Islami Bank Bangladesh Limited (IBBL)’s customers’ base reached at 11.5 million representing 14 per cent share of Bangladesh’s banking customers and 25 per cent of the global Islamic banking clients. It was disclosed at half-yearly business development conference, held at a local hotel on Sunday with the bank’s Managing Director and Chief Executive Officer (CEO) Mohammad Abdul Mannan in the chair. Besides, deposit and investment of the IBBL stood at BDT 650 billion and 570 billion respectively till June 30 which were BDT 50 billion and BDT 60 billion higher than that of the figure a year ago. The IBBL’s foreign exchange business covering import, export and remittance stood at BDT 450 billion during the period.
Islami Bank Bangladesh Limited grabs 25.0% in remittance market
Deposit and investment of Islami Bank Bangladesh Limited stood at BDT 650.0 billion and 570.0 billion respectively till June 30, 2016 which are 50.0 billion and 60.0 billion higher than the figure one year ago. The bank’s foreign exchange business stood at BDT 450.0 billion including import BDT 170.0 billion, export BDT 125.0 billion and remittance BDT 155.0 billion during the period. The Bank’s customer base stood at 11.5 million representing 14.0% share of the country’s banking customers and 25.0% of the global Islamic Banking clients, said a statement. This information was disclosed at half-yearly business development conference of the bank held on Sunday at a hotel in Dhaka. The conference disclosed that the bank’s market share in RMG and remittance are 21.0% and 25.0% respectively. The Bank’s investment in industrial sector is 45.0% and more than 4,200 industries are run with IBBL finance. In spinning and iron industries, the bank’s market exposure is 25.0% and 21.0% respectively.
Bangladesh International Arbitration Centre (BIAC) signed a Memorandum of Understanding (MoU) with The Dhaka Bank Limited (DBL) to assist resolution of commercial and money loan disputes through alternative dispute resolution (ADR). Chief Executive Officer of BIAC Mr. Muhammad A. (Rumee) Ali and Managing Director of DBL, Syed Mahbubur Rahman signed the MoU on behalf of their respective institutions. Senior officials from both the institutions were present during the signing ceremony at DBL Office at Dhaka.
Cement industry booming as real estate gets new life
The rising demand of construction and resurgent real estate in recent times has helped the cement sector flourish, insiders have said. The domestic demand for cement has been surging from 5.0% to 8.0% over the last three to four years, boosted by industrial and construction sectors, they said. Secretary of Bangladesh Cement Manufacturers Association Sheikh Ashraf said most of the cement companies are doing well, thanks to the growing demand and that companies are also going to get more good days sooner, despite a competitive market. He said the sector also can reach another milestone if the plan to build roads is approved by the government. About export market, he said local companies export to only seven states of the eastern regions of India. Over the last three to four years, they have exported around 800,000 to one million tons of cement per year.
Premier Cement takes up BDT 4.0 billion expansion plan
Premier Cement Mills plans to double its production capacity with an approximate investment of BDT 4.0 billion to meet the growing demand for the construction material. The company’s current production capacity is 6,000 tons a day, which will be increased to 16,000 tons through the expansion plan approved yesterday at a board meeting. The cement industry is growing by around 22.5% a year, mainly driven by infrastructure development, said Md Shafiqul Islam Talukder, chief financial officer of Premier Cement. The expansion, which will be completed by 2018, will also help the listed cement manufacturer to make more revenue and profit, he said. Of the expected investment of BDT 4.0 billion, BDT 2.1 billion will be used for machinery and equipment import and the remaining BDT 1.9 billion for construction and other local purposes. Commercial production at the extended unit can be started soon after the completion of the expansion by 2018, Talukder said.
Delhi seeks duty waiver on billet export to Bangladesh
India has requested Dhaka to allow duty-free export of their non-alloy steel billet to Bangladesh through a reversal of the recently levied regulatory duty and value added tax (VAT) on the item. To back up their desire, the Indian High Commission in Dhaka in a letter to the Bangladesh government cited the South Asian Free Trade Area (SAFTA) rules. The government has withdrawn the zero-duty benefit for the item under the SAFTA agreement in the budget for current fiscal year. In the budget for fiscal year 2016-17, the government has introduced 20% regulatory duty and 15% VAT to protect the domestic industry. However, it has waived the customs duty (CD) on the product. Customs officials said import of billet is subject to duty of BDT 11,500 per ton for import from India under the current duty structure for both SAFTA and non-SAFTA countries. Until FY 2015-16, import of the item had required BDT 7,000 per ton for other countries, apart from India.
