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 2 2016

Stressed loans stir up worries in Bangladesh Bank

A load of rescheduled and restructured loans causes concern for the credit-risk management of country’s banking industry, as it erodes their profitability and shifts the burden on clientele, reveals the central bank. Besides, the FSR cautions, such a situation would increase the cost of capital, widen the mismatch between interest-earning assets and interest bearing liabilities and upset the economic value additions (EVA) by the banks. While unveiling the FSR 2015 at the central bank headquarters in Dhaka, Bangladesh Bank Governor Fazle Kabir suggested some ways for the banks to get out of the fix. In calendar year (CY) 2015, the rescheduled loans accounted for 4.5% of banks’ total outstanding loans. It was also equivalent to 5.0% of total unclassified loans and 28.0% of total stressed advances, compared with 3.4%, 3.8% and 25.9% respectively in CY14, according to the report. The total outstanding loans in the banking sector rose to BDT 5846.2 billion in 2015 from BDT 5178.4 billion a year before, the BB data showed.

Regulator warns insurers on spending overruns

The insurance regulator has found that 40 non-life insurers have breached their respective limits on management expenses for the last seven years. Of the country’s 45 non-life or general insurers, 40 overshot their management expenses by about Tk 800 crore, according to the Insurance Development and Regulatory Authority or IDRA. Earlier, 30 life insurers were found to have indulged in over-expenditure of Tk 2,064 crore in the last seven years. About the actions to be taken, the official hinted that the IDRA may impose restrictions on the insurers’ management expenses until overspending could be made up. The Anti-Corruption Commission has already taken up the issue of life insurers and launched an investigation into allegations that the companies embezzled more than Tk 2,000 crore in the name of management expenses.
Soirce: http://www.thedailystar.net/business/regulator-warns-insurers-spending-overruns-1263082

Sales of saving schemes up by 25.0% in last fiscal

The government’s move to cut interest rates for the saving-schemes it offers has failed to dampen sales, reports bdnews24.com The 25.0% jump in sales of these instruments in 2015-16 fiscal means that it’s adding to the government’s debt-burden. According to figures by the Directorate of National Savings (DNS), sales in last fiscal that ended on Jun 30 stood at BDT 530.11 billion. Amid the hike in the sales, the government last year revised rates for the DNS-offered schemes cutting them by two percent on an average. After the rate cut, a five-year term family savings scheme of BDT 100,000 now yields a monthly return of BDT 912.0. Earlier the same investment used to fetch BDT 1,070 per month. Analysts attribute the increase in sales of saving instruments to popular perception that they are less risky.
Source: http://print.thefinancialexpress-bd.com/2016/08/02/147944#prettyPhoto

Power capacity to rise to 15,000 MW by September

The total electricity generation capacity of Bangladesh will be nearly 15,000 megawatt (MW) by the middle of September with the addition of 218 MW to the national grid from next month, reports Bangladesh Sangbad Sangstha (BSS). Isolux Ingenieria SA and Samsung C&T Corporation have been awarded to construct the power plant, which the agreement was signed on May 27, 2012. Meanwhile, the government as well as the Power Ministry has ensured tight security for the foreign partners so that they (foreigners) can construct the plant without hesitation. Talking to BSS State Minister for Power, Energy and Mineral Resources Nasrul Hamid said the government led by Prime Minister Sheikh Hasina has a target to generate 24,000 MW electricity by 2021 and bring all citizens under the coverage of electricity within the Vision 2021.
Source: http://print.thefinancialexpress-bd.com/2016/08/02/147946

MCCI, textile millers criticize proposal of gas price hike

Gas price hike will leave a negative impact on businesses as such a move will raise the cost of doing business, a leading chamber said yesterday. The cost of transportation, production and electricity as well as overall food prices will increase with the gas price hike, said the Metropolitan Chamber of Commerce and Industry (MCCI) in a statement. The unplanned gas price hike will also negatively impact productivity and export of garment products, which will erode the country’s competitiveness in the global apparel market. Bangladesh Energy Regulatory Commission (BERC) increased gas prices by 26.29 percent in September last year, and any further hike within one year goes against the laws of the commission, the chamber said. According to a proposal of state-owned Titas Gas Transmission & Distribution Company Ltd, the price of gas for household use should be raised 140 percent to Tk 16.8 per cubic metre. MCCI also suggested the government should increase the use of alternative energy to reduce dependence on natural gas. It is not possible to deal with the challenges of a gas crisis only by increasing gas prices, the chamber said. The crisis can be eased to some extent by fixing the problems by introducing a metre-based billing system, stopping illegal gas connections and reducing illegal gas bills, the chamber added.
Source: http://print.thefinancialexpress-bd.com/2016/08/02/147976

