ADB to lend more to BD
The Asian Development Bank (ADB) said on Tuesday of extending its financial support further to Bangladesh’s development in future. The Manila-based lender said it will finance more development projects in addition to the current portfolios. ADB Country Director assured the Finance Minister of the increased financial support from the ADB. One of the largest multilateral development partners for Bangladesh over the years, the ADB made a commitment of a record $2.1 billion worth of assistance in fiscal year (FY) 2017-18. Its aid commitment in FY 2016-17 was also $2.1 billion for different projects. In FY ’18, the ADB disbursed $1.1 billion for different projects and programmes. It was $811 million in FY ’17. Its total portfolio in Bangladesh is so far nearly $10 billion. It is also providing loans and grants for 54 ongoing projects here.
Overseas investors back to stock markets
Net foreign investment in the Dhaka Stock Exchange bounced back in January as investors shook off the election jitters. Last month, foreign investors bought shares worth Tk 495.19 crore and sold shares worth Tk 319.90 crore, taking their net investment to Tk 175.29 crore. In December, it stood at Tk 101.53 crore in the negative, as fears of political uncertainty centring the national polls on December 30 reigned supreme. As per the secretary general of the Bangladesh Merchant Bankers Association, Foreign investors have started gaining confidence after the 11th parliamentary elections.
Top 10 pharma companies keep holding nearly 68pc of market: data
The top 10 local pharmaceutical companies continue holding more than 67 per cent share of the Bangladesh medicine market while 194 others hold only 32 per cent, according to the IQVIA data. The data of IQVIA, an American multinational product-based company serving the combined industries of health information technologies and clinical research, showed that market share of the top 10 companies in 2018 decreased by 0.3 percentage points to 67.82 per cent from 68.12 per cent in 2017. According to the data, Square Pharmaceuticals Ltd holds the highest market share (16.95 per cent) with annual sales worth Tk 3,476.25 crore of the total market size of Tk 20,511.88 crore.
BB to relax bank loan write-off policy
Bangladesh Bank has initiated a move to review its loan write-off policy by extending banks’ capacity for writing off bad debts without filing any lawsuit. Banks use the mechanism of writing off bad loans to portray better financial condition but they have to keep 100 per cent provision against the write-off. Besides, recovery of any written-off loan is considered earnings of a bank. For writing off any bad loan, a bank is supposed to file case against the defaulting entity or person along with keeping provision against the loan amount. As per the existing rules, banks, however, can write of a loan worth below Tk 50,000 without taking any legal measure. As per the officials, under the review move, BB would allow banks to write off loans worth up to Tk 2-3 lakh without filing any lawsuit.
US keen to invest more in BD: Envoy
The United States is eager to invest more in Bangladesh as the country (Bangladesh) has a potential market. Newly appointed US Ambassador to Bangladesh Earl Robert Miller expressed his country’s interest while talking to reporters after he met with Commerce Minister at the latter’s secretariat office. The envoy has also emphasised that a strong Bangladesh-US trade relationship is in the interest of the Bangladeshis and American people.
Multiparty meet today over legal barriers to cutting bad loans
Bangladesh Bank will hold a multiparty meeting today in presence of Law Commission officials to discuss the legal barriers to expediting recovery of bad loans amount of which stood at Tk 99,370 crore in the country’s banking sector at the end of September last year. In Bangladesh, the amount of bad loans, also known as non-performing loans, is 11.48 per cent of the total outstanding loans of Tk 8,65,930 crore while it is 2 per cent in Nepal and below 7 per cent in India.
BSEC approves FSIBL bond
The securities regulator has approved the proposal of issuing mudaraba subordinated bond worth Tk 7.0 billion by the First Security Islami Bank Limited. The approval came Tuesday at a meeting held at the office of the Bangladesh Securities and Exchange Commission (BSEC). The tenure of the bond will be seven years and the characteristics are non-convertible, fully redeemable, unsecured and unlisted. The bond will be issued to different financial institutions, insurance companies, corporate entities, and other eligible investors through private placement. The fund will be raised to strengthen the bank’s tier-II capital base. The offer price of the bond will be Tk 1.0 million per unit.
CDBL to stop share sales sans declaration
The securities regulator has asked the Central Depository Bangladesh Limited (CDBL) to strictly enforce the ‘mandatory declarations’ requirement in the case of share transfer by the sponsor-directors and placement shareholders of listed companies. The instruction came in the wake of transfers of these types of shares without such declarations. The Bangladesh Securities and Exchange Commission (BSEC) instructed the CDBL to find a way of containing the share sales executed without declarations.
Genex Infosys makes debut today
As per the officials, Genex Infosys Ltd, an IT company, makes its share trading debut today (Wednesday) on the bourses under “N” category. Genex Infosys is the 9th company under the IT sector on the Dhaka Stock Exchange (DSE). The company raised a fund worth Tk 200 million from the capital market under the fixed price method by offloading 20 million ordinary shares at an offer price of Tk 10 each under the fixed price method. The share subscription for the initial public offering (IPO) of Genex Infosys was held on November 18 and November 29 last year. Bangladesh Securities and Exchange Commission (BSEC), approved the company’s IPO proposal on September 4, 2018.
Green Delta launches AR calendar
Green Delta Insurance Company, a leading non-life insurance entity of the country, has launched the country’s first-ever Augmented Reality calendar. According to Green Delta officials, this AR calendar is also the first of its type in whole Asia. The whole augmented reality experience is delivered through a mobile application called ‘GD Calendar’ developed by Green Delta. The application is available for download in both iOS App Store and Android and Google Play Store.
Esquire Knit holds IPO lottery draw tomorrow
The IPO lottery draw of Esquire Knit Composite will be held tomorrow (Thursday) which will allocate 14.06 million ordinary shares among the successful applicants. As per the officials, the event will be held at 10:30 am at the Institution of Engineers, Bangladesh (IEB) in Dhaka. The IPO draw results will be published on the websites of Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and the company. The initial public offering (IPO) subscription of Esquire Knit was held between January 06 and January 20. The company raised a total capital of Tk 1.50 billion through issuing 34.89 million ordinary shares under the book-building method.
Mongla to host economic zone for India
Dhaka is set to sign a memorandum of understanding (MoU) with New Delhi on February 8 to set up an Indian Economic Zone in Mongla, Bagerhat. The NIDAR Industrial Park Pune (Pvt) Ltd., a sister concern of Hiranandani Group, will develop the economic zone (EZ) on 110 acres of land. The MoU is likely to be signed at the 5th India-Bangladesh Joint Consultative Commission (JCC) meeting to be held in New Delhi on February 7-8.
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