Tk 70,400cr loans rescheduled in last five years: BB
Banks have rescheduled loans amounting to about Tk 70,400 crore of troubled borrowers over the last five years, putting extra pressure on the sector.“The rescheduling of loans has created extra stress on the banking system in recent times as this constitutes a significant part of the banks’ total loan portfolio,” said the central bank’s Financial Stability Report 2016.The report was unveiled yesterday by Bangladesh Bank Governor Fazle Kabir at an event that was attended by chief executives of all banks.At the end of December last year, the loans that had been rescheduled at least once reached 10.5 percent of the banks’ total outstanding loans.Of the total outstanding loans of Tk 673,720 crore, 75.8 percent are unclassified.Along with over-leverage, poor due diligence, influenced lending, fraud and negligence in compliance with risk management practices could be the reasons for the rise in rescheduled loans, according to the report.In 2012, about Tk 5,500 crore of loans were rescheduled, and from 2013 onwards the amount ranged from Tk 12,000 crore to Tk 19,000 crore.
Banking sector’s asset quality deteriorates: BB
The overall asset quality of the country’s banking sector deteriorated slightly in 2016 while around 46 per cent of the total default loans got concentrated in three sectors.Such an evaluation of the financial health of banks in the past calendar year was unveiled in a central bank report released Monday, with a note of caution against spread of ‘default culture’. Default of the largest borrowers is likely to have the highest impact on the banks’ soundness, warns the Bangladesh Bank (BB) in its stress-testing assessment incorporated into the Financial Stability Report (FSR) 2016.
Jamuna Bank, US-Bangla Airlines ink corporate agreement
A mutual agreement has signed between Jamuna Bank Limited and US-Bangla Airlines held on Jamuna Bank Limited recently.Under the agreement, employees of Jamuna Bank and JBL Credit Card holders will get installment and corporate facilities from US-Bangla Airlines.Deputy Managing Director of the Bank AKM Saifuddin Ahamed and Deputy Director (Marketing & Sales) of US-Bangla Airlines Sohail Majid signed the agreement on behalf of their respective organisations.Besides, SEVP and Head of human resources of the bank Mamun Mahmud with high officials from both the organisations were also present in the signing ceremony.
SJIBL distributes relief among landslides victims in Chittagong’s Rangunia
A total of 250 families affected by recent landslides in Chittagong’s Rangunia upazila have recently received aid from Shahjalal Islami Bank.Farman R Chowdhury, managing director of the bank, has distributed the relief among the families based in Rajanagar, South Rajanagar, Islampur, Hosnabad and Lalanagar union of the upazila.Each family received 20kg Rice, 2kg lentil, 1kg salt and 1kg sugar as aid.
BASIC Bank falls short of BB’s performance targets
Scam-riddled BASIC Bank has failed to comply with the conditions imposed by the Bangladesh Bank for 2016 with the singular view of improving its financial health.For instance, the bank last year went past the single borrower exposure limit, lending Tk 620 crore more than it is permitted to by the rule to a total of 20 clients, according to a BB report.Alauddin A Majid, chairman of BASIC Bank, acknowledged the transgressions, adding that most of the loans were extensions of old loans.Of the total excess loan amount, about Tk 200 crore were new loans, he said.The BB had set a recovery target of Tk 1,118 crore from defaulted borrowers, but the state-run lender could manage only 12.5 percent of the sum.The recovery from top 20 defaulters was more disappointing: it managed only 1.63 percent against the target of Tk 538 crore.But the recovery from other defaulters was relatively better as the lender managed to collect nearly Tk 132 crore against the target of Tk 580 crore.
DSEX hits record high riding on banks
Stocks rebounded strongly Monday, with core index of the premier bourse hitting record high, as investors showed their buying appetite on banking issues following their healthy quarterly earning declarations.Brokers said market ended higher after two-session mild correction as most of the listed banks showed positive earnings in second quarter (Q2) which prompted investors to grab bank shares.Out of 30 listed banks, 28 have so far declared their Q2 (un-audited) earnings till Monday. Of them, consolidated EPS of 18 banks rose, seven banks declined while three banks remained unchanged in April-June, 2017 compared to the same period a year ago.Share prices of 29 banks closed green on the day and the bank sector posted the highest gain of 2.86 per cent with five banks among the top gainer chart led by Rupali Bank, City Bank, Premier Bank, Eastern Bank and Trust Bank.The bank sector also kept its dominance in turnover chart, grabbing 31 per cent of the day’s total turnover, followed by non-bank financial institutions with 15 per cent.
UCB extends service for Liz Fashion
United Commercial Bank Limited (UCB) has implemented convenient banking services for Liz Fashion Industry Limited integrating range of online banking services through Internet Banking of UCB to ensure mutually benefited service excellence, said a statement.The newly offered services will empower Liz Fashion Industry Limited to obtain tailored and secured on premise banking services which will expedite the expected service delivery with reduced time but will ensure optimum efficiencies for both the companies.
Call for bankers to support entrepreneural development
Bankers need to play important role for the development of entrepreneurs along with their regular activities of disbursement and realisation of loans for the economic development of the country, said bank and financial institutions division secretary Md Eunusur Rahman.”Bankers must not limit their activities to disbursement and realisation of loans, they need to work for development of entrepreneurs for economic development of the country,” he said while speaking at the recent annual business review meeting of Karmasangsthan Bank (KB).
Fintech ‘an opportunity, not a threat’ to BD’s banking industry
The new wave of financial technology – better known as fintech – is often portrayed as a disruptive force that threatens banks with new, agile and savvy competitors. Fintech is transforming the way people and companies connect with their banks, and the way banks manage their back-office operations, according to a press release.”Fintech complements rather than threatens banking institutions. In my experience, banking has always been about technology, so today’s financial-technology innovation boom represents evolution rather than revolution for traditional banking. It is supplementing and diversifying the existing financial system – not replacing or disrupting it” said Francois de Maricourt, Chief Executive Officer, HSBC Bangladesh.
Muhith concerned over Ctg port mismanagement
Finance Minister AMA Muhith yesterday expressed deep dissatisfaction at the mismanagement in container handling at Chittagong port as it pushes up the cost of imports and exports of products.“This is a matter of shame that ships have to wait in the port for unloading goods. This is a national loss,” he said at a meeting in the secretariat. “As a result, time is wasted and additional cost is counted,” Muhith said.The minister expressed the frustration during a meeting on the overall situation at the Chittagong port and the Benapole land port. The meeting was convened to find a way to keep the Chittagong port and the Benapole land port open for 24 hours and seven days a week following an instruction from the prime minister.Shipping Minister Shajahan Khan, senior officials of the Chittagong Port Authority (CPA), the Bangladesh Bank and the National Board of Revenue, business leaders and port users were present.Chittagong Customs Commissioner AFM Abdullah Khan said 16 out of 18 private inland container depots (ICD) are not operational.
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Major Currencies Exchange Rates Movement in Last Seven Days
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