Economy to experience slowdown in next 1.5 yrs
Global ratings agency Moody’s has predicted the economic activity in Bangladesh will decelerate sharply over the next 18 months in the aftermath of COVID-19 outbreak. The Moody’s projected that the real gross domestic product or GDP growth will slow to 4.6 per cent in fiscal 2020 and to 4.2 per cent in fiscal 2021. The ratings agency, however, expects this situation to be temporary, with supply chains and demand starting to recover later in the fiscal year 2021. Bangladesh is rated Ba3 with a stable outlook further, according to the Moody’s analysis. The credit rating agency has rated Bangladesh’s outlook as stable for the past 10 consecutive years, according to officials. These levels are much higher than those in the private commercial banks, which have around 5.0 per cent NPLs and 10 per cent classified as rescheduled and restructured. Financial stability or contingent liability risks arising from the weak state lenders are nevertheless lower than implied by the high NPLs and low capital adequacy ratios. The loan market share of state-owned banks has declined to below 20 per cent of total banking system advances, as private commercial banks have been responsible for the bulk of credit growth. On February 24, the central bank instructed all banks to fix a maximum of 9.0 per cent interest rate on loans as part of the government step to bring down the rate to a single-digit from April 01.
PC to place Tk 2.05tn ADP for next FY today
The Planning Commission (PC) is set to place a Tk 2.05 trillion worth of Annual Development Programme (ADP) before the National Economic Council (NEC) today (Tuesday) for getting approval. Some 10-15 senior cabinet ministers, PC members and high officials will also attend the meeting. According to the PC, it is going to propose some Tk 1.346 trillion fund from internal resources and the remaining Tk 705 billion from external resources as the project aid (PA) for the Tk 2.05 trillion upcoming ADP. The transport sector is likely to receive the highest allocation, followed by physical infrastructure, water supply & housing, power, education & religion and science and ICT sectors respectively. The transport sector may get the highest allocation of Tk 521.83 billion in the upcoming ADP. Then the physical infrastructure, water supply & housing sector is going to receive Tk 257.94 billion, power sector Tk 248.03 billion, education & religion sector Tk 233.89 billion, and science and ICT sector Tk 184.47 billion. The proposed Tk 2.05 trillion worth of ADP for the next fiscal is only 1.0 percentage points higher compared to that of the outgoing FY2020. The size of the current FY2020 ADP is Tk 2.027 trillion. The allocation for the current year was 17 per cent higher than that of Tk 1.67 trillion outlay in the last FY2019. The NEC early March this year trimmed down the ADP to Tk 1.93 trillion from its original size of Tk 2.027 trillion due to the poor implementation rate. The government ministries and agencies implemented only 45 per cent of the total revised ADP in the last nine months (July-March) of the current FY2021.
14 banks sign deal with BB
Fourteen banks on Monday signed separate agreements with the Bangladesh Bank to disburse Tk 150 billion in loans as part of refinancing facilities to support implementation of the stimulus package for large industries. The banks are Sonali Bank, Rupali Bank, Agrani Bank, Mercantile Bank, Dhaka Bank, Southeast Bank, Trust Bank, Shahjalal Islami Bank, One Bank, South Bangla Agriculture and Commerce (SBAC) Bank, NRB Commercial Bank, NRB Global Bank, Union Bank and the Commercial Bank of Ceylon PLC. To support implementation of the bail-out package announced by the Prime Minister, the Bangladesh Bank has formed a Tk 150 billion revolving refinance scheme, according to banking sources. Of the nine per cent interest, the government will provide 4.5 per cent as a subsidy, and the remaining 4.5 per cent will be paid by the borrowers.
Prime Bank’s earnings up by 22pc in 2019
Prime Bank Limited has recorded operating profit of Tk 6.95 billion in 2019 on solo basis which was Tk 5.72 billion in the previous year, registering a growth of 22 per cent. The bank has also recorded a net profit after tax of Tk 2.0 billion in 2019 on solo basis, which was Tk 2.19 billion in 2018. The bank reported EPS of Tk 1.77 for the year ended on December 31, 2019 on solo basis which was Tk 1.93 in the previous year. Its net asset value (NAV) per share was Tk 23.65 in 2019 which was Tk 23.12 a year ago. The bank’s net operating cash flow per share (NOCFPS) was Tk 0.98 in 2019 which was Tk 2.86 in negative in 2018.
BSMA seeks Tk 30b loan from stimulus package
The steel sector in Bangladesh has incurred approximately Tk 30 billion losses in March-April this year due to a drastic fall in demand and halt in steel production for coronavirus pandemic. Bangladesh Steel Manufacturers Association (BSMA) Chairman Manwar Hossain said this at an online press conference in the capital on Monday. The association also sought Tk 30 billion as loan from the government’s COVID-19 stimulus package for steel manufacturers to help them continue their business and pay wages for 0.3 million people employed in this sector. The BSMA leaders cautioned that the sector may suffer a total of Tk 150 billion loss in 2020 if steps are not taken by the government immediately to give them the financial support.
Local and Global Stock Indices *
|Index Name||Close Value||Value Change||Percentage Change|
|↑ 911.95||↑ 3.85 %|
|FTSE100||6048.59||↑ 248.82||↑ 4.29 %|
|Nikkei 225||20533.81||↑ 400.08||↑ 1.99 %|
World Commodities *
|Commodity||Close Value||Value Change||Percentage Change|
|Crude Oil (WTI)||$ 32.55||↑ 0.73||↑ 2.29 %|
|Crude Oil (Brent)||$ 34.97||↑ 0.16||↑ 0.46 %|
|Gold Spot||$ 1735.35||↑ 2.80||↑ 0.16 %|
Major Currencies Exchange Rates Movement in Last Seven Days *
|USD 1||BDT 83.3316|
|GBP 1||BDT 101.237|
|EUR 1||BDT 90.4611|
|INR 1||BDT 1.10676|
*CURRENCIES AND COMMODITIES ARE TAKEN FROM BLOOMBERG.<