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
Rate last updated: 02/01/2014 11:15:04 AM
The interest rate on term deposits has reached double digit after about a couple of years as the banks are now out of comfort zone, as far as their liquidity position is concerned. The overall deposit rates started creeping up since the beginning of this calendar year, primarily due to withdrawal of funds from private banks by a section of depositors, including public sector agencies. The withdrawal, according to sector insiders, has resulted in a notable shortage of liquidity in the sector. The problems centring the Farmers Bank Ltd (FBL) and scams one after another have created a sort of crisis of confidence in the banking industry. Most state-owned enterprises are now reluctant to keep their funds with the private commercial banks (PCBs) that are suspected to be weak, fundamentally. Some SoEs particularly oil and gas distribution companies have already withdrawn a part of their special notice deposits from PCBs, according to banking sector insiders. They said the PCBs that face withdrawal pressure are now offering interest rates as high as 10.50 per cent in the case of time deposits.
The auction of treasury bills (T-bills) and bonds resumed, after a month’s suspension, to partly finance government budget deficit likely at higher expense now. Officials said the government is set to borrow BDT 33 billion through holding the auction of T-bills and Bangladesh Government Treasury Bonds (BGTBs) in the current month. According to the Bangladesh Bank (BB) officials, the first auction for March of Two-Year BGTBs will be held at the central bank headquarters in Dhaka today (Tuesday) to raise BDT 7.0 billion. The government is set to inject BDT 63.50 billion into the market through making payments against maturity of its T-bills and bonds during the period under review, the BB official added. The government’s latest move came against the backdrop of holding some excess liquidity recently, the central banker explained. The government had suspended the auctions of both T-bills and BGTBs for the month of February last to use up its excess liquidity. Slower implementation of projects under the Annual Development Programme (ADP) has also helped the government go on borrowing smaller amounts of funds from the banking system. The government’s net bank borrowing is still at a negative level, amounting to BDT 153.82 billion as on February 25, mainly due to higher growth in the saving-certificate sales, according to the central bank’s confidential report. Meanwhile, the government had set a bank-borrowing target of BDT 282.03 billion for the ongoing fiscal year (FY) for part- financing of the budget deficit. Under the proposed bank borrowing, the government will borrow BDT 208.87 billion through issuing long-term bonds while the remaining BDT 73.16 billion through T-bills.
Source:
http://today.thefinancialexpress.com.bd/last-page/bill-bond-auction-resumes-for-financing-budget-deficit-1520271714
https://businessnews-bd.net/govt-resumes-bank-borrowing/
The central bank of Bangladesh has sold US$22 million more to seven commercial banks to meet the growing demand for the greenback in the market. “We’ve sold the foreign currency to the banks on Monday at market rate to settle import payment bills particularly for fuel oil, food grains and capital machinery,” a senior official of the Bangladesh Bank (BB) told the BBN in Dhaka.
Source: https://businessnews-bd.net/bangladesh-bank-sells-22m/
Credit risk has emerged as the most challenging for banks, involving as much as 88 per cent of the overall assets of the country’s financial sector, an academic said on Monday. To overcome this challenge, local and overseas professionals laid emphasis on paying more attention to making credit risk management stronger enough to limit the space of wrong selection of borrowers. Such specialised system would not only alert the financial institutions about possible areas of risk but also help banks reduce the growth of NPL (non-performing loans), which increased to over 10 per cent in 2017 from 6.1 per cent in 2001. The experts also suggested the bank boards understand the role of CROs (Chief Risk Officer) and empower them. “There are three kinds of risks prevailing in the banking system-credit, market and operational. Nearly 88 per cent of risks come from credit here,” said professor of Bangladesh Institute of Bank Management (BIBM) Md. Nehal Ahmed. He revealed the figures at a session on ‘Operational Issues of Banking’ on the last day of the two-day regional banking conference. BIBM, Financial Institutions Training Institute (FITI) and National Banking Institute (NBI) jointly organised the event where banking sector experts from India, Nepal and Bhutan also presented papers.