The government is going to take an initiative to expand the use of Liquefied Petroleum Gas (LPG) in different sectors of the country, officials said. The Bangladesh Petroleum Corporation will conduct a survey by an international firm to assess the impact, they said. The decision was taken at a meeting of the Energy and Mineral Resources Division late last month. The decision is to convert the country’s Compressed Natural Gas (CNG) into LPG for motor vehicles as the gas reserve is depleting. Besides, a policy has been formulated for establishing LPG bottling plant under the public-private initiative. The LPG Bottling Policy 2016 has been framed to preserve the decreasing energy resources of the country. The country consumes more than 0.1 million tons of LPG a year. Of the amount, about 80% comes from import. The rest is produced by state-run Bangladesh Petroleum Corporation (BPC).
Bangladesh Shipping Corporation seeks authority to procure ship
Bangladesh Shipping Corporation (BSC) has sought authority over procuring ship from foreign countries. For allowing it to selling and purchasing ship, the state-owned entity has proposed to bring changes in Bangladesh Shipping Corporation Act, officials said yesterday. The proposal will be placed today at the cabinet meeting for approval. Another proposal for raising the paid up capital of the corporation will also being placed in the cabinet for consideration. The BSC will propose to raise its paid capital to BDT 3.5 billion from existing BDT 1.4 billion. Bangladesh is heavily dependent on foreign carriers, as the foreign ships visit the country’s ports annually. An official said the BSC needs to enhance its capacity for procurement of more ships in order to increasing volume of export and import of the country. In February last, the government had formed a committee to revise the draft of Bangladesh Shipping Corporation Act 2016 as the cabinet division returned the draft asking for updating some of its rules.
Ifad Autos, which is building the country’s largest auto assembly plant at BDT 900.0 million, is expected to roll out its first vehicle in September. Initially, the plant aimed to assemble 4,000 trucks and buses a year, but revised the annual target higher at 7,000 vehicles, buoyed by the growth of the local market. Primarily, the plant will assemble heavy buses and trucks of Ashok Leyland, a leading Indian automobile manufacturer. Ifad, which was previously Ashok Leyland’s sole distributor in Bangladesh for about three decades, is now its strategic partner in the country. Ifad provides a full line of heavy duty trucks, buses and special service vehicles from Ashok Leyland of India. Ashok Leyland is concentrated on heavy buses and trucks. It has presence in the entire truck range, starting from 7.5 tons to 49 tons. Recently, the company has tied up with Nissan Motors of Japan to make light commercial vehicles or LCVs of less than 7.5 tons.
Hinduja Group flagship company Ashok Leyland has firmed up its plans to strengthen overseas presence as part of its vision to garner one-third of revenues from exports, reports PTI from Chennai. The city-based heavy commercial vehicles maker is setting up an assembly facility in Kenya, another one in Bangladesh through a partner and also expanding its UAE unit, Ashok Leyland chief financial officer Gopal Mahadevan said. “We have firmed up our plans to set up assembly plant in Kenya. We are going to invest there. We will start with 3,000 units (in terms of plant capacity). Investments, it is not going to take more than $5 million,” he told reporters.
The merger proposal of Robi-Airtel has been sent to the Prime Minister’s Office (PMO) for final approval incorporating a mandatory merger fee of BDT 1.0 billion. The government decided to charge Robi Axiata Limited a total of BDT 6.1 billion as merger and spectrum fees as the operator is set to be merged with Airtel. Posts and Telecommunications Division yesterday forwarded a summary of the merger proposal to Prime Minister Sheikh Hasina for her consent as she is also the minister for the Ministry of Posts, Telecommunications and Information Technology, an official of the concerned division told the Dhaka Tribune yesterday. The amount includes BDT 5.1 billion as spectrum charge and BDT 1.0 billion merger fee. Apart from the merger fee, he said the telecom division has also fixed BDT 338.0 million for per Megahertz of 2G spectrum. Earlier on July 13, an inter-ministerial meeting chaired by Finance Minister AMA Muhith finalized the merger fees and spectrum prices. On January 29, Robi and Airtel signed a merger agreement in Kuala Lumpur to venture into a joint business operation in Bangladesh. The joint venture will be named as Robi.
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.