Rising default loans affecting Banks’ profits: BB DG
The growing trend of default loans has put an adverse impact on Banks’ profitability and their daily operations, said Bangladesh Bank Deputy Governor SM Moniruzzaman yesterday. “It is a harsh reality,” he said at a roundtable on “Corporate Guarantee: Does It Work in Recovery of Loan?” The Bangladesh Institute of Bank Management (BIBM) organised the event at its office in the capital. Banks have to keep provisioning against their default loans, which directly affects their net profit, Moniruzzaman said. The increase in default loans widen the volume of risk-weighted assets (RWA) in the Banking sector, which, in turn, will create pressure on maintaining the regulatory capital, he added. Banks should follow a cautious policy while disbursing loans by way of taking corporate guarantees, said Barkat-e-Khuda, a professor of the BIBM.
Amazon seeks easier process for taking goods from Bangladesh
Amazon, a US-based e-commerce platform, on Wednesday requested the government to ease process so that the platform could source goods from the country’s small entrepreneurs to its warehouses in US and Europe. A delegation of Amazon, led by its international expansion wing’s category manager Gagan Deep Sagar, made the request when they met State Minister for information and communication technology Zunaid Ahmed Palak at the ICT division in the city. Mr. Palak told reporters that the delegation conveyed to him that the small entrepreneurs found difficulties in fulfilling the requirements of exporting products like opening letter of credit and complying with taxation issues. Amazon proposed for easing the procedural requirements so that the small entrepreneurs could send products directly to the entity’s warehouses, he said. He said that the selling goods to global online platforms like Amazon would help doubling the country’s export earnings by 2030.
Businesses claim lower turnover to evade VAT: NBR Chief
The National Board of Revenue (NBR) Chairman Md Mosharraf Hossain Bhuiyan said most of the Businesses are claiming their annual turnover to be lower than Tk 30 million to evade payment of value added tax (VAT) at regular rates. The Businesses having an annual turnover below Tk 30 million are entitled to enjoy a reduced rate of VAT at 4.0 per cent, known as turnover VAT, instead of paying VAT on their actual sales of goods and services. Mr. Bhuiyan said the NBR has asked its field-level officials to remain aware of such VAT-evaders to keep revenue collection flow uninterrupted. The NBR Chief also stressed the need for speeding up installation of Electronic Fiscal Device (EFD) to check such VAT evasion. He made these statements at the ‘Customs Modernisation Strategic Action Plan for 2019-2022’ launching ceremony at a city hotel on Wednesday.
Export, Import Licence Registration goes online
The Commerce Ministry yesterday launched an online platform where exporters and importers can both register and renew their licences, a development aimed at hastening the process and curbing corruption. Commerce Minister Tipu Munshi inaugurated a seven-day fair at a convention hall in the capital’s National Sports Council Tower facilitating fast and hassle-free renewals. Minister said Bangladesh has signed a World Trade Organisation agreement on going paperless to ease business processes and to reduce procedural costs of supply chains. In the current global trade scenario, there is no alternative to paperless trade as almost all countries have adopted technology-based trading systems, he said.
BSEC approves draft prospectus of new Mutual Fund
The securities regulator has approved the draft prospectus of an open-ended mutual fund, Capitec Popular Life Unit Fund, with an initial target size of Tk 250 million. The approval came at a meeting of the Bangladesh Securities and Exchange Commission (BSEC) held at its office in the city on Tuesday, with its Chairman M Khairul Hossain in the chair. Of the target size, sponsor-directors will provide Tk 50 million, while the remaining Tk 200 million will be collected from general investors by selling its units. The face value of each of the unit will be Tk 10. The Capitec Asset Management Ltd. will act as the asset manager of the fund while the ICB is acting as trustee and custodian of the fund and the Popular Life Insurance Company Ltd is the sponsor. At the meeting, the BSEC also approved a non-convertible subordinate bond worth Tk 5.0 billion in favour of Bank Asia.
No fresh NOCs for GP, Robi: BTRC
Mobile operators Grameenphone and Robi will not get fresh ‘no-objection certificates (NOCs)’ until they pay audit claim dues to the government. “We’ll soon stop issuing NOCs to them (GP and Robi). We’ll see what happens next,” said Bangladesh Telecommunication Regulatory Commission (BTRC) Chairman Md. Jahurul Haque. There is a provision to appoint an administrator to realise dues from the two operators, he added. However, bandwidth restrictions on the two leading local telecom operators as a pressing measure to collect dues will go by Wednesday night.
BASIC Bank’s new Managing Director
Md Rafiqul Alam has recently joined BASIC Bank as its Managing Director. Prior to joining BASIC, he was the Managing Director of Rajshahi Krishi Unnayan Bank. Earlier, Alam also served Agrani Bank as DMD.
Two killed in ‘shootout’ in Cox’s Bazar
Two suspected drug peddlers were killed in an alleged gunfight with Border Guard Bangladesh officials in Cox’s Bazar’s Teknaf upazila early yesterday. The dead were identified as Asmaul Saudagar, 35, from Chandpur, and Zabed Mia, 34, from Jashore.
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)||$ 56.72||↓0.06||↓0.11%|
|Crude Oil (Brent)||$ 63.73||↑0.07||↑0.11%|
|Gold Spot|| $1,422.23||↓4.34||↓0.30%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 82.9211|
|GBP 1||BDT 102.9770|
|EUR 1||BDT 93.0180|
|INR 1||BDT 1.2056|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<