Dhaka Bank gets new MD & CEO
Dhaka Bank Limited recently promoted Mr. Emranul Huq as the Managing Director & CEO with effect from February 22, 2020. Prior to this role, he was serving the Bank as the Additional Managing Director & Chief Business Officer. Mr. Huq, has more than three decades of professional banking experience, both at home and abroad to his credit. He started his career with Bank of Credit & Commerce International (BCCI) in Dhaka as Management Trainee in 1986. Before joining Dhaka Bank in 1998, he also worked at Eastern Bank Limited and Credit Africa Bank Limited in Zambia in various capacities. During his long tenure with Dhaka Bank, Mr. Huq served in various key positions which includes Deputy Managing Director for Business Banking, Branch Manager for various corporate branches of the Bank, etc. Mr. Huq attended various professional banking training programmes at home and abroad namely, USA, Germany, Netherlands, China, Thailand, Malaysia, Hong Kong, Pakistan, etc. He is a “Certified Corporate Banker” and a Fellow of the American Academy of Financial Management. He is also the Member of the Standing Committee on Banking Technique and Practice of International Chamber of Commerce (ICC) Bangladesh.
GP generates highest turnover on DSE
Grameenphone (GP), the largest company by capital, dominated the Dhaka bourse’s turnover chart on Wednesday while ten most-traded stocks accounted for 22 per cent transaction. Market analysts said GP share continued to plummet after the news that GP has to operate without respite and pay remaining Tk 10 billion within 90 days. A leading broker said the investors were scared of the financial implications of the payment of Tk 20 billion to the BTRC on the company’s balance sheet this year. Accordingly, GP share price plunged 9.86 per cent or Tk 31.50 within three trading sessions to close at Tk 288.10 each on Wednesday. According to data available with the DSE, about 579,114 shares of GP were traded, generating a turnover of nearly Tk 166 million, which was 2.64 per cent of the day’s total turnover of Tk 6.27 billion. The GP, which was listed on the DSE in 2009, declared 40 per cent final cash dividend, including 90 per cent interim cash dividend for the year ended on December 31, 2019. In 2018, the company disbursed total 280 per cent cash dividend. The company’s paid-up capital is Tk 13.50 billion and authorised capital is Tk 40 billion while the total number of securities is 1.35 billion. The sponsor-directors own 90 per cent stake in the company, while institutional investors own 4.05 per cent, foreign investors 3.81 per cent and the general public 2.14 per cent as of January 31, 2020, the DSE data showed. Indo-Bangla Pharma came second on the turnover chart, with shares worth Tk 164 million changing hands. The company’s share price fell 1.54 per cent to close at Tk 25.50 each.
StanChart commits $75b towards SDG
Standard Chartered has recently announced new business targets for supporting its clients as they transition to a low carbon economy as part of its Sustainability Aspirations. By the end of 2024, the Bank commits to: providing US$ 40 billion of project financing services for infrastructure that promotes sustainable development and providing US$ 35 billion of project financing services, M&A advisory and debt structuring services for renewables and clean tech projects (solar and wind), said a statement. Underpinning the aspirations, Standard Chartered also intends to reduce its emissions across its global properties by 2030. With an office footprint spanning 60 countries, including many large emerging markets, the Bank will achieve net zero emissions by only sourcing energy from renewable sources and continuing to pursue energy efficiency measures across its 12 million square feet of property.
