TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK


TT-Clean: 77.1 | TK BC-Selling: 78.1
TK OD-Sight: 76.88 TK | TC-Selling: 78.1 TK

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Rate last updated: 02/01/2014 11:15:04 AM

Important Business News Extracts June 29 2016

Crackdown awaits lavish non-life insurance firms: IDRA issues show-cause notices on all 45 firms

The insurance regulator now plans a tougher crackdown on the country’s 45 non-life insurance firms for their lavish management spending in violation of the rules. Earlier, the Authority had conducted a drive against 17 life-insurance firms which are now in the courts of the anti-graft body, the Anti-Corruption Commission (ACC), for investigations. IDRA people said the excessive management spending by the general firms affects negatively the latter’s ability to settle claims of the clients. The IDRA (Insurance Development and Regulatory Authority) found each of the private sector non-life firms spending much against their limit each year without any control. Same is the case with the state-owned Sadharan Bima Corporation, they mentioned. The IDRA Tuesday issued show-cause notices upon all the 45 non-life firms, asking them to explain why it should not take punitive action against them as per law. They were asked to reply by July 11. They have been summoned to attend hearings to be held on July 24-28 on the charges.

Source: http://print.thefinancialexpress-bd.com/2016/06/29/145417

A few changes likely in proposed tax measures: Finance Bill passes thru parliament today

The government may make some changes to the tax measures in the new finance bill before it gets through parliament today (Wednesday), in final consideration of demands from stakeholders. Finance Minister AMA Muhith would move the Finance Bill 2016 in the House for passage with such changes, sources said. Cut in the proposed tax at source for exporters, upward revision of the investment rebate for individual taxpayers, reduction in VAT amount as a prerequisite for making appeal by aggrieved taxpayers are likely among the changes to be proposed. Tax at source for readymade garment exporters may be set at 0.8% for fiscal year 2016-17 against the existing 0.6%. In the new budget, the government proposed to increase the rate to 1.5% for exporters. Jute exporters are likely to enjoy 0.6% tax at source in the upcoming fiscal year. However, corporate tax rate for readymade garment exporters will remain unchanged at 20.0% as per budget proposal made on June 02. Currently, the corporate tax rate for the apparel exporters is 35.0%.


Brexit: garment makers face price cuts

The British buyers of Bangladeshi garment products have started putting price pressure on manufacturers following the freefall of pound sterling as a result of Brexit. The pound sterling sank as low as USD1.35 — its lowest rate against the dollar since September 1985 — before recovering to USD1.37. It has also declined sharply in Bangladesh. On June 22, a day before the Britons went to the polls over the European Union membership, the inter-bank exchange rate of the pound sterling stood at BDT 115.27. The following day it came down to BDT 107.26 and on Monday, it stood at BDT 103.64, meaning the British currency slumped about 10% in the space of five days. For the UK, a weaker exchange rate means its import bills will swell and so will inflation. But it seems the British retailers are not ready to pay more for the garment products they source from Bangladesh, according to exporters.

Source: http://www.thedailystar.net/business/brexit-garment-makers-face-price-cuts-1247146

Bangladesh frozen fish exporters already feeling Brexit pinch

The British move to leave EU has already hit Bangladesh’s frozen fish sector with export consignments worth nearly BDT 1.0 billion getting stuck as UK buyers asked not to make any shipment following Brexit referendum. Experts and exporters feared that country’s frozen fish sector might be the worst victim of Brexit as most of the Europe-bound export consignments go to their destinations via London. Exporters said that the United Kingdom was the highest importer of Bangladesh’s frozen fish and following the Brexit the UK buyers have already asked the exporters to hold delivery. ‘We are in deep concern over the situation as UK buyers have already asked exporters not to make any shipment and the export consignments worth nearly BDT 1.0 billion got stuck due to Brexit,’ SM Amzad Hossain, president of Bangladesh Frozen Foods Exporters Association told New Age on Tuesday. In the EU referendum the British people on June 23 decided to leave the European Union. Following the result of Brexit vote a turmoil situation took place in the UK economy and politics. Due to Brexit the British pound fell by 8.0% and the UK buyers are observing the situation whether they should import shrimps at this moment, Amzad said.

