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 28, 2016

Bangladesh Bank eases rules for banks’ exposure to stock market

Bangladesh Bank yesterday relaxed the rules related to banks’ investment in stocks in a move to boost the ailing market. Now, the banks will not have to sell shares to adjust their stock market exposure exceeding the permitted ceiling, according to Anwarul Islam, deputy general manager of BB. Islam said components in the banks’ capital market exposure will be restructured. The development will enable banks to make fresh investments in stocks, although the stock market exposure ceiling remains unchanged at 25% of their capital, he said. Earlier in December last year, the banks’ capital given to their stock market subsidiaries were kept out of their stock market exposure. The decision came into effect in January this year. But the move had failed to boost the capital market, which has been witnessing a steep fall in recent days. The Banking Companies Act 1991, which was amended in 2013, has limited a bank’s stock market exposure to 25% of its capital by July 21 this year. The capital includes paid-up capital, share premium, statutory reserve and retained earnings.


BSEC approves separate platforms for small cap companies

The securities regulator Wednesday approved the draft rules to facilitate small cap companies which will offload shares through Qualified Investor Offer (QIO), officials said. Under the rules titled ‘The Bangladesh Securities and Exchange Commission (Qualified Investor Offer by Small Capital Companies)’, the small cap companies will be listed with the separate platforms to be introduced on both the stock exchanges. The companies will be listed under both the fixed price and book building method and the share trading by the Qualified Investors (QIs) will be conducted as like the trading system of the main platform. The approval came at a meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC). As per the BSEC rules, the existing paid-up of the companies willing to raise funds through separate platforms will be minimum BDT 50 million and the amount will exist below BDT 300 million after offloading shares. At Wednesday’s meeting, the securities regulator has approved the prospectuses, which incorporated some amendments, of three unit funds which earlier were managed by the Investment Corporation of Bangladesh (ICB). The unit funds are 3rd ICB Unit Fund, 4th ICB Unit Fund and 5th ICB Unit fund.


Finance Minister affirms over 7.0% GDP growth, fair economic outlook

Finance Minister AMA Muhith affirmed that country’s GDP growth will be above 7.0% in the current fiscal year (FY), as he painted a fair picture of the economy before parliament. The official statistical bureau has already calculated 7.05% GDP growth for the fiscal, although foreign development financiers have put it below the mark. The finance minister made the projection in a report styled ‘development in budget implementation and trend of income and expenditure and macroeconomic review’ placed in parliament Wednesday for the first half (H1) (July-December) of the current FY. In his statement, Mr Muhith informed the House of Jatiya Sangsad that the Asian Development Bank (ADB), the World Bank (WB) and the United Nations (UN) have projected 6.7% GDP growth for the current FY while the International Monetary Fund (IMF) put it at 6.8%. According to the final statistics of BBS, the country achieved 6.55% GDP growth in FY 2014-15, which was higher compared to that of similar countries in the same period, he told the lawmakers.

Source: http://print.thefinancialexpress-bd.com/2016/04/28/140212

Government expenditure drops in Jul-Dec

Government expenditure declined 0.2% year-on-year to BDT 676.2 billion in the first six months of the fiscal year despite the increase in public servants’ salaries. The amount is 26% of the total budget of BDT 2,951.0 billion. The disclosure came in the six months’ budget implementation report, which was placed by Finance Minister AMA Muhith in parliament yesterday. Revenue expenditure dropped 1.2% to BDT 590.5 billion, while development expenditure increased 3.3% to BDT 175.5 billion, according to the report. Among the ten large ministries and divisions, six spent 3 to 25% less than last year’s. The bridges division’s spending decreased the most, by 25.1%, followed by road transport and highways division at 22.4%. However, four ministries’ spending rose much. The power division’s implementation soared 77% and railways ministry’s 44.8%. “Praiseworthy progress has been achieved in the power and energy sectors,” Muhith said. In 2009, the power generation capacity was 4,942 megawatt, which now stands at 14,271MW.

Source: http://www.thedailystar.net/business/govt-expenditure-drops-jul-dec-1215550

Asian Development Bank signs USD 30.0 million loan for garment sector

The Asian Development Bank has signed a USD 30-million loan deal with Brac Bank, which will be used to finance the construction and upgrade of garment factories in Bangladesh. The loans will also be used to build effluent treatment plants in the textile and garment industry, the ADB said in a statement yesterday. Many factories still operate without effluent treatment plants, resulting in widespread water pollution, it said. Water pollution is particularly hurting people in rural areas where communities rely on surface water for washing, bathing, irrigation and fishing. “Bangladesh has been taking steps in conjunction with the international community, to make its factories safer and to improve conditions for workers,” said Biao Huang, investment specialist in ADB’s private sector operations department. “But there is a substantial cost and a need for long-term funding that is not readily available from current sources.” “This loan, with a five-year tenor, will help meet the need for longer term finance currently unavailable from local banks and international capital markets, and will be used exclusively by Brac Bank to finance socially and environmentally sustainable projects.”


