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 29 2017

Dhaka Bank to get $55m from IFC for expansion

Dhaka Bank has recently signed $55 million facilities agreements with International Finance Corporation. IFC will be providing $20 million working capital solutions facility to Dhaka Bank’s offshore banking unit for expanding its foothold in SME-based export sector, Dhaka Bank said in a statement yesterday. The rest $35 million guarantee facility will be provided under the Global Trade Finance Programme (GTFP). The $5 billion GTFP of IFC extends and complements the capacity of banks to deliver trade financing by providing risk mitigation in new or challenging markets where trade lines may be constrained. Syed Mahbubur Rahman, CEO of Dhaka Bank, and Ariane Di Iorio, regional industry manager for the financial institutions group at IFC South Asia, inked the deals at a programme at the corporate office of the bank in Dhaka.


‘No major damage’ in BB fire: BB probe body

An inquiry team formed after the recent fire in the Bangladesh Bank headquarters submitted its report to Governor Fazle Kabir yesterday, saying there was no major damage in the incident. The central bank formed the three-member committee led by Executive Director Ahmed Jamal to assess the damage caused by the fire, said Subhankar Saha, spokesperson for the bank. The report said only some chairs and tables, three computers, a scanner, two printers and a photocopy machine were damaged, said BB sources. The team, in its report, also recommended not using electronic items like water heater in the office to avoid similar accidents in future, added the sources. Around 9:30pm on March 23, a fire broke out on the 13th floor of the BB headquarters in the city’s Motijheel, but was doused after an hour’s efforts. The floor housed the foreign exchange policy department, which is responsible for formulating and implementing policies related to foreign exchange. No one was hurt in the flame.

Source: http://www.thedailystar.net/frontpage/no-major-damage-bb-fire-1382881

Reserve Heist: BB might be allowed to use seized computers

Bangladesh Bank may be allowed to use the computers and IT systems which were seized by the Criminal Investigation Department after the reserve heist of the central bank last year. The consensus came at a high-level meeting at the finance ministry yesterday. Finance Minister AMA Muhith, Home Minister Asaduzzaman Khan and Law Minister Anisul Huq were present. Meeting sources said officials of the central bank and the CID would now sit to decide how the BB staff can resume using the computers and IT systems. Muhith called the meeting in response to a BB request to increase coordination among the stakeholders, as a lack of coordination was causing difficulties for the central bank in strengthening its IT security. BB Governor Fazle Kabir, Finance Secretary Hedayet Ullah Al Mamun, Banking Secretary Md Eunusur Rahman and Inspector General of Police AKM Shahidul Hoque were present. The CID seized some computers of the BB soon after the incident of heist came to light in February last year.

Source: http://www.thedailystar.net/business/bb-might-be-allowed-use-seized-computers-1383004

Muhith firm on heist money recovery, sees BB fire trivial

Finance Minister AMA Muhith expressed the hope Tuesday that the stolen money would be retrieved from the Philippines, without specifying any timeframe, as a high-level meeting reviewed the latest developments with the central bank. “Of course, the money will return. No one can hold the stolen money,” he told newsmen after the meeting, held at Bangladesh secretariat. Law Minister Anisul Huq, Home Minister Asaduzzaman Khan, chairman of the parliamentary standing committee on finance ministry Dr Abdur Razzaque, Bangladesh Bank governor Fazle Kabir and attorney-general Mahbubey Alam, among others, attended the meeting. The meeting was held against the backdrop of a fire incident in the central bank, virtually no progress in recovery of the stolen reserves, and the theft of 34,000 euros from Bangladesh Deputy High Commission in Karachi by hacking e-mail account.


Defaulted industrial loans rise 24pc in H1

The amount of defaulted industrial loans soared by 24.39 per cent or Tk 4,816.65 crore in July-December of the current fiscal year 2016-2017 compared with the same period of FY 2015-16 due to a dull business environment and a lack of effective loan recovery measures by the banks and the non-bank financial institutions. According to the latest Bangladesh Bank data, the defaulted industrial loans stood at Tk 24,563.49 crore in the first half of FY2016-17 against Tk 19,746.84 crore in the same period of FY16. An economist and some BB officials said the industrial sector faced a major setback in recent months due to uncertainty and dull business. The BB data, however, showed that industrial loan disbursement by banks and non-bank financial institutions increased in the first half of the FY17. Banks and NBFIs gave out Tk 1,44,606.63 crore in industrial loans in July-December of FY17 compared to Tk 1,24,026.28 crore disbursed in the same half of FY16. A BB official said there was no reason for the amount of industrial loans to rise in the period as entrepreneurs were reluctant to expand their business due to the dull economic environment.