Expatriate Bangladeshis sent US $9,461.15 million remittance in the first eight months of the current fiscal 2017-18, which is 16.56% higher than the amount received in the corresponding period of the preceding fiscal. According to Bangladesh Bank (BB), the country received $8,117.07 million remittance during July-February period of 2016-17 financial year. “The flow of remittances into the country rebounded in the current fiscal as BB took some measures to streamline the legal channel for encouraging the Non-Resident Bangladeshis (NRBs) to send home money,” BB Deputy Governor Abu Hena Mohammad Razee Hassan told BSS on Monday. He said the recent flow of remittance indicates that it is gradually increasing and this trend is likely to continue in the upcoming months. According to the BB data, the country received $1,149 million in February, $1,379.79 million in January, $1,163.82 million in December, $1,214.75 million in November, $1162.77 million in October, $856.87 million in September, $1,418.58 million in August and $1,115.57 million in July in 2017-18 fiscal. But in 2016-17, the country received $940.75 million in February, 1,009.47 million in January, $958.73 million in December, $951.37 million in November, $1,010.99 million in October, $1,056.64 million in September, $1,183.61 million in August and $1,005.51 million in July.
Source: http://www.dhakatribune.com/business/2018/03/06/remittance-inflow-rises-16-56-8-months/
Mobile account users have fallen by a staggering one crore in just six months after the central bank cracked down on illegal accounts by strengthening compliance. Active mobile money accounts declined by a third to 2.07 crore in January this year from its peak of 3.07 crore last August, according to central bank data. The central bank recently put restrictions on having more than one account for a client and lowered the ceiling per transaction. The strict regulations have reduced the number of mobile account users, said Abul Kashem Md Shirin, managing director of Dutch-Bangla Bank, which owns mobile financial service provider Rocket. He said although the number of active accounts declined, it will not affect the business of MFS providers since the deactivated accounts were mostly used for illegal activities. The number of registered accounts grew steadily to 5.90 crore in January this year from 5.69 crore in August last year. The use of mobile accounts has reduced among small businessmen and students due to the slash in the transaction limit, said Kamal Quadir, chief executive officer of bKash, the leading MFS platform. He said the BB is trying to give a legitimate solution to bring remittance through mobile banking channel which will also help boost the number of users.
Source: http://www.thedailystar.net/business/mobile-banking-users-fell-1cr-six-months-1544149
An expert suggestion from an international meet in Dhaka calls for devising a minimum qualification criterion for bank directors to ensure better governance within the financial sector. At a time when banks in Bangladesh are facing some major management problems, the banking experts from home and abroad also suggested creating a fit list for the directors of the banks and arranging training for them to enhance the capacity of banks’ governing bodies. Their views came during the two-day Regional Banking Conference organized by Bangladesh Institute of Bank Management. Four countries from South Asia, including host Bangladesh, India, Nepal and Bhutan, took part in the event that concluded Monday. “Training should not be regarded as an expense. Rather, it should be regarded as an investment,” Adviser and former Deputy Governor of Bangladesh Bank S K Sur Chowdhury said on the occasion. Citing examples from Nepal, which has a nonperforming loan ratio of less than 2.0 per cent, speakers pointed out that in the Himalayan nation, it is mandatory for the bank directors to undergo training. “In addition, banks in Nepal are supposed to channel 3.0 per cent of their net profits in to training programs,” said Sanjib Subba, Chief Executive Officer of the National Banking Institute of Nepal. Experts at the seminar observed that to deal with diverse challenges of banking in the upcoming decades, directors of the banks ought to be well-educated and better qualified. They also need to be familiar with modern technological trends given the growing advent of fintech or financial technology. In this context, there is no alternative to increased capacity building of the bank directors,” said Dr. Toufic Ahmad Choudhury, Director-General of BIBM. Addressing these concerns, S K Sur Chowdhury said, “The issue of the training of bank directors is under consideration of the Bangladesh Bank.” Bangladesh Institute of Bank Management can help the central bank in this regard, he added.
