Banks’ interest rate spread falling

A declining trend of interest rate spread in the country’s banking sector continued until November, as the commercial banks slashed their interest rates more on lending than on deposits, officials said. The weighted average spread between lending and deposit rates offered by the banks came down to 4.40 per cent in November 2017 from 4.50 per cent in the previous month, according to the central bank’s latest statistics. The spread was 4.55 per cent in September, and 4.72 per cent in January 2017. “The banks may offer higher interest rates on deposit to collect more funds for minimising the gap between deposit and credit growths in the near future,” a senior official of the Bangladesh Bank (BB) told the FE on Sunday. The BB official’s observation came against the backdrop of rising trend in credit than that of deposit in the recent months, as depositors feel discouraged to put their money in the banks with low interest rates. The growth in deposit, on a year-on-year basis, stood at around 11 per cent in November last, while the credit growth reached 19 per cent. It happened so due to higher trade financing by the banks for settling import-payment obligations, particularly of fuel oils, consumer items, food grains and capital machinery. The weighted average rate on deposits rose to 4.90 per cent in November from 4.89 per cent in the previous month, while interest on lending dropped to 9.30 per cent from 9.39 per cent, the BB data showed. The central banker also said BB is now working to keep the spread within 4.0 per cent in the near future.

Source: http://today.thefinancialexpress.com.bd/last-page/banks-interest-rate-spread-falling-1515951491

Brac Saajan Exchange to operate in EU

The Bangladesh Bank has given the go-ahead to Brac Saajan Exchange, the UK subsidiary of Brac Bank, to expand its business activities into the European Union in preparation of the Brexit. Brexit, which is the prospective withdrawal of the UK from the EU in March 2019, will restrict Brac Saajan’s market to only the UK, said Selim RF Hussain, managing director of Brac Bank. So, the exchange house will now set up a 100 percent-owned subsidiary in Portugal to run its remittance business in the EU. The development comes at a time when remittance inflow from the UK is on the decline while that from the EU is on the rise.

Source: http://www.thedailystar.net/business/banking/brac-saajan-exchange-operate-eu-1519864

Bourses to delist Brac Bank bond today

Subordinated 25% Convertible Bonds of BRAC Bank will be de-listed from both the stock exchanges today (Monday) on completion of its maturity, according to information of stock exchanges. The Subordinated 25% Convertible Bonds of BRAC Bank got listed on the stock exchanges in 2011. There are two corporate bonds listed with the stock exchanges. Another corporate bond is IBBL Mudaraba Perpetual Bond.

Source: http://today.thefinancialexpress.com.bd/stock-corporate/bourses-to-delist-brac-bank-bond-today-1515943248

ERA InfoTech to install Palli Sanchay’s banking software

ERA InfoTech, a joint venture of Bank Asia, Ranks ITT and ETA InfoTech LLC of Dubai, won the contract to supply and maintain the core banking software of Palli Sanchay Bank. The company will install the online banking software at all branches of Palli Sanchay Bank and will maintain the architecture for six years. The agreement was signed yesterday by Akbar Hossain, the bank’s acting managing director, and Md Serajul Islam, chief executive of ERA InfoTech, at an event held at the finance ministry. Finance Minister AMA Muhith also spoke on the occasion. Palli Sanchay Bank is the culmination of the government’s ‘One House One Farm’ project by way a special act in 2016. The bank will have a branch in each of the 492 upazilas. Data on 325 branches have already been transferred from the project to the bank, Palli Sanchay said in a statement. Work for transferring the data from another 160 branches is on way.

Source: http://www.thedailystar.net/business/banking/era-infotech-install-palli-sanchays-banking-software-1519861

Bangladesh’s stock exchanges re-balance price indices

Dhaka Stock Exchange (DSE) has re-arranged DSE Broad Index (DSEX) as part of its annual re-balancing by including 19 listed companies which fulfilled the criteria of benchmark index. The premier bourse has also re-balanced its DSE30 Index, which will continue for next six months, by including three listed companies and excluding three from the existing list of DS30.

Source: https://businessnews-bd.net/re-balance-price-indices/