BB set to form body to offer ways to cut NPLs
The Central Bank has decided to form a high-powered committee to recommend measures for reducing the volume of classified loans in the country’s Banking system. The decision was taken at an emergency meeting, held at the Bangladesh Bank (BB) headquarters in Dhaka on Tuesday with BB Governor Fazle Kabir in the chair. The committee will be formed with senior officials of four departments of the Central Bank, which are responsible for monitoring and supervision of non-performing loans (NPLs). The departments are Banking Regulation and Policy Department (BRPD), Department of Off-Site Supervision (DOS), Department of Banking Inspection (DBI), and Financial Stability Department (FID). According to BB spokesperson, Md. Serajul Islam, the committee will prepare its recommendations in consultation with major stakeholders, including public and private commercial Banks. Mr. Islam, an Executive Director of the Central Bank, also said the BB will act in line with the committee’s recommendations.
Trade deficit drops by 10.4pc in July-April
Country’s trade deficit dropped by 10.44 per cent or $1.59 billion in first 10 months of the fiscal year 2018-2019 compared with that in the same period of the last fiscal year due mainly to slowdown in import growth and notable growth in export earnings. Trade deficit eased to $13.68 billion in July-April of FY19 from $15.27 billion in the same period of FY18, showed Bangladesh Bank data released on Wednesday. Though the trade deficit eased in the period, the deficit was still high. Trade deficit was $11.93 billion in July-March of the current FY19. According to the Central Bank, trade deficit eased in July-April as import grew by only 3.88 per cent against the export earnings growth of 11.15 per cent in the period. Import payments stood at $47.11 billion in July-April of FY19 from $45.35 billion in the same period of FY18.
Listed Banks keep Tk 1,946cr in provision in Jan-Mar
Listed Banks witnessed a 25.13-per cent or Tk 390.83 crore rise in provision for defaulted loans in the January-March quarter of this year compared with that in the same period last year. According to the published quarterly reports, the 30 listed Banks kept Tk 1,946.26 crore in provision for defaulted loans in the first quarter of this year against Tk 1,555.43 crore in the same period last year. Officials of the Banks said that an increase in the amount of defaulted loans was the main reason for the rise in provision amount. They said the amount of defaulted loans in the country’s Banking sector increased in the period as many borrowers refrained from paying instalments. A government’s move to issue bailout package for the loan defaulters with just 2 per cent down payment was the main reason for the non-payment of instalments.
Govt lifts ban on raw jute export
The government has lifted the ban on export of two types of low quality raw jute — un-cut Bangla Tosha Rejection and Bangla White Rejection —16 months after the imposition of the bar. The Ministry of Textiles and Jute on May 29 withdrew the circular which was issued on January 18, 2018 imposing ban on the export of un-cut BTR and BWR raw jute. According to the sector people, the government lifted the ban on raw jute export following a writ petition as High Court has recently passed an order for lifting ban on un-cut raw jute export. Industry insiders said that Dhaka Trading House Limited, one of the exporters, filed a writ petition challenging the legality of the government’s order of imposing ban on the export of BTR and BWR. They said that the export of raw jute declined in huge quantity due to the embargo and the businesses incurred losses.
Benapole port earns Tk 51.85b revenue in current fiscal
Benapole port has earned Tk 51.85 billion revenue in the current fiscal year, said Mamunur Rahman, Deputy Director of Benapole Port Authority. A record quantity of goods was imported from India in the last three days (June 9 to 11) through the land port leading to the revenue increase. This number was only 250 to 270 last year, Mr. Rahman said. He also said that the import increased due to the new guidelines from customs authority. Benapole Sonali Bank Manager Rakibul Alam said the revenue collection was estimated Tk 110.0 million on Sunday, Tk 120.0 million on Monday and TK 80.0 million till Tuesday noon. Importers said the customs and port operations developed after the directives issued by Benapole Customs Commissioner Mohammad Belal Hossain Chowdhury.
State Banks weighed down by bad loans
Default loans in state-run Commercial Banks soared 10.64 percent, or Tk 5,184 crore, in the first quarter of the year — in the strongest sign yet of the lenders’ apathy towards cleaning up their acts. At the end of March, the total amount of default loans in the six Banks — Sonali, Janata, Agrani, Rupali, BASIC and Bangladesh Development — stood at Tk 53,879 crore, which is 48.60 percent of total default loans in the Banking sector. The spiraling default loans in the Banks have already created a large amount of capital shortfall. And like always, without any hesitation, the government is swooping in to rescue them.
Nalim cultivation gaining popularity
Slowly but steadily, nutritious and healthy foods are being included in the food menu of common people. Making it regular is now a matter of practice. Considering this, production of fruits, which are good for health, is also increasing. Farmers are now trying out new and diversified fruits and crops. Cultivation of nalim, a melon variety fruit, is gaining popularity among the grassroots farmers in Magura. Over 155 hectares of land were brought under the production of nalim in the district this season. Hazipur, Mirzapur, Hazrapur, Narihati, Fulbari, Shibrampur and Mithapur are well-known for producing quality nalim in the district.
Silco Pharmaceuticals to make debut today
According to the official, Silco Pharmaceuticals Limited will make its share trading debut today on the bourses under ‘N’ category. The Silco Pharma raised a fund worth Tk 300 million by floating 30 million ordinary shares of Tk 10 each, using the fixed-price method. The securities regulator — Bangladesh Securities and Exchange Commission (BSEC) — approved the Silco Pharma’s application to raise the fund on December 20, 2018.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|DSEX||5,469.63073|| ↓6.35168|| ↓0.12%|
|Nikkei 225|| 20,973.72|| ↓156.00||↓0.74%|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 51.07||↓0.07||↓0.14%|
|Crude Oil (Brent)||$ 60.01|| ↑0.04||↑0.07%|
|Gold Spot|| $1,337.10|| ↑3.52||↑0.26%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 82.8549|
|GBP 1||BDT 105.3520|
|EUR 1||BDT 93.7546|
|INR 1||BDT 1.1931|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<