BB steps in to shore up banks’ financial muscle

The central bank yesterday rolled out long-term special repo, following the lead of the Reserve Bank of India, to help banks, many of which are cash-strapped, prop up their liquidity base such that they can adequately prime the pump during these extraordinary times. Under the special repurchase agreement (repo), banks will enjoy funds from the central bank for one year, up from 28 days at present, by keeping their Treasury bills and bonds as collateral. Banks will have to place their T-bills and bonds after securing their statutory liquidity ratio (SLR) as collateral, an exercise that would give protection to depositors and the BB control over the money flow to the market as well. Their SLR would be 13 per cent of their total time and demand deposit. Excluding their SLR banks now hold T-bills and bonds worth about Tk 72,000 crore. And they can get up to 85 per cent of the face value of their T-bills and 5 per cent of their T-bonds. The base interest rate on the special repo is 5.25 per cent or equivalent to the policy rate set by the central bank, said a BB official. But the actual rate will be fixed at the auction from where the lenders will get the fund. Under the process, they are directly purchasing T-bills and bonds from banks such that they can be able to finance their private sector. But in Bangladesh quantitative easing is different as the majority of the lenders do not have enough excess T-bills and bonds after keeping their SLR. So, this is a time-befitting and more effective policy measure given the financial strength of the country’s financial sector.

Source: https://www.thedailystar.net/business/news/bb-steps-shore-banks-financial-muscle-1902469

Singer approves 77pc cash dividend

The 40th annual general meeting (AGM) of Singer Bangladesh Ltd was held online on Wednesday. Dr. Fatih Kemal Ebiçlioglu, Chairman, Singer Bangladesh Limited, presided over the meeting, said a statement. The members participated in the meeting and approved 77 per cent cash dividend for the year 2019 and also increased authorised capital from Tk 1.00 billion to Tk 2.50 billion. Chairman in his address mentioned that 2019 was a successful year for the company in terms of revenue and profitability and results had been very pleasing for the investors”. In 2019 turnover increased by 14.2 per cent to Tk 15.5 billion. Profit after tax increased by 12 per cent to Tk 1.0 billion, with earnings per share increasing at the same rate to Tk 10.4 per share.”

Source: https://today.thefinancialexpress.com.bd/stock-corporate/singer-approves-77pc-cash-dividend-1589383621

Bashundhara Group provides masks, PPE to Ansar, VDP

Bashundhara Group provided Bangladesh Ansar and Village Defence Party (VDP) with 25,000 masks and 3,000 sets of PPE as a preventive measure to tackle coronavirus infection. Bashundhara Group Managing Director Sayem Sobhan Anvir handed over the protective equipment to Director General of Bangladesh Ansar and VDP Major General Kazi Sharif Kaikobad at the Ansar & VDP headquarters in the city on Wednesday. Deputy Director General (operations) of Bangladesh Ansar Md Mahbubul Islam, Editor of Bangladesh Pratidin and CEO of News24 Naem Nizam and other higher officials of Bangladesh Ansar were present during the event. As part of its corporate social responsibility, Bashundhara Group has set up the country’s largest 2,013-bed hospital for corona patients. Bashundhara Group has also donated Tk 100 million to the Prime Minister’s Relief Fund. Earlier, the group provided 25,000 face masks, 1,000 PPE for Border Guard Bangladesh (BGB), 50,000 masks for Dhaka Metropolitan Police (DMP), 50,000 masks and 1,400 packets of food items for Rapid Action Battalion (RAB), 50,000 masks, 500 PPEs and 700 packets of food items for Navy, 25,000 masks for DMP Traffic Division (North), 1,000 PPEs and 50,000 masks for the Directorate General of Medical Service (DGMS) to tackle the coronavirus situation.

Source: https://today.thefinancialexpress.com.bd/stock-corporate/bashundhara-group-provides-masks-ppe-to-ansar-vdp-1589383667