Banks to inject BDT 175.5 billion into rural economy anew
The country’s commercial banks will disburse BDT 175.5 billion in the countryside this fiscal year under an agricultural and rural credit policy and program announced Sunday. As per the new policy, unveiled by the central bank, all local private commercial banks (PCBs) will have to disburse minimum 30.0% of their total targeted farm loans direct through their own networks from the current fiscal year (FY), 2016-17. The credit projection accounts for around 7.0% growth over that of the previous fiscal. In the FY 16, 45 banks out of 55 achieved their targets while 10 failed, according to the BB officials. ICB Islamic Bank Limited, a PCB, has been excluded from the list of agricultural and rural credit disbursement. The agriculture credit target has been fixed at BDT 175.5 billion, which is lower by BDT 960.0 million from the disbursement amount of the FY 16.
The board of directors of Mutual Trust Bank (MTB) has decided to issue subordinated bond worth BDT 5.0 billion to meet capital requirement under Tier-II, said an official disclosure on Sunday. The bond issue is subject to approval of the regulatory authorities – Bangladesh Bank (BB) and the Bangladesh Securities and Exchange Commission (BSEC), the disclosure said. Each share of bank, which was listed on the Dhaka bourse in 2003, hovered between BDT 17.50 and BDT 17.60, before closing at BDT 17.50, losing 0.57% over the previous session. The bank also published second quarter (Q2) earning report on Sunday. As per Q2 financial report, consolidated earnings per share (EPS) was BDT 0.71 for April-June, 2016 as against BDT 0.56 for April-June, 2015. In six months for January-June, 2016, consolidated EPS was BDT 1.44 as against BDT 1.13 for January-June, 2015. Consolidated net operating cash flow per share (NOCFPS) was BDT 7.73 for January-June, 2016 as against BDT 4.18 for January-June, 2015. Consolidated net asset value (NAV) per share was BDT 21.19 as of June 30, 2016 and BDT 20.15 as of December 31, 2015.
The Board of Directors of NCC Bank Ltd. has recently elected its Director Mr. Abdus Salam as Chairman and reelected director Mr. A. S. M. Mainuddin Monem as Vice Chairman of the Bank. Chairman Mr. Abdus Salam is an Electrical Engineer. He obtained B. Sc. Engineering degree in 1965 from BUET. He gathered more than 50 years experience in construction, transportation, heavy lifting, logistic activities and electrical & mechanical erection. Vice Chairman Mr. A. S. M. Mainuddin Monem, an MBA from Harvard Business School Business, recipient of a Professional degree from MIT, and a Graduate from Boston University, USA, is a renowned entrepreneur and industrialist of the country. At present he is the Deputy Managing Director of Abdul Monem Limited (AML) and the Managing Director of Abdul Monem Economic Zone Limited (AMEZL). He is actively involved in many socio-economic & professional organisations including, but not limited to, Corporate Social Responsibilities (CSR) Center, Bangladesh, the Board of Trustees of Independent University of Bangladesh.
IDLC Finance posts 8.0 per cent growth in net profit
IDLC Finance Limited reported net profit after tax of BDT 882 million in the first half of 2016, recording a solid 8.0 per cent growth from the same period last year. Operating Profit for the half increased 14 per cent year on year and stood at BDT 1,583 million for the half year till June, 2016. In the first half of 2016 IDLC acquired 3,726 new customers and grew the Customer Assets portfolio by 10 per cent (BDT 5,336 million), compared to 31st December 2015. The company continue to be a strong operator in the SME segment and experienced a growth of 19 per cent in the SME Loan Book at the same period. Corporate and Consumer Loan Books, two other major business segments of the company, also experienced notable growth.
Export of logistics products fetches USD 6.0 billion
Shadow exporters of the country have bagged about USD 6 billion by exporting logistics products in the fiscal year (FY) 2015-16, according to industry insiders. Of the total amount, the packaging industries contributed about USD 1.5 billion. In the FY 2014-15, the sector earned USD 5.6 billion and export earnings in the FY 2013-2014 were USD 4.7 billion. The shadow exporters are exporting products like corrugated carton, carton, button, thread, labels, poly bag, hanger, zipper and other accessories. Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) having membership of about 1,357 experienced a steady growth at the rate of 70-80% over the years along with the expansion of the apparel industry. Of them, more than 600 factories are producing corrugated carton to support the country’s apparel industry.