Source: http://newagebd.net/238049/bdesh-frozen-fish-exporters-already-feeling-brexit-pinch/

Brexit won’t affect Bangladesh trade with EU: German envoy

Dispelling growing fears, German Ambassador in Dhaka Dr Thomas Prinz said Tuesday Britain’s exit from the European Union (EU) wouldn’t cast any impact on Bangladesh’s trade with the bloc. “No, it (trade) will not be affected due to Brexit. We have contract between EU and Bangladesh which will not be affected if one member leaves,” he told reporters after a meeting with Finance Minister AMA Muhith at the latter’s secretariat office. French Ambassador Sophie AUBERT was also present during the meeting. Dr Prinz said that, maybe, at the later point Bangladesh will have to negotiate with the United Kingdom, when it is out of the EU, on market-access issue. “But at this moment it (Brexit) would not affect Bangladesh’s trade with EU,” he said. Regarding Germany’s national flag-carrier Lufthansa’s stoppage of direct cargo service from Bangladesh the envoy said he is yet to see the letter of the federal aviation authority which looks after the issue.

Source: http://print.thefinancialexpress-bd.com/2016/06/29/145382

Foreign aid disbursement goes up by 9.5% in 11 months

The foreign aid disbursement in the country has risen by 9.5% during the period of 11 months of this fiscal compared to the corresponding period of last fiscal, officials said Monday. Economic Relations Division (ERD) data showed the development partners provided USD 2.9 billion worth of concessional assistance during July-May period this fiscal, a 9.50% higher than that in the last FY2015. Official data also showed that the commitment of the external resources including the concessional loans and grants have also increased significantly by 68.0% during the 11 months of the current financial year (FY) 2015-16. According to the ERD, the development partners’ foreign aid commitment has picked up to USD4.76 billion in July-May period of the current FY2016 compared to USD 2.8 billion in the corresponding period last fiscal.

Source: http://print.thefinancialexpress-bd.com/2016/06/29/145377

ADP execution rises to 90%

Execution of the annual development program (ADP) is finally going to fall short of expectation as the planning minister scaled it down to around 90%. Planning Minister AHM Mustafa Kamal had earlier aired the hope for cent-percent implementation ADP up to the end of this fiscal. Only two days are to go before the financial year 2015-16 ends. “So far, BDT 791.2 billion of the BDT 939.0 billion revised ADP fund has been spent by the ministries and agencies, excepting the health ministry and the Prime Minister’s Office. I hope some 90%-plus ADP will be executed at the end this fiscal,” he said while briefing journalists Tuesday in Dhaka after a meeting of the Executive Committee of the National Economic Council (ECNEC). A few months ago, the minister had told journalists that he was confident of implementing 100% of the BDT 970 billion original ADP for the outgoing financial year (FY). The ADP was later revised downward to BDT 910 billion in the third quarter of the fiscal due to a poor pace of execution by the ministries and agencies. In the last FY2015, the government spent BDT 711.4 billion or 91% of its BDT 778.4 billion revised ADP.

Source: http://print.thefinancialexpress-bd.com/2016/06/29/145418

New VAT measures to bring in BDT 64.2 billion

The government is set to rake in an additional BDT 64.2 billion next fiscal year due to various value added tax measures proposed in the budget. The disclosure comes after tax officials last week presented a picture to Finance Minister AMA Muhith of how much revenue will be gained or lost owing to the various tax measures. However, the proposed VAT waiver to some items would result in revenue loss of BDT 200 million. Muhith, who will present today an amended version of the budget he had proposed on June 2, is unlikely to make any changes to the tax measures save for the source tax on export earnings. The source tax may be brought down to 0.8% or 1% from the proposed 1.5%, said a finance ministry official. The revenue target for fiscal 2016-17 has been set at BDT 2,031.5 billion, up 35.43% from current year’s target. The target for income tax collection would be BDT 719.4 billion and VAT collection BDT 727.6 billion.

Source: http://www.thedailystar.net/business/new-vat-measures-bring-BDT-6423cr-1247143

Telecom act to be amended: State Minister for Telecom

State Minister for Telecom Tarana Halim yesterday said they will amend the existing telecom act in line with the newly approved national telecom policy, to achieve the targets fixed by the cabinet. The ministry will shortly take initiatives to amend the telecom act, which was passed in parliament in 2001 and later amended in 2010, said Tarana. This law is related to technology, which is evolving every day, Tarana added. In the newly adopted policy, the government wants to achieve 100% teledensity by 2021, which is now 80%. At the same time, the telecom division is working to achieve 45% internet penetration over the next three years and 65% by 2021 — from 27% at present. The long-term target is to achieve 90% internet penetration.