Speakers at a regional banking conference have identified some newer challenges for the bankers including ensuring regulatory compliance and corporate governance as the banking system is stepping into a new paradigm. The human resource management department of banks are already facing difficulties in confronting these challenges, they said, and also stressed for compliance requirements to ensure long term stability and sustainability in the sector. These views emerged from two sessions at the conference titled “Operational Issues of Banking” and “Human Capital Development in the Banking Industry of the Region” at the Regional Banking Conference 2018, which concluded in Dhaka on Monday. The two-day conference was organized by the Bangladesh Institute of Bank Management (BIBM) in association with the Financial Institutions Training Institute (FITI) of Bhutan, National Institute of Bank Management (NIBM) of India, and National Banking Institute (NBI) of Nepal, at the BIBM headquarters. The session “Operational Issues of Banking” was chaired by CEO of Bangladesh International Arbitration Centre and former deputy governor of Bangladesh Bank Muhammad A Rumee Ali. BIBM Supernumerary Professor Helal Ahmed Chowdhury, President and Managing Director of Bank Asia Ltd Arfan Ali, Additional Managing Director of Trust Bank Ltd Faruq Mainuddin Ahmed, BIBM Director Professor Dr Prashanta Kumar Banerjee, were the discussants.
Source: http://www.dhakatribune.com/business/2018/03/06/bankers-will-face-challenges-cope-new-paradigms/
Md. Sazzad Hossain, Deputy Managing Director of Bank Asia and Yasir Azman, Deputy CEO and CMO of Grameenphone Limited are seen exchanging MoU on digital financial inclusion and e-commerce at a function held at GP House at Basundhara in the city recently. Under this agreement, Grameenphone will assist improve access to formal financial services to the end customers and offer many other appropriate financial solutions through the agent banking solutions and other innovative financial solutions with Bank Asia.
Speakers at a regional banking conference have identified some newer challenges for the bankers including ensuring regulatory compliance and corporate governance as the banking system is stepping into a new paradigm. The human resource management department of banks are already facing difficulties in confronting these challenges, they said, and also stressed for compliance requirements to ensure long term stability and sustainability in the sector. These views emerged from two sessions at the conference titled “Operational Issues of Banking” and “Human Capital Development in the Banking Industry of the Region” at the Regional Banking Conference 2018, which concluded in Dhaka on Monday. The two-day conference was organized by the Bangladesh Institute of Bank Management (BIBM) in association with the Financial Institutions Training Institute (FITI) of Bhutan, National Institute of Bank Management (NIBM) of India, and National Banking Institute (NBI) of Nepal, at the BIBM headquarters. The session “Operational Issues of Banking” was chaired by CEO of Bangladesh International Arbitration Centre and former deputy governor of Bangladesh Bank Muhammad A Rumee Ali. BIBM Supernumerary Professor Helal Ahmed Chowdhury, President and Managing Director of Bank Asia Ltd Arfan Ali, Additional Managing Director of Trust Bank Ltd Faruq Mainuddin Ahmed, BIBM Director Professor Dr Prashanta Kumar Banerjee, were the discussants.
Source: http://www.dhakatribune.com/business/2018/03/06/bankers-will-face-challenges-cope-new-paradigms/
Mutual Trust Bank Limited (MTB) has recently signed an agreement with Life Insurance Corporation (LIC) of Bangladesh Ltd. at a simple ceremony held at bank’s Corporate Head Office, MTB Centre, Gulshan in the city, said a statement. Under this agreement, policy holders of LICBD can deposit their premium amount through any MTB Branches. Arup Dasgupta, Managing Director & Chief Executive Officer, Life Insurance Corporation (LIC) of Bangladesh Ltd. and Syed Rafiqul Haq, Deputy Managing Director & Chief Business Officer, Mutual Trust Bank Limited signed the agreement on behalf of their respective organisations.
