Dhaka Bank, Pakiza Group ink deal
Dhaka Bank Ltd and Pakiza Group recently signed an agreement for project finance of Tk 2,735.19 million at the Dhaka Bank Corporate Office. Syed Mahbubur Rahman, Managing Director and CEO of Dhaka Bank Limited and Rafiqul Islam Khan, Chairman of Pakiza Group inked the deal at the Dhaka Bank Corporate Office. Among others, Deputy Managing Director (Risk Management) Khan Shahadat Hossain, Deputy Managing Director (Operations) Shakir Amin Chowdhury, Deputy Managing Director (International Business) Mohammad Abu Jafar of Dhaka Bank Ltd. and Rakibul Islam Khan, Managing Director of Pakiza Apparels Ltd., Pakiza Woven Fashion Ltd. and Pakiza Knit Composite Ltd. were also present on the occasion, said a statement.
Thrust on stopping fake currency flow between India, Bangladesh
A joint task force has emphasised on increasing cooperation between India and Bangladesh to check flow of fake currency between the two countries. The call was made on first day of the three-day conference of the task force on fake currency notes between the two neighbouring countries. The conference, which began on Sunday, is taking place at Police Headquarters (PHQs) in Dhaka. Additional Inspector General of Police (Admin and Ops) of the PHQs Mukhlesur Rahman formally inaugurated the conference, reports UNB. DIG (Crime Management)of the PHQs Rawshan Ara Begum led Bangladesh delegation, while her counterpart Inspector General (IG) of National Investigation Agency (NIA) Anil Shukla led Indian delegation in the meeting, said Soheli Ferdousi, AIG (Media) of the PHQs.
Bangladesh banking system stable despite legacy asset quality issues, tighter liquidity
The outlook for banks in Bangladesh is stable over the next 12-18 months because of the healthy operating environment, and despite legacy asset quality issues and tighter liquidity conditions, according to a report on Moody’s website yesterday. On the operating environment for banks, Moody’s says that Bangladesh’s economic growth is high and stable, underpinned by robust private investment and consumption growth. Private investment growth averaged 16 per cent between 2014 and 2016. Private consumption growth was also healthy, averaging 11 per cent over the same period, driven by rising income levels. Moody’s also points out that the banks’ credit growth registered a healthy 16 per cent in the 12 months to 30 March 2017. “This pace of loan growth is in line with Bangladesh’s underlying economic growth, and translates to a loan growth multiplier (loan growth/nominal GDP growth) of 1.1x,” says Srikanth Vadlamani, a Moody’s vice president and senior credit officer. “We expect that the banks will achieve loan growth in the mid-teens in 2018.” Term loans made to industries are a key driver of overall loan growth, in line with the robust underlying investment cycle. Loans to the construction and infrastructure sectors, in particular, have been strong, and Moody’s expects this situation to continue. Retail loan growth has also been picking up, although from a low base. Moody’s says that retail loan growth should strengthen, as more banks start focusing on this segment. “Asset quality will remain a credit weakness for the banks, in particular for state-owned banks, over the next 12-18 months, primarily driven by corporate loan delinquencies,” says Komaresan Subramanian, a Moody’s Associate Analyst. “And, while liquidity conditions are comfortable, a rising loan to deposit trend poses a risk to the private sector banks’ liquidity profiles.” Moody’s conclusions are contained in its just-released report on banks in Bangladesh, titled “Banking System Outlook – Bangladesh”, and is authored by Vadlamani and Subramanian.