Source: http://www.newagebd.net/article/12219/defaulted-industrial-loans-rise-24pc-in-h1-

BB allows City Bank to sell 5pc shares to IFC

Bangladesh Bank has approved a plea of the City Bank Ltd to revise its article of association allowing it to sell 5 per cent of its new shares worth Tk 130.45 crore to the International Finance Corporation, a member of the World Bank group. The BB issued a letter to the managing director and chief executive officer of The City Bank saying that it (central bank) allowed the bank to revise 40 articles facilitating the IFC to invest in the bank. City Bank and IFC signed an agreement on IFC’s investment in City Bank’s equity shares on February 24, 2016. The Board of Directors of the bank earlier approved entering into shareholders agreement and subscription agreement among The City Bank Ltd and the IFC under which IFC will buy 4.61 crore fresh shares of City Bank with an issue price of Tk. 28.30 a share. But the IFC later failed to invest in the bank as the central bank initially did not allow it to change the article of association, a BB official told New Age on Tuesday. The City Bank managing director Sohail RK Hussain told New Age on Tuesday that majority number of the articles, which were placed for revising before the central bank, were corporate governance related. The bank will be allowed to attach one director of IFC with its board with the central bank’s permission, he said.

All Rupali Bank branches automated

State-owned Rupali Bank has gone into 100 percent automation, being the first

among the public banks, aimed at providing better customer services. “The bank has reached the milestone by bringing the last branch under ‘Core Banking Solution (CBS)’ on March 27,” said a statement issued by Rupali Bank in Dhaka on Tuesday, reports BSS. From now on, real time banking services will be available for the clients in all Rupali Bank branches across the country, the statement added.


Investors take position on large-cap sectors

The country’s premier bourse Tuesday closed higher as the initial optimism continued till closure and investors took position on large-cap sectors. The market bounced back after one session of moderate fall and the broad index also closed above 5700 points. According to International Leasing Securities, the Dhaka Stock Exchange (DSE) opened positively and ended without any major fluctuation. At the end of the session, the DSE broad index DSEX rose 0.69 per cent or 39.48 points to close at 5737.41. “The Dhaka bourse witnessed a sharp rise in its benchmark index amidst increased participation of the investors breaking a two-day losing streak,” said the International Leasing Securities.

Source: http://www.thefinancialexpress-bd.com/2017/03/28/65479/Investors-take-position-on-large-cap-sectors

ECNEC okays 12 projects involving Tk 101b

The Executive Committee of National Economic Council (ECNEC) on Tuesday approved 12 projects worth of Tk 10,147.57 crore (101.47 billion). The projects include the 3rd Urban Governance and Infrastructure Improvement (Sector) Project (UGIIP-3) involving Tk 4,046.17 crore to improve the physical infrastructure and urban services of 36 municipalities under the country’s seven divisions. The projects were approved at a meeting held at NEC conference room at Sher-e-Bangla Nagar area in Dhaka with Prime Minister Sheikh Hasina in the chair. Of the total project cost, Tk 6,280.64 crore will come from the state exchequer while Tk 235.59 crore from the organisations’ own fund and the rest of Tk 3,631.34 crore will come as project assistance, Planning Minister AHM Mustafa kamal told the reporters after the meeting. Among the projects, the most expensive is ‘Third Metropolitan Production and Sector Structural Developmental Project’. The estimated cost of the project is Tk 4,046 crore.
Source: http://www.observerbd.com/details.php?id=65945

Govt mulls law changes for EPZ workers’ freedom of association

The government is mulling over an idea to make changes to some provisions of the Bangladesh Labour Act and to adjust the provision related to Workers Welfare Association for the EPZ workers to the International Labour Organisation convention on freedom of association. Two ministers of the Bangladesh government on Tuesday assured the visiting team of European Parliament members that Bangladesh would take all necessary steps to address the concerns raised by the EU regarding labour situation in Bangladesh. The four-member EP delegation that includes Arne Lietz, co-rapporteur on the garments report committee, Linda McAvan, EP chair of the development committee, Nobert Neuser, development coordinator of S&D, and Agnes Jongerius, member of international trade committee of S&D, on Tuesday held separate meetings with commerce minister Tofail Ahmed and state minister for labour Mujibul Haque at the Bangladesh secretariat in the capital Dhaka.

Source: http://www.newagebd.net/article/12217/govt-mulls-law-changes-for-epz-workers-freedom-of-association

AIIB to provide $60m to boost gas supply

The Asian Infrastructure Investment Bank is set to provide $60 million for a project to address Bangladesh’s gas supply deficit — the second loan for the country after the multilateral lender was formed last year. The lack of gas supply would eventually impact Bangladesh’s energy security and constrain the nation’s economic growth, the China-led bank said in a statement yesterday. The $60 million loan is for the Bangladesh Natural Gas Infrastructure and Efficiency Improvement Project, which is being co-financed by the Asian Develop-ment Bank. The ADB has approved a $167 million loan in November for the project, which aims to diversify Bangladesh’s gas supply through imports either by cross-border gas transmission pipeline or as liquefied natural gas. The AIIB loan would have an interest rate of LIBOR plus 1.15 percent and a repayment period of 25 years with five years of grace period, said an Economic Relations Division official.

