Banks opt for bonds to raise capital
Banks are opting for bonds to raise their capital in line with Basel III requirements for their cost-effectiveness, instead of floating more shares on the stockmarket. In the past two years, 14 banks have issued subordinated bonds worth Tk 6,400 crore to strengthen their capital base. A subordinated bond is a debt that is ranked below other debt in terms of claims on assets. In case of a default, the holder of a subordinated debt cannot satisfy claims on the borrower’s assets until the claims of the holders of senior debt are met. The interest rate banks offered against the bond was between 7.50 percent and 10.50 percent. The subordinated bonds are non-convertible and redeemable, and institutions can invest in the bonds for seven years. The bonds will be sold through private placement to other than existing shareholders, according to Dhaka Stock Exchange. The low interest rate opened up the opportunity for banks to raise capital at a low cost, said a senior executive of the Bangladesh Bank. The interest rate on fixed deposits came down to 5 percent due to a lack of credit demand and excess liquidity. Banks are offering interest rate of more than 7 percent for their bonds.
EBL employees’ photo exhibition ends in Dhaka
A three-day exhibition in Dhaka’s Drik Gallery that featured 33 photographs by Eastern Bank employees concluded has concluded recently. Renowned painter Hashem Khan inaugurated the photo exhibition as chief guest on July 6.Ali Reza Iftekhar, MD and CEO of EBL, was also present at the inauguration. Earlier, the jury board of the contest had selected 12 best images for the 2017 EBL calendar and picked up the winners from among a staggering 111 entries. The theme for the contest was “Landmarks of Bangladesh”. The contest, titled “Simple Pleasures of Life”, is being arranged as part of EBL’s employee engagement programme since 2012.
UCB launches quality campaign
United Commercial Bank Limited (UCB) launched a service quality measurement campaign named “You Have the Power” yesterday at its Agrabad branch in Chittagong. Anisuzzaman Chowdhury, chairman of the UCB Executive Committee, inaugurated the campaign as the chief guest, said a press release. The launching ceremony was also attended, among others, by UCB Managing Director (acting) A E Abdul Muhaimen, Deputy Managing Directors Mohammed Shawkat Jamil, Md Sohrab Mustafa and Md Abdul Jabber Chowdhury. The campaign has been designed as UCB’s commitment to transform the bank as the customers’ Bank of Choice. UCB believes in customer’s empowerment to judge service that will lead towards mutual excellence. The campaign has also been started in different other branches of UCB.
Midland Bank re-appoints CEO
Md Ahsan-uz Zaman has recently been re-appointed as the CEO of Midland Bank for another term of three years. Zaman joined the bank in 2014, the bank said in a press release yesterday. Prior to the joining Midland, he also worked for JPMorgan Chase Bank, Morgan Stanley, BNP Paribas and ANZ Grindlays Bank. He completed his MBA from the Institute of Business Administration under Dhaka University, according to the statement.
BB warns BRAC Bank for breaching conditions for UK exchange house
Bangladesh Bank has issued ‘stern warning’ to BRAC Bank for breaching a number of conditions set by the central bank to run the operations of the private bank’s UK exchange house.BB has concluded that three conditions related to recruitment of agents, giving remittance service only to non-resident Bangladeshis and repatriation of profit, were breached in the operation of BRAC Saajan Exchange Ltd UK. Issuing ‘stern warning’, the BB in a letter to BRAC Bank managing director on June 13 said that the central bank would consider taking actions under the existing rules and regulations if such breaching of conditions took place again. According to a central bank report, Saajan recruited around 200 agents to collect remittance from different countries of Europe without taking prior approval from the BB, violating the BB condition set in 2010.Saajan was also found providing remittance services to citizens of a number of European countries although the central bank asked BRAC Bank to provide the service only for the non-resident Bangladeshis. The bank is yet to bring any profit to Bangladesh from the UK breaching the rules despite the exchange house made a profit of GBP 8.17 lakh or around Tk 10 crore from 2013 to 2016.The central bank gave approval to BRAC Bank to purchase the UK-based Saajan Worldwide Money Transfer Ltd in December 2010 imposing conditions that the exchange house would have to send remittance only to Bangladesh, without recruiting any new agent and repatriate the profit every year.
Industrial investment increases in Rajshahi region
Investment in the industrial sector has gradually been increasing in Rajshahi region – thereby contributing significantly to employment generation. Ataul Gani, Divisional Director of Bangladesh Investment Development Authority, said 386 industries were established in the region since June 2009 with investment of around Taka 1931 crore. The enterprises created job for around 20,000 people. Among other established industries, 256 auto-rice mills, 110 fish and poultry feed mills and a four-star hotel are significant. Another 70 industries are now on the implementation stage with financial investment of around Taka 500 crore. Upon successful implementation of those, employment opportunities for 2,000 people are expected to be created there, he added.