Banks should court mergers and acquisitions for bailout
Banks in Bangladesh should go through mergers and acquisitions, which a leading banker believes will make the overall banking sector better and stronger through troubleshooting. “I think merger and acquisition should take place in our banking arena,” Mr. Anis A Khan, Chairman of the Association of Bankers, Bangladesh, said in an exclusive interview with The Financial Express last week. The suggestion from the bankers’ body chief himself came at a time when various problems with banking operations, like forgeries, suspicious lending and resultant ballooning of default loans, came to light in tandem. The ABB chairman cited how banks abroad overcame the odds that had stemmed from a past financial flu. “Back during the Asian financial crisis of 1997, banks in Thailand and Malaysia went through an era of consolidation when a number of their banks went through merger and acquisition,” he said. “Similar thing should happen in our banking sector whereby banks which are not performing well should get merged with those who are doing better,” insists Mr Khan, who is Managing Director and Chief Executive Officer of Mutual Trust Bank Limited.
MRA scraps licences of 110 MFIs for breach of rules
A total of 112 microfinance institutions (MFIs) have faced action for breaching the existing rules and regulations, officials said. Of the total, operating licences of 110 MFIs have been cancelled while the activities of two others put on hold, according to the Microcredit Regulatory Authority (MRA) data.
IBBL opens new branch at Singra
Islami Bank Bangladesh Limited (IBBL) opened its 332nd branch at Singra upazila of Natore on Sunday. State Minister for ICT Division Zunaid Ahmed Palak inaugurated the branch as the chief guest. Arastoo Khan, Chairman of the bank, presided over the event while Md Abdul Hamid Miah, Managing Director and CEO, delivered the welcome address.
City Bank wins ICT award
City Bank has been announced as the “Best Online Bank” by the ICT Division of the Government of Bangladesh. The award was given based on recommendations from Bangladesh Bank. At a ceremony held in Dhaka celebrating the first National ICT Day, City Bank’s Acting Managing Director Adil Islam received the award from the Speaker of Jatiya Sangsad Shirin Sharmin Chaudhury in presence of State Minister for ICT Zunaid Ahmed Palak.
New top brass for publicly listed companies’ body
Azam J Chowdhury, managing director of MJL Bangladesh, has recently been elected as the president of Bangladesh Association of Publicly Listed Companies (BAPLC) for 2018 and 2019. The association re-elected Anis A Khan, managing director of Mutual Trust Bank, as its vice president. BAPLC is the apex body of the companies listed with the stock exchanges of Bangladesh, the association said in a statement.
MTB sponsors ramp at Ctg Club
Mutual Trust Bank Ltd. (MTB) sponsored the CCL Ramp for special chair at the Chittagong Club Limited (CCL) in the port city with a view to providing physically challenged people with greater ease and convenience, says a press statement. MA Rouf, Chairman of MTB, and Meah Mohammed Abdur Rahim, Chairman of CCL, inaugurated the CCL Ramp at a ceremony on the club premises on December 14.
Low-cap stocks continue to soar
Share prices of most of the “Z” category companies are rising abnormally in recent weeks though they had no price sensitive information (PSI) or any expansion plan amid sluggish market movement. Within one month, some “Z” category companies’ share price jumped between 8.12% and 49.12% while 34 companies share price rose 8.51% Sunday though the market is passing a bearish mood, according to Dhaka Stock Exchange (DSE). Following the recent abnormal price hike of these low-cap companies’ share, the DSE also served show-case notices on 14 companies recently, but the companies informed the premier bourse that they had no price sensitive information for unusual price hike. Listed companies with low capitalization also dominated the day’s gainer chart on the day though the market witnessed correction with turnover hitting seven month low.
Japanese firms to invest in infrastructure
Japanese companies are going to invest in Bangladesh’s infrastructure projects under a new government-to-government arrangement, the progress in which is expected to be visible next year. Hiroyasu Izumi, ambassador of Japan to Bangladesh, made the disclosure yesterday in a meeting with State Minister for Power Nasrul Hamid at the latter’s secretariat office in Dhaka. According to a Power Division statement, the envoy said Japanese firms have expressed interest to invest in Bangladesh under public-private partnership (PPP) initiative. “Real implementation will be visible from next year,” he said. A memorandum of understanding has already been signed between the two countries which will allow Japanese companies to get work orders without participating in any bidding.
