Banks to follow simple interest calculation from next FY
As per the Finance Minister A H M Mustafa Kamal, the Government would encourage banks to offer simple interest loans instead of compound interest ones from the next financial year (FY). As per the Minister, simple interest calculation will be applicable (in the case of bank loans). This will be announced in the next budget. He was talking to reporters after an exchange of views meeting with directors of the state-owned banks at the NEC conference room in the city. According to the Minister, there is no country in the world where loan interest is calculated on a compound rate, they follow simple rate. For long term financing, the minister announced that the bond market would be developed shortly.
Pubali Bank to issue Tk 7.50b Subordinated Bond
The board of Directors of Pubali Bank Limited has decided to issue 7 years subordinated bond-II worth Tk 7.50 billion. The bank will issue the bond for raising fund to have regulatory capital support of the bank under BASEL-III framework to raise the Tier-2 capital of the bank. The issuing of the bond is subject to the approval of Bangladesh Bank (BB), Bangladesh Securities and Exchange Commission (BSEC) and other regulatory authorities. Each share of the bank, which was listed on the Dhaka Stock Exchange (DSE) in 1984, closed at Tk 27.70 on Monday, losing 1.07 per cent over the previous session. Its share traded between Tk 20.10 and Tk 29.10 in the last one year. The bank’s consolidated earnings per share (EPS) stood at Tk 0.52 for July-September 2018 as against Tk 0.40 for July-September 2017.
Islamic Banks gain market share in 2018
The market share of the country’s Islamic banks marginally increased in terms of deposit collection and issuance of credit, also known as investments, in 2018 compared with that in the previous year. According to a Bangladesh Bank report, in terms of deposit collection, Islamic banks’ market share increased to 23.50 per cent in 2018 from 23.13 per cent a year ago. As per the BB officials, stringent compliance with rules and regulations had become very much essential for sustainable growth of the Islamic banking sector. The country’s Islamic banks are operating under the Islamic Banking Guidelines which were formulated in November, 2009. To cope with the current practices and norms, upgradation and modernisation of the existing rules and regulations has become the need of the time. Mentioning the importance of guidelines upgradation, the central bank’s report for the December quarter said, ‘As Shariah is the backbone of the Islamic banking industry, a comprehensive legal framework may be enacted for proper streamlining and supervision of this rapidly growing sector. The BB report showed that the deposit in Islamic banks grew by 10.78 per cent to Tk 2,37,366.9 crore at the end of December last year from Tk 2,14,259.42 crore at the end of December, 2017. Deposits in all the banks grew by 9.04 per cent to Tk 10,09,981 crore in 2018 from Tk 9,26,179 crore in 2017.
BD’s Apparel export to US sees 6.65pc growth in 2018
Bangladesh’s apparel exports to the United States grew by 6.65 per cent to US$ 5.40 billion in 2018 compared to that of 2017. According to data from Office of Textiles and Apparel (OTEXA) affiliated with the US Department of Commerce, the country fetched $ 5.06 billion in 2017. Last year, Bangladesh shipped 1.93 billion square metres of apparel than that of 1.85 billion square metres in the previous calendar year. The US imported a total of $ 5.60 billion of textiles and apparel from Bangladesh during January to December period of 2018, it showed. On the other hand, Chinese apparel exports grew by 1.34 per cent to $ 27.37 billion in 2018 out of China’s total $ 40.58 billion textiles and apparel exports to US. The OTEXA statistics show that the Chinese apparel exports to USA declined in the recent years.
EBL signs deal with JP Morgan
Eastern Bank Limited (EBL) has entered into an agreement with J.P. Morgan, Singapore for processing letter of credit documents through electronic channel. Besides ensuring quicker payments for Bangladeshi exporters it will also support J.P. Morgan’s client that require quicker turnaround on document processing for imports from Bangladesh. The arrangement will help Bangladeshi representative offices of foreign importers, faster receipt of their documents. It will reduce the need to for physical movement of document between Singapore and Bangladesh which, typically can take up to 10 days.
Top ten-traded Companies grab 41pc turnover
Brac Bank dominated the Dhaka Stock Exchange (DSE) turnover chart on Monday while top ten-traded companies grabbed 41 per cent transactions. Market operators said investors showed their buying appetite on Brac Bank shares amid dividend expectation as the bank will hold a board meeting on March 21. As per the Officials, the board of directors is likely to recommend dividend in the meeting after considering, among others, audited financial statements of the bank for the year ended on December 31, 2018. According to statistics from the premier bourse, about 4.31 million shares of Brac Bank were traded, generating a turnover of Tk 382 million, which was 8.01 per cent of the prime bourse’s total turnover. The bank’s share traded between Tk 87.40 and Tk 90.40, before closing at Tk 88.60 each on Monday, gaining 0.11 per cent over the previous session. The bank’s consolidated earnings per share (EPS) stood at Tk 1.19 for July-September 2018 as against Tk 1.41 for July-September 2017.
Increase RMG export to India: Commerce Minister
As per Commerce Minister Mr. Tipu Munshi, Bangladesh would take initiatives to increase export of readymade garment (RMG) to Indian market. India wants Bangladeshi RMG to its market, but there are some problems, and necessary measures will be taken to solve those after identification. The minister revealed it after a meeting with newly appointed Indian high commissioner to Bangladesh Riva Ganguly Das at his ministry office. Terming India as a big market, the Minister said that, Bangladeshi RMG had good demand in India that was why Bangladesh was trying to increase the export of apparel items to grab the opportunity. Besides, about the India-Bangladesh Border Haat, the commerce minister said it [border haat] had created huge enthusiasm among the people of both countries. As per the Minister, process is going on to set up another six border haats along with expansion of purchase limit and periphery of the border haat. In last fiscal year, Bangladesh exported different products worth $ 873.27 million to India against the import of $ 8619.40 million.
Investment to rise in 2-3yrs, hopes Agriculture Minister
Agriculture Minister M Abdur Razzaque on Monday expressed his high optimism that the public and private investment in the country would increase further within the next two to three years alongside continued increase in the GDP growth. As per the Minister, It’s his firm belief that both the public and private investment in the country would increase further within the next two to three years. Noting that Bangladesh is doing well in achieving healthy GDP growth, the agriculture minister hoped that the country would also be able to attain double digit growth in future. The Minister highlighted, the successes of the Government in different socio-economic fields over the last 10 years especially in alleviating poverty. According to the Minister, the poverty rate had come down below 22 per cent while target is there to further reduce it to 12 per cent by 2023.
Suspected Drug dealer shot dead in gunfight
An alleged drug smuggler was killed in what police said was a gunfight between two groups of drug traders in Meherpur’s Gangni upazila early yesterday.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 59.05||↓0.04||↓0.07%|
|Crude Oil (Brent)|| $ 67.52|| ↓0.02|| ↓0.03%|
|Gold Spot|| $1,307.17||↑3.46||↑0.27%|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 84.0623|
|GBP 1||BDT 111.5927|
|EUR 1||BDT 95.3351|
|INR 1||BDT 1.2266|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<