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 March 1, 2016

Banks’ lending rate drops to 11.05% in January

The lending rate in Bangladesh’s banking sector dropped to 11.05% in January this year from 12.32% one year ago, said Bangladesh Bank data released recently. The interest rate on deposit also fell to 6.21% from 7.26% during the same period. During the period, the lending rate plunged by 1.27 percentage points compared to 1.05 percentage points drop of deposit rate. A senior executive of a private bank in the country said the deposit rate fall was slower than that lending rate as the new banks were still struggling to attract deposits. However, the banking sector moved to reduce lending rate gradually to stimulate credit demand amid economic recovery after a long stagnation, added the executive asking not to be named. Bangladesh Bank data showed that the gap between lending and deposit rates, known as spread, came down to the “expected level of 4.84%” in January this year from 5.05% a year earlier.

Source: http://www.dhakatribune.com/business/2016/mar/01/banks-lending-rate-drops-1105-january#sthash.RtB0miwc.dpuf

Banks’ capital rises in Sept-Dec

Banks’ overall capital increased 3.62% in the last quarter of 2015 as asset quality of most banks improved. The banks’ capital stood at BDT 753.5 billion on December 31, which was 10.84% of their total risk-weighted assets. The amount was BDT 727.2 billion on September 30. In line with international standards, banks have to maintain a capital adequacy ratio of 10% against their risk-weighted assets. Anwarul Islam, a spokesperson for the central bank, said despite economic slowdown globally, banks’ capital base in Bangladesh is gradually getting stronger. It will strengthen further in future, he added. In the last quarter of 2015, no bank saw a capital shortfall, he said. According to central bank statistics, the overall capital shortfall in the banking sector in September last year was BDT 440.0 milion; but in December, capital surplus was BDT 23.9 billion.

Source: http://www.thedailystar.net/business/banks-capital-rises-sept-dec-784459

Bangladesh Bank to set base rate for bank loan interest

Bangladesh Bank is going to introduce a base rate system for scheduled banks to ensure transparency in setting rates of interest on different credit products by banks. A BB official told New Age on Monday that the central bank had already taken an initiative to prepare a system how the base rate would be calculated by the banks. The banks will compute their base rates considering a number of variables which are cost of funds, cost of CRR and SLR, cost of administration and cost of equity capital. The BB official said that base rate was the minimum rate below which it was not viable for a bank to lend at the market. The base rate system will promote transparency in product pricing and encourage healthy competition in the economy, he said. The majority of the banks are now charging their clients illogical interest rates, but they will not be allowed to charge such type of rates when the base rate will come into effect, he said. Banks will have to show their respective base rates on their web sites so that clients remain informed about the matter, he said. Clients will be able to bargain with the banks if they (banks) charge them excess rate of interest.

Source: http://newagebd.net/207306/bb-set-base-rate-bank-loan-interest/

Banglalink keen to expand mobile financial service

VimpelCom, the parent company of mobile operator Banglalink, is ready to help deepen financial inclusion to complement the government’s vision for a “digital Bangladesh”, said one of its top officials. AJ Hanna, chief mobile financial services officer of VimpelCom, is currently visiting Dhaka and has expressed the company’s willingness to invest in mobile financial service (MFS) platforms in Bangladesh. The official, however, declined to mention their planned investment figures. “Opportunities in this space come in all shapes and sizes; it is difficult to put a number on that. We are open-minded and forward-thinking, and that is limitless,” said Hanna in an interview with The Daily Star yesterday. Both VimpelCom and Banglalink are here to support the government and the people of Bangladesh by doing whatever it takes to expand MFS, he said. VimpelCom currently offers world-class MFS in many of their markets, including Russia, Italy, Kazakhstan, Ukraine and Pakistan. And they have some services in Bangladesh as well, added Hanna.

