Q1 NPLs with industries swell to BDT 240.0 billion
Classified loans in the industrial sector swelled by over 18 per cent or BDT 36.94 billion in the first quarter (Q1) of the current fiscal year (FY), proving the recovery drives by banks and financial institutions ineffective, to a great extent, officials said. The non-performing loans (NPLs) in the industrial sector rose to BDT 239.97 billion at the end of the July-September quarter of FY 2016-17 from BDT 203.02 billion in the same period last year, according to the central bank’s latest statistics. The data show that large-scale industries hold higher volumes of NPLs than the minnows.
Regulator opens probe into junk companies’ price hike
Bangladesh Securities and Exchange Commission yesterday formed a two-member panel to investigate the unusual hike in share prices of seven Z-category companies recently. The companies are: Fine Foods, BD Autocars, Meghna Pet Industries, Meghna Condensed Milk Industries, Zeal Bangla Sugar Mills, Imam Button Industries and Shaympur Sugar Mills. The stockmarket watchdog at a meeting asked the panel, which comprises BSEC’s Deputy Director Md Golam Kibria and Assistant Director Mohammad Rakibur Rahman, to file the probe report at the earliest. Companies that are not in operation or do not hold annual general meetings and do not pay dividends regularly are traded under the stock exchanges’ Z-category, which is considered a platform for junk companies.
Move to entice foreign companies into stock market
The government is likely to sit with the representatives of foreign companies of the Export Processing Zones (EPZ) aiming to motivate them for listing these companies with the stock market, officials said. In a recent meeting on listing of the multinational companies (MNCs) with the bourses, the Bangladesh Securities and Exchange Commission (BSEC) has proposed to hold a meeting with the representatives of the MNCs to bring them to the capital market, they added.
BSEC forms probe body and 8th ICB Mutual Fund to be an open-end fund
The securities’ regulator has formed a body to probe into the reason of price hike of the shares of seven ‘Z’ category companies having negative earnings per share (EPS), officials said. The Bangladesh Securities and Exchange Commission (BSEC) Tuesday formed the probe body comprising deputy director Md. Gholam Kibria and assistant director Md. Rakibur Rahman after a commission meeting. In another development, the securities’ regulator has approved BDT 500 million fully redeemable non-convertible corporate bond to be issued by Golden Harvest Agro Industries. The tenure of the bond will be seven years and will be issued to financial institutions, insurance companies, corporate entities and high net worth individuals only. In addition to that, 8th ICB Mutual Fund, upon closing of trade, will be converted into an open ended fund.
Point-to-point inflation declined by 0.19 percentage points to 5.4% in November, the lowest in the current fiscal year, from that of previous month due mainly to fall in prices of both food and non-food items, according to data of the Bangladesh Bureau of Statistics. In October, overall inflation rate was 5.6%. Food inflation in November dropped to 5.4% from 5.6% in October, BBS data, released on Tuesday, showed. Non-food inflation also decreased to 5.% in November which was 5.6% in previous month.
The country’s export earnings in the July-November period of the current financial year 2016-17 grew by 6.3% year-on-year exceeding USD 13.5 billion. The earnings still remained 4.2% short of the target at USD 14.3 billion set by the government for the first five months. Export earnings in November of the FY17 grew by 5.5% to USD 2.9 billion from USD 2.7 billion in the same period of the FY16, according to Export Promotion Bureau data released on Tuesday. Earnings in November are 7.3% higher than the government-set target at USD 2.70 billion. Earnings in the July-November period of the FY17 grew by 6.30 per cent to USD 13.7 billion from USD 12.9 billion in the same period of the FY16. Earnings from readymade garments export also fell short by 5.1% to USD 11.1 billion from its government-set target at USD 11.7 billion. Experts and exporters say changing dynamic of the international market might cause the slow export growth in the first five months of the current financial year.
The MPP granted a sub-licence to Beximco to produce Bristol-Myers Squibb’s new hepatitis C drug daclatasvir. The name of originator brand is Daclinza. With the recognition, Beximco becomes the first ever Bangladeshi company to achieve the unique feat, said a released issued yesterday. daclatasvir is an antiviral that can cure all major genotypes of the HCV virus. The drug received regulatory approval in Europe in August 2014 and was included in the new WHO Model List of Essential Medicines in April 2015. In November 2015, MPP announced a licence and technology transfer agreement with Bristol-Myers Squibb (BMS) to increase access to DCV in low- and middle-income countries.
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