Source: http://today.thefinancialexpress.com.bd/stock-corporate/mtb-inks-deal-with-lic-1520264625
The National Economic Council (NEC) is to approve the Revised Annual Development Programme (RADP) for the current fiscal year (FY18) today (Tuesday) with a proposal for making a 3.23% cut from the original ADP size, reports BSS. The NEC meeting will be held tomorrow and it will be proposed before the meeting on Tuesday to make a BDT 49.5 billion cut from the original ADP of BDT 1.53 trillion, according to a senior Planning Commission (%) official. The official said the NEC earlier approved a BDT 1.53 trillion ADP for the current fiscal year with BDT 963.31 billion coming from the domestic resources while BDT 570.00 billion from the foreign resources.
Source:
http://today.thefinancialexpress.com.bd/last-page/nec-to-approve-revised-adp-today-with-323%-cut-1520271919
http://www.newagebd.net/article/36108/ministry-to-seek-BDT-5000cr-cut-in-adp-today
Kuwait has again imposed a restriction on recruitment of workers from Bangladesh, Gulf News reported on Monday. “Interior Minister has ordered the ban and asked the interior ministry to apply it,” the newspaper reported quoting Kuwaiti daily Al Jareeda. The source attributed the decision to irregularities and abuses by traffickers in work and residency permits for Bangladeshis whose numbers have increased remarkably following the recent lifting of a ban on their recruitment, it said. The abuses were mainly related to the employment of domestic helpers despite the existence of strict regulations, security agencies said the reports that triggered the ban, the Gulf News said. The number of Bangladeshis was 200,000 in Kuwait in 2016, according to the daily. Kuwait stopped recruiting Bangladeshi workers in 2007 after detecting irregularities in their recruitment and their involvement in illegal activities. In 2014, Kuwait decided to lift the ban and allow Bangladeshis to work in the Gulf country. But in May 2016, Kuwait imposed a ban on male domestic helpers following security reports that there were irregularities.
Source: http://today.thefinancialexpress.com.bd/last-page/kuwait-reinstates-ban-on-bdesh-workers-1520271810
The cultivation of jute and production of its jute goods have increased. Jute mills are also being modernised. Preparations are underway to mark National Jute Day on March 6. Sources at Bangladesh Jute Research Institute (BJRI) said that in 2010, 700,000-800,000 bales of jute were harvested on 750,000 hectares of land across the country. The scenario remained almost the same for the next several years. However, in 2017, jute was cultivated on 817,000 hectares of land. Farmers hope more than 9.2 million bales of jute will be harvested this year. If the target is fulfilled it will set a new record. The government as undertaken various projects such as conducting more research, formulating new regulations, reforming jute mills, and imposing eco tax on polythene to encourage people to use jute products, sources at the Ministry of Textiles and Jute said. Along with increasing the use of jute goods in the country, the government is also planning to export these commodities to foreign countries in order to help generate employment. According to the government, jute will play a vital role in expanding the export market, earning foreign currency, safeguarding the environment, and generating employment as the country is being elevated to middle income status by 2021.
Vietnam’s leading leathergoods manufacturer TBS plans to invest $100 million in Bangladesh, said Saiful Islam, president of Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB). The company wants a 1.30 lakh to 1.50 lakh square metre space to set up a factory either in Dhaka or Chittagong to produce leather footwear and footwear components for overseas markets, he said. Diep Thanh Kiet, vice chairman of Vietnam Leather, Footwear and Handbag Association, and Islam signed an agreement in this regard in the office of LFMEAB in Dhaka yesterday. The papers of the agreement will be exchanged in front of Vietnamese President Tran Dai Quang at the Bangladesh Vietnam Business Forum to be held in a hotel in Dhaka today. TBS is one of the top five leathergoods manufactures in Vietnam and the company’s annual export value touches $500 million, Islam said. “The proposed investment will create 10,000 new jobs in Bangladesh.” Bangladesh’s business-friendly environment, workforce at competitive wage, available raw materials and the duty privilege the country enjoys have encouraged the Vietnamese company to invest here, Islam said. “The rising leather and leathergoods sector of Bangladesh will not be affected due to the foreign investment. Rather our sector will be benefited from such investment as they will create jobs and bring new technologies.” The LFMEAB will give technical assistance to TBS to form the company, he said.
