Loan recovery falters in first Quarter
Banks’ loan recovery in the first quarter of 2019 was 9.68 percent higher than a year earlier, but given the extraordinary rate at which default loans are increasing it seems below par. Between January and March, Banks recovered Tk 2,448 crore bad loans, according to data from the Bangladesh Bank. Typically, Banks go for a strong cash recovery drive towards the year end to clean up their balance sheet and show a flattering full-year picture. The heightened efforts leave bankers in a relaxed mood in the New Year, so they take it easy with their recovery activities in the first quarter, according to Syed Mahbubur Rahman, Chairman of the Association of Bankers Bangladesh, a platform of private banks’ chief executive officers. But this year, they cannot afford to go slow given the rate at which default loans are racing ahead. At the end of March, total default loans in the banking sector stood at Tk 110,873 crore, up 18 percent from the previous quarter and 25.15 percent from a year earlier.
Call for monitoring milk output, supply
An inter-ministerial meeting made on Tuesday an 11-point recommendation to bring milk production and supply chain under constant surveillance in order to ensure product quality. Steps must be taken to test the fodder of animal feed makers to identify the presence of antibiotics and heavy metals like lead and cadmium, it suggested. The meeting stipulated that the Department of Livestock Services (DLS) implement good agricultural practice (GAP) and train up dairy farmers to produce pure and safe milk. Fisheries and livestock ministry convened the emergency meeting against the presence of antibiotics, detergent, bacteria and metals like lead and cadmium in popular local milk brands. It also highlighted the need for lab test of pasteurised packet milk after collecting samples from the market and urged milk processors to ensure pasteurisation properly.
Stocks dip on MPS caution, poor Financial Reports
Dhaka stocks dropped on Tuesday after a three-day gain as investors, discouraged by poor financial disclosures from a number of listed companies, went for selling shares. Market operators said investors were also cautious ahead of the announcement of monetary policy statement by Bangladesh Bank. DSEX, the key index of Dhaka Stock Exchange, dropped by 0.69 per cent, or 35.72 points, to close at 5,125.02 points on Tuesday after gaining 83.44 points in the previous three sessions. After an upbeat beginning on the day, the market lost the momentum and started falling as investors went for profit-taking share sales ahead of the MPS announcement, market operators said. The Central Bank will announce the MPS for the first half (July-December) of the current financial year (2019-20) today.
Germany to provide 200m Euro for Development Projects
Bangladesh and Germany signed two bilateral agreements on development cooperation with German assistance worth 200 million Euro (approximately Tk 18.47 billion) for various development projects. Of the total volume of the agreements, 172 million EUR will be available as financial cooperation and 28 million Euro for technical cooperation. Secretary, Economic Relations Divisions, Ministry of Finance Monowar Ahmed and German Ambassador to Bangladesh Peter Fahrenholtz signed the agreements on behalf of the two governments. The projects under the agreements will support Bangladesh in the following areas — renewable energy and energy efficiency, climate change adaptation in urban areas, textile sector, water resource management, Sundarbans mangrove management plan with study and expert fund of 2 million Euro.
Illegal handsets bought after July not to get network access
The BTRC has announced that any illegal handset, which would be connected to the mobile network after July, would be disconnected. However, the commission did not specify the exact date of implementing the regulatory decision. A public notice issued on Monday said that the handsets with fake or cloned International Mobile Equipment Identity (IMEI) bought after July would be disconnected from network by using National Equipment Identification Register (NEIR) being installed at the BTRC. The telecom regulator, however, would allow all sorts of handsets including illegal and cloned ones to access to the network which would be connected to network till July 31 this year, an official of the commission said. In case of bringing handsets to the country for personal purpose, the individual will have to give declaration in the port for using those.
Coppertech makes trading debut on August 5
Trading of the shares of Coppertech Industries will commence on the bourses on Monday (August 5) under ‘N’ category, officials said. The Coppertceh, which received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) on December 26, 2018, raised a fund worth Tk 200 million under the fixed price method. On Sunday, the Dhaka Stock Exchange (DSE) gave listing approval to the Coppertech following the regulatory instruction. On July 24, the securities regulator asked the DSE to enlist the company within 10 working days as per section 5(4) of the listing regulations. However, the DSE had sought waiver of section 5(3) of the regulations so that the Coppertech could be listed on DSE, as the stipulated timeframe for its listing was expired.
Qatar Airways supports children’s heart surgeries
Qatar Airways and its freight subsidiary Qatar Airways Cargo have supported Qatar Red Crescent and its Little Hearts mission to perform 100 heart surgeries for critically ill children in Bangladesh from July 20 to 28. The airline air freighted medical supplies with a team of Red Crescent volunteer doctors to support the surgeries at the National Institute of Cardiovascular Diseases, Dhaka. Qatar Airways also teamed up with the Box of Happiness Charity, which is based in the Gulf country and led by Alya Al-Maadheed, to deliver toys to the children.
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)||$ 58.45||↑0.40||↑0.69%|
|Crude Oil (Brent)||$ 65.17||↑0.45||↑0.70%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 82.8261|
|GBP 1||BDT 100.7550|
|EUR 1||BDT 92.3217|
|INR 1||BDT 1.2041|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<