Growing domestic demand gives ceramic, tiles industry a boost
A sustained growth in the domestic demand for tiles over the years has given a boost to country’s ceramic and tiles industries, insiders have said. According to them, the demand for tiles marked a 20.0% rise in the last five years because of its increased use for building and housing constructions in place of mosaic and other flooring options. Zahedi Hassan Chowdhury, Secretary of Bangladesh Ceramic Ware Manufacturers Association (BCWMA), said the growth will exceed 25.0% within three or four years as people now prefer local companies’ tiles to foreign companies’ ones along with the increasing usage of tiles. He said now the total size of the country’s tiles market is around BDT 35.0 billion which will be around BDT 45.0 billion after the start of operations of new companies. Now six large companies — R A K Ceramics Pvt Ltd, Great Wall Ceramic Ind, Mir Ceramics Ltd, Star Ceramics Pvt Ltd, Akij Tiles Ltd and X Ceramics Ltd — possess more than 75.0% market shares.
Bangladesh’s third seaport at Payra in Patuakhali will begin its experimental operations today. The seaport will receive its first ocean vessel MV Fortune Bird coming from China with 53,300 tons of crushed black stones for the Padma bridge project. The stones imported by Jalal Uddin Traders of Sylhet will then be transported to the project’s site through a lighter ship, said Captain Saidur Rahman, chairman of Payra Port Authority (PPA). At least 60 percent of the imported stones would be sent to the Padma bridge site and the rest would be sold to other construction firms, said Md Jalal Uddin, proprietor of Jalal Uddin Traders. Gulf Orient Seaways Ltd is the first shipping agent of the vessel. Gulf Orient and MST Logistics JV will do the work of stevedoring, survey, transportation and everything related to the delivery of the goods. The Payra seaport is being built on the west bank of Ramnabad channel in Kalapara upazila of Patuakhali.
Robi to transfer shares back to edotco: Malaysia’s edotco seeks to apply for tower business license
Robi is set to transfer 31.01% of edotco Bangladesh’s shares back to edotco Group as the Malaysian tower management company looks to get a full license to run its operations in the country. As per the draft tower company guideline, an entity having a relation with a mobile phone or WiMAX operator cannot apply for a full license. Before the share transfer, Robi held 51.0% of edotco Bangladesh’s shares. At present, edotco manages over 7,500 towers of the six mobile companies operating in Bangladesh on the confidence of a no-objection certificate from the Bangladesh Telecommunication Regulatory Commission. Now with the share transfer, edotco Group will hold 80.01% shares of edotco Bangladesh and Robi the remaining 19.99% shares. BTRC officials said the fact that Robi would still be holding 19.99% share in edotco Bangladesh will make it ineligible to apply for the tower license. The government plans to award two tower management licenses to independent companies by the year-end. Unless changes are made to the draft guideline, the chances of edotco Bangladesh getting one of the licenses are slim, said a BTRC official.
Bangladesh’s oldest mobile-phone operator Citycell is closing down after failing to pay the government’s dues, reports bdnews24.com. Telecom regulators BTRC Chairman Shahjahan Mahmood said the authorities will shut the company down anytime. In that case, BTRC will notify the Citycell customers to switch to other operators within Aug 16, Mahmood said. Bangladesh’s lone CDMA operator, which has seen a massive exodus of its subscribers, owes the government over BDT 4.8 billion in dues. According to the BTRC, the number of its customers was 700,000 in June, which is less than 1.0% of total mobile-phone users. A top BTRC official told the news agency that Citycell had not paid the second and third instalments of the renewal fees of BDT 2.3 billion for 8.8 megahertz spectrum in breach of the condition set for licensing after the spectrum renewal in 2012. The other dues include BDT 100.0 million annual license fees, BDT 271.4 million for annual spectrum fees from 2013 to 2016, BDT 278.4 million revenue sharing from 2014 to 2016, BDT 89.2 billion corporate social responsibility fund from 2011 to 2016, BDT 399.2 billion VAT and BDT 1.4 billion late fees. The BTRC official said the operator had also been served a notice to explain why it should not face legal action for not paying up.
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