BB makes banks’ dividend payments conditional
The central bank on Monday suspended the payment of cash dividends by the banks until September 30 this year, officials say. Even the banks, which have already declared their dividends for 2019, will have to revise it if it clashes with the new step. The banks, according to the Bangladesh bank (BB) directive, are allowed to declare 30 per cent dividends, including a maximum of 15 per cent cash dividend, for 2019 if the banks are able to maintain 12.5 per cent capital-to-risk weighted-asset ratio, or CRAR. In contrast, banks that will maintain CRAR with buffer at lower than 12.50 per cent, may declare 15 per cent dividend including a maximum of 7.5 per cent cash. Banks, which have already availed regulatory forbearance, are allowed to announce 10 per cent dividend including 5.0 per cent cash only if their capital stands at 11.25 per cent or more after the adjustment of the regulatory forbearance from the central bank. However, banks, which can maintain CRAR with buffer at lower than 10 per cent, will be allowed to announce 5.0 per cent stock dividend with permission from the central bank. In the region, the Reserve Bank of India (RBI) has recently barred banks from paying dividends for the fiscal year ending in March 2020 so that they conserve capital in these testing times.
Govt, ADB sign $500m loan deal
The Asian Development Bank (ADB) and the government of Bangladesh signed a loan agreement involving US$500 million, aiming to help Bangladesh’s efforts to mitigate socio-economic impact of the prevailing COVID-19 pandemic. The Economic Relations Division (ERD) Secretary Fatima Yasmin and the ADB Country Director for Bangladesh Manmohan Parkash remotely signed the loan agreement on behalf of their respective sides, according to a press release of the Manila-based lender. The assistance package is expected to benefit over 15 million poor and vulnerable people in Bangladesh. At least 2.0 million poor families across the country will be given about $23 each, while about 1.0 million poor and vulnerable families will receive food support of 20 kilogrammes per month during the pandemic emergency period. Affected industries and sectors, and micro, small, and medium-sized enterprises will also be eligible for loans with subsidised interest, it mentioned. The loans are supported by a $1.0 million technical assistance grant to help the government improve its institutional capacity, introduce new tools for service delivery, develop a gender-responsive plan to improve the social safety net, and improve monitoring and evaluation capacity. CPRO was launched as part of the ADB’s $20-billion expanded assistance for developing its member countries’ response to the pandemic, and was announced on April 13.
MoF releases Tk 12.5b for cash support programme
The ministry of finance (MoF) released on Monday Tk 12.50 billion to provide cash support for five million poor families affected by the coronavirus pandemic. The beneficiaries will receive Tk 2,500 each to meet their needs, as they are facing dire financial hardships during the ongoing shutdown linked to the Covid-19 crisis. As low-income people are going through severe financial crisis having failed to earn a living during the shutdown, the Prime Minister announced last month that they would be provided with cash support. The money will be sent to the beneficiaries through mobile financial services such as bKash, Rocket, Nagad and SureCash.
Standard Bank’s net profit jumps 243pc in Q1
The net profit of Standard Bank surged 243 per cent year-on-year to nearly Tk 365 million in the first quarter (Q1) for January-March, 2020 despite ongoing Covid-19 pandemic. The board of directors of the bank in a virtual meeting through digital platform recently approved among others, the un-audited financial statements of the bank for the first quarter ended on March 31, 2020 and disclosed it. As per the disclosure, the bank’s net profit after tax stood at Tk 364.95 million in January-March, 2020 which was Tk 106.25 million in the same period of the previous year. The bank’s consolidated earnings per share (EPS) also rose more than 245 per cent in January-March, 2020 quarter compared to the same quarter of the previous year. Its consolidated EPS stood at Tk 0.38 for January-March 2020 as against Tk 0.11 for January-March 2019.
IPDC Finance declares 10pc cash, 5.0pc stock dividend
The 38th Annual General Meeting (AGM) of IPDC Finance Ltd was virtually held on Monday through a video conferencing. The company declared 10 per cent cash and 5.0 per cent stock dividend for the year of 2019, as approved by the shareholders. The meeting was presided over by Md. Abdul Karim, Chairman of IPDC Finance Ltd. The attendees included other directors who were nominated by BRAC, Ayesha Abed Foundation, RSA Capital Limited, Bluechip Securities Limited and Government of the Peoples’ Republic of Bangladesh.
Livestock ministry sells fish worth Tk 77.3m
The fisheries and livestock ministry said it has sold 421,000kg fish through mobile stalls across the country in a single day, reports UNB. The fish is worth Tk 77.3 million According to the ministry, they took the initiative for selling milk, egg, fish and poultry goods produced by marginal farmers and entrepreneurs in a bid to help them amid the ongoing shutdown. Between April 25 and May 1, mobile stalls sold milk, eggs and poultry chicken worth over Tk 1.76 billion (Tk 176.27 crore). Earlier on Apr 22, the ministry directed the officials of Fisheries Department and Department of Livestock Services at district and upazila levels to materialise the project.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|↑ 455.43||↑ 1.91 %|
|FTSE100||5939.73||↑ 3.75||↑ 0.06 %|
|Nikkei 225||20422.15||↑ 31.49||↑ 0.15 %|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 24.48||↑ 0.34||↑ 1.41 %|
|Crude Oil (Brent)||$ 29.83||↑ 0.20||↑ 0.68 %|
|Gold Spot||$ 1700.88||↑ 2.95||↑ 0.17 %|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.2626|
|GBP 1||BDT 102.941|
|EUR 1||BDT 90.1228|
|INR 1||BDT 1.10621|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<