Banks paid-up set to get raise by a quarter
The central bank is set to raise paid-up capital of scheduled banks to Tk 5.0 billion from the existing Tk 4.0 billion over the next two years. According to a senior official of the Bangladesh Bank (BB), they are working on this issue in line with their top management’s decision and the BB board has given its opinion in favour of jacking up the paid-up capital considering the size of the country’s economy. Under the decision, the relevant department of the BB is likely to issue an instruction to the banks that have the paid-up capital below Tk 5.0 billion. According to another Central Banker, currently a total of 17 banks, including seven fourth generation private commercial banks (PCBs), do now have paid-up capital below Tk 5.0 billion and the banks will have to meet the required amount either by increasing its capital base or issuing rights shares or floating initial public offerings (IPOs) within the timeframe.
BB to widen reach of Digital Wallets
The central bank is set to come up with a guideline for electronic money in further proof of its commitment to building a cashless society. The draft guideline has been sent to stakeholders for vetting, after which it will be issued at the earliest. At present, there is only one digital company, iPay, to provide e-money service in Bangladesh, but many are waiting in the wings. The finalisation of the guideline will help them get the licence. An individual can transact a maximum of Tk 50,000 a day through the system, according to the central bank’s instructions to iPay when giving the licence. The monthly ceiling for withdrawal and deposits is Tk 2 lakh. The digital wallet can have a maximum balance of Tk 4 lakh. The digital wallet must be linked with one’s bank account, from where the money will be sent, according to the draft regulations. Once loaded, the customer can: send funds to another digital wallet, make payments for purchases at point-of-sale, pay utility bills, taxes, tuition fees and transport fares.
Bangladesh Bank to seek opinions of stock Stakeholders before MPS framing: Governor
According to BB Governor, from now on Bangladesh Bank will take opinions from the capital market stakeholders before declaring its monetary policy statement to prevent any negative impact of the policy on the market. The Governor made the statement at a seminar on ‘Monetary Policy Statement: Implication on Private Sector’ organised by Dhaka Chamber of Commerce and Industry at its office in Dhaka on Saturday. As per Dhaka Stock Exchange director, BB had never given the capital market importance in its MPS declaration despite having profound relations between them and various rumours and panic ruled the stock market before declaration of an MPS that could be prevented if the central bank ensured stock market stakeholders’ participation in the process. The Director urged Bangladesh Bank to discuss with stakeholders concerned before framing MPS.
United Finance to issue Tk 5.0b bond, recommends 10pc div
The board of directors of United Finance has decided to issue non-convertible zero coupon bonds worth up to Tk 5.0 billion (in face value). According to the disclosure, the company will issue the bond through private placement (unsecured, unlisted) only in multiple tranches if required, with tenure up to five years from the issue date. The bond issue, however, subject to the approval of the regulatory authorities like Bangladesh Bank (BB) and Bangladesh Securities and Exchange Commission (BSEC). The board of directors of the United Finance has also recommended 10 per cent cash dividend for the year ended on December 31, 2018. The final approval of dividend will come during the annual general meeting (AGM) scheduled to be held on April 24 at 10am in Dhaka.
Draft leather policy eyes $5b annual export by 2021
The government has finalised the draft of leather policy with an aim to achieve $5 billion export earnings target from the sector by 2021 and to increase the contribution of leather sector to Gross Domestic Product to 2.5 per cent from existing 0.5 per cent. The industries ministry has recently finalised the draft with the inclusion of recommendations from stakeholders and the draft would be turned into a policy within a very short time. According to the draft, the name of the policy would be ‘Leather and Leather Products Development Policy 2019’ and it would be reviewed every five years. The draft included a time-bound action plan to implement the policy in phases.
BSCCL’s share price doubles in three months
The share price of Bangladesh Submarine Cable Company Ltd (BSCCL) rose 108 per cent within three months as its earnings soared. The company’s share price hit at Tk 91.70 each since November 25, last year to close at Tk 176.20 on Sunday at the Dhaka Stock Exchange. Its share price was Tk 85.50 on November 25, 2018. The state-run company’s share traded between Tk 71.50 and Tk 177.50 each in the last one year. The company’s share also hit one year highest price level on Sunday. The company also dominated the day’s turnover chart with 2.85 million shares worth Tk 489 million changing hands which was 8.24 per cent of the day’s total transactions. The Dhaka Stock Exchange (DSE) served show-cause notice on the company on January 21. The company informed that there was no undisclosed price sensitive information for recent unusual price hike of its shares.
Export of Farm produce rises as compliance improves
The number of non-compliance issues against consignments of Bangladeshi agro produce abroad has declined significantly in recent years, attracting more buyers and boosting its exports. As per the Insiders, adoption of the quarantine policy and its timely implementation by the government in export trade has helped minimise non-compliance against Bangladeshi fresh produce. Such reputation has also helped the country boost its exports as earnings from farm produce is set to hit an all-time high this fiscal year (FY’19), according to official figures. Consignments of fresh produce including fruits, vegetables, betel leaf, tea, dry food, tobacco, flower and foliage and others witnessed highest 195 non-compliance tags in 2014, according to Plant Quarantine Wing (PQW) under the Ministry of Agriculture (MoA).
$ 10m investment for Real Estate dev
The country’s real estate marketplace Bproperty.com would invest US$ 10 million for the development of the sector. According to the report BBS, the market place in an announcement on Sunday said it secured the investment from its parent company Emerging Markets Property Group (EMPG). It facilitates people to sell, buy or rent properties through its innovative online and offline services. As per the CEO of the Company, they are excited to have secured this investment and we have full intentions to build a world class real estate solution for Bangladesh, ensuring that all Bangladeshi’s have access to the information and advice they require in order to making the right property decision.
Experts moot idea of Central Financial Commission
Formation of a central financial commission was suggested at a function in Dhaka Sunday to oversee allocations made in the national budget and development of tax structure to help make the budget participatory. According to the former Central Bank Governor Dr Atiur Rahman, the proposed commission will address budget implementation challenges and ensure fair distribution of allocations. Dr Atiur made the proposal at an event styled ‘National Dialogue on Alternative and Participatory Budget’ hosted by Democratic Budget Movement in Dhaka on Sunday. According to Dr. Atiur, people pay tax both directly and indirectly. But there is no estimate how much revenue comes through indirect taxation. The commission will help develop a tax structure and decide where to impose tax and how much revenue is earned from indirect tax.
FinExcel holds training in city
According to a statement, Financial Excellence Limited (FinExcel) organised a two-day long training programme on ‘Retail Banking: SME, Consumer Credit and Home Loan’ in the capital recently. FinExcel Chairman inaugurated the training programme at a ceremony. Mid-level executives from several banks and financial institutions participated in the event.
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)|| $ 57.22||↓0.04||↓0.07%|
|Crude Oil (Brent)|| $ 67.03|| ↓0.09||↓0.13%|
|Gold Spot|| $1,330.60||↑1.20||↑0.09%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.9886|
|GBP 1||BDT 109.7647|
|EUR 1||BDT 95.2515|
|INR 1||BDT 1.1806|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<