BB to crack down on habitual defaulters
The central bank has moved to reform the existing acts to clamp down on habitual defaulters, whose tendency to go to courts to stall paying back loans has sent the sector’s non-performing loans to an alarming level. As of September last year, the ratio of NPLs stood at 11.45 percent of the total outstanding loans. In terms of amount, it is Tk 99,370 crore. As per the BB officials, when banks step in to realise the defaulted loans the habitual defaulters go to courts, thwarting the move. The trick used by the habitual defaulters has created an impediment to recovering the default loans.
IFAD Autos acquires 49pc holding of Gulf Oil
IFAD Autos has acquired 49 per cent holding of Gulf Oil (BD) at a cost of above Tk 119.07 million. In a disclosure, the company said all formalities regarding the acquisition have already been completed. Gulf Oil (BD), a subsidiary company of Gulf Oil International Limited (UK), is engaged in importing and selling its renowned brands of lubricant, grease and car care products in Bangladesh. In May, 2017 IFAD Autos signed a MOU with Gulf Oil Bangladesh with a view to subscribe 49 per cent of its equity shares at a cost of USD 1.685 million. According to Monday’s disclosure, IFAD Autos has acquired above 2.38 million ordinary shares of Gulf Oil Bangladesh at a price of Tk 50 each. Earlier, IFAD Autos said in a disclosure that their investment in Gulf Oil Bangladesh is expected to contribute a profit of Tk 43.6 million in the next year towards overall profitability of the company (approximately).
GP profit soars by 28pc in 2018
The net profit of leading mobile phone operator Grameenphone grew by 28.37 per cent or Tk 778 crore in the year of 2018 compared with that in the previous year. As per the entity’s disclosure made on Monday, it posted Tk 3,520 crore in net profit in 2018 with earnings per share of Tk 26.04 while the net profit was Tk 2,742.3 crore and EPS Tk 20.31 a year ago. GP’s profit growth was 21.73 per cent in the year of 2017 considering Tk 2,252.6 crore profit of the entity in the year of 2016. In 2018, the total revenue of GP increased by 3.4 per cent to Tk 13,280 crore riding on 21 per cent data and 6.6 per cent voice revenue growth. The launch of 4G service in February of the year helped the company boost data sales. GP attained 74 lakh new subscribers in the year taking its user base to 7.27 crore at the end of December, 2018. With the new subscribers, GP’s market share now stands at 46.33 per cent.
Standard Bank to raise Tk 5.0b
Standard Bank will raise a capital worth Tk 5.0 billion to strengthen its capital base as part of Tier-II Regulatory Capital requirement. The fund will be collected issuing coupon bearing non-convertible fully redeemable unsecured 3rd subordinated debt for a period of seven years with floating rate. The company’s board of directors has taken the decision of issuing subordinated debt through private placement subject to the approval of the regulatory authorities. Standard Bank, presently an ‘A’ category company, was listed with the stock exchanges in 2003. The company’s sponsor-directors hold 38.93 per cent shares, institutions 21.70 per cent, foreign shareholders 2.43 per cent and general shareholders 36.94 per cent as of December 31, 2018. Source: http://today.thefinancialexpress.com.bd/stock-corporate/ifad-autos-acquires-49pc-holding-of-gulf-oil-1548693199 Nepal wants to export yarn to Bangladesh A visiting business delegation from Nepal on Monday expressed their interest to export yarn to Bangladesh, taking advantage of the geographical proximity between the two neighbouring countries. According to the delegation, they manufacture various types of yarns such as polyester and viscose, and export to the countries like Turkey, India and the United Kingdom (UK). They said the suitable geographic location of Bangladesh and Nepal would facilitate yarn trading at less time and at an affordable cost.
