadliest industrial accident that killed 1,136 workers and injured more than 2,500. The EII can be started from the garment sector and later expanded to other industries as well. According to the ILO director, normally the EII premium is co-shared by owners and the government. The workers would benefit from the EII in three ways: protection from injuries, compensation based on future earnings loss, and if the workers want they can rejoin their job. As per the president of the Sammilito Garment Sramik Federation, a garment sector rights group, works should be respected. The purchasing practices should also be changed. Workers are resources. We also need to talk about the working conditions.
Steelmakers seek tax favours in next budget
The country’s steel manufacturers on Wednesday urged the government not to increase the gas price, saying that the proposed hike would make steel products costlier. They also called for restricting the import of steel rod to help protect the domestic industry. They also requested the government to continue with the existing tariff rates from production to distribution levels, and the current rate or zero per cent Value Added Tax (VAT) on import of raw materials. The steelmakers also called for revoking the advance income tax (AIT) and tax deduction at source (TDS) in the budget for next fiscal year (2019-2020), as the rates are unusually high. They came up with the demands at a press conference at the National Press Club, jointly organised by the Bangladesh Steel Manufacturers Association (BSMA), Bangladesh Re-rolling Mills Association (BRRMA) and Bangladesh Steel Mill Owners Association (BSMOA).
Rumee Ali new Chairman of AB Bank
The Board of AB Bank Limited has appointed Mr. Muhammad A. (Rumee) Ali as its Chairman with effect from April 20, 2019. Mr. Muhammad A. (Rumee) Ali is a prominent banker with extensive and wide-ranging experience as CEO, Board Member, and Chairman of several institutions.
GP profits soar despite hurdles
Grameenphone yesterday reported Tk 890 crore in net profit for the first quarter of 2019, up 25.6 percent year-on-year, as the indomitable operator continues to go from strength-to-strength in spite of its regulatory tussles of late. The carrier, which has been locked in a tug of war with the Bangladesh Telecommunication Regulatory Commission, has secured Tk 3,490 crore revenue in the first quarter — its highest yet in its 22-year history. The amount is an increase of 11.6 percent from a year earlier. The lone listed mobile operator, which held its annual general meeting on Tuesday, announced a 280 percent cash dividend for 2018, according to a press release issued yesterday. And yet, the series of good news could not lift its stock price: it closed at Tk 367.90, down 0.41 percent from the previous day.
Eastland Insurance recommends 12pc dividend
The board of directors of Eastland Insurance Company Limited has recommended 7.0 per cent cash and 5.0 per cent stock dividend for the year ended on December 31, 2018. The final approval of the dividend will come during the annual general meeting (AGM) scheduled to be held on June 27 at Six Seasons Hotel at Gulshan-2 in Dhaka, said an official disclosure on Wednesday. The record date for entitlement of dividend is May 16. The company has also reported earnings per share (EPS) of Tk 1.48, net asset value (NAV) per share of Tk 22.18 and net operating cash flow per share (NOCFPS) of Tk 0.93 for the year ended on December 31, 2018 as against Tk 2.02, Tk 21.59 and Tk 0.90 respectively for the same period of the previous year.
New port to be developed at Mirsarai: CPA Chairman
As per Chattogram Port Authority chairman Rear Admiral Zulfiqur Aziz, construction of a new port would be initiated in near future at Mirsarai, Chattogram, to support the special economic zone. Addressing a view exchange meeting with journalists, marking the 132 anniversary of Chattogram Port Authority, he added that the CPA has done the feasibility study which showed that it was feasible to build a port in Mirsarai, but the project would take time. As per the Chairman, different international companies proposed it to Bangladesh Export Zone Authority, or BEZA, following which the CPA conducted the feasibility study. The chairman said that by the middle of the next year the construction work of Patenga Container Terminal would be completed. Now the CPA is prioritising three things — expansion of the yard, construction of truck terminal and a flyover which would be a connecting road to be used by vehicles of Chattogram port to end traffic congestion in the main city.
Dhaka, Male to sign DTAA
Bangladesh and Maldives signed an agreed minutes on Wednesday to ink a double taxation avoidance agreement (DTAA) between the two countries. As per a statement issued by the National Board of revenue, after a second phase of meeting, representatives of both the countries reached a consensus on signing the agreement. NBR member (international taxation) Arifa Shahana and Maldives’ Internal Revenue Administration Deputy Commissioner General Hasan Zari signed the agreed minutes at the BCS Tax Academy in the city. Once the DTAA is signed, the bilateral trade and investments between the two countries would boost.
MTB organised the BAMLCO Conference 2019
Mutual Trust Bank Limited (MTB) organised the BAMLCO Conference 2019, a day-long forum of the Branch Anti Money Laundering Compliance Officers (BAMLCOs) of the bank, on Tuesday at a hotel in Dhaka. Head of Bangladesh Financial Intelligence Unit (BFIU), Abu Hena Mohd. Razee Hassan graced the conference as the Chief Guest. Md. Zakir Hossain Chowdhury of BFIU and Anis A. Khan, Managing Director & CEO of MTB were present.
Three drug dealers killed in gunfights
Three alleged drug peddlers were killed in separate gunfights with law enforcers in Dhaka and Cox’s Bazar yesterday.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|Nikkei 225|| 22,252.43|| ↑52.43||↑0.24%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 65.70||↓0.19||↓0.29%|
|Crude Oil (Brent)||$ 74.49||↓0.08||↓0.11%|
|Gold Spot||$1,275.97|| ↑0.21||↑0.02%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.5559|
|GBP 1||BDT 108.0240|
|EUR 1||BDT 93.5103|
|INR 1||BDT 1.1913|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<