Source: http://www.thedailystar.net/business/telecom-act-be-amended-tarana-1247125

Doreen Power’s subsidiary starts commercial operation

Dhaka Southern Power Generations, a subsidiary of the Doreen Power Generations and Systems which holds 96.8% shares, has started commercial operation recently, said an official disclosure on Tuesday. The company will generate BDT 3.1 billion (approx.) as revenue per year at a plant factory with 80% capacity after completion of the COD of 55 MW Power Plant, the disclosure said. “As a 96.8% shareholder, Doreen Power will be benefited from the above mentioned revenue proportionately,” said the disclosure. Doreen Power, which was listed on the Dhaka bourse in April this year, raised a fund worth BDT 580 million from the public through initial public offering. The power generation company floated 20 million ordinary shares of BDT 10 each, in addition to BDT 19 as premium.

Source: http://print.thefinancialexpress-bd.com/2016/06/29/145365

GP seeks to continue Jan-Dec as income year

Grameenphone has sought exemption from following July-June as the ‘uniform’ income year, set by the stockmarket regulator. The lone listed mobile phone operator made the plea as its parent company Telenor has 11 other operations globally that follow January-December as their income year. The change in one company’s income year may create problems to others, especially in the case of financial disclosures, officials said. The company has already placed the issue before Finance Minister AMA Muhith and requested him to allow the operator to continue the income year that it follows now. Mahmud Hossain, chief corporate affairs officer at Grameenphone said that he expects that they will get a positive response from the authorities and can continue to follow January-December as their income year. All taxpaying companies other than banks, non-bank financial institutions and insurance will have to follow the uniform income year from July to June from this July, according to a regulatory directive.

Source: http://www.thedailystar.net/business/gp-seeks-continue-jan-dec-income-year-1247137

World Stock and Commodities

Index NameClose ValueValue ChangePercentage Change
Crude Oil (WTI)*$48.21+0.36+0.75%
Crude Oil (Brent)*$48.84+0.26+0.54%
Gold Spot*$1,318.26+6.47+0.49%
Dow Jones Industrial Average17,409.72+269.48+1.57%
Nikkei 22515,607.52+284.38+1.86%
FTSE 1006,140.39+158.19+2.64%

Exchange Rates

USD 1BDT 78.60*
GBP 1BDT 104.70*
EUR 1BDT 86.99*
INR 1BDT 1.16*

*Currencies and Commodities are taken from Bloomberg.




Dear Valued Patrons,

At the very onset, let me express my heartiest gratitude for allowing us to serve you and I also wanted to reach out to you directly with an assurance that Dhaka Bank is fully equipped to support you during this difficult time.

Last couple of weeks ago we all were living in a peaceful condition, performing our daily tasks freely and perfectly. Entire economy and business environment was also in a good shape, until COVID-19 put a forceful stoppage to the overall life style and economy of the world. We all know that social distancing and cleanliness are the keys to prevent this pandemic. Hence, we urge your conscious effort to limiting public interaction and suspending wherever possible.

In this current situation, Dhaka Bank and its employees are beside you where we are fully online, either working from home or at our offices under a robust Business Continuity Plan (BCP) to serve you with limited branch banking and a full-fledged alternate delivery channel services.

Our state of the art Mobile App, Dhaka Bank GO (Click https://bit.ly/2WVfieu) and Internet Banking - Dhaka Bank Direct gives you the freedom of banking online anytime from anywhere. You can check the balance and transfer money to any designated Banks including any Dhaka Bank or bKash Account, make utility bill payments and mobile top-up through our Mobile App and Internet Banking Services. Our ATMs are also running efficiently with availability of sufficient cash for your convenience where you can make cash withdrawals whenever the need arises. Mentionable, the withdrawal of cash from any ATMs within Bangladesh with Dhaka Bank Debit Cards are absolutely free of charges up till April 30, 2020 (Dhaka Bank will bear the cost). Our corporate customers can also use our completely safe and secured online platform Dhaka Bank C-Solution for Payments, Inter Bank Fund Transfers, etc.

Moreover, to fulfill your urgent requirement, we have a limited no. of branches up and running by ensuring all kinds of precautionary and safety measures for you.

In case of extreme emergency and facing difficulties in conducting banking transactions, please let us know through our 24/7 Contact Center number 16474 (or, dial +8809678016474 for ISD/Overseas Calls). We are always with you to combat your difficulties.

As you know we are going through a critical phase and the situation is novel to all of us. We are getting lot of new information from various sources everyday about COVID-19 which will be shared at www.dhakabankltd.com.

Thank you for your trust and continued support to us. I firmly believe that jointly we will be able to combat this situation and win against all the odds.

Please stay home, stay safe and take care of yourself and family.

Best regards,

Emranul Huq
Managing Director & CEO
Dhaka Bank Limited