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 August 11 2016

Shimanto Bank listed as scheduled bank

Bangladesh Bank on Wednesday said that Shimanto Bank Ltd was registered in the list of scheduled banks from July 21 this year. The BB issued a circular to managing directors and chief executive officers of all banks informing that the issue of listing of Shimanto Bank as a scheduled bank was published in the additional issue of a gazette notification on August 1. The central bank issued another circular to all banks saying that Shimanto Bank would get waiver under Section 14 Ka (1) of the Bank-Company Act, 1991. Under the Section, an institution or a family is not allowed to own more than 10% share of a bank. But BGB Welfare Trust now owns hundred% share of the bank and hence the central bank granted the waiver to the newly established bank under the section of the act.


United Group hastily pulls back from Islami Bank board

Hazrat Shahjalal (RA) Industrial City, a proposed company of power giant United Group, has left the post of directorship of Islami Bank within just one and a half months of assuming the position. The withdrawal of directorship from the board of Islami Bank by selling off its entire shareholdings so soon has blindsided many, including the group’s nominated director. “I never expected this. It was abnormal and embarrassing for me,” said ANM Saidul Haque Khan, who became a director of Islami Bank on June 2 as a nominee of Hazrat Shahjalal (RA) Industrial City. Khan said he did not know why the owner has sold out their entire shares so quickly. There are talks in the financial market that United Group has booked quick profits by selling the shares. The share price of Islami Bank started declining from Tk 27 plus since the turn of the year, according to Dhaka Stock Exchange website. Between February and May, the bank’s share price dropped as low as Tk 22 a share. It started picking up in June and reached a one-year high of Tk 34.4 a share in July, when United Group’s sister concern announced sale of its entire holdings of 32,547,335 shares.

Source: http://www.thedailystar.net/business/united-group-hastily-pulls-back-islami-bank-board-1267786

BB sets foreign currency rules for economic zones

Bangladesh Bank yesterday issued a new notice on foreign exchange regulations for enterprises and developers in planned economic zones as the government seeks to attract more investors. The foreign exchange regulations applicable for units in the existing export processing zones will also be applicable for entities in EZs, if not otherwise directed by the BB. The central bank has divided industrial units into three categories: A, B and C. Type A units are 100 percent foreign-owned, including those owned by Bangladeshi nationals ordinarily resident abroad.Type B units are joint-venture projects between foreign and local entrepreneurs. Type C units are those fully owned by Bangladeshi entrepreneurs who permanently reside in the country. The units under the three types will maintain foreign currency accounts with authorised dealers.

Source: http://www.thedailystar.net/business/banking/bb-sets-foreign-currency-rules-economic-zones-1267762

NRBs yearn for improved security to invest

The non-resident Bangladeshis (NRBs) willing to invest in Bangladesh have sought necessary measures for ensuring their security in the aftermath of terrorist attacks. They also said they will not withdraw their investments or reject any plan following recent attacks in Dhaka and Sholakia, as they have considered such attack a temporary phenomenon and it is also a global issue. But they said they will lose interest to invest if such brutal activities continue for a long time and said the government should take proper initiatives to boost confidence among the expatriate community. Some of the expatriates said they are now in “wait and see” mood as they are concerned over the country’s security issue.

Source: http://www.thefinancialexpress-bd.com/2016/08/10/41621

IT firms’ outward remittance ceiling raised to $25,000

Bangladesh Bank on Wednesday increased the outward remittance ceiling to $25,000 from the previously $20,000 to meet the bona fide expenses of IT and software firms in a calendar year. The BB issued a circular to authorised dealer branches of all banks saying that the limit for issuance of international credit card to a nominated official of IT and software firm was also increased to $2,500 from $2,000 within the revised total limit of $25,000.


BD Embassy making lists of workers

Bangladesh Embassy in Riyadh is preparing three lists of Bangladeshi workers of Saudi Oger Ltd, who have been facing problems with their salaries for couple of months. Other countries have also taken similar steps for their nationals working in the maintenance and construction company. Unofficial data showed 1,600 Bangladeshi workers were working in Oger, which has not been paying salary to them for about eight months. A latest update, posted on the embassy website, said several meetings have been held between Bangladesh Embassy authority and Saudi Labour Ministry of Eastern region. All kinds of activities, agreements and banking transactions of Oger have been halted or cancelled, and its property may be attached very soon.