BTRC takes fresh initiatives to revise rate
Bangladesh Telecommunication Regulatory Commission has initiated a fresh move to revise its decision on international call termination rate after nine months of finalisation amid pressure from the influential International Gateway operators. An official of the commission told New Age on Thursday that the commission under its latest move will hold meeting with the stakeholders including the IGW operators, interconnecting exchanges and mobile phones operators to revise the decision.
BTRC chief says two foreign telcos keen to get 4G licence
Two foreign mobile telecom operators, which are yet to launch operations in Bangladesh, have expressed their eagerness to get licence to offer 4G services and bid for spectrum, reports bdnews24.com. BTRC Chairman Shahjahan Mahmood said on Sunday that the two foreign telecom firms discussed their eagerness to begin Bangladesh operations recently. He declined to name the firms, saying they were yet to finalise their proposals.
4G minimum speed to remain 20 Mbps
Bangladesh Telecommunication Regulatory Commission has decided to keep unchanged the minimum download speed for the fourth generational (4G) mobile phone services at 20 megabyte per second, after country’s mobile network operators demanded a cut in the speed rate. The decision of the commission came as part of its move to formulate a set of guidelines on quality of service for 4G services before the launch of the services. The speed rate set by the commission is almost half of the 4G download speed in Singapore, which is more than 45 Mbps. Although the BTRC is yet to issue licenses to the mobile network operators for 4G, the 4G licensees will have to maintain the internet speed once they would get regulatory approval in this regard. The commission on December 4 this year invited applications from eligible entities for awarding 4G licenses. Although prime minister’s ICT adviser Sajeeb Wazed Joy suggested setting downloading speed at 100 Mbps under the 4G services, the commission set the speed at 20 Mbps considering demands from the operators. The objection from the operators came after the government, in finalizing the guidelines on awarding 4G license and spectrum auction, has addressed all the 23 concerns raised by the mobile phone operators.
Eskayef focuses on courage, ethics at annual conference
Eskayef Pharmaceuticals organised its annual conference for 2017 with the theme “Win the race through repeated actions with courage and ethics” in the capital’s International Convention City Bashundhara on December 14. At the programme, the company’s Chairman Latifur Rahman along with Managing Director and CEO Simeen Hossain awarded the top performers of Eskayef and Transcom Distribution Company. “We have to continue our spirit of work with courage and ethics and give our best to have the best outcome,” said Rahman, who is also the chairman and CEO of Transcom Group. In her speech, Simeen Hossain said, “Our achievements are a positive reflection of our colleagues, truly the best talents who continue to infuse energy and passion. This team will surely drive the company to leave its footprints in Bangladesh and beyond.” Urging all to utilise their full potential, she gave an update on the humanitarian projects undertaken by the Latifur & Shahnaz Rahman Foundation.
Government sets target to send 1.5 million workers abroad next year
Expatriates’ Welfare and Overseas Employment (EWOE) Minister on Sunday said the government has set a target to send 1.5 million workers abroad next year. He added that there should be a database for the returnee overseas workers to take care of them after they return home. He said visa trading must be stopped. There is demand of workers in the destination countries. That is why they are going.
Govt plans tourism fair from next year
The government has decided to hold international tourism fair from next year to promote both inbound and outbound tourism. Civil Aviation and Tourism Minister Rashed Khan Menon came up with the information on Sunday. He said, “So far, no tourism fair has been organised with the government efforts. We have decided to organise an international tourism fair every year under the auspices of the government.” According to BSS, he was speaking after unveiling the first issue of the newsletter published by Bangladesh Parjatan Corporation (BPC) titled “Travelogue” at a city hotel.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 57.37||↑0.07||↑0.12%|
|Crude Oil (Brent)||$ 63.35||↑0.12||↑0.19%|
|Gold Spot||$ 1,255.05||↓1.39||↓0.11%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 82.61|
|GBP 1||BDT 110.16|
|EUR 1||BDT 97.14|
|INR 1||BDT 1.29|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.