Ports to cut 40.0% tariff for coastal ships

Seaports in Bangladesh will cut international tariff by 40% to facilitate transport of goods at low cost under the Indo-Bangladesh coastal shipping agreement, officials said. The Chittagong port will cut tariff on five items while the Mongla port on six items and the Paira port will also follow the same, they added. However, other ports of call for coastal vessels — Ashuganj, Narayanganj and Khulna river ports and Pangaon Inland Container Terminal — would not cut tariff as they only handle domestic vessels and goods. A seven-member tariff fixation committee, headed by additional secretary of the ministry of shipping (MoS) Abdul Quddus Khan, recently submitted a report in this regard to the secretary in line with the standard operating procedure (SoP) of the coastal shipping agreement. A senior MoS official told the FE that the Chittagong Port Authority (CPA) has agreed to reduce tariff by 40% on port dues charge, pilotage charge, tug, berthing and un-berthing and mooring occupancy charges. He said the Mongla Port Authority (MPA) will reduce tariff on six types of services like port dues charge, pilotage charge, tug hire charge, berthing charge, holiday charge and night charge.
Source: http://print.thefinancialexpress-bd.com/2016/08/02/147968

Government to save ample money through open tendering

The government will be able to save a substantial amount of foreign currency by importing furnace oil under open tendering, as the state-run BPC got cheaper rate through the system compared to term deals, said officials. Bangladesh Petroleum Corporation (BPC) sought bids to import around 160,000 tons of 180 centistokes (cst) high sulfur fuel oil (furnace oil) from the international market last month to meet urgent need in Summer. Subsequently, it got the premium rate that is around one-third less than the term rate, said a senior BPC official. Singapore-based Vitol Asia Pte Ltd offered the best bid at a premium of USD 15.80 per ton to Mean of Platts Arab Gulf (MoPAG) 180 cst furnace oil assessments on a CFR (cost and freight) basis for delivery to Chittagong Port during August-December 2016, he said. Premium rate is a component of oil-pricing mechanism under CFR basis, which includes the costs of fuel freight, insurance and evaporation as well as loading and unloading losses. BPC earlier imported furnace oil at a premium rate of USD 24 per ton to MoPAG 180 cst furnace oil assessments on CFR basis for delivery to Chittagong Port during July-December 2015.
Source: http://print.thefinancialexpress-bd.com/2016/08/02/147939

Robi-Airtel merger gets PM’s approval

Prime Minister Sheikh Hasina on Sunday gave a go-ahead to the much-talked-about merger proposal of Robi-Airtel, paving the way for the formation of the country’s second largest mobile operator. The merger fee will be BDT 1.0 billion. A telecom division official said the prime minister endorsed all the clauses and conditions set by the division for the amalgamation of the two operators. The approved file arrived at the telecom division yesterday, said Md. Faizur Rahman Chowdhury, telecom secretary. The file will be sent to the Bangladesh Telecommunication Regulatory Commission that will then take it forward. However, the BTRC’s legal team said a court hearing on the issue has been scheduled for August 4; if the prime minister’s approved copy is received before that, it will be placed before court.

NBR gives tax exemption to services, products, staff

National Board of Revenue (NBR) has offered tax exemption to different services, imported products, and income of employees and consultants of Rooppur Nuclear Power Plant (NPP) to expedite its implementation. Contractor companies of the project will be able to enjoy the tax exemption on their bills and imported items upon complying with some conditions, tagged by the tax authority with the facility. Foreign workers, including employees of the Russian implementing agency, and consultants will be able to enjoy the income tax exemption during the project period. However, Bangladeshi subcontractors, to be appointed by the Russia’s state-run Atomstroyexport, will not be able to enjoy the tax exemption. They have to pay income tax as per the existing rules. Imported products for the Rooppur NPP must have to be certified by Bangladesh Atomic Energy Commission (BAEC). Imported products, equipment, services and documents, in the name of BAEC, will be exempted from income tax. Tax at source on contractors or suppliers’ bills related to implementation of the project has also been exempted.
Source: http://print.thefinancialexpress-bd.com/2016/08/02/147967

Local and Global Stock Indices

Index NameClose ValueValue ChangePercentage Change
Dow Jones Industrial Average18,404.51↓27.73↓0.15%
Nikkei 22516,496.67↓139.1↓0.84%
FTSE 1006,693.95↓30.48↓0.45%

World Commodities

CommodityClose ValueValue ChangePercentage Change
Crude Oil (WTI)*$40.19↑0.13↑0.32%
Crude Oil (Brent)*$42.37↑0.23↑0.55%
Gold Spot*$1,349.36↓3.79↓0.28%

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.

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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