Source: http://www.thefinancialexpress-bd.com/2016/08/11/41638

Tax receipts from DSE down 16.0% in July

The government’s revenue earnings from the premier bourse fell 16.0% year-on-year in July, the first month of current fiscal year, compared to the same month in the previous fiscal, as trading volume was on the decline. Market insiders said on the back of falling turnover value, the government earnings from the premier bourse dropped accordingly, as earning is related to turnover. The government bagged tax worth nearly BDT 85.0 million in July, 2016, against BDT 101.0 million in July, 2015, registering a decline of 16.0%, according to statistics from the DSE. Of the total revenue earning in July in the current fiscal year, BDT 63.7 million came from the TREC (trading right entitlement certificate) holders’ commission, popularly known as brokerage commission and only BDT 21.0 million came from the share sales by sponsor-directors and placement holders, the DSE data showed. The month-on-month earnings from the DSE also saw a sharp decline. The government earned BDT 85.0 million in July, 2016, which was BDT 161.5 million a month ago, falling 48.0%, the DSE statistics showed.

Source: http://print.thefinancialexpress-bd.com/2016/08/11/148794

SRO imposes 0.7% tax on export bills

The government issued Wednesday a statutory regulatory order (SRO) levying 0.70% tax at source for all the export-oriented sectors, save jute and jute goods. Although the government increased the tax-at-source rate by 0.1% to 0.7% from 0.6% in the budget for the current financial year (FY), 2016-2017, it was not implemented in absence of the legal instrument. As per income tax law, the exporters had to pay 1.0% tax at source on their export bills until Wednesday’s issuance of SRO by the Internal Resources Division (IRD), tax officials said. Commercial banks deduct the tax at source from the export receipts. The SRO, dated August 10, 2016, has been issued with retrospective effect from July 1, 2016. It would be valid until June 30, 2017. Meanwhile, in a separate SRO, the IRD reduced income tax rate for both corporate income taxpayers and individual taxpayers, earning from jute goods-producing industries, to 10.0% from 15.0%. The cut-down tax rate would be valid for four tax years, starting from 2016-17 up to 2019-20. However, the tax measure has also been passed in the budget for the current FY but not included in the Finance Bill 2016.

Source: http://print.thefinancialexpress-bd.com/2016/08/11/148849

Oil import costs to soar under government-to-government deals

Bangladesh Petroleum Corporation’s cost on premium will escalate by at least 52% to 71% for importing petroleum products under government-to-government deals instead of open bidding. The premium, which is the cost of shipping petroleum products and includes freight charges and insurance, was fixed at USD 4.4 per barrel for gas oil and USD 5.4 for jet fuel imports during the January-June period under government-to-government agreements. Under the open tender that took place in April for the first time since 2005, the premium stood at USD 2.4 – USD 2.6 for gas oil and USD 3.1 – USD 3.5 for jet fuel per barrel. The cabinet committee on purchase on Wednesday gave the go-ahead to BPC to import 1.5 million tons of gas oil and jet fuel under the government-to-government arrangement from nine countries. The development comes after the purchase committee in December last year decided that BPC will import 50% of petroleum products a year through government-to-government deals and the other 50% through open tender. Since the going market rate is used as the price of petroleum, the suppliers in an open tender differentiate themselves with their premium rates. A BPC official told The Daily Star yesterday that they have been pursuing to fix the premium rate for government to government arrangement on the basis of the rate quoted by bidders in open tender for imports for the July-December period.

Source: http://www.thedailystar.net/business/oil-import-costs-soar-under-govt-govt-deals-1267801

BERC eyes use of energy security fund for LNG, LPG import cost

Bangladesh Energy Regulatory Commission has drafted the guidelines on the use of energy security fund created last year from the sales of gas, giving priority to meeting import cost of liquefied natural gas and liquefied petroleum gas. The BERC said it created the fund during the last gas price hike, aiming at taking short-, medium- and long-term measures under the fund to ensure the country’s energy security. In September last year, the BERC increased price of natural gas by 26.3% on an average considering BDT 1.01 as asset value of each cubic metre of natural gas. The draft guidelines stipulate that the government could use the fund for the import of LNG and LPG as well as for the construction of infrastructure to facilitate the imports. On Wednesday, the BERC held an open meeting on the draft guidelines. The energy commission chairman, AR Khan, presided over the meeting. Khan said that the guidelines should accommodate the other projects in the energy sector as well as in the power sector to ensure country’s overall energy security. But imports of LNG and LPG will get priority, he said.

Source: http://newagebd.net/245532/berc-eyes-use-energy-security-fund-lng-lpg-import-cost/

Sugar consumption on the rise

Sugar consumption continues to rise in Bangladesh, driven by increased intake of beverages, biscuits, sweets and confectionary items, said industry operators. Consumption of the sweetener stood at 2.4 million tons in fiscal 2015-16, up 15% year-on-year and the highest in five years, according to a report of the US Department of Agriculture. The reason for the increased consumption is the burgeoning middle-class, said Golam Mostafa, chairman of Deshbandhu Group that operates a sugar refinery. Every year, 2.0 million Bangladeshis are joining the ranks of middle- and affluent-class, according to a report released by Boston Consulting Group last year. Households with annual income of USD 5,000 or more are considered to be middle-class. Bangladesh has about 12 million of middle- and affluent-class people, accounting for 7% of the total population, according to the report. Operators said consumption of sugar has been rising every year for its increased use as a key ingredient for beverages, bread and biscuits, confectionary, sweets, cakes and pastries — whose demand is growing too for the steady economic growth.

