Govt’s FY17 bank borrowing logs negative Tk 18,029cr

The government’s net bank borrowing registered negative Tk 18,029.10 in the just-concluded fiscal year 2016-17 due to massive investment on national savings certificates, Bangladesh Bank officials said. But the government made a huge amount of borrowing worth Tk 16,900 crore from the banking sources in June, the last month of the FY17, to manage its deficit financing of the fiscal budget. The government maintained a large repayment trend in most of the period of the last fiscal year, but its borrowing heavily jumped in the last month of FY17 to implement the annual development programme, a BB official told New Age on Tuesday. The government’s net bank borrowing registered negative Tk 18,029.10 in the FY17 as it repaid Tk 6,117 crore to the central bank and repaid Tk 11,912 crore to commercial banks, according to the central bank data released on Tuesday. The government set a target of borrowing Tk 38,938 crore from the banking source in FY17 to manage its budget deficit, but it did not make any net borrowing from the banking sources due to a large amount of net sales in government savings certificates and bonds. The government’s net borrowing from the banking sector stood at Tk 329.29 crore in FY16 against the annual borrowing target of Tk 38,523 crore.
The government was forced to borrow Tk 46,669 crore in the July-May period of FY from the savings tools due to a higher interest rate on the instruments compared to other prevailing rates offered by the banks.

Source: http://www.newagebd.net/article/19547/govts-fy17-bank-borrowing-logs-negative-tk-18029cr

BB probe detects anomalies in financials of First Finance

The central bank has recently detected anomalies of serious nature in the annual financials of the First Finance Ltd, a listed non-banking financial institution (NBFI).The NBFI in question allegedly resorted to doctoring of the financial statements with a view to announcing 5.0 per cent stock dividends for the shareholders for the calendar year 2016.However, scrutiny of audited balance sheet, profit and loss accounts, statement of analysis for provision of interest expense and relevant other documents revealed a number of inconsistencies/ anomalies. In a letter issued on 14 June, BB said that it was mandatory for the NBFIs to get no objection certificate from BB before announcing dividend if the non-performing loan (NPL) was 10 per cent or higher. First Finance Ltd posted the announcement of dividend on the DSE website on April 30 this year despite having 33 per cent NPL. It also did not take ‘no objection’ certificate from the central bank. The BB accused the company of violating the Financial Institution Act of 1993. It also served show-cause notices on the managing director, chief financial officer (CFO) and company secretary and asked them to submit their replies within seven days.

Source: http://print.thefinancialexpress-bd.com/2017/07/12/177580

‘Asset accumulation’ gave rise to Swiss bank deposits: Envoy

The latest rise in deposits by Bangladeshis in Swiss banks was contributed by increased accumulation of assets of Bangladeshi banks through different financial instruments, not by ‘individuals’, reports UNB. Outgoing Swiss Ambassador to Bangladesh Christian Fotsch Tuesday revealed this. He came up with the information during his meeting with State Minister for Foreign Affairs M Shahriar Alam at the latter’s office. In 2017, Ambassador Fotsch said, Switzerland introduced the automatic exchange of information (AEOI) with 38 states and territories: all EU member states and Gibraltar, Australia, Iceland, Norway, Guernsey, Jersey, Isle of Man, Japan, Canada and the Republic of Korea. The first data will be exchanged with these partners in 2018, according to the Foreign Ministry here. During the meeting, they also referred to discussions held in the national parliament and related published news items on the rising deposits by Bangladeshis in Swiss banks.

