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 16, 2017

BB developing collateral database to stop forgery

The central bank is developing a collateral information system incorporating data on immovable properties which are used for getting loans aiming to prevent document forgery, officials said. The Bangladesh Bank has taken the initiative as dishonest people nowadays increasingly use forged documents and re-use collateral to get loans. In many cases, the banks later could not recover the loan amount when the borrower defaults loans or flees, they added.The information on moveable properties will also be included in the database, when such properties like goods, documents of title, security, instrument, money or any other intangible assets including goodwill will be recognised as collateral of loans. The government recently drafted a law in this regard.

Source: http://print.thefinancialexpress-bd.com/2017/08/16/180736

Deposits in street children’s bank accounts drop sharply

Deposit in the street children’s accounts with the banks decreased significantly in the first three months of this year as the country’s commercial banks are unwilling to extend their services to them.The banks also showed a reluctant attitude to open accounts for the street children and child workers as the number of accounts stood only 3,675 as of March 31, 2017, according to the latest Bangladesh Bank data.The BB data showed that the total deposits in the street children’s accounts decreased to Tk 21.56 lakh at the end of March 2017 from Tk 24.42 lakh as of December 31, 2016.Seventeen of the 57 banks have so far opened these accounts. The banks are : Sonali Bank, Janata Bank, Rupali Bank, Agrani Bank, Bangladesh Krishi Bank, Bangladesh Development Bank, Bank Asia, Mercantile Bank, Mutual Trust Bank, National Bank, Social Islami Bank, One Bank, Pubali Bank, The City Bank, Trust Bank, Al-Arafah Islami Bank, and Uttara Bank.As per BB guidelines, street children’s accounts should be operated by the non-government organisations nominated by the central bank.

Source: http://www.newagebd.net/article/22037/deposits-in-street-childrens-bank-accounts-drop-sharply

Current account balance turns negative after 4yrs

The country’s current account balance registered a deficit of $ 1.48 billion in the recently concluded fiscal year 2016-17 for the first time in last five years due to a negative growth of inward remittance, trade balance, services and primary income.The current account balance, the gap between export receipts and net earnings, including remittances, and import payments and profit repatriation by multinational companies and local people, earlier registered its all-time high surplus at $4.26 billion in the previous fiscal year of 2015-16.Bangladesh Bank officials and an expert said that it was an unusual phenomenon for a country that the record surplus in the current account balance had just plunge into a large gap within one month.The country’s current account balance stood at $2.87 billion in FY15, $1.40 billion in FY14, $2.38 billion in FY13 and a deficit amount of $447 million in FY12.In the latest monetary policy for July-December of 2017, the central bank projected that the deficit in the current account balance would widen further to $2.72 billion this fiscal year.The BB also forecasted that the country’s trade deficit would cross $11 billion this fiscal year 2017-18 due to recent pressures on the economy’s external sector strength.It would be a tough job for the government to achieve 7.40 per cent gross domestic product growth this fiscal year due to the large volume of trade deficit and gap in current account balance.

Source: http://www.newagebd.net/article/21971/current-account-balance-turns-negative-after-4yrs

City Bank issues Tk 500cr bonds

City Bank has recently completed the process of issuing coupon bearing subordinated bonds worth Tk 500 crore in Bangladesh, the bank yesterday said in a statement.RSA Capital Ltd and City Bank Capital Resources Ltd are the prime arrangers of the issuance process of these bonds.The issue of bonds has enhanced City Bank’s Tier II capital as per Bangladesh Bank’s requirement.As a result, this has also led to the increase of the bank’s Capital Adequacy Ratio.The participating banks and institutions which have subscribed to the bonds are One Bank, Rupali Bank, Janata Bank, Sonali Bank, Pubali Bank, Mercantile Bank, Uttara Bank, Agrani Bank, Dhaka Bank, Standard Bank and Dhaka Stock Exchange.In a ceremony organised at the bank’s head office in Dhaka, Sohail R K Hussain, CEO of City Bank, has expressed sincere gratitude towards the subscribers and parties who were involved in the issuance process, according to the statement.

Source: http://www.thedailystar.net/business/banking/city-bank-issues-tk-500cr-bonds-1448725

Leading by example: EBL

Bangladesh has an excess number of banks at present, which has given rise to unhealthy competition, said Ali Reza Iftekhar, managing director of Eastern Bank Limited.“Time has come to merge the banks as the financial health of many of them is very weak,” he told The Daily Star in an interview recently.Some banks are making losses year after year, he said.“They have no right to do it, putting public money at risk. If any international rating agency rated the banks neutrally, many banks will have to be merged.”Eastern Bank, which marks 25 years of operation tomorrow, though is seeing all its financial indicators improve consistently.In 2016, the bank registered the lowest default loan rate among banks: 2.69 percent against the industry average of more than 9 percent. Its net profit in 2016 was Tk 265 crore, up 19.37 percent from a year earlier.For the second straight year, EBL was awarded the ‘Best Bank of Bangladesh’ by Euromoney, a London-based monthly magazine focused on business and finance, in a ceremony held in Hong Kong on July 13.

