Remittance inflow rises by 11 per cent in July
The monthly remittance inflows increased by almost 11 per cent to $1.12 billion in the first month of the current fiscal year 2017-18 compared with the same month of the last FY 2016-17. In July last year, the amount of inward remittance was $ 1 billion. Bangladesh Bank officials termed the trend as positive after passing a disappointing last fiscal year in remittance earnings with negative growth by 17 per cent.In FY 2017, the country received a total of $12.77 billion in remittance against $14.93 billion in previous fiscal year, according to the data of the central bank. They also termed the growth as temporary phenomena as they could not identify the actual reasons behind the positive change in remittance earnings. The inflows of remittance may have increased due to increased monitoring and drives of the central bank against illegal money transfer activities by the mobile financial services, they said. Expatriate Bangladeshis may also have sent higher amount of money to the country ahead of Eid-ul-Azha, the second largest religious festival of Muslims, as family members of the expatriates need extra money to buy sacrificial animals. A high official of the central bank said that it was not possible to comment on the rise of remittance inflows just taking the figure of one month. It will take two-three months more to understand the trend whether it will sustain or not, he said, adding that remittance earnings may also drop next month as there was no major changes in the situation under which remittance earnings dropped last year. According to the Bangladesh Bank data released on Tuesday, remittance inflows, however, declined compared with previous month of June.
BB advises BTRC to lower USSD, SMS prices for MFS
Bangladesh Bank on Tuesday requested Bangladesh Telecommunication Regulatory Commission to take initiative for bringing down the prices of unstructured supplementary service data (USSD) and short message service (SMS) to a logical level to facilitate banks’ mobile financial services.The central bank made the request at a coordination meeting among financial market regulators held at the BB headquarters in the capital, Dhaka.BB governor Fazle Kabir presided over the meeting while representatives of Bangladesh Securities and Exchange Commission, Insurance Development and Regulatory Authority, Microcredit Regulatory Authority, Registrar of Joint Stock Companies and Firms and BTRC were present.BB deputy governor SK Sur Chowdhury after the meeting told reporters that the central bank had requested the telecom regulator to have a discussion with the mobile network operators in this regard so that the price cut issue could be resolved amicably.The central bank came up with the plea following allegations from some MFS providing banks that the rates for USSD and SMS were high.The banks alleged that the cost of USSD and SMS set by mobile network operators (MNOs) was high considering their earnings through operating the MFS.The banks are using the USSD to transfer the MFS-related transaction data to clients.
Movable property to serve as collateral as BB drafts law
A move is underway to recognise movable property, too, as collateral against credits.Bankers believe that such a change in traditional mortgage system will help expand lending and spur economic activities. Bangladesh Bank (BB) has already prepared a draft law titled ‘The Secure Transaction Act’ providing for such non-traditional mortgage system, officials said.They said BB is expected to finalise the draft within this month. Thereafter, it will be sent to the Ministry of Law, Justice and Parliamentary Affairs for placing before Parliament for approval.Movable property like goods, a document of title, security, instrument, money or any other intangible asset like goodwill will be regarded as collateral after enactment of the law in the making.
Agrani not closing loss-making exchange house in Canada
The board of directors of Agrani Bank now wants to keep running its loss-making money exchange house in Canada, for which it earlier received regulatory approval to shut it down.Since its inception in 2014, the Agrani Remittance House Canada incurred a loss of $308,448 and brought in $3.5 million in remittance to Bangladesh.The banking regulator gave go-ahead when the bank wanted to close operation of the exchange house in June last year.The BB then said the bank established the exchange house without conducting a feasibility study and wasted a huge amount of foreign currency.The bank was then strictly warned for taking such an unwise decision. But, now the bank is repeatedly seeking extension of the exchange house’s activities for a year. The regulator rejected Agrani’s proposal for the third time last month.Agrani is trying to continue operation of the exchange house due to the demand of Bangladeshi expatriates living in Canada, said Mohammad Shams-Ul Islam, managing director of the bank.
NCC Bank elects new chairman
The Board of Directors of the National Credit and Commerce Bank Ltd recently elected Md Nurun Newaz Salim as chairman of the bank, said a press release.Md Nurun Newaz Salim is one of the directors of the bank and an eminent industrialist and entrepreneur.He is the Chairman of Electro Mart Ltd and Trade International Marketing Ltd and senior vice-president of the Chittagong Chamber of Commerce and Industry. He was also the chairman of Central Insurance Co Ltd.Salim is the Member of the Board of Trustee of Feni University and has contribution to the expansion of education in the district by establishing schools, colleges and madrashas. He is also involved with social and cultural organisations.