Bangladeshis in US pay highest remittance fee
Bangladeshi expatriates in the United States pay highest 5.3 per cent fees while Bangladeshi expatriates in Singapore pay lowest 2.61 per cent fees for sending remittance back home. The second-highest 5.1 per cent fees are paid by Bangladeshi diaspora in the United Kingdom, according to a presentation by Bangladesh Bank to finance division in December 2018 on fees for sending remittance from different countries. According to the Bangladesh Bank joint director, Bangladesh was committed to bringing down the fees for remittance below 3 per cent to achieve one of the sustainable development goals by 2030. Among the oil-rich Middle Eastern countries, Bangladeshi migrants pay highest 4.46 per cent fees for remittance, followed by Saudia Arabia 3.90 per cent, Oman 3.44 per cent and United Arab Emirates 2.96 per cent.
DSE plans to diversify products
According to the Managing Director of Dhaka Stock Exchange (DSE), the country’s stockmarket lacks diversified products, leaving investors with limited opportunities for exploration. The investors have limited scope to paint their portfolios with many colours. Presently DSE is dealing with equities only. So, DSE is going to introduce ETF, derivatives, ATB, and SME platform. An ETF or exchange-traded fund is a marketable security that tracks a stock index, a commodity, bonds or a basket of assets. Source: https://www.thedailystar.net/business/news/dse-plans-diversify-products-1694392 Bangladesh 7 places up in economic freedom Bangladesh has moved seven notches up in a global index of economic freedom making its economy the 121st freest among 180 countries. According to the report titled 2019 Index of Economic Freedom prepared by US-based the Heritage Foundation, Bangladesh’s economic freedom score is 55.6, up by 0.5 points from 2018 when it was ranked 128th with overall score at 55.1 points. The country’s overall score increased with higher scores on factors including property rights and government integrity countering declines in investment freedom and fiscal health, says the report released on Friday. Bangladesh falls under the category of mostly unfree in terms of economic freedom despite the progress in the year. Bangladesh is ranked 27th among 43 countries in the Asia Pacific region.
Edible oil suggests to monitor prices before fixing tariff structure
Edible oil refiners on Monday suggested Bangladesh Tariff Commission (BTC) should monitor oil prices at production, distribution and retail level before fixing the tariff structure. Many distributors show less interest in purchasing oil even after making profit of Tk 5.0 a litre, they said, adding that the producers earn profit in between Tk 0.50 and Tk 1.0. They also sought necessary support from the commission to ensure level playing field for all so that all consumers of the country can buy a product at a same rate. The suggestions came at an awareness building seminar jointly organised by BTC and Bangladesh Vegetable Oil Refiners and Vanaspati Manufacturers’ Association (BVORVMA) at the latter’s office in the capital.
Guardian Life appoints new DMD
Mohammad Shazzadul Karim has been promoted as the Deputy Managing Director (DMD) of Guardian Life Insurance Limited. Prior to the promotion, he was Senior Executive Vice President (SEVP) of the company. Source: http://today.thefinancialexpress.com.bd/stock-corporate/guardian-life-appoints-new-dmd-1548693218 Aziz Khan wins ‘Global Asian of the Year 2018’ award Chairman of Summit Group Muhammed Aziz Khan has been recognised as the ‘Global Asian of the Year 2018’ under the ‘Power & Energy’ category by AsiaOne magazine for his contribution to the sector and industry.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|DSEX||5,904.22615|| ↓ 35.2288 || ↓ 0.59%|
|DJIA|| 24,528.22||↓ 208.98|| ↓0.84%|
|FTSE100||6,747.10|| ↓ 62.12||↓0.91%|
|Nikkei 225||20,448.47||↓ 200.53||↓0.97%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 52.16|| ↑0.17|| ↑0.33%|
|Crude Oil (Brent)|| $ 60.07||↑0.14||↑0.23%|
|Gold Spot|| $1,303.44||↑0.08||↑0.01%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.8723|
|GBP 1||BDT 110.2753|
|EUR 1||BDT 95.8744|
|INR 1||BDT 1.1782|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<