20 defaulters account for state banks’ one-third bad loans

The top 20 defaulters accounted for one-third of the state banks’ total default loans in the first half of 2017, according to the finance ministry. As of June, the defaulters owed Tk 11,579 crore to Sonali, Janata, Agrani, Rupali, BASIC and Bangladesh Development Bank (BDBL), with the amount being 33.48 percent of the lenders’ total default loans, according to a paper prepared by the finance ministry. The paper was presented at a workshop styled “Review of the Health of State Banks: Way Forward to Face Challenges”, organised yesterday by the finance division at the Cirdap auditorium in Dhaka. BDBL’s 52.5 percent default loans were held by the top 20 defaulters, followed by 51.3 percent for Rupali and 49 percent for Janata, the paper shows. The rising default loans put pressure on the state banks’ capital, compelling the government to inject funds into them for their survival, said Md Eunusur Rahman, senior secretary of the bank and financial institution division, who presented the paper.

Source:  http://www.thedailystar.net/business/20-defaulters-account-state-banks-one-third-bad-loans-1454662

Muhith blames some banks for loan defaults

Finance Minister AMA Muhith Saturday blamed some banks for turning their clients into loan defaulters. “Some banks have a tendency to deliberately turn their clients into defaulters from day one of allocating loans to them”, Muhith said at a workshop on the status of state owned banks in the capital. “They think that if the clients can be made defaulters, they can be brought under the grip of the banks”, he added. Earlier, Banking Division Secretary Md Eunusur Rahman in his presentation lamented the capital inadequacy and the rising amount of classified loans of the state owned banks. Noting the capital inadequacy as one of the biggest problems of the state-owned banks, Muhith said that the government is putting greater emphasis on addressing this issue.

Source: http://thefinancialexpress.com.bd/national/muhith-blames-some-banks-for-loan-defaults-1503730681

http://www.newagebd.net/article/22823/muhith-blames-bankers-for-non-performing-loan

http://www.thedailystar.net/frontpage/i-feel-ashamed-1454578

Palli Sanchay Bank launches online banking solution

Palli Sanchay Bank has introduced online real-time core banking solutions to provide quick services through the digital platform. Finance Minister AMA Muhith on Thursday launched the service by providing loans at three branches — in Rupganj of Narayanganj, Sylhet Sadar and Bogra — through a video conference from his secretariat. The bank authorities announced that the online service would be available in all of the bank’s 485 branches in the next three months. Established in June 2016 through a special act, Palli Sanchay Bank has branches in every upazila. Muhith said this was the first time that such an institution was going to provide online services accessible from every branch. Many of the local banks do not have the service, he said.

Source:   http://www.thedailystar.net/business/palli-sanchay-bank-launches-online-banking-solution-1454629

NBR to phase out truncated-base VAT within two years

The tax authority is in a process to gradually phase out the truncated-base of Value Added Tax (VAT) within the next two years before implementation of the new VAT and Supplementary Duty (SD) act-2012 from July 1, 2017. The process has been initiated following a recent instruction of Finance Minister AMA Muhith to the National Board of Revenue (NBR). The truncated-base or multiple rates of VAT ranging from 1.5 per cent to 10 per cent is currently enjoyed by 19 sectors as a tax-benefit for sustaining in the competition and flourish.

Source:http://thefinancialexpress.com.bd/economy/bangladesh/nbr-to-phase-out-truncated-base-vat-within-two-years-1503733046>

Govt to import 1.5m tonnes food grains if necessary: PM

Prime Minister Sheikh Hasina on Saturday said the government will import 1.5 million (15 lakh) metric tonnes of food grains, if necessary, for ensuring the food security of people. “We’ll distribute food free of cost among the extreme poor who are unable to buy it. Our plan is to ensure that until the next crops are harvested … not a single person will suffer from hunger,” she said while distributing relief materials and seedlings among flood victims on Gobindaganj Upazila Parishad premises on Saturday. The PM also said the seeds of different types of cereals, pulses and species will be given to the small and marginal farmers who want to cultivate others crops except paddy.

Source: http://thefinancialexpress.com.bd/national/govt-to-imort-15m-tonnes-food-grains-if-necessary-pm-1503763525

http://www.newagebd.net/article/22816/none-will-suffer-for-food-pm

http://www.dhakatribune.com/bangladesh/nation/2017/08/26/pm-promises-every-support-necessary-flood-victims-recover/