Source: http://www.thedailystar.net/business/aiib-provide-60m-boost-gas-supply-1383010

$3.5b Indian credit line on the cards during PM’s visit

India is likely to give Bangladesh a credit line of at least $3.5 billion for infrastructure projects during Prime Minister Sheikh Hasina’s state visit in April, according to a report of India-based www.financialexpress.com. The credit line, which would be India’s third to its neighbour, would go toward a variety of projects ranging from nuclear and liquefied natural gas power plants to ports, railways and the establishment of special economic zones, according to a Bangladesh government document seen by a news agency. The credit line would include $940 million for the development of a component of the Rooppur nuclear power plant, $350 million for a multipurpose terminal at Bangladesh’s Payra port and $177 million for a power transmission line between India’s Jharkhand and Bangladesh’s Bogra.

Source: http://www.thefinancialexpress-bd.com/2017/03/29/65496/$3.5b-Indian-credit-line-on-the-cards

5.0pc tax on yield, if balance crosses Tk 0.5 million mark

Investors of Pensioners Savings Certificate (PSC) have to pay 5.0 per cent tax at source on their yield, if their accumulated balance exceeds Tk 5,00,000, said a clarification of the National Board of Revenue (NBR). Commercial banks, post offices and savings offices will have to deduct the tax at source at the time of payment of profit/interest of PSC investors as per Section 52D of the Income Tax Ordinance. However, pensioners will enjoy tax exemption up to the above-mentioned limit. The deducting authority will have to examine whether value of the savings certificates exceeds the said limit, date of interest withdrawal, and corresponding year’s balance in the certificates, the clarification said.

Source: http://www.thefinancialexpress-bd.com/2017/03/29/65498/5.0pc-tax-on-yield,-if-balance-crosses-Tk-0.5-million-mark

NBR issues fresh SRO on SAARC products’ duty cut

Bangladesh cut customs duty (CD) on 4,609 products in a bundle under the South Asian Free Trade Area (SAFTA) rules to facilitate trade among the bloc’s member-countries. The customs wing of the National Board of Revenue (NBR) issued Tuesday a Statutory Regulatory Order (SRO) on the duty cutbacks with retrospective effect from January 01, 2017. Under the latest SRO, importers having SAFTA Rules of Origin Certificate will enjoy a reduced-duty facility on imports under this product line from the SAARC-member countries. In 2015, Bangladesh reduced the CD ranging between 0.675 per cent and 7.1875 per cent for the year. The CD was cut between zero per cent and the highest 5.0 per cent for 2016 on 4,609 products for trade under the agreement. In the latest SRO, the CD has been fixed from zero per cent to 5.0 per cent.

Source: http://www.thefinancialexpress-bd.com/2017/03/29/65497/NBR-issues-fresh-SRO-on-SAARC-products%27-duty-cut

Pharma sector can earn $1b in exports within five years

Pharmaceutical companies have the potential to earn $1 billion a year through exports in the next five years, but the sector needs fiscal benefits and policy support to do so, analysts said at a seminar. Export earnings from the sector still remain below $100 million a year, but drug makers are optimistic about reaching the $1-billion mark as the industry is growing at 16 percent a year. A couple of local companies have also gained access to the highly regulated markets of the US and the UK. Giving incentives on pharmaceutical exports and setting up a world class drug laboratory can lead the way, the analysts said at the event at Sonargaon Hotel in Dhaka on Monday.

Source: http://www.thedailystar.net/business/pharma-sector-can-earn-1b-exports-within-five-years-1383007

International tourism fair kicks off tomorrow

A three-day international tourism fair—US- Bangla Airlines Dhaka Travel Mart 2017—will begin at Pan Pacific Sonargaon Hotel in Dhaka tomorrow. Rashed Khan Menon, civil aviation and tourism minister, is scheduled to open the show, the Bangladesh Monitor, a fortnightly publication on tourism, said in a statement yesterday. The publication is organising the fair for the 14th time, said Kazi Wahidul Alam, editor of the Bangladesh Monitor and chairman of the US- Bangla Airlines DTM 2017 organising committee. US- Bangla Airlines is supporting the event as the title sponsor and national carrier Biman Bangladesh Airlines is the airline partner, Alam said at a press meet at Sonargaon Hotel yesterday.

Source: http://www.thedailystar.net/business/international-tourism-fair-kicks-tomorrow-1383001

First telecom tower made of bamboo installed in Dhaka

Tower management company Edotco yesterday installed the first telecom tower made of bamboo on the rooftop of a house in Uttara, Dhaka. The tower was developed with home grown technology in collaboration with Bangladesh University of Engineering and Technology (Buet). It was unveiled at a ceremony in Westin Dhaka. Through this initiative, the company is focusing on the use of alternative material instead of the traditional steel structures in telecommunications. Syed Ishtiaq Ahmad, a professor of civil engineering at Buet, has designed this tower after conducting research, said Suresh Sidhu, chief executive of Edotco Group. The company intends to roll out more such bamboo structures in several other places in Dhaka in 2017.


Local and Global Stock Indices

Index NameClose ValueValue ChangePercentage Change
Nikkei 22519,192.69↓10.18↓0.0%

World Commodities

CommodityClose ValueValue ChangePercentage Change
Crude Oil (WTI)*$48.56↑0.19↑0.39%
Crude Oil (Brent)*$51.48↑0.15↑0.29%
Gold Spot*$1,249.52↓2.33↓0.19%

Major Currencies Exchange Rates Movement in Last Seven Days





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