Private sector credit growth remains steady

Private sector credit growth remained steady in January amid higher import and rising business activities in the country. In January, private sector credit growth stood at 15.6 percent, which is almost identical to the previous month’s figure. Since September last year, the credit growth has been hovering around the 15-percent mark amid a stable political situation and lower lending rates. The Bangladesh Bank has kept the private sector credit target at 16.5 percent for this fiscal year, which its projections say will be enough to support the GDP growth target of 7.2 percent. Total credit to private sector stood at Tk 719,000 crore at the end of January, up from Tk 717,019 crore the previous month, according to data from the BB. “But the matter is whether the credit is going to the manufacturing sector, which plays a role in employment generation,” said Mohammed Nurul Amin, managing director of Meghna Bank.

Source: http://www.thedailystar.net/business/private-sector-credit-growth-remains-steady-1376098

BB sends teams in 3 countries to find out reasons for falling remittance inflow

As the falling trend of the inflow of remittances is becoming a matter of concern for the country, two teams of Bangladesh Bank (BB) are visiting Saudi Arabia, Malaysia and Singapore to find out the reasons behind the declining trend of remittances, reports BSS. BB Economic Advisor Dr M Akhtaruzzaman is leading a 3-member team now visiting Saudi Arabia where over 80 lakh Bangladeshis have been working and the country received a record US$2955.55 million in remittance in fiscal year 2015-16. General Manager of BB Governor’s Secretariat Dr M Habibur Rahman is leading the other team which is now visiting Malaysia and Singapore, the Southeast Asian countries being the major sources of remittances for Bangladesh. The central bank through the foreign ministry has also asked the Bangladesh missions abroad to take necessary steps in getting the cooperation of law enforces of the respective countries to stop the use of illegal channels by the Bangladesh workers in sending remittances home. Bangladesh migrants sent home US$1337.14 million from Malaysia and US$387.24 million from Singapore in 15-16. According to BB, Bangladesh received US$1478.42 million in remittances from Saudi Arabia, US$744.46 million from Malaysia and US$204.61 million from Singapore for the first eight months of FY17.

Source: http://www.theindependentbd.com/printversion/details/85394

Probashi Bank to become commercial

The government has decided to provide Tk 2.50 billion to Probashi Kallyan Bank (PKB), a specialised bank, to help it become a scheduled bank, sources said. The decision was taken at a meeting Tuesday at the ministry of finance (MoF) with Finance Minister AMA Muhith in the chair. The bank needs to have Tk 4.0 billion as paid-up capital for becoming a scheduled bank. Presently, the bank’s paid-up capital is Tk 1.0 billion. The meeting also decided that the Wage Earners’ Welfare Board (WEWB) will provide the remaining Tk 500 million as equity. The Board as of now is the majority shareholder of the bank. The meeting also decided that after its conversion into a scheduled bank, the PKB will start general banking activities on a limited scale among migrant workers, returnees, and their relatives through collecting deposits and providing loans. According to officials, the PKB, as a non-scheduled bank, is not allowed to carry out the functions of a scheduled bank. The move to turn PKB into a scheduled bank was taken recently aiming to utilise it for bringing more remittances to the country through legal channel as inward remittance flow has been declining.

Source: http://www.thefinancialexpress-bd.com/2017/03/15/64355/Probashi-Bank-to-become-commercial

DCCI board members call on BB governor

Bangladesh Bank (BB) Governor Fazle Kabir said government borrowing is lower now which is an opportunity for the private sector to get more access to finance, reports BSS. He also said foreign remittance is more that 16 per cent lower than the same period of last year which is a matter of concern and the central bank is working hard to encourage non-resident Bangladeshis (NRBs) to send remittances through proper channels. The governor said this when the Board of Directors of Dhaka Chamber of Commerce and Industry (DCCI) led by its president Abul Kasem Khan called on him at BB in the capital yesterday. The governor said young generation needs to be encouraged to come up with innovative entrepreneurship mostly in manufacturing sector rather than trading. Skill development and training are also more important for new entrepreneurs, he said.

Source: http://www.theindependentbd.com/home/printnews/85398

Bank shares dominate turnover

Stocks returned to higher Tuesday, snapping a single-session mild correction, largely supported by banks. Analysts said the banking issues kept the market afloat as the sector posted the highest gain of 1.40 per cent with 23 banks closed green, out of 30 listed banks. “The upbeat trend of the market was triggered by healthy gain in banks as investors are expecting better dividend as most of the banks are yet to declare dividend,” said an analyst at a leading brokerage firm. He noted that media reports that most of commercial banks listed on the stockmarket saw hefty net profits in 2016, also encouraged the investors to buy the bank issues. Following the news, the investors were active on bank issues throughout the session while the day’s turnover and gainer chart were dominated by banks. IFIC Bank, First Security Islami Bank and City Bank were top three turnover generators, contributing 11.3 per cent, 9.0 per cent and 8.5 per cent of the sector’s total turnover, respectively. At the same time, IFIC Bank, Jamuna Bank and NCC Bank were top three gainers within the bank sector, gaining 5.72 per cent, 5.2 per cent and 4.8 per cent, respectively.

Source:
http://www.thefinancialexpress-bd.com/2017/03/14/64336/Bank-shares-dominate-turnover
http://www.newagebd.net/article/11219/index.php

Technical glitch disrupts online banking

Online banking transactions of some banks, particularly Sonali Bank Limited, were disrupted temporally on Tuesday due to a technical glitch that hit an internet service provider. Under the existing provisions, the banks will have to install double links of internet service providers at their each branch to ensure uninterrupted services. The internet-based transactions at around 400 branches of Sonali Bank out of 1,208 remained suspended for an hour in the morning for the activation of alternative internet connection, a Sonali Bank senior officer said. “Everything is now normal,” he told the FE. Talking to the FE, a senior official of a leading private commercial bank (PCB) said the disruption was the result of a glitch caused by a fire at a technical office of an internet service provider at Banglamotor in Dhaka Monday night.

Source: http://www.thefinancialexpress-bd.com/2017/03/15/64350/Technical-glitch-disrupts-online-banking

Capital market refinancing scheme: Govt to relax conditions for borrowers

The supervisory committee of the capital market refinancing scheme is set to prepare a proposal to relax some conditions for borrowers to ensure complete utilisation of the fund. The committee’s plan to work for relaxing conditions has come as a substantial amount of the fund still remains undisbursed. According to information of the supervisory committee, out of Tk 9.0 billion, Tk 2.57 billion remained undisbursed as of March 14. Mohammad Saifur Rahman, the convener of the supervisory committee said they would submit a proposal for relaxing some conditions to the finance ministry soon. “We want ensure the complete utilisation of the fund. That’s why the committee will sit soon for preparing a proposal that will be submitted to the ministry,” said Rahman, also an executive director of Bangladesh Securities and Exchange Commission (BSEC). According to Rahman, their proposal may include the reduction of interest rate and extension of tenure of the scheme. “Some borrowers are also interested to take loans for second time. Our proposal may include the provision of taking loans for second time,” Rahman said.

Source: http://www.thefinancialexpress-bd.com/2017/03/14/64335/Govt-to-relax-conditions-for-borrowers