Government plans to bail out Farmers Bank

The government plans to inject capital into Farmers Bank through Investment Corporation of Bangladesh (ICB) and state-owned Sonali, Janata, Agrani and Rupali banks in order to save the private commercial lender from failing. The five lenders will buy shares worth BDT 11.00 billion of the fourth-generation bank, which had been given the license on political consideration and is now struggling to survive amid a huge cash crunch caused by loan irregularities. The Finance Minister said that a bank cannot be allowed to fail. A meeting of the board of ICB was scheduled to be held on Tuesday where the investment issue was to be discussed.

Source: http://www.thedailystar.net/business/govt-plans-bail-out-farmers-bank-1531645

BD to sue Philippine bank to recover stolen reserves: Muhith

Bangladesh will file case against Rizal Commercial Banking Corporation (RCBC) of the Philippines as a last resort to recover the former’s stolen reserves, the finance minister said Wednesday. “Yes, the case will be filed in New York. Fed will join us as a party in the case,” AMA Muhith told newsmen after a meeting of the cabinet committee on public procurement at the Secretariat, as the lion’s share of the money, stolen by trans-national cybercriminals from Bangladesh’s account in the US Federal Reserve bank, couldn’t yet been retrieved. He said some lawyers are discussing the ways of filing case in a New York court. Mr Muhith, replying to a query, however, said again that the report on the probe conducted by a committee headed by former central bank governor Dr Mohammed Farashuddin on the reserve heist would not be made public now.

Source:
http://today.thefinancialexpress.com.bd/first-page/bd-to-sue-philippine-bank-to-recover-stolen-reserves-muhith-1518025640
http://www.thedailystar.net/business/bb-sue-rizal-bank-over-heist-1531648
http://www.newagebd.net/article/34302/bangladesh-bank-to-file-case-in-new-york
http://www.dhakatribune.com/business/banks/2018/02/07/bb-file-case-rcbc-fail-return-heist-money/

BB tells banks they can implement amended law

Bangladesh Bank on Wednesday informed scheduled banks that they could now implement the amended bank company act that allowed appointment of four members of a family to the board of directors of a bank and extension of the tenure of a director up to nine years. In a circular, the central bank’s Banking Regulation and Policy Department also advised the banks to place the Bank Company Act (Amendment) 2018 before the next board meeting to make its members informed. The amendment came into force on January 28 when an official gazette notification was issued after the parliament on January 16 passed the changes to the law allowing tightening of family grip over the board of a bank. The amendment has allowed four members of a family to the board and extended the tenure of a director up to nine years. Previously, only two members of a family could become directors of a bank and the tenure of a director was six years.

Source: http://www.newagebd.net/article/34322/bb-tells-banks-they-can-implement-amended-law

Foreign investors want to buy 25pc stake in DSE

Three separate consortiums from China and India have showed interest in acquiring 45 crore shares or 25 percent ownership of the Dhaka Stock Exchange and becoming a strategic partner of the premier bourse. The DSE has a total of 180 crore shares, the face value of each is Tk 10. A consortium of the Shanghai Stock Exchange‎ and the Shenzhen Stock Exchange proposed buying 45 crore shares — which is 25 percent of DSE’s shares — at Tk 22 each. They will also provide technical support of $37 million, which is about Tk 300 crore. But the Chinese investors also demanded a seat at the DSE board. The National Stock Exchange of India proposed Tk 15 for each share of the DSE through two different consortiums, one in partnership with the American Nasdaq and another with the private equity fund Frontier Fund Bangladesh. All three proposals were placed at the DSE’s board meeting held on Tuesday at its headquarters.

Source: http://www.thedailystar.net/business/foreign-investors-want-buy-25pc-stake-dse-1531627

January foreign equity flows unusually high: Over $61m flows to and from BD capital market

Net foreign equity flows to and from Bangladesh’s capital market this past January were “abnormally high” at over US$ 61 million compared to corresponding 2017 period. The foreign investments, especially in the last two weeks of January, totalled $37.33 million although the first week of the month began with a modest investment of $3.3 million. These data were prepared exclusively for the Financial Express (FE) by Massachusetts-based EPFR Global that tracks fund movement across the world. The data also show that the January 2018 investment by foreigners high in at least 13 months beginning from December 2016. This is also much high when compared with previous month of December at a time when there was “possibly” profit taking by them or fund withdrawal as the net fund flow in December last demonstrated a minus figure amounting to nearly $1.0 million. Security analysts, especially fund managers who deal with such foreign portfolios, told the FE that the foreign investors usually buy while the market stays downward in terms of stock prices.

Source: http://today.thefinancialexpress.com.bd/first-page/january-foreign-equity-flows-unusually-high-1518025404

New DMD for Bank Asia

Md Sazzad Hossain has recently been promoted to the post of deputy managing director of Bank Asia. Prior to the new role, he was the senior executive vice president and head of internal control and compliance division of the bank, the bank said in a press release yesterday. Hossain joined the bank as vice president in 2003. He started his banking career with Pubali Bank as a probationary officer in 1987. Hossain also served Eastern Bank and NCC Bank.

Source: http://www.thedailystar.net/business/new-dmd-bank-asia-1531633

IPDC Finance to issue rights

The board of directors of IPDC Finance has decided to raise the paid-up capital by issuing rights shares, according to an official disclosure on Wednesday. The non-bank financial institution decided to issue one rights share against existing two shares of BDT 13 each, including a premium of BDT 3.0. However, the rights issue is subject to approval of shareholders, Bangladesh Securities & Exchange Commission (BSEC) and complying with the requirements embodied in relevant laws and regulatory authorities concerned, the disclosure said. The board has recommended that the authorised capital will be increased to BDT 20 billion from existing BDT 4.0 billion, subject to approval of shareholders in the ensuing extraordinary general meeting (EGM). The board of directors of the company has also recommended 20% stock dividend for the year ended on December 31, 2017.

Source: http://today.thefinancialexpress.com.bd/stock-corporate/ipdc-finance-to-issue-rights-1518021374