Form cells to monitor large default loans: BB
The Central Bank yesterday asked Banks to form a special monitoring cell to keep an eye on defaulters with loans of more than Tk 100 crore. The cell will have to be formed immediately to give a boost to recovery from the large-scale default loans, according to a Central Bank instruction sent out to all lenders. It will submit a statement to the Central Bank every quarter mentioning the recovery progress of the loans. Banks will start off by submitting a statement to the Central Bank, depicting the situation of the large loans for the April-June period of this year. The cell will monitor the default loans for eight quarters in a row even if they are rescheduled and unclassified. A Deputy Managing Director has to lead the cell and required workforce will have to be deployed. The Board of Directors of a Bank will evaluate the statement to help the management. Default loans at banks stood at Tk 110,874 crore as of March this year, up 25.15 percent year-on-year.
SoBs’ bad loan falling, said Finance Minister
Finance Minister AHM Mustafa Kamal on Monday said non-performing loan in the State-owned Banks decreased in June compared to bad loans in their portfolios in March. He said Sonali’s NPL decreased to 25.5 per cent in June this year against its total loan portfolio from 29.3 per cent in March this year and 30.38 per cent in December, 2018. Janata Bank whose NPL was shot up to 43 per cent in March this year from 37.23 per cent in December 2018, came down to 35 per cent in June this year, he said. Mustafa Kamal was talking to reporters after a meeting with the chairmen and managing directors of the state-owned commercial and specialised banks at his secretariat office. Assuming the post of the Finance Minister in January, Mustafa Kamal stated that there will be no more increase in bad loans. On the day, he said NPL of the BASIC remained unchanged at 58.25 per cent.
Chattogram Port: Tk 10,000cr goods left abandoned
Goods worth around Tk 10,000 crore have been left abandoned by importers at the Chattogram Port for the past five and half years, depriving customs of revenue and leading to a space crisis. Had importers taken timely deliveries of their consignments, the customs could have earned Tk 7,000 crore in taxes. Md Akbar Hossain, additional commissioner of Chattogram Custom House (CCH), told they were not getting any revenue against the consignments as those had been abandoned. Chattogram Port Authority (CPA) Secretary Md Omar Faruq said, “A huge space inside the port remains occupied by these containers, disrupting smooth operation. The port is also losing revenue since the space occupied by these containers cannot be rented out.” The port has the capacity to house 48,000 TEUs (Twenty Equivalent Unit) of containers, of which 7,000 has been occupied by the unclaimed containers for the past few years.
Fortune signs export deal with Steve Madden
Fortune Shoes Ltd. has signed an agreement with New York-based Steve Madden for export of shoes worth US$ 4.0 million (Tk 340 million) which is scheduled to be shipped by October 2019. The agreement was signed on Friday, said an official disclosure on Sunday without elaborating. Steven Madden is a publicly traded company based in Long Island City, New York. The company designs and markets shoes and fashion accessories for women, men and children. This is the first time Steve Madden has signed such an agreement with a Bangladeshi company, according to the disclosure. On Sunday, shares of Fortune Shoes were traded between Tk 39.30 and Tk 41.40, before closing at Tk 39.70 on the Dhaka Stock Exchange (DSE), losing 0.50 per cent despite the news.
DSEX sees biggest sinlge-day fall in 17 months
Stocks witnessed the biggest single-day fall in 17 months on Sunday as worried investors continued their selling spree, fearing further fall. DSEX, the prime index of the DSE, settled at 5,033, plunging by 96.95 points or 1.88 per cent. It was the biggest single-day index fall in more than 17 months since February 15, 2018. After the Sunday’s decline, the DSEX also fell to 31 months low since December 28, 2016, when DSEX was 5,027. Brokers said the market continued bleeding as panic gripped the investors that the market would fell further. The government’s move to liquidate People’s Leasing, Grameenphone woes coupled with the gas price hike dented investors’ confidence to the market, said an Analyst. Meanwhile, a group of retail investors, tried to stage demonstration in front of the DSE building protesting the continuous fall, but police foiled their attempt.
No approval for GP, Robi to roll out packages
The telecom regulator will not give any kind of approval to Grameenphone and Robi to roll out new package or service or import network equipment as it looks to pile pressure on the operators to clear their dues, according to a letter issued recently. Grameenphone has Tk 12,579.95 crore pending and Robi Tk 867.24 crore as per an audit of the Bangladesh Telecommunication Regulatory Commission (BTRC). But the two operators, which are coincidentally the top two players in the market, have turned a deaf ear to the commission’s repeated claims.
Licences of 48 ISPs scrapped for dues
The telecom regulator yesterday scrapped licences of 48 internet service providers after they failed to pay renewal fees in time. Of them, 25 are national ISPs and the rest are central zone licensees. The licence tenure of the ISPs expired between 2012 and 2018 though some of them are still providing services to customers. The Bangladesh Telecommunication Regulatory Commission (BTRC) issued notices to this effect yesterday and requested companies not to do business with the ISPs in question.
DSE approves Coppertech listing
The country’s premier bourse has approved the proposal for listing of the much-talked-about Coppertech Industries, subject to the regulatory ‘waiver’ of a rule regarding the timeframe for the listing of a Company. The approval came at a board meeting of the Dhaka Stock Exchange (DSE) at its office on Monday, said an official. The DSE has also urged the securities regulator to exempt the Company from the section 5(3) of the listing regulations, as the stipulated timeframe for its listing has already expired.
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