Yoshimoto Kogyo Company of Japan has recently teamed up with Yunus Centre and Yunus Shiiki Social Business Research Centre at Kyushu University in Fukuoka to launch a joint venture social business company in Japan. The social business company will address social problems of Japan in innovative ways by mobilising comedians and other entertainers in their respective prefectures, said a statement of Yunus Centre on Monday. A preparatory meeting was held in this regard between Nobel Laureate Professor Muhammad Yunus and 24 senior officials from Yoshimoto Kogyo Company, who flew to Dubai from Japan for the meeting. Professor Muhammad Yunus was attending Dubai Lit Festival to speak on his new book, “A World of Three Zeroes”. After establishment of the new joint venture of social business its first ‘Yunus Family Conference’ will be held in Tokyo on March 28, where Professor Yunus will be the chief guest.
The telecom operators want the upcoming national budget to withdraw the 21.75 percent VAT, supplementary duty and surcharge that people pay to use SIM cards. They also sought amendments to some clauses of the tax laws for the sake of digitisation of the economy. The Association of Mobile Telecom Operators of Bangladesh (Amtob) has recently placed a set of proposals on the budget to the National Board of Revenue (NBR). The association wanted the taxes to go as the mobile users purchase internet data and applications through their SIM cards. “If the government withdraws the VAT and other taxes from internet usage, it will significantly become cheaper for the end users. That will ultimately help build a digital country,” according to the proposals paper signed by TIM Nurul Kabir, secretary general of the association. Finance Minister AMA Muhith has recently given assurance of reducing taxes on internet usage, in a programme of Bangladesh Association of Software and Information Services. As in previous budgets, Amtob has again wanted withdrawal of a VAT and supplementary duty of Tk 100 on sales of SIMs, as more people are using smartphones now to avail different telecom services.
Source:
http://www.thedailystar.net/business/telecom/telecom-operators-seek-tax-exemptions-1544146
http://www.newagebd.net/article/36111/amtob-wants-withdrawal-of-taxes-on-mobile-internet
The Bangladesh Economic Zones Authority (BEZA) received investment commitment of USD 17 billion, including USD 8 billion as FDI, in last seven months. BEZA has already acquired 75,000 acres of land in their custody and given licenses to the private sector out of 11 for six economic zones. BEZA will establish an economic zone in an area of 24,000 acres in Cox’s Bazar. In this zone, 4,000 acres will be allocated for industrial establishments and 20,000 acres for tourism park for the development of the country’s tourism sector.
| Index Name | Close Value | Value Change | Percentage Change |
|---|---|---|---|
| DSEX | 5,835.34 | ↓48.05 | ↓0.82% |
| DJIA | 24,874.76 | ↑336.70 | ↑1.37% |
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| Commodity | Close Value | Value Change | Percentage Change |
|---|---|---|---|
| Crude Oil (WTI) | $ 62.68 | ↑0.11 | ↑0.18% |
| Crude Oil (Brent) | $ 65.63 | ↑0.09 | ↑0.14% |
| Gold Spot | $ 1,322.44 | ↑2.33 | ↑0.18% |
| Exchange Rates | |
|---|---|
| USD 1 | BDT 83.30 |
| GBP 1 | BDT 115.36 |
| EUR 1 | BDT 102.88 |
| INR 1 | BDT 1.28 |
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