Source: http://print.thefinancialexpress-bd.com/2017/07/12/177597

Four banks among the top transaction chart

Top ten traded companies captured nearly 25 per cent transaction of the premier bourse while Beximco dominated the turnover chart on Tuesday. The total transaction on the Dhaka Stock Exchange (DSE) stood at Tk 13.21 billion on the day, which was 4.50 per cent higher than the previous day’s turnover of Tk 12.64 billion. Beximco, Keya Cosmetics, Islami Bank, Agni Systems, City Bank, Mercantile Bank, Prime Bank, Saif Powertec, Fu-Wang Food and Confidence Cement were the most-active shares in terms of value on the DSE. Of them, share price of six companies advanced up to 7.30 per cent, two faced mild correction while two remained unchanged on the day over the previous session. According to the statistics available with the DSE, about 17.20 million shares of Beximco were traded, generating a turnover of Tk 609 million, which was 4.62 per cent of the premier bourse’s total turnover value.

Source: http://print.thefinancialexpress-bd.com/2017/07/12/177554

MTB inaugurates agent banking centre at Feni

Mutual Trust Bank Limited (MTB) has recently opened its agent banking centre at Koska Bazar, Lemua, Feni. Md. Hashem Chowdhury, Acting Managing Director & CEO, MTB inaugurated the new agent banking centre as the chief guest while Mainuddin Ahmed Kamran, Managing Director, Shamsuddin Towel Ltd. was present as Special Guest. Syed Rafiqul Haq, DMD & Chief Business Officer, Mohammad Anwar Hossain, Head of Card Division, Azam Khan, Group Chief Communications Officer, Madan Mahan Karmoker, Head of Agent Banking Department and Managers of nearby branches of MTB, local elite, leaders of local business associations, people from different strata and other senior officials of the bank also attended the programme. Later on, as part of bank’s CSR programme “Swapno Sarathi”, MTB distributed 20 bicycles amongst under privileged meritorious students of local schools and colleges.

Source: http://print.thefinancialexpress-bd.com/2017/07/12/177555

Premier Bank signs MoU with Padma Islami Life Ins

Premier Bank Ltd (PBL) has recently signed a memorandum of understanding (MoU) with Padma Islami Life Insurance Company. Under the agreement, Premier Excel Savers account holder of Premier Bank will get life insurance coverage for Tk. 0.3 million in case of accidental death and Tk 50,000 for natural death. On the other hand, Registered Retirement Deposit Plan account holders of Premier Bank will get life insurance coverage for Tk 10 million in case of accidental death or natural death.M Reazul Karim, Additional Managing Director of Premier Bank, and Dr Chowdhury Mohammad Wasiuddin, Managing Director and CEO of Padma Life Insurance, signed the agreement on behalf of their respective companies, said a statement. Khondker Fazle Rashid, Managing Director & CEO of the bank, was present at the function as the chief guest.

Source: http://print.thefinancialexpress-bd.com/2017/07/12/177561

Inflation continues on upward trend

The inflation rate continued to increase in the last quarter of the recently past fiscal year, Planning Minister AHM Mustafa Kamal said during a National Economic Council conference on Tuesday. Presenting the data at the conference, the planning minister said the inflation rate was 5.72% in the April-June quarter of the 2016-17 fiscal year, higher than the 5.28% inflation in the January-February quarter. The rate was 5.53% during the same quarter in 2015-16 fiscal year, he added.In rural areas, the overall inflation rate increased to 5.49% on point-to-point basis from the previous quarter’s 5.08%. In urban areas, the overall rate increased to 6.16% from 5.65%.The food inflation increased to 7.27% from 6.75%, while the inflation of non-food items rose to 3.47% from 3.12% on point-to-point basis. The prices of local food items such as rice, beef, mutton, vegetable, green chilli, soybean oil, tea and milk have increased, Kamal said. Prices of non-food items such as fabrics, fuel, electricity, house rent and household goods have risen as well. The costs of medical services, educational services and transportation services have also increased.

