BB issues guidelines for treasury bonds buy-back
Bangladesh Bank (BB) has issued a 16-point guideline to undertake buy-back programme for the government treasury bonds or bills aiming to reduce the number of government securities, reports BSS. To keep pace with the other countries of the world, the government is going to take buy-back programme of the government securities for balancing the redemption profile and reducing the number of government securities, according to a BB circular issued on Tuesday. On behalf of the government, the central bank issued terms and conditions to implement the overall buy-back programme. As per auction calendar determined by the Finance Division, the buy-back programme will be operational through reverse auction or over the counter (OTC) transaction, the circular says. The buy-back of treasury bills or bonds will be accomplished in the face value of Tk one lakh or multiple of Tk one lakh and all banks and non-bank financial institutions (NBFIs), which maintain current accounts with Bangladesh Bank, can participate directly in the buy-back programme. All other resident or non-resident individuals and institutions, who have no current accounts with the central bank, can participate in the auction through the banks and NBFls, the BB circular says.
Secondary trading of T-bills, T-bonds drops by 45pc
Secondary trading of treasury bills and treasury bonds, two short-and long-term fixed income government securities, declined steeply last year. Latest statistics of the central bank showed that the total turnover of secondary trading of T-bills and T-bonds stood at Tk 282.91 billion in 2017 while the value was Tk 514.08 billion in 2016.
Agent banking faring fine
Banks have started to reap benefit from agent banking just two years after the full-fledged rollout of the alternative financial service as it is increasingly getting popular among customers. Deposit collection rose 42 percent year-on-year to Tk 922 crore in the July-September quarter last year and it reached Tk 651 crore in the previous quarter, according to Bangladesh Bank data. Deposit collection totaled Tk 380.68 crore in the opening year of agent banking services in 2016. “Banks are gaining from agent banking as the service point is a great source of low-cost deposit,” said Humaira Azam, deputy managing director of Bank Asia, which runs one of the top agent banking operations in Bangladesh.
Banks’ fund management comes under close watch
Scheduled banks’ fund management came under close supervision as the central bank issued Tuesday directives on wholesale borrowing (WB) and commitment for maintaining a sound asset-liability balance. Under the new provisions, the banks will have to submit their statements on WB and commitments to the Bangladesh Bank on fortnight and monthly basis. The first and second statements on WB have to be provided to the Department of Offsite Supervision (DOS) of the central bank in three working days after end of each fortnight to update the regulator on their financial health. On the other hand, the statement on commitments has to be submitted to the DOS of the BB by the fifth day of the following month, according to a circular issued by the Bangladesh Bank on Tuesday, in the wake of a plethora of not-so-healthy developments in the banking circles. The banks will have to submit both the accounts on their operational status in prescribed formats to the BB with the managing director and chief executive officer of the bank concerned undersigning these twin statements, it added. “We want to strengthen our monitoring and supervision regarding the asset-liability management of the banks,” a BB senior official told the FE while explaining the main objective of the directives. He also said: “It will be helpful for the banks to manage their funds properly.”
Govt’s bank borrowing now negative
The government’s debt servicing cost is increasing thanks to its growing leaning towards high-cost savings tools instead of bank borrowing. So much that in the first half of fiscal 2017-18, the government’s net borrowing from the banking sector was in the negative, according to data from the Bangladesh Bank. Between July and December last year, the government repaid Tk 3,980 crore to scheduled banks and Tk 3,896 crore to the central bank. On the other hand, between July and November last year, net sales of savings certificates edged up 4.19 percent year-on-year to Tk 21,172 crore.
Farmers Bank gets new MD
Md. Ehsan Khasru has recently joined as Managing Director and CEO of The Farmers Bank Limited. He joined the bank on January 07. Before joining this bank, he was working as a consultant to the board of directors of Premier Bank Ltd, according to a statement. He has strong understanding of business, banking and risk management and provided leadership to large organisations like Eastern Bank, The City Bank and as Managing Director of Prime Bank.
HSBC, Nestlé sign supply chain solution agreement
The Hongkong and Shanghai Banking Corporation Limited and Nestlé in Bangladesh signed an agreement to offer “Buyer Approved Invoice Finance” (BAIF) for Nestlé’s suppliers. This is a new supply chain financing proposition that provides more efficient and cost-effective working capital solution for buyers and their suppliers, said a statement. This innovative proposition, a first by HSBC in Bangladesh, provides suppliers with access to more competitive financing. This solution also enhances visibility across the entire supply chain, which simplifies the management of trade payables and, in turn, helps to improve supply chain efficiency and agility. HSBC Bangladesh was mandated to operate the supplier financing program for Nestlé Bangladesh Limited (Nestlé).
Govt ADP execution capacity stagnates
Government agencies spent 27 per cent of the Annual Development Programme (ADP) outlay during the first half of this fiscal, almost same as last year’s corresponding period. Analysts view that the government failed to improve upon its project-execution capacity compared to that of the same period (July-December) of last financial year (FY), 2016-17.
NBR to relax selection criteria for VAT award
The National Board of Revenue has taken an initiative to relax selection criteria for the highest VAT-payers award to honour more businesses. Officials said that the condition of payment of 10 per cent higher value-added tax than that of the previous fiscal year by a business for being eligible of getting the award would be relaxed as many compliant and large businesses are deprived of the honour due o stiff selection criteria.
Policy on way to rev up bike manufacturing
The government is framing a policy to facilitate the development of motorcycle manufacturing industry in Bangladesh to meet the domestic demand for low-cost modes of transport as well as to expand the export basket. The draft policy has targeted to locally manufacture 5 lakh motorcycles a year by 2021 and double the number by 2027. “The mission is to achieve the capacity for meeting the domestic requirement by 2027 and develop a modern and competitive vendor (component maker) industry helpful for motorcycle industry,” said the industries ministry’s draft policy. The policy is being framed at a time when the demand for two-wheelers, which allows quick moving in both rural and urban areas, is spiralling.
Gold prices rise again
Jewellers have raised the prices of gold for the local market only two weeks later. The price of 1 Bhori (11.664 grams) of 22-carat gold has increased by Tk 1,400 and reached to Tk 50,738. Similar price hikes have been made on December 25. The new prices will go into effect from today, Bangladesh Jewellers Samity (BAJUS) said this in press statement on Tuesday.
Square Pharmaceuticals to initially invest $25m in Kenya
Square Pharmaceuticals Ltd (SPL), Bangladesh, started the construction work of its state-of-the-art pharmaceutical manufacturing plant on January 8, 2018 in Nairobi, Kenya. It is a benchmark achievement for the Bangladesh pharmaceutical industry as SPL will be the first Bangladeshi pharmaceutical manufacturer to build its own plant outside of Bangladesh.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 63.51||↑0.55||↑0.87%|
|Crude Oil (Brent)||$ 69.21||↑0.39||↑0.57%|
|Gold Spot||$ 1,311.74||↓1.11||↓0.08%|
Major Currencies Exchange Rates Movement in Last Seven Days *
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|GBP 1||BDT 112.05|
|EUR 1||BDT 98.90|
|INR 1||BDT 1.30|
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