Banks must release 30.0% of farm loans thru own network
Bangladesh Bank is set to ask scheduled banks to disburse at least 30.0% of farm loan in their own capacity against fiscal target as some banks distribute their whole annual target of such loans through the linkage of non-governmental organizations. Many farmers who get farm loan through NGOs count more than double the interest rate set by the central bank, a BB official told New Age on Monday. ‘NGOs and microfinance institutions charge around 25.0% interest on the loans they give to farmers after taking the fund from the banks at a rate of 10.0%. In the process, the basic concept of giving low-interest loans to farmers severely gets dented,’ said the official. ‘So, the central bank is going to make a decision that the banks will have to disburse at least 30.0% of farm loans in their own capacity against their fiscal target,’ he said. Foreign commercial banks, however, will be excluded from the rules as they have no available branches in the rural areas.
Small savers are facing trouble in purchasing government saving certificates from a number of commercial banks as many complained about the shortage of the same. The reason for the shortage is not known. The bankers’ claim about shortage comes in contrast to the National Saving Directorate’s statement on the issue. Some investors alleged that they had visited some banks for purchasing savings instruments but failed as the banks’ officials said they did not have the same in their possession. When contacted, Director-General of the National Saving Directorate (NSD) Bablu Kumar Saha said there is no possibility of supply shortage of the savings instruments as the NSD has enough stock worth nearly BDT 600 billion.
Bangladesh Bank continues to buy US dollar from commercial banks
Purchase of the US dollar by the central bank from commercial banks increased by nearly 10% in the just-concluded fiscal year (FY) 2015-16. The Bangladesh Bank (BB) bought USD 4.13 billion directly from the commercial banks in the FY 16 aiming to keep the inter-bank foreign exchange market stable. It purchased USD 3.76 billion in the previous fiscal year, according to the central bank statistics. In FY14 and FY13, the BB bought USD 5.15 billion and USD 4.54 billion respectively. The central bank, however, did not sell any single dollar on the market in the last fiscal year, the BB data showed. The central bank has intensified purchasing of the US dollar further from the banks after the Eid festival to keep the forex market stable, according to the central banker.
Asian Development Bank: Bangladesh economy to defy weak global prospects, Brexit
Despite weak global prospects and Brexit, Bangladesh economy will remain robust driven by its garment sector, said Asian Development Bank yesterday. In a supplement to its Asian Development Outlook 2016 report released last March, ADB now forecasts 2016 growth for the developing economies at 5.6%, below its previous projection of 5.7%. For 2017, the growth is seen unchanged at 5.7%. The latest report said growth in 2016 and 2017 led by South Asia, and India in particular, continues to expand strongly, while China is on track to meet earlier growth projections. Meanwhile, South Asia is expected to be the fastest growing sub-region led by India, whose economy has shrugged off global headwinds and is on track to meet ADB’s March fiscal year 2016 (year to March 2017) projected growth target of 7.4% supported by brisk consumer spending and an uptick in its rural economy, it said. In Pakistan, the report said, further improvements in energy supply, higher infrastructure investments and an improved security environment will help push up growth in 2016 and 2017 while the Bangladesh economy will remain robust on the strength of its garment sector.
Grameenphone’s net profit fell about 1.0% to BDT 5.09 billion in the second quarter of 2016 from a year earlier, due to voluntary retirement spending coupled with an advance fee for settling a claim by the National Board of Revenue. The largest mobile phone operator offered 349 employees a voluntary retirement scheme during the April-June period, which cost BDT 940.8 million. In the same period, as part of a requirement to settle a BDT 4.5 billion tax claim, Grameenphone deposited BDT 450.0 million or 10.0% of the sum to the NBR, said Dilip Pal, chief financial officer of the operator. Grameenphone made the profit from its total revenue of BDT 28.0 billion in the second quarter, which was 6.6% higher from a year earlier. Data usage raked in BDT 3.2 billion, which is 12.0% of the operator’s second quarter revenue. However, data revenue growth was 64.6% year-on-year, according to the operator’s statement.
Prime Minister’s energy adviser Dr Tawfiq-e-Elahi Chowdhury urged Monday natural gas consumers to be efficient in energy use to cope with a probable hike in its tariffs. “The consumers, especially the industrial ones, should be proactive over energy efficiency and conservation so that any hike in natural gas tariff becomes endurable,” he said. State-owned Petrobangla inked the final deals to build the much-awaited LNG-import terminal amid potential hike in natural gas tariffs to accommodate the expensive energy into the existing system. It signed ‘terminal use agreement’ and ‘implementation agreement’ with US-based Excelerate Energy Bangladesh Ltd for construction of the LNG terminal, which would be a floating, storage and re-gasification unit (FSRU).
Major Currencies Exchange Rates Movement in Last Seven Days
*Currencies and Commodities are taken from Bloomberg.
ABOUT DHAKA BANK
Dhaka Bank has truly cherished and brought into focus the heritage and history of Dhaka and Bangladesh from Mughal outpost to modern metropolis. Most of its presentation, publications, brand initiatives, delivery channels, calendars and financial manifestations bear Bank’s commitment to this attachment.