Source: http://www.dhakatribune.com/business/economy/2017/07/11/inflation-continues-upward-trend/

NBL changes AGM date

The Board of Directors of National Bank Limited (NBL) has decided to hold its 34th annual general meeting (AGM) on August 20, 2017 instead of earlier declared on July 31, 2017 subject to approval of the Bangladesh Securities and Exchange Commission (BSEC). The NBL board members have taken the decision due to unavoidable circumstances. Other information in connection with the AGM will remain unchanged. Trading of BIFC shares Trading of the shares of Bangladesh Industrial Finance Company Limited (BIFC) will be allowed only in the Spot Market and Block transactions will also be settled as per Spot settlement cycle from today (July 12, 2017 to July 24, 2017. Trading of the BIFC shares will remain suspended on record date on July 25, 2017.

Source: http://www.observerbd.com/details.php?id=83678

HC upholds jail term of ex-Jamuna Bank chair

The High Court (HC) on Tuesday upheld a trial court judgement that awarded one year’s imprisonment to former Chairman of Jamuna Bank Arifur Rahman in a case over cheque forgery. The bench of Justice Md Rais Uddin passed the order dismissing Rahman’s appeal against the 2016 judgement. According to the case documents, Arifur Rahman in 2011 took Tk 15 crore in cash from Borak Real Estate and gave them cheques to repay the money. As the company deposited the cheques to the bank, it bounced due to insufficient balance. Borak in 2012 filed the case with a court that sentenced Rahman to one year’s imprisonment and fined him Tk 50 lakh on January 24, 2016. The court also ordered him to return the money he had taken from the real estate company. “My client has already paid them Tk 7.50 crore following the lower court order. The High Court now has ordered him to pay the rest of the money within 60 days,” said Advocate Delwar Hossain Laskar, counsel for Arifur Rahman.

Source: http://www.observerbd.com/details.php?id=83680

Midland Bank MD re-appointed

Md Ahsan-uz Zaman has recently been re-appointed Managing Director and Chief Executive Officer (CEO) of Midland Bank Limited (MDB) for another three-year term. Mr Ahsan joined the bank in July 2014. After his joining, the same bank revamped business model and consistently expanded its business, running a centralised business model, said a press release. The bank introduced innovative deposit and loan products to cater to the needs of its growing list of clients. MDB also introduced convenient technology based services to make banking easier, accessible and safe for its customers. The bank grew its correspondent banking capability for its trade based customers while launching internet banking and 24 hours contact centre. To improve the lives of marginal and deprived people, the bank extending Bangladesh Bank supported low interest rate loans. The bank introduced new loan products under various refinance schemes of Bangladesh Bank in Milk Production, SME, Women Entrepreneurs and Agro Processing for economic development of the country. Lately, the bank launched agent banking outlets to take banking services to the unbanked masses.

Source: http://www.observerbd.com/details.php?id=83675

Steel sector has huge growth potential

The country’s steel manufacturing sector has a huge growth potential thanks to the increasing construction activities and a good trade prospect in the neighbouring Seven Sister States of India, experts said.Bangladesh currently consumes around 8 million tonnes of steel a year, which would reach 18 million tonnes by 2030 if the port’s existing problems like the lack of infrastructure, power crisis and tariff barriers are addressed soon, they said. Senior officials of different steel related industries from Bangladesh and India shared their views at the third Steel Long Products Summit held in Chittagong yesterday.Steelgroup.co.in, a leading information and networking platform based in India, organised the programme at Radisson Blu Chittagong Bay View. Representatives of different steel manufacturing and equipment suppliers from Bangladesh, India, Germany, Austria, Taiwan, China and Japan took part in the daylong event. Indian Assistant High Commissioner Somnath Halder and PHP Group Chairman Md Mijanur Rahman jointly inaugurated the summit.AS Firoz, chief economist (joint plant committee) of the Ministry of Steel of India, and Sachin Shetty, managing partner of Quesrow Consulting, were the keynote speakers in the inaugural session. A panel discussion on “Regional steel long products market: present and future challenges and solutions” also took place at the summit.

Source: http://www.thedailystar.net/business/steel-sector-has-huge-growth-potential-1431751

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