Source: http://www.thedailystar.net/business/banking/leading-example-ebl-1448701

Grameen Bank’s profit rises, interest declines

Grameen Bank has earned good profit in recent months despite the lending rate cut by the present management, according to the latest data available from the bank.The bank for the poor made a profit of Tk 1.02 billion (102 crore) in the first six months of this year as against the yearly profit of Tk 1.39 billion in 2016, reports BSS.

Source: http://print.thefinancialexpress-bd.com/2017/08/16/180696

Al-Arafah Islami Bank Limited has become the Title Sponsor of 3rd Bangladesh Junior Science Olympiad 2017

Al-Arafah Islami Bank Limited has become the Title Sponsor of 3rd Bangladesh Junior Science Olympiad 2017. Chairman of the Bank Alhajj Abdus Samad Labu handed over the sponsorship cheque for Tk 1.0 million to convener of the Olympiad Munir Hasan recently at Al-Arafah Tower, Dhaka. Managing Director Md. Habibur Rahman presided over the ceremony. Director Badiur Rahman seen, among others.

Source: http://print.thefinancialexpress-bd.com/2017/08/16/180719

Move to increase gold trading licence fees

The government has taken a move to raise gold trading licence fees by nearly 67 per cent following its sales boom in local markets in recent years, officials said. People familiar with the ministry concerned told the FE that fee hike in gold trading licences will help contribute to the national exchequer in terms of non-tax revenue. The hike of trade licence fees will range from 40 per cent to 66.66 per cent for different gold traders, jewellery makers and small gold traders, according to a commerce ministry source.

Source: http://print.thefinancialexpress-bd.com/2017/08/16/180693

Imports rise 9pc as economy heats up

Bangladesh’s imports grew 9 percent year-on-year in fiscal 2016-17 as the demand for capital machinery, industrial raw materials and food grain at home soared.More than $47 billion worth of goods were brought in to the country last fiscal year, according to data from the Bangladesh Bank.Bankers attributed the import growth to the rising economic activities and development works.“Lots of machineries, from spinning to textile, re-rolling mills, auto rice mills, paper mills and power plants, are being imported,” said Mirza Elias Uddin Ahmed, additional managing director of Jamuna Bank.In 2016-17, the import of capital machinery soared 37.39 percent from a year earlier to about $4.85 billion, propelled by power and energy, garment, pharmaceuticals, telecom, food-processing and packaging sectors.Industrial raw material imports rose 3.52 percent year-on-year to $16.22 billion.

Source: http://www.thedailystar.net/business/imports-rise-9pc-economy-heats-1449247

Consumer credit jumps 31pc

The banking sector posted a significant jump in consumer lending last year riding on growing purchasing power of the middle class.Consumer credit rose 31.29 percent year-on-year to Tk 29,500 crore in 2016 from Tk 22,460 crore a year ago, according to Bangladesh Bank data. The segment accounted for 4.37 percent of the total outstanding loan in the economy.“Consumer credit has been rising for several years as the purchasing power of the people has increased,” said MA Halim Chowdhury, managing director of Pubali Bank.He said the middle class is expanding with improving living standard, which is pushing demand higher.The salary hike of government employees also accounted for the growing consumption habit, he added.Consumer financing is now more affordable as the lending rate is lower than the average interest rate, said a senior executive of a private bank.

Source: http://www.thedailystar.net/business/consumer-credit-jumps-31pc-1447726

Buyers sever ties with 12 more RMG factories

The western fashion brands and retailers have announced to cut business relations with 12 more readymade garment factories in Bangladesh, taking the total number to 248 as the factories failed to implement workplace safety measures suggested by the two separate platform of buyers.Accord on Fire and Building Safety in Bangladesh, the platform of European brands and retailers, has terminated business relations with 10 more RMG factories of four business groups.The Alliance for Bangladesh workers safety, the North American buyers’ platform, has suspended two more supplier factories from its compliant factory list due to failure to make adequate remediation of the factories. The Accord suspended factories are : Ababil Knit Composite Ltd, Mantrust Sweater Ltd, Mantrust Designer Limited, Promod Knitwear Limited, Mantrust Accesories Limited and Mantrust Embroidery and Printing Limited under Mantrust group, Ali Apparels Ltd and Cotton Textile and Apparels Ltd, General Import-Export Ltd and IB Apparels Ltd of Cotton Tex Group.With the 10, the total number of RMG factories with which EU buyers cut business relations in different times on workplace safety grounds reached to 89.

Source: http://www.newagebd.net/article/22035/buyers-sever-ties-with-12-more-rmg-factories

World Commodities

CommodityClose ValueValue ChangePercentage Change
Crude Oil (WTI)*$ 47.77↑0.22↑0.46%
Crude Oil (Brent)*$ 51.09↑0.29↑0.39%
Gold Spot*1,273.38↑1.85↑0.15%

Major Currencies Exchange Rates Movement in Last Seven Days

Exchange Rates
USD 1BDT 80.70*
GBP 1BDT 103.87*
EUR 1BDT 94.75*
INR 1BDT 1.26*





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