Digital transformation of financial services to reduce cost of business
Speakers at a programme on Wednesday stressed the need for easy access to finance, banking services at doorsteps, technological innovation, and better policy support for further development of small businesses. They also said digital transformation of financial services can reduce cost of financial institutions which may bring positive result in loan disbursement in small enterprises. The observations came at a conference titled ‘Transforming Financial Market for Small Business’ organised by Business Finance for the Poor in Bangladesh (BFP-B) at a hotel in the city. He said the number of SMEs in the country is estimated at 8.0 million that contributes 25 per cent of the GDP and employs over 50 per cent of the working population. To develop the country’s SME sector, the central banks has been implementing the BFP-B project to support small entrepreneurs with regulatory and policy reforms. According to a study presented at the event, as of 2017, there were 783 licenced Microfinance Institutions (MFIs) with 17,120 branches all across the country having total of around 30 million clients, mostly small entrepreneurs. These MFIs have disbursed Tk 1.05 trillion of which Tk 409 billion was agricultural loans till 2017. BFP-B is a £25 million financial sector reform programme funded UK Aid and managed by Nathan Associates, which has worked with the government of Bangladesh, regulators, commercial financial institutions, and technology companies.
Govt to launch ‘Green Factory Award’
The government has decided to introduce the ‘Green Factory Award’ in the country’s industrial sector, commemorating the birth centenary of Father of the Nation Bangabandhu Sheikh Mujibur Rahman. The Ministry of Labour and Employment will distribute the award on April 28 on the occasion of the National Occupational Health and Safety Day. The decisions were taken at a meeting held at the conference room of the ministry on Wednesday with Labour and Employment Secretary KM Ali Azam in the chair. The meeting was informed that the ministry will organise an international seminar on the life and works of Father of the Nation Bangabandhu Sheikh Mujibur Rahman. It also decided to arrange a seminar at the capital’s Osmani Auditorium in the month of mourning – August – where two eminent personalities, including an international one, will present keynote papers.
Old interest rates on postal savings from Mar 17
The government yesterday walked back on its decision to slash the interest rates on ordinary and fixed deposits in Post Office Savings Bank, with the previous rates to return from next month. The previous rates of interest will be applicable from March 17 when we complete the automation of post offices, Finance Minister AHM Mustafa Kamal told reporters yesterday at his office in Dhaka. The disclosure came two weeks after the finance ministry slashed the interest rates on the three-year tenure fixed deposit in postal savings banks to 6 per cent from 11.28 per cent — a move that sparked outcry from various quarters. Termed as Post Office Savings Bank, there are more than 50 lakh deposit accounts in this bank and marginal and low income people from rural and suburban areas mostly park their savings here, said officials of the Bangladesh Post Office earlier. The instruments carry interest rates as high as 11.76 per cent, which is way higher than what banks offer. As a result, fixed deposits in postal saving bank soared 66 per cent year-on-year to Tk 11,730 crore in the first half of the fiscal year. At the same time, investment in savings certificates sold by post offices plummeted 88 per cent to Tk 1,870 crore. When we saw all were running to post offices, we had to think of controlling the rush. And the interest rate cut was one of the tools. As the automation of post offices is underway and is likely to complete by March 17, Kamal said depositors in postal savings accounts will see the previous rates of interest. The government, however, will not want to see documents of the savers keeping up to Tk 2 lakh in deposits and they will get more than 11 per cent interest rate. The ceiling for the highest investment in savings certificates doubled to Tk 50 lakh for individuals and Tk 1 crore under joint names. The investment ceiling for pensioner savings certificates will double to Tk 1 crore. The deposits in the Post Office Savings Bank were more than a fifth of Tk 83,630 crore of investment made by people in various types of savings certificates, bonds and government schemes in fiscal year 2018-19, data from the DNS showed.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|DSEX||4,549.1132||↓ 72.09||↓ 1.56 %|
|↓ 123.77||↓ 0.46 %|
|FTSE100||7,042.47||↑ 24.59||↑ 0.35 %|
|Nikkei 225||22,025.05||↓ 401.14||↓ 1.79 %|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 48.06||↓ 0.67||↓ 1.37 %|
|Crude Oil (Brent)||$ 52.80||↓ 0.63||↓ 1.18 %|
|Gold Spot||$ 1,650.17||↑ 9.21||↑ 0.56 %|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.1543|
|GBP 1||BDT 107.662|
|EUR 1||BDT 90.4456|
|INR 1||BDT 1.15836|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<