Further gas price hike to hurt spinners: BTMA

Cotton spinners yesterday expressed concern over the proposed gas price hike for captive power plants, as they fear a massive loss in competitiveness if the price is raised any further. Chowdhury spoke at a press conference at the two-day World Cotton Outlook Summit that began at the Westin Hotel in Dhaka yesterday. IBC Asia, a Singapore-based event management firm, and BTMA jointly organized the summit being participated by 150 cotton traders, spinners, weavers, importers and exporters from all over the world. The government proposed to increase gas price by about 130% to BDT 19.22 per cubic metre for captive power plants from BDT 8.36 at present. The government had last increased the gas price in September last year to BDT 8.36 per cubic meter from BDT 4.36. At that time, the profit margin from the sale of yarn declined to below USD 1.0 per kg, according to industry insiders.


Health insurance for government, garment workers on cards

The government has taken an initiative to launch health insurance for government employees and social health insurance for garment workers, Health Minister Mohammed Nasim said yesterday. The insurance schemes are part of the Healthcare Financing Strategy 2012, which has been prepared already, he told the parliament. Meanwhile, a total of 1,667 pharmacies and factories were fined by mobile courts from January 2015 to March 2016 on various charges, including having no drug license, selling and producing adulterated and banned medicines, according to Nasim. Twelve factories, 47 pharmacies and two warehouses were sealed off by the mobile courts during the period. In response to another scripted question, Nasim said his ministry is now working on drafting a private medical service law for updating ‘The Medical Practice and Private Clinics and Laboratories (Regulation) Ordinance 1982’. The government also plans to construct another 500 community clinics across the country, Nasim said.

Source: http://www.thedailystar.net/business/health-insurance-govt-garment-workers-cards-1215529

Realtors air concern over ‘unusual’ rod price spike

The country’s realtors expressed their concern over “unusual” hike in the mild steel rod (MS rod) prices and urged the authority to take necessary steps to bring back the cost at a rational level. In a statement, the apex trade body of realtors said due to increase in the prices of MS rod, the sector is passing a rough period. Building construction work is being hampered severely. The Real Estate and Housing Association of Bangladesh (REHAB) also requested the authorities concerned not to increase tax rate on raw materials of rod to keep prices stable. They said the traders have already increased the price of MS rod nearly 25% on the pretext of price hike in raw materials. Besides, they increased prices of rod anticipating tax rate increase in the upcoming budget on raw materials. If the tax is increased on raw materials of rod, the basic stuff of building construction, it will negatively impact the sector, they said.

Source: http://print.thefinancialexpress-bd.com/2016/04/28/140174

FBCCI for wider tax cuts to avert evasion, capital flight

The apex chamber has prepared its budget proposals for the government to raise income-tax threshold to BDT 300,000 and consider wider tax cuts to avert evasion and capital flight. It seeks reduction in high rates of corporate tax and minimum tax for individuals in the budget for fiscal year (FY) 2016-17. The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has made a strong plea for scrapping the system of wealth surcharge on net asset that has been accumulated from taxed income Its proposals are scheduled to be placed in the meeting of budget consultative committee today (Thursday). “Considering high cost of living and inflation, tax ceiling for individuals should be increased,” the FBCCI says. The apex chamber proposes BDT 325,000 as the ceiling for women and senior citizens above 65 years, BDT 400,000 for mentally and physically challenged people and BDT 450,000 for injured freedom fighters. It also seeks to see BDT 3,000 as minimum tax for individual taxpayers, irrespective of areas.

Source: http://print.thefinancialexpress-bd.com/2016/04/28/140214

World Stock and Commodities

Index NameClose ValueValue ChangePercentage Change
Crude Oil (WTI)*$45.24(0.09)(0.20%)
Crude Oil (Brent)*$47.06(0.12)(0.25%)
Gold Spot*$1,247.88+2.05+0.16%
Dow Jones Industrial Average18,041.55+51.23+0.28%
Nikkei 22517,251.36+243.32+1.41%
FTSE 1006,319.91+35.39+0.56%

Exchange Rates

USD 1BDT 78.45*
GBP 1BDT 114.09*
EUR 1BDT 88.97*
INR 1BDT 1.18*

*Currencies and Commodities are taken from Bloomberg.




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.

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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