Source: http://www.thedailystar.net/business/banglalink-keen-expand-mobile-financial-service-784465

City Bank Capital to raise equity for Bangladesh Petrochemical Company Limited

Bangladesh Petrochemical Company Limited (BPCL) and City Bank Capital Resources Limited signed an equity arrangement agreement recently at the City Bank Head Office in Gulshan-2. Under this agreement City Bank Capital will be raising equity for BPCL from offshore private equity funds, says a press release. BPCL is establishing plants for Naphtha Splitter Refinery and Aromatic Complex to produce petrochemical products which are the basic raw materials for producing PET and PVC resins. The company collects used PET bottles to make new PET resins. PET bottles end up in landfills if not sorted earlier creating serious hazard to the environment which BPCL recycles for production of Resins and Flakes. “Bangladesh has no Petrochemical company thus it spends a huge amount on foreign exchange each year for importing PET resins. There is huge demand for PET in the Plastic Bottle industry and Synthetic Yarn manufacturing industry.” mentioned Khadem M. Yusuf, the Managing Director of BPCL.

Source: http://print.thefinancialexpress-bd.com/2016/03/01/135326

ROBI, AIRTEL MERGER: BTRC forms body for final report

The Bangladesh Telecommunication Regulatory Commission has formed a committee to prepare a complete report, compiling different evaluation reports and public hearing, on the proposed merger of mobile phone operators Robi and Airtel. The public hearing is completed and two different study reports on the merger have also been submitted to the BTRC, officials of the telecom regulator said. Malaysia-based Robi, the country’s third largest mobile operator, and India-based Airtel in September last year announced to go for a merger of their Bangladesh operations and also signed an agreement in this regard on January 29. The merger issue is now pending with the High Court and the HC asked the telecom regulator to submit an expert evolution report on it by March 22. ‘The committee is working with a lot of issues as there is a number of dynamics which came out through different reports,’ a senior BTRC official told New Age on Monday.

Source: http://newagebd.net/207304/robi-airtel-merger/

Government to extend VAT exemption facility for edible oil traders

The government has decided to extend the existing value-added tax (VAT) exemption facility for the country’s edible oil traders by one year in order to help keep its price stable in the domestic market, officials said. The decision was taken recently at a meeting of the Bangladesh Tariff Commission (BTC) held in this connection, they said. In February 2015, the National Board of Revenue (NBR) issued two SROs (statutory regulatory orders) according to which the facility was given to the traders on refined soyabean and refined palm oil for more than 16 months (up to June 30, 2016). According to the fresh decision the traders will enjoy the facility up to June 30, 2017. The country’s edible oil traders had long been demanding introduction of a single-stage VAT saying that VAT at three stages – import, production and trading or distribution – is causing hassles for them due to frequent interruption by VAT officials. The NBR had initially opposed the plea of importers of vegetable oil saying that acceptance of such demand would disrupt the standard VAT collection system which might create scope of tax evasion.

Source: http://print.thefinancialexpress-bd.com/2016/03/01/135334

Korean firm to invest USD 25.0 million in Mongla EPZ

South Korean company CS Bangla Ltd will invest USD25 million to set up a tent and outdoor camping items manufacturing factory in Mongla Export Processing Zone. An agreement to this effect was signed between Bangladesh Export Processing Zones Authority and CS Bangla at Bepza Complex in Dhaka yesterday.  The fully foreign-owned company will produce 4.3 million pieces of tents, sleeping bags, camping chairs, bags and other accessories a year, according to a statement. The factory will create 1,500 employment opportunities for Bangladeshi nationals, it said. Abdul Halim Molla, member (investment promotion) of Bepza, and Do Kyun Kim, managing director of CS Bangla, signed the agreement.  Major General Mohd Habibur Rahman Khan, executive chairman of Bepza, was also present at the event.

Source: http://www.thedailystar.net/business/korean-firm-invest-25m-mongla-epz-784405

World Stock and Commodities

Index NameClose ValueValue ChangePercentage Change
Crude Oil (WTI)*$33.62(0.13)(0.39%)
Crude Oil (Brent)*$36.35(0.22)(0.60%)
Gold Spot*$1,245.056.380.52%
Dow Jones Industrial Average16,516.50123.470.74%
Nikkei 22515,916.84109.920.69%
FTSE 1006,097.09(1.08)(0.02%)

Exchange Rates

USD 1BDT 78.44*
GBP 1BDT 109.36*
EUR 1BDT 85.38*
INR 1DT 1.15*

*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