Govt gets lowest offer of $430 per tonne in rice import tender
Bangladesh received a lowest offer of $430 tonne CIF liner out from Phoenix in a tender that opened on Sunday to import 50,000 tonnes of parboiled rice, officials at the state grains buyer said.Bangladesh is stepping up imports due to depleted stocks and record local prices following flash floods.Six traders competed for Sunday’s tender, the fourth issued since May by the Directorate General of Food. Growing demand from Bangladesh should stoke Asian prices that have already hit multi-year highs in recent months. The rice is to be shipped within 40 days of contract signing. Last week, a Bangladeshi delegation visited Thailand to finalise imports of rice in a government-to-government deal, officials said. Bangladesh is buying 200,000 tonnes of Vietnamese white rice at $430 a tonne and 50,000 tonnes of parboiled rice at $470 a tonne in a state-to-state deal – at rates much higher than in the tenders.
Annual Development Programme (ADP) spending lowest in eight years
The ministries and divisions managed to spend only 89.3% of their development budget in the just-concluded fiscal year, the lowest in eight years. A planning ministry official said the spending was low mainly because some mega projects could not mobilize foreign funds. The development spending in 2016-17 was however 21.0% higher than that of the previous fiscal year. The annual development programme (ADP) implementation rate was 86.0% in 2008-09. It started to go up gradually in the following years, consistent with the increase in the size of the development budget. But the implementation rate began to slow down from 2014-15 as the implementation capacity of the ministries and division has not kept pace with the increase in the size of the development budget, among other reasons.
Bangladesh Investment Development Authority (BIDA) selects 5 routes for economic corridor development
Bangladesh Investment Development Authority has primarily selected five ‘spines’ in the country to establish economic corridors, said executive chairman of BIDA Kazi M Aminul Islam on Sunday. The BIDA selected routes, including Jessore-Magura-Faridpur-Dhaka, Jessore-Narail-Kashiani-Bhanga-Dhaka and Jessore-Khulna-Bagerhat- Gopalgonj-Kashiani –Bhanga, are located at South and South-western regions in the country. He said that land acquisition was one of the big problems for establishing industrial units and the BIDA wants to use the experience of economic corridors of India and Malaysia for the acquisition of land in this regard.
Government to go ahead with Rampal power plant
The government will go ahead with the coal-fired Rampal power plant as it announced Sunday the World Heritage Committee of UNESCO withdrew its objection. Prime Minister’s Adviser on Energy issues Dr Tawfiq-e-Elahi Chowdhury told newsmen that the panel of the UN agency lifted its previous objection last week following a successful move from the government. The United Nations Educational, Scientific and Cultural Organisation (UNESCO) also spared the Sundarbans from being relegated onto the ‘List of World Heritage in Danger’, he added.
Power Development Board (PDB) inks BDT 740.0 million deal with ZTE for 7.4mw solar plant
State-run Power Development Board on Sunday assigned Chinese ZTE Corporation for building the government’s first grid-connected solar park at Kaptai hydropower station in Rangamati. The corporation would charge BDT 740.0 million for engineering, procurement and construction of the solar park with 7.4MW capacity by August 2018, according to a handout served during the contract signing ceremony. The handout also showed that the solar power would cost BDT 5.48 per unit or kilowatt-hour which was estimated at BDT 17.15 per unit in the Development Project Proposal. They only said that total estimated project cost was reduced to BDT 1,095.5 million in a proposed revised DPP from BDT 1,926 million. The economic life of the solar park has been estimated 25 years.
Bangladesh lags behind most Sustainable Development Goals (SDGs) goals
Bangladesh ranked 120th among 157 countries in progress report on the UN-designated universal development model called Sustainable Development Goals (SDGs), standing behind most regional peers even. Such a rating is revealed in the latest SDG Index prepared by the United Nations Sustainable Development Solutions Network that did a stocktaking of what nations attained in two years of their new journey with the second package of development goals. The country is notably in the ‘Red’ category on 10 out of the total 17 SDG goals, the report found, implying that major challenges remain in making progress on most of the goals coming under the UN global agenda 2030.
Local and Global Stock Indices
|Index Name||Close Value||Value Change||Percentage Change|
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)*||$ 44.75||↑0.22||↑0.50%|
|Crude Oil (Brent)*||$ 46.71||↑0.00||↑0.00|
|Gold Spot*||$ 1,213.42||↑0.96||↑0.08%|
Major Currencies Exchange Rates Movement in Last Seven Days
|USD 1||BDT 81.05*|
|GBP 1||BDT 104.45*|
|EUR 1||BDT 92.40*|
|INR 1||BDT 1.25*|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.