Source: http://www.thedailystar.net/business/sugar-consumption-the-rise-1267792

BTRC reschedules MNP auction procedures

Bangladesh Telecommunication Regulatory Commission (BTRC) yesterday announced a new schedule for Mobile Number Portability (MNP) auction procedures, keeping the auction date unchanged on September 21. According to the new schedule, submission date for the bid application has now been fixed on August 22, the name of the qualified bidders to be disclosed on September 5, date for submission of bid earnest money is now on September 6, letter of acceptance or rejection is on September 8 while consultation of auction procedure will be held on September 19. MNP allows the subscribers to switch their services among operators without changing their phone numbers. An official of BTRC told the Dhaka Tribune that Mobile Number Portability (MNP) auction procedures have been rescheduled just to attract more applicants in participating the auction. Earlier on June 14, BTRC had set June 16 for the invitation of application while last date of submission of any query was on June 30. Base price of the auction will be fixed at BDT 10.0 million while bank guarantee would be BDT10.0 million. The annual license renewal fee will be BDT2.0 million while the company will have to share 5.5% revenue with the BTRC. The commission has fixed BDT 0.1 million as the application fee and bid earnest money would be BDT10 lakh. After the bidding process, a license will be given to an independent company for 15 years to run the MNP system.

Source: http://www.dhakatribune.com/business/2016/08/11/btrc-reschedules-mnp-auction-procedures/

New watchdog to nose out MNCs’ profit shifting

Government’s revenue authority is raising a new watchdog team styled ‘resource pool’ to nose out profit shifting by multinational companies from Bangladesh illegally. Officials said the National Board of Revenue (NBR) is forming the strong surveillance team with best of the bunch of taxmen under the transfer-pricing law to check the flight of funds. Field-level tax officials will be drawn into the resource pool. They will work for detection of cross-border financial transactions, Base Erosion and Profit Shifting (BEPS) by the MNCs in their respective tax zones. The NBR will develop skill and arrange capacity-building training at home and abroad for the officials in the resources pool. To form the resource pool, the Transfer Pricing Cell (TPC) of the NBR recently sent letters to all of the tax offices across the country to nominate taxmen — ranking from deputy commissioner to tax commissioner — for the pool of combatants against the alleged financial offence. A senior official of the TPC said enforcement of the transfer- pricing law will need a group of expert tax officials in the NBR and field-level tax offices as well. Currently, there is a seven-member team at the Transfer Pricing Cell to work on implementation of the law.

Source: http://print.thefinancialexpress-bd.com/2016/08/11/148838

Local and Global Stock Indices

Index NameClose ValueValue ChangePercentage Change
Dow Jones Industrial Average18,495.66↓37.39↓0.20%
Nikkei 22516,735.12↓29.85↓0.18%
FTSE 1006,866.42↑15.12↑0.22%

World Commodities

CommodityClose ValueValue ChangePercentage Change
Crude Oil (WTI)*$41.53↓0.18↓0.43%
Crude Oil (Brent)*$43.88↓0.17↓0.39%
Gold Spot*$1,342.52↓4.09↓0.30%

Major Currencies Exchange Rates Movement in Last Seven Days






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.

In this current situation, Dhaka Bank and its employees are beside you where we are fully online, either working from home or at our offices under a robust Business Continuity Plan (BCP) to serve you with limited branch banking and a full-fledged alternate delivery channel services.

Our state of the art Mobile App, Dhaka Bank GO (Click https://bit.ly/2WVfieu) and Internet Banking - Dhaka Bank Direct gives you the freedom of banking online anytime from anywhere. You can check the balance and transfer money to any designated Banks including any Dhaka Bank or bKash Account, make utility bill payments and mobile top-up through our Mobile App and Internet Banking Services. Our ATMs are also running efficiently with availability of sufficient cash for your convenience where you can make cash withdrawals whenever the need arises. Mentionable, the withdrawal of cash from any ATMs within Bangladesh with Dhaka Bank Debit Cards are absolutely free of charges up till April 30, 2020 (Dhaka Bank will bear the cost). Our corporate customers can also use our completely safe and secured online platform Dhaka Bank C-Solution for Payments, Inter Bank Fund Transfers, etc.

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