Shawkat Jamil made UCBL AMD
United Commercial Bank Limited recently promoted Mohammed Shawkat Jamil to the post of additional managing director from the position of deputy managing director, said a press release.Jamil has 34 years of experience of working in the banking sector working in different capacities including branch manager across Bangladesh for 20 years.He started his bank career as probationary officer in the UCBL in 1983 and later attended a number of training programmes and seminars at home and aboard.
Grameen Bank wants power back to elect borrower-directors
The head of Grameen Bank board is seeking changes to the electoral rules of the microcredit lender so it can pick nine directors from the borrowers — like it did since its inception.If the changes are approved by the government, the Nobel Peace Prize-winning organisation would get back its power to elect directors — an exercise that has been taken over by the government in 2014.Three government-appointed directors are running Grameen Bank since February 2015 after the tenure of the nine elected directors came to an end.Although the rules for the election of directors were changed in 2014, no election has taken place since.Subsequently on July 16, Grameen Bank Chairman K Mozammel Haque wrote a letter to Finance Minister AMA Muhith seeking approval to change some of the electoral provisions.“What I have said in the letter is that Grameen Bank should be allowed to run in the way it was allowed to run in the past,” Haque told The Daily Star yesterday.He said his proposals sought to appoint one of its officials to oversee the elections of the directors and the directors would be picked through the three-tier elections.The letter said the proposed changes aim to help solve the current complexity as the new rules are not being applied.
City Bank’s half-yearly profits fall
City Bank’s net profit fell 5.3 percent year-on-year to nearly Tk 191 crore in the first half of 2017, the first generation lender said yesterday.The bank’s earnings per share went down to Tk 2.18 in January-June from Tk 2.30 in the same period a year earlier.Sohail RK Hussain, managing director of City Bank, disclosed the performance of the bank at a media briefing at its headquarters in Dhaka.In the first six months, its loan portfolio grew 15.2 percent and deposits 19.1 percent while trade volume also increased by 20 percent.City Bank shares have witnessed an upward trend in the last several days, ending at Tk 42.30 yesterday.In fact, its stocks have remained buoyant since March this year when it received nod to sell 5 percent of its shares to the International Finance Corporation, the private sector lending arm of the World Bank Group.The IFC bought a City Bank share at Tk 28.3, including Tk 18.3 as premium.Mahbubur Rahman, chief financial officer of City Bank, gave an overview of the recent financial performance of the lender during the programme.
ICB gets new managing director
Kazi Sanaul Hoq has recently joined Investment Corporation of Bangladesh (ICB) as its managing director.A government gazette was published regarding his appointment on Tuesday.He was serving in the same capacity at Rajshahi Krishi Unnayan Bank prior to the appointment. Previously, he served at Bangladesh Development Bank as its general manager.The Dhaka University graduate started his career with ICB as a senior officer in 1984.
Govt to improve four land ports at Tk 693cr
The government is going to improve four land ports under a regional connectivity project, in a bid to increase trade between Bangladesh and India.The Executive Committee of the National Economic Council (Ecnec) yesterday approved the Tk 693 crore scheme; of the amount 86 percent will be financed by the World Bank.The land ports are Sheola in Bianibazar upazila of Sylhet, Bhomra in Satkhira, Ramgarh in Khagrachhari and Benapole.Sheola customs station was declared a land port in 2015. It has a tin-roofed house which is used as an immigration office. It is called Sutarkandi land port on the Indian side and is situated in Karimganj of Assam. Work for the construction of Bhomra land port started in 2013. A government development project has already been implemented there comprising an open-air warehouse and other physical infrastructure.Bhomra land port is nearer to Kolkata than Benapole land port. A planning ministry proposal said, after the Padma bridge opens, trade activities through the Bhomra port would increase further.The Ramgarh land port is in Khagrachhari. Here, Bangladesh shares about 400 kilometres of border with India’s Tripura.The planning ministry proposal said when Ramgarh land port is improved, trade activities with Tripura would increase and Chittagong port’s efficiency would get a boost.
|Commodity||Close Value||Value Change||Percentage Change|
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|Crude Oil (Brent)*||$ 51.31||↓0.47||↓0.91%|
|Gold Spot*||$ 1,265.20||↓3.56||↓0.28%|
Major Currencies Exchange Rates Movement in Last Seven Days
|USD 1||BDT 81.31*|
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|EUR 1||BDT 96.17*|
|INR 1||BDT 1.27*|
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