TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK


TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

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Rate last updated: 02/01/2014 11:15:04 AM

Important Business News Extracts – January 23 2017

Bangladesh Bank opposes plan to amend banking law

Bangladesh Bank yesterday opposed the finance ministry’s move to amend the banking law, which has restricted the tenure of a director to six years. Bangladesh Association of Banks in October last year demanded the director’s tenure be extended to 10-15 years. The opposition from the central bank came at a meeting chaired by Banking Division Secretary Yunusur Rahman on planned amendments to the law. The BB said the governance of the private banks would be affected if the law is amended, as the banks do business with a huge amount of money from depositors, an official of the finance ministry said. In the backdrop of various irregularities by the bank directors, the existing Banking Companies Act was revised in line with the advice of the International Monetary Fund and international best practices, the central bank said. The government had been considering tightening some provisions in the law for over a decade to rein in irregularities and indiscipline in the sector.

Source: http://www.thedailystar.net/business/bb-opposes-plan-amend-banking-law-1349293

Mobile financial services gather pace further

Yearly transactions through mobile financial services (MFS) have increased by more than 37.0% in 2016, the latest Bangladesh Bank (BB) data shows, an upsurge which has been attributed to the proliferation of MFS in the country’s far-flung areas. A record of BDT 2.3 trillion has been transacted through mobile-based financial services in the country last calendar year, up from BDT 1.7 trillion in 2015. The number of transactions through MFS channels, at the same time, has also increased by around 18.7% during the same period. Around 1.2 billion transactions were made through MFS platform in 2015, which surged to 1.5 billion last year, the BB figures show.


Banking Sector – Time for a massive clean up

The banking sector in Bangladesh has been plagued with a number of disappointing trends for some time. This has impacted the soundness of the banking system and resulted in huge losses for the sector. One of the perennial problems is the rise of non-performing loan (NPL). The behaviour of NPL in the banking sector has been following a certain trend during the last few years. It is observed that towards the last quarter of each year NPL comes down but starts to rise afterwards. One of the probable reasons behind this lower NPL towards the end of the year could be restructuring and rescheduling of loans by December of every year.

Source: http://www.thedailystar.net/opinion/macro-mirror/banking-sector-time-massive-clean-1349362

MIDAS Investment sets foot to boost stockmarket

MIDAS Investment, a subsidiary of MIDAS Financing, started its journey as a full-fledged merchant bank aiming to increase its presence and activities in the capital market and contribute to the development of the stockmarket. Finance Minister AMA Muhith inaugurated the commercial operation of the merchant bank at a programme held at MIDAS Convention Centre in Dhaka yesterday. As a full-fledged merchant bank, MIDAS Investment will work to encourage non-listed companies to come to the stockmarket. It will also carry out other merchant banking activities such as issue management, underwriting, portfolio management and corporate advisory services.

Source: http://www.thedailystar.net/business/midas-investment-sets-foot-boost-stockmarket-1349323

CVO now in ‘Z’ category

CVO Petrochemical Refinery was placed in “Z” category from existing “A” category with effect from today (Monday) as the company is not in operation for more than six months. The stockbrokers and merchant bankers are requested to abstain from providing loan facilities to purchase any security of CVO Petrochemical Refinery, with effect from today (Monday) as per securities regulator’s latest directive, the disclosure said.

Source: http://print.thefinancialexpress-bd.com/2017/01/23/162779

Life insurers’ income grows in 2016 after bumpy ride

Helped by favouarble economic environment, the premium income of the country’s life insurers grew nearly 4.0% in 2016 after recording weaker growth a year ago. The total premiums earnings by all 32 life firms reached BDT 76.8 billion last year, according to preliminary data submitted to the insurance regulator. This is total earnings of premiums of the first year business and renewal income. As many as 14 life firms registered negative growth in the year, but 18 insurers managed to gain.

Source: http://print.thefinancialexpress-bd.com/2017/01/23/162791

Importers allowed to use ERQ fund to settle import payment for all companies

Bangladesh Bank on Sunday said that an importer would be allowed to settle import payment by taking fund from his/her other companies’ export retention quota accounts with banks. The BB issued a circular to the authorised dealer branches of all banks saying that an importer would be allowed to use the fund of ERQ account to settle import payment of all companies owned by him/her. It said that the AD branches would be allowed to settle the import payment by taking fund from the importer’s ERQ account with other AD branches. A BB official told New Age on Sunday that the exporters were allowed to keep foreign currency balance with ERQ accounts between 15 per cent and 60 per cent against their (exporters) export proceeds. The fund transfer will be executed through foreign demand draft to be settled through the BB clearing accounts of AD branches, the circular said.

Source: http://www.newagebd.net/article/7573/importers-allowed-to-use-erq-fund-to-settle-import-payment-for-all-cos

Exports to Australia soar 38pc despite direct cargo ban

Exports to Australia soared 38.1 percent year-on-year to $703.22 million in fiscal 2015-16 despite a ban on direct cargo from Dhaka, according to the Department of Foreign Affairs and Trade of the Australian government. Over the next five years, shipments to Australia are expected to grow 33.8 percent, DFAT said. Australia became a major export destination for Bangladesh under the government’s stimulus package for new markets.

Source: http://www.thedailystar.net/business/exports-australia-soar-38pc-despite-direct-cargo-ban-1349311

EPZ foreign companies allowed borrowing from parent firms

Bangladesh Bank on Sunday said that the foreign companies located in the country’s export processing zones and economic zones would be allowed to borrow from their parent companies and shareholders abroad. The BB issued a circular to the authorised dealer branches of all banks saying that type ‘A’ industries (fully owned by foreign nationals) in EPZs and EZs would get permission to take short-term foreign currency loans from their parent companies and shareholders abroad. The type ‘A’ industries in the EPZs were earlier allowed only to take short-term foreign currency loans from overseas banks and financial institutions subject to compliance with the stipulated instructions, the circular said. A BB official told New Age on Sunday said that the BB took the initiative to liberalise the country’s foreign exchange regime to attract more foreign direct investment.

Source: http://www.newagebd.net/article/7574/epz-foreign-cos-allowed-to-borrow-from-parent-firms

Local and Global Stock Indices

Index NameClose ValueValue ChangePercentage Change
Dow Jones Industrial Average19,827.25↑94.85↑0.48%
Nikkei 2257,194.44↓10↓0.14%
FTSE 10018,927.70↓210.21↓1.10%

World Commodities

CommodityClose ValueValue ChangePercentage Change
Crude Oil (WTI)*$53.30↑0.08↑0.15%
Crude Oil (Brent)*$55.60↑0.11↑0.20%
Gold Spot*$1,215.75↑5.43↑0.45%

Major Currencies Exchange Rates Movement in Last Seven Days





Dear Valued Patrons,

At the very onset, let me express my heartiest gratitude for allowing us to serve you and I also wanted to reach out to you directly with an assurance that Dhaka Bank is fully equipped to support you during this difficult time.

Last couple of weeks ago we all were living in a peaceful condition, performing our daily tasks freely and perfectly. Entire economy and business environment was also in a good shape, until COVID-19 put a forceful stoppage to the overall life style and economy of the world. We all know that social distancing and cleanliness are the keys to prevent this pandemic. Hence, we urge your conscious effort to limiting public interaction and suspending wherever possible.

In this current situation, Dhaka Bank and its employees are beside you where we are fully online, either working from home or at our offices under a robust Business Continuity Plan (BCP) to serve you with limited branch banking and a full-fledged alternate delivery channel services.

Our state of the art Mobile App, Dhaka Bank GO (Click https://bit.ly/2WVfieu) and Internet Banking - Dhaka Bank Direct gives you the freedom of banking online anytime from anywhere. You can check the balance and transfer money to any designated Banks including any Dhaka Bank or bKash Account, make utility bill payments and mobile top-up through our Mobile App and Internet Banking Services. Our ATMs are also running efficiently with availability of sufficient cash for your convenience where you can make cash withdrawals whenever the need arises. Mentionable, the withdrawal of cash from any ATMs within Bangladesh with Dhaka Bank Debit Cards are absolutely free of charges up till April 30, 2020 (Dhaka Bank will bear the cost). Our corporate customers can also use our completely safe and secured online platform Dhaka Bank C-Solution for Payments, Inter Bank Fund Transfers, etc.

Moreover, to fulfill your urgent requirement, we have a limited no. of branches up and running by ensuring all kinds of precautionary and safety measures for you.

In case of extreme emergency and facing difficulties in conducting banking transactions, please let us know through our 24/7 Contact Center number 16474 (or, dial +8809678016474 for ISD/Overseas Calls). We are always with you to combat your difficulties.

As you know we are going through a critical phase and the situation is novel to all of us. We are getting lot of new information from various sources everyday about COVID-19 which will be shared at www.dhakabankltd.com.

Thank you for your trust and continued support to us. I firmly believe that jointly we will be able to combat this situation and win against all the odds.

Please stay home, stay safe and take care of yourself and family.

Best regards,

Emranul Huq
Managing Director